The Civil Engineering Contractor October 2018 | Page 6

policymakers
PPPs can unlock infra projects
such conflicts arise is typically in the fact that the private
sector’s primary motivation is the making of profit, while
government’s is not — but rather to provide a social
service. Yet there need not be a conflict between these two
objectives,” says Maganedisa.
The framework was the product of a highly consultative
process including the construction sector, banks, legal
practitioners, and the UK’s equivalent PPP unit. One of
the requirements is for accountability and predictability: the
private sector has to know that if government takes a certain
decision today, it will take the same decision in the future.
“The framework is a guiding tool to anyone venturing into
this area,” he says.
Other parts of the frameworks include practice notes on
Preferential Procurement and Unsolicited Bids. A practice
note also lays out the bidding process, which involves a two-
stage process: RFQ and RFP, which are aimed at giving the
market confidence that Treasury will shortlist three bidders,
thereby reducing the bidding cost so that chances of winning
is 1:3 compared to the 1:70 it previously could have been.
The framework also provides for payment of a ‘unitary
PPP framework
fee’, which means once the project has been approved, that
“The process is underpinned by our PPP framework, which
unitary fee becomes part of the project cost (and therefore
has established the procedures, rules, and processes of public-
recouped). The framework also provides that the contracts
private partnerships (PPPs). The framework outlines the
relating to all successful bids have legal standing and there
respective institutional and private investor responsibilities
can be no argument that the signatory was not authorised.
— where they begin and where they end, and also covers
“We also make sure that whatever is transferred to
how government selects, implements, and manages projects
the private sector is legally capable of being transferred.
and enables parties to manage conflicts of interest. Where
This is being achieved through a separation of powers —
National Treas