Public Private Partnership in SADC – Case of Botswana
The SADC-DFRC was instrumental in the establishment of the PPP Unit for the government of Botswana. Its PPP Policy is a product of The Privatisation Master Plan which was adopted by government in 2005. It identified PPP as one of the strategies that will be used for private sector participation in the provision of infrastructure services, especially as it relates to new projects. The Master Plan recognised the need for the development of a clear policy on the implementation of PPPs, the establishment of a legal and regulatory framework that promotes commercial and innovative approaches to service delivery, as well as developing competitive bidding and procedures and guidelines specific to PPPs.
In 2006, the Public Enterprises Evaluation and Privatisation Agency (PEEPA) went ahead to develop an implementation strategy for the PPP programme in Botswana, informed by among others a review of international best PPP practices and an analysis of the application of those best practices within an African country context.
Challenges of PPP
As the procurement process is lengthy and costly, it is understood that PPPs require complex contractual arrangements due to these. This, therefore, would mean that both government and the private sector will require capacity and skills to undertake PPP procurement and to implement and manage PPPs. Both parties should always engage personnel with relevant skills to undertake projects. Most failures of PPPs, it has been observed, are linked to lack of the needed skills and capacity to implement PPP projects.
Economist Dr Keith Jefferis when interviewed by the Patriot on Sunday Newspaper, said one of the main challenges of the PPP is that its contracts are very complex. He said the challenge would be exacerbated if the project would also entail service delivery, giving an example of a hospital or a school where the private sector would also be required to provide services of those hospitals and schools. “If it is just a building, for example, a road, or any sort of infrastructure, it would be quite straight forward,” he said in an interview. Dr Jefferis, who is also former Deputy Governor of Bank of Botswana (BoB), said government has to study contracts before committing to be sure of how it is spending and how to avoid a situation where government ends up paying more than initially calculated.
However, Dr Jefferis said some of the benefits of the PPP are that government literally has got nothing to do on projects being carried out under the PPP, saying responsibility of construction, maintenance and servicing of the project will rest with the private party and this would lead to efficiency in delivery of key infrastructure. Since PPPs are complex by their nature, Dr Jefferis said this would bring the needed international expertise, adding that PPPs cover a wide range of projects which are commonly complex.
