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HomeCurrent AffairsGovt puts PPPs on spotlight

Govt puts PPPs on spotlight

Infrastructure works

Govt puts PPPs on spotlight

By Vimbai Kamoyo

The government is set to review the public-private partnerships, it is engaged to review whether they are of any benefit to them or not.

The government wishes to terminate any non-functional PPPs, this was revealed in the cabinet this week.

Addressing media personnel in Harare, Information Minister Jenfan Muswere said this was to safeguard national interests.

“Non-performing Public-Private Partnerships will be assessed for viability or non-viability, with the viable ones being re-negotiated, while non-viable ones will be recommended for termination.

Going forward, the entire policy framework will guide all Public-Private Partnerships and a manual subsequently issued,” he said.

Muswere also looked at the other policy guidelines the government is using in the area of PPPs.

“Public-private partnerships for Infrastructure Development are social or service projects such as roads, railways, and border posts, where the asset remains with the Government.

Revenue-sharing arrangements under this category should be at least 30% minimum and Government should be represented in the Management Committee.

“Public-Private Partnerships for Commercial Purposes are when a commercial Government-owned company enters into a commercial arrangement with a private investor for-profit purposes. The partnership will be implemented through the establishment of a Special Purpose Vehicle, with the Government having a minimum of 26% equity shareholding.

“In Public-Private Partnerships where Government holds an asset such as land, a mining claim or national parks, the State’s equity shareholding shall be a minimum of 26%. A Joint Venture Agreement will be entered into with the private investor,” he said.

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