Government to review PPP framework
The government plans to revive and increase the use of public-private partnerships (PPPs) and other mechanisms to draw in the private sector to deliver its planned massive R2.3 trillion infrastructure investment programme, aimed at stimulating the economy post-Covid-19.
The other mechanisms include build-operate-transfer (Bot) and build-own-operate-transfer (Boot) project delivery methods.
Minister of Public Works and Infrastructure Patricia de Lille confirmed last week the government is currently reviewing the PPP legislation, saying that these partnerships should be used more.
“We are also looking at [Bot] and [Boot mechanisms]. We need a mix in how we engage with the private sector,” she said during a virtual panel discussion on Gautrain’s contribution to socio-economic development and impact to society.
De Lille admitted that PPPs have not been that successful in South Africa, with the Gautrain one of the exceptions.
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“Only 2% of infrastructure projects are successful PPPs and we are reviewing quite a complex piece of legislation to make it more workable and easier to have PPPs,” she said.
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