Maravi

PSD bemoans lack of legal monitoring body for PPP projects

PSD bemoans lack of legal monitoring body for PPP projects
By Chiwoyu Sinyangwe
Friday September 19, 2008 [04:00]

THE Private Sector Development (PSD) has noted that projects under the Public Private Partnership (PPP) have not performed to expectation due to lack of a legal framework for monitoring and implementation.

PSD coordinator for the PPP Working Group Muondela Mukele also said the biggest challenge being faced in the synchronisation of public-private efforts in infrastructure development was the balance between commercial interests of private investors and government’s need to provide social services.

Addressing journalists during a breakfast meeting in Lusaka yesterday, Mukele said lack of a legal framework has resulted in project implementation being tilted towards the private sector at the expense of public interest.

She however stressed that PPPs would help to resolve some of the challenges the country was facing in terms of infrastructure development.

Some of the PPP projects that have raised controversy in their implementation included the concessioned Railway System of Zambia (RSZ), Mpulungu Harbour, the newly constructed Kamwala and Town Centre markets, both in Lusaka.

“The generally accepted standards are that, PPP projects, be it, BOT (Build, Operate and Transfer) are supposed to be between 15 to 30 years but for some unknown reasons, some of the agreements are for 65 years…but of course I can’t give a comprehensive statement on the matter because we have not yet looked at those contracts,” Mukele said. “But those are some of the things we are looking at. So far, one of our achievements has been the drafting of the PPP policy document which is before Cabinet and also the drafted Bill which is under the Ministry of Justice.”

Mukele however noted that the PSD had not yet done an evaluation of the implementation of projects that were currently under PPP, but stressed that the legal framework that was being worked on would enhance transparency and improve efficiency.

Labels: PPPs, PSD

posted by MrK @ 4:30 AM