Private Partnership to address infrastructural gaps

INFRASTRUCTURE

The state minister for finance, Gabriel Adjedra has appealed to African governments to embrace Public-Private Partnerships (PPP) as a new model for infrastructure financing and development.

He said the continent's infrastructure needs have been growing very fast over the years, yet there are many competing demands for the resource envelope.

Ajedra said statistics indicate that current infrastructure funding needs for the continent stand at between $130b (sh477trillion) to170Bn (sh623.9trillion) a year, which cannot be fully met by conventional funding means.

"A time has come that we cannot depend on the traditional model of funding for infrastructure development as a country and as a continent. Therefore, it is high time we refocused our attention on PPPs to optimize the private sector's potential," he said.

He made the remarks last week, during the pre-launch of an upcoming high-level Public-Private Partnerships (PPPs) conference set for 16th to 18th September.

The conference is being organized by the United Nations Economic Commission for Europe (UNECE), the United Nations Economic Commission for Africa (UNECA) and the government of Uganda.

He said through PPPs, African governments can build and improve their infrastructure and boost management efficiency without overburdening their public finances.

He said in Uganda, the government is cognisant of the fact that PPPs are a model that can expand and address the challenges of infrastructural gaps in the country.

"Uganda is ready to implement a number of projects with the help of PPPs and already, we have put an enabling environment in place," he said.

He said the government has fully constituted a PPP committee in the ministry of finance and operationalized it to provide oversight of the PPP programs in the country.

He said other critical elements the government has established for PPP implementation include the guidelines, PPP project pipelines of fast mover projects, and an investment tool for attracting private sector participation into PPP space.

According to the World Bank's Uganda Economic update for 2017, the country has an annual infrastructure funding shortfall of nearly $1.4bn (sh5.14trillion) equivalent to about 6.5% of its GDP.

In 2010, the government adopted the Public-Private Partnership Framework Policy, aimed at stimulating efficient development of public infrastructure and an increase in economic growth and foreign direct investments.

In recent years PPPs have been used by the government to acquire and develop nationwide infrastructure as well as offer opportunities to improve service delivery.

The lead Infrastructure Specialist for the United Nations Capital Development Fund (UNCDF) Dr. Anania Mbabazi welcomed the PPP initiative, saying they will help the continent achieve the Sustainable Development Goals.

"The SDG agenda requires an enhanced approach to PPP to ensure that their outcomes are consistent with the SDGs and are fit for purpose, and deliver value for the people," he said.

UNECE vice-chair, bureau of the working party on PPPs, Beatrice Florah Ikilai said following the deep shortfall in national budgets, African governments should turn to PPPs as an alternative to bridge the financing gap.

"The event will provide a platform for Africa governments to pitch country projects and private sector players will have an opportunity to identify critical infrastructure projects for investment," she explained.

She added that Uganda as a country will be recognized as one of Africa's leading PPP implementers and topmost investment destination.

The conference will be solemnized by the president of Uganda Yoweri Kaguta Museveni, with high-level representation from the World Bank, AFDB, African Union and Global Infrastructure Hub, among others.