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Investment & Legal Framework
The Public Private Partnership policy in Zambia
was promulgated in 2007 and launched in November
2008, while the act was enacted in August 2009.
A Public Private Partnership is a contractual arrange-
ment whereby the Private sector performs government
functions of service delivery or infrastructure develop-
ment or uses state property and assumes associated
risks for the property, on behalf of the Government for
a defined and agreed period of time. The Private sector
in return receives financial remuneration in form of con-
cession fees, user fees, or any other form of repayment
that maybe agreed upon with the government.
In this process the government retains a significant role
in the partnership as the main purchaser of the services
or the main enabler of the project. The government’s
vision for Public Private Partnerships is to use them as
a vehicle to achieve well-developed and maintained
high-quality socio-economic infrastructure and related
services that enhance the lives of the Zambian people,
and effectively contribute to National Development.
The Primary objectives of the Public Private Partner-
ships are:
a) Facilitating government service delivery
b) Public debt reduction
c) Promotion of Public sector saving
d) Value for Money
e) Efficiency in Public sector delivery
f) Attraction of Private sector and service investment.
Public Private Partnerships seek to:
a) Forge strategic partnerships with the Private sector
for improved service delivery and infrastructure Devel-
opment to attain Economic Recovery through compe-
tiveness and innovation.
b) Enhance transparency accountability equity fairness
and value for money in infrastructure development and
service delivery in partnership with private sector to at-
tain economic recovery through competitiveness and
innovation.
c) Supplement fiscal revenues and expenditures
through appropriate risk transfer to the private sector
to attain economic recovery through Competitiveness
and innovation.
d) Develop, maintain and manage public assets ef-
ficiently by private sector in order to attain Economic
recovery.
The Zambian government now intends to undertake
PPP projects across various sectors of the Economy. In
accordance with the act the government has approved
the following projects to be considered for financing un-
der the Public Private Partnership model:
1.Development of the Kazungula, Kasumbalesa, Mwa-
mi, Kipushi and Jimbe border post infrastructure on a
build, operate and transfer (BOT) arrangement;
2.Development of the Kitwe-Chingola road on a BOT
arrangement;
3.Development of the Chingola-Solwezi, Solwezi-Lum-
wana, Lumwana-Mwinilunga, and Mwinilunga-Jimbe
on a BOT arrangement;
4.Development of the Chirundu-Kafue road on a BOT
arrangement.
In addition, within the same PPP model, the govern-
ment intends to carry out a study in order to ascertain
the various options available to rehabilitate the Indeni
Petroleum Refinery and the Tazama pipeline—ideas of
whether to rehabilitate the current refinery, expand it, or
to redesign the pipeline in order for it to transmit finished
products are being discussed at the moment through
such a partnership. All of these options will be carefully
studied in order to map the way forward for Indeni and
the Tazama pipeline.
Other Sectors with potential PPP projects in Zambia
include the following:
• Housing and estate
• Office accommodation
• Health
• Education
• Social benefit scheme
• Correctional facilities
• Road infrastructure
• Agriculture
• Energy
Furthermore The Public Partnership Unit is in the pro-
cess of formulating a master plan, which will be devel-
oped within the framework of the Sixth National Develop-
ment Plan. It will also provide an update on all projects
that are being implemented under the PPP model, and
will contain information on all possible future eligible PPP
projects identified by both government and the private
sector.
The Ministry of Finance and National Planning further
plans to embark on vigorous sensitization programs
aimed at explaining to the public how Public Private Part-
nerships work. The programs will provide information on
the roles of the Public sector, the Private sector, the finan-
cial markets and the banking sector. The sensitization
programwill be targeted at parliamentarians, the govern-
ment ministries, and other spending agencies, including
the private sector, financial institutions, and the communi-
ties where these PPP projects will be implemented.