South Africa is proudly amongst the leading countries in the world in the law, policy and systems we have established for public private partnerships. Our public service delivery record has been enriched through PPPs in recent years, and our PPP project pipeline continues to grow, both in numbers and in the innovative value-for-money solutions it contains.
National Treasury’s PPP Manual is indeed a world first. It systematically guides public and private parties through the phases of the regulated PPP project cycle for national and provincial government, unpacking policy and providing procedural clarity as it does so. It draws on South African project experience to date and on best international practice, without infringing on the authority of accounting officers and authorities. It sets rigorous risk-assessment standards by which government will make affordable project choices that best leverage private investment for quality public services. Importantly, the PPP Manual contains a code that will go a long way to achieving broad-based black economic empowerment in PPPs, not only in the equity and management of the contracted private parties, but in their subcontracting and in the projects’ local socio-economic impacts.
Together with Standardised PPP Provisions, the PPP Manual is a powerful tool in South Africa’s ongoing quest to tackle poverty and grow our economy. Where the transfer of financial and operating risk to a private partner through a PPP gives us an affordable, cost-effective solution for a service, we will pursue it. We will continue to learn as we go forward, mindful of the opportunities that PPPs present to galvanise the commitment that drives such a wide range of South Africans to play a meaningful role in our unique development agenda.