• No products in the cart.
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.

Share With:
Rate This Article


No Comments

Leave A Comment