The PPP Commission (PPPC) is the implementation Agency for PPPs in Malawi. We are also responsible for developing guidelines on best practices to assist sector Ministries in the roll-out of their PPP projects. The PPPC works closely with the Ministry of Finance in the review and assessment of PPP project affordability, value-for-money, feasibility, and contingent liabilities associated with PPP projects. More specifically, the PPPC provides advice and support to Contracting Authorities (CAs) in the following areas:
Development of infrastructure sector policies and strategies where necessary to accommodate private sector financing and operation of public services;
Project Identification: Support with identification of infrastructure projects appropriate for PPP, concept development and exploration of different PPP options and undertaking pre-feasibility analysis;
Feasibility studies: Undertaking technical economic and financial feasibility studies, legal, environment and social appraisals, assessment of project risks and identification of solutions to mitigate those risks. This would include support in development of financial and economic models;
Procurement process: Supervising a competitive bidding process to select the best private sector offer. Negotiation: providing support to the CA during negotiations with the private sector provider; Contract management/re-negotiation: assisting in on-going contract oversight, especially over the construction phase and assisting in contract re-negotiation that might occur over thelife of the project, including re-financing; Liaison with PPP Monitoring and Review Unit at MOF: Assisting the CAs in understanding the approval requirements (the Review function), helping them develop necessary documents for review and generally guiding theCAs through the approval process. Promotion and Capacity Building: promote PPPs in Malawi and internationally, ensures public awareness amongst all stakeholders, facilitate capacity building across the various institutions and provide guidance on PPP procedures and processes. Liaising to obtain financial support: Liaise with funding agencies and international development partners with respect to obtaining financial and technical support for PPP projects.Our History
The PPP Commission was established as the Privatisation Commission under the Public Enterprises (Privatization) Act of 1996. It started operation in April 1996 with its Head Office in Blantyre, the commercial capital of Malawi. It was established to implement divestiture of direct or indirect state interests in state owned enterprises (SOEs). The Government of Malawi embarked on the privatization programme in April 1996 after the promulgation of the Public Enterprises (Privatization) Act which has since been repealed following incorporation into the PPP Act.
The privatization programme primarily involved the disposing of existing state owned enterprises although there were occasional awards of concessions especially in the transport and tourism sectors. The privatization programme had been established upon recognising that efforts to promote agricultural and industrial development and increasing the standard of living of the indigenous population through direct market intervention had not been successful. Accordingly, the Government decided to divest its interest in commercial public enterprises and to encourage and promote private sector participation in the delivery of goods and services. Over the years the PC successfully divested or liquidated a number of SOEs. It contributed to growth of the stock exchange and increased the general public ownership of previously state-owned enterprises.
As the programme shifted more towards private sector participation in infrastructure, it became apparent that the general public was not in favour of complete sale of public assets especially those relating to infrastructure. The resistance was particularly more pronounced where land and strategic infrastructure were involved against the likelihood of acquisition by foreign investors. In reaction to this, the Government of Malawi decided to introduce an alternative policy framework for the involvement of the private sector in infrastructure development.
Following increased popularity and success stories of public private partnerships in various countries around the world and within the region, the country embraced the concept for the first time in 2005. The passing of the PPP policy in May 2011 and later the PPP Act in December of the same year as the enabling tools for implementation of PPPs. The PPP Act was made effective from 1st July 2012 having been assented to on 22nd December 2011. Following the passing of the PPP bill, the PC was renamed the PPP Commission in 2013 to spearhead the implementation of PPPs in the country.Main Benefits of PPPs
Acceleration of infrastructure provision through mobilisation of private sector capital;
Reduced whole life costs, because of private sector efficiencies;
Better incentives to perform, because a failure to perform by the private sector means payment would not be issued;
Generation of additional revenues as a result of the technical expertise possessed by the private sector and the efficiencies that would result;