Proposed policy framework for Government shareholding/equity in public-private partnerships approved

21 May, 2024 - 19:05 0 Views
Proposed policy framework for Government shareholding/equity in public-private partnerships approved Vice President Dr Constantino Chiwenga

The Sunday News

Judith Phiri, Business Reporter

CABINET has considered and approved the proposed policy framework for Government shareholding/equity in public-private partnerships, which will ensure value for money and to safeguard the national interest.

Since the inception of the Zimbabwe is Open for Business mantra, the country has witnessed an increase in private sector players who wish to partner and do business with Government and Government-owned public enterprises in the rehabilitation of all major roads, railways and other related infrastructure.

Vice President Dr Constantino Chiwenga presented the policy framework that will guide private sector participation in public-private partnerships.

In a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere said the policy framework provides guidelines for four categories of projects.

“The policy framework by Government, therefore, will guide private sector participation in public-private partnerships as prescribed under the Zimbabwe Investment and Development Agency (ZIDA) Act [Chapter 14:38] and the Public Procurement and Disposal ofPublic Assets Act [Chapter 22:23]. The objective of the policy framework is to ensure value for money and to safeguard the national interest,” he said.

“The policy framework provides guidelines for categories of projects, namely Public-Private Partnerships for Infrastructure Development; Public-Private Partnerships for Commercial Purposes; Public-Private Partnerships where Government holds an Asset; and Non-Performing Public-Private Partnership Projects.”

He said Public-Private Partnerships for Infrastructure Development are social or service projects such as roads, railways and border posts, where the asset remains with Government, while revenue sharing arrangements under this category should be at least 30 percent minimum and Government should be represented in the Management Committee.

The Minister said 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 Government having a minimum of 26 percent equity shareholding.”

Dr Muswere said 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 percent, while a Joint Venture Agreement will be entered into with the private investor.

He said the 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, all Public-Private Partnerships will be guided by the policy framework and a manual subsequently issued,” he said.

 

 

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