CEDA Presentation
Role of PPPs, JV Partnerships, in fast
tracking FDI attraction and growth of
exports by Botswana as well as
financing and JV Partnerships
Overview
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Public Private Partnerships Defined
Public Private Partnerships – Exclusions
Attractiveness of Botswana Infrastructure
Francistown City Council Objectives
FCC PPP Pipeline Projects - Opportunities
Importance of JVs
Associated Risks of JVs
Key Players
Public Private Partnerships Defined
• Public Private Partnerships (“PPPs”) are (as defined by World
Bank):
– Between the public and private sectors
– Includes the provision services that fall under the responsibilities of the
public sector that are provided by the private sector
– With a clear agreement on shared objectives for delivery of public
infrastructure and / or public services
Utility
Restructuring
Corporatization
Decentralisation
Civil
Works /
Service
Contracts
Management
& Operating
Contracts
Leases
Affermag
e
Concession
s
BOT
Projects
DBOs
Low
JV / Partial
Divesture
of Public
Assets
Full
Divesture
High
Extent of Private Sector Participation
Public Private Partnerships - Exclusions
• PPPs typically do not include
– Service contracts or
– Turnkey construction contracts
• These are deemed public procurement projects, or the privatization
of utilities where there is a limited on-going role for the public sector
Risk / Reward Attractiveness of Botswana
Infrastructure Sector in SSA for DFI
Industry
Rewards
Botswana
Ghana
South Africa
Namibia
Zambia
Country
Reward
SSA INFRASTRUCTURE RISK REWARD RATINGS
Reward
Industry
Country
Risks
Risks
Risk
Infrastructure
Risks R/R
Regional
Ranking
62.5
43
55.7
45
61.4
54.8
55.4
1
60
46.5
55.3
50
49.7
49.8
53.7
2
42.5
62.7
49.6
57.5
57.9
57.7
52
3
60
40.2
53.1
42.5
53.3
49
51.8
4
60
32.1
50.2
40
52.4
47.4
49.4
5
Kenya
47.5
42.8
45.8
45
49.5
47.7
46.4
6
Tanzania
57.5
33
48.9
25
47.5
38.5
45.8
7
60
23
47
35
41.5
38.9
44.6
8
Mozambique
Nigeria
35
57.8
43
35
52.6
45.6
43.7
9
47.5
29.9
41.3
50
45.4
47.3
43.1
10
55
12.8
40.2
30
51.3
42.8
41
11
Uganda
42.5
25.6
36.6
32.5
52
44.2
38.9
12
Cote d'Ivoire
42.5
22.4
35.5
40
42.2
41.3
37.2
13
45
26.9
38.7
26
25.4
25.7
34.8
14
32.5
29.9
31.6
27.5
48.7
40.2
34.2
15
10
19.2
13.2
15
23.5
20.1
15.3
16
51.7
36.3
46.3
40.6
50.5
46.5
46.4
Cameroon
Angola
Zimbabwe
Gabo n
Sudan & South
Sudan
Regional
Average
Francistown City Council Objectives

Vision 2022 highlights that Francistown aims to be a vibrant Investment
Centre

The FCC has since formed a company that will be going into business
partnerships

The FCC has created partnerships focus on Local Economic Development
(LED) with the following:
 Genk City in Belgium
 City of Taiwan in China
 Daven Port - USA
 Bulawayo in Zimbabwe
FCC PPP Pipeline Projects

The city owns a number of plots that its aims to develop through LED
partnerships

The City intends to consider the following business opportunities:
 Downstream road development from the Tonota-Francistown road ( e.g.
parking facilities-metered parking
 Transport and logistics (e.g. shuttles )
 Mining(explorations indicate large coal reserves around Francistown)
 Green electricity production
 Compacting the city to curb land shortage (PPP)
 Infrastructural development to handle expected increase in flow of
international freight upon completion of the Kazungula bridge.

Francistown has water advantage but limited land and the City plans to
liberate growth of Francistown into the Central district
Importance of JVs

Foster accelerated growth

Access to funding

Access to new markets and new distribution networks

Greater profit potential

Increased productivity

Increased capacity

Increased risk and cost sharing

Access to greater resources

Flexibility in terms of areas covered by the JV
Associated Risks to JVs
 Divergent goals between partners
 Communication: objectives not clearly communicated by both
partners could result in challenges to the partnership later on
 Imbalance in the levels of expertise & investments
 Differing cultures and management styles
 Disputes
 Insufficient leadership and support in the early stages of the JVs
 External market factors
 Changing needs / requirements in markets
Key Facilitators within the PPP Sector
• Municipal authorities
• Funding partners – Commercial Banks, Development Funding
Institutions, Institutional Investors
• Regulatory Authorities – Ministries, NBFIRA, Competition Authority,
BOBS
Thank you