4 March 2014

Uganda: PPP Law Gains Traction

Legislators are putting final touches to the amendments to the Public-Private Partnership Bill 2012 as they prepare to report to the speaker in less than a month.

The passing of the bill will help create some order in an economy where some of the biggest infrastructure projects are to be undertaken under a public-private partnership model. Under this arrangement, the government and the private investor share the burden of undertaking a project.

Among the key issues in the bill is the creation of a unit to oversee the implementation of public-private partnerships. John Crothers, a lawyer and consultant with the ministry of Finance, said the creation of the unit would "help reduce transactional costs."

The unit will help with project selection, development, tendering and management. He was speaking at a sensitization workshop for members of parliament at the Lake Victoria Serena hotel.

Projects such as the 600MW Karuma power dam are to be undertaken under the public-private partnership.

According to a recent Deloitte report, titled African Construction Trends Report 2013, only four per cent of the total projects are jointly owned by governments and public-private partnerships (PPPs), with most funding still coming from development finance institutions.

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