03 Apr 2022

There is currently no council that has utilised the Public Private Partnership (PPP) model.

Responding to a parliamentary question recently, local government and rural development assistant minister, Mr Sethabelo Modukanele said the ministry had also not received any council projects that would use the Public Private Partnership model in the current financial year.

However, he said for the NDP 12, councils had been encouraged to include Public Private Partnership project proposals.
“Given that councils have not implemented any projects under the PPP model, challenges if any, will only arise as implementation ensues. It must be noted that some private investors have shown interest in projects that are commercially viable and as indicated by Minister of Finance and Economic Development in the 2022 Budget Speech, the ministry is developing guidelines to facilitate ministries and councils in the implementation of Public Private Partnership  projects,” he added.

Again, he indicated that in the meantime, the ministry continued to engage with relevant stakeholders, including the finance ministry, to sensitise and build capacities in councils to understand Public Private Partnership principles, including conclusion of development of guidelines they would use going forward.

Bobonong MP, Mr Taolo Lucas, had asked the minister to state the number and list of councils that had utilised the Public Private Partnership model and in each case the type and number of projects they embarked on.

Mr Lucas also wanted an update on council projects that would use the Public Private Partnership model in the current as well as next financial years.
He also requested the minister to outline challenges faced by councils in the use of the Public Private Partnership model and how they were addressed. ENDS