Public Private Partnership (PPP)

Public Private Partnership (PPP)

We all experienced the risks exposed in 2008 (and onwards), during the global economic slowdown. Currently the Covid-19 pandemic has once again brought about renewed interest in PPP in both developed and developing countries, in fact throughout the world.

We have seen the enormous constraints placed on public resources and fiscal space on all business and public infrastructure due to the events mentioned above.  We have no choice  in affirming and recognizing the importance of investment in infrastructure to help economies grow and the establishment of partnerships to address this enormous risk being posed onto the global theatre.

We acknowledge that governments are increasingly turning to the private sector as an alternative additional source of funding to meet the funding challenges and address the critical shortfalls.

While recent attention has been focused on fiscal risk, governments look to the private sector for other reasons:

  • *Exploring PPPs as a way of introducing private sector technology and innovation in providing better public services through improved operational efficiency
  • Incentivizing the private sector to deliver projects on time and within budget
  • Imposing budgetary certainty by setting present and the future costs of infrastructure projects over time
  • Utilizing PPPs as a way of developing local private sector capabilities through joint ventures with large international firms, as well as sub-contracting opportunities for local firms in areas such as civil works, electrical works, facilities management, security services, cleaning services, maintenance services
  • Using PPPs as a way of gradually exposing state owned enterprises and government to increasing levels of private sector participation (especially foreign) and structuring PPPs in a way so as to ensure transfer of skills leading to national champions that can run their own operations professionally and eventually export their competencies by bidding for projects/ joint ventures
  • Creating diversification in the economy by making the country more competitive in terms of its facilitating infrastructure base as well as giving a boost to its business and industry associated with infrastructure development (such as construction, equipment, support services)
  • Supplementing limited public sector capacities to meet the growing demand for infrastructure development
  • Extracting long-term value-for-money through appropriate risk transfer to the private sector over the life of the project – from design/ construction to operations/ maintenance

(Source* The World Bank - PPP Public-Private-Partnership Resource Centre).

Exactly now is the opportunity for your company to engage in PPP's. With experiences ranging up to 12 years in this specialized field, we will guide your business through the process in making a difference in Southern Africa,  by developing innovative PPP opportunities and partnerships.