Private sector to contribute Shs82 trillion for project developments

Wednesday April 6 2016


KAMPALA. Private firms joining hands with government, through the public-private partnership (PPP) in developing various projects, will contribute up to Shs82 trillion alongside the government contribution.
Uganda adopted the PPP Policy in 2010, and enacted the PPP Act in 2015, as a way of effecting efficiency in development projects government undertakes.
A public-private partnership is a contractual arrangement between a public agency (state or local) and a private sector entity.

Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public.
It is also a business relationship between a private-sector company and a government agency for the purpose of completing a project that will serve the public.
Speaking at the launch of the PPP Committee at ministry of Finance premises in Kampala last week, minister Matia Kasaija said: “National Development Plan Two (NDP11) estimates that of Shs196.7 trillion required for investments in next five years, government funding will constitute only Shs113 trillion with the balance of Shs82 trillion expected to come from the private sector.”

Over the past two decades, governments around the world have embarked on radical structural reforms, encompassing restructuring and privatisation of infrastructure sectors development and a new approach to regulation.
Mr Kasaija said the development of infrastructure in Uganda has largely been through the traditional form of contracting by the central and local governments through budgetary allocations.
“This form of infrastructure development is no longer tenable. We have to look for financing partnerships with the private sector that have the potential to fill the financing gaps that we now have,” he said.

He explained that government is using the PPP modality because it has been shown in both developing and developed countries to deliver projects in a more effective, efficient and transparent manner since the private sector will be assuming many of the risks normally absorbed by the public sector in traditional procurement.
The Secretary to the Treasury, Mr Keith Muhakanizi, however, said PPP should not be confused with joint venture. “These are two different things all together,” he said.

The committee
The members of PPP Committee include the Attorney General or a person appointed by him or her in writing, the Permanent Secretary of Ministry for Finance or his or her representative who shall be the chairperson of Committee, the Permanent Secretary of the Office of the Prime Minister or his or her representative, a representative of the National Planning Authority, the Permanent Secretary responsible for lands or his or her representative, the Permanent Secretary of the Ministry responsible for local governments or his or her representative, four persons who shall not be public officers, and a director appointed according to the prescribed Act.