Zambia Investment Forum (2011) Kuala Lumpur, Malaysia PUBLIC PRIVATE PARTNERSHIPS FRAMEWORK IN ZAMBIA: PRESENTED BY: Mr. Hibene Mwiinga, Deputy Director of National Policy and Programme Implementation MINISTER OF FINANCE AND NATIONAL PLANNING MOFNP OUTLINE: PPP Policy and Legal Framework What is PPP Agenda in Zambia Objectives of PPPs in Zambia Background of PPP in Zambia Pipeline of PPP Projects Key elements of a PPP project Unsolicited Bids Challenges Investment Opportunities in Communications and Transport Sectors MOFNP Policy and Legal Framework PPP Policy approved in 2007 PPP Act enacted in August 2009 MOFNP What is the PPP Agenda in Zambia? To enhance Economic Development in the Country through partnerships between Govt and Private sector; To support the National Vision of the Country which is to make “Zambia to a Prosperous and Middle-Income Country by 2030”; PPPs present a Paradigm shift in way of doing business in Zambia; MOFNP Rationale of taking the PPP route in Zambia Facilitation of Government Service Delivery Public Debt Reduction Promotion of Public Sector Savings Project Cost Savings Value for Money Efficiency in Public Sector Delivery Attraction of Private Sector in Public Goods & Services Investment MOFNP Background of PPPs in Zambia • PPPs are a „recent‟ phenomena in Zambia • Old and classic examples – Zambia Railways Line (Cape-Cairo dream by Cecil Rhodes) – TAZAMA • More recent examples – Railway Systems of Zambia (RSZ) Concession – Urban Markets (BOT) – Maintenance of the Government Complex (Maintenance Service) MOFNP Opportunities Investment in Zambia pipeline projects • Multi-Facility Economic Zone (MFEZ); • Modernisation of the Zambia International Trade Fair facility in Ndola; • Construction of an Ultra Modern Convention Centre in the Livingstone (Tourist Capital of Zambia) MOFNP Opportunities Investment in Zambia pipeline projects Development of an Air Cargo and logistics centre in Lusaka adjacent to the MFEZ; Development of a various Inland Ports and Logistics Centres at:- Chipata Kapiri-Mposhi Development of Railway Projects Chipata-Tazara Railway Connection (TAZARA Corridor) Livingstone – Kazungula- Sesheke (North-Corridor) Kafue-Lions Den (Beira Corridor) Intra-City Lusaka mass transit system ( Njanji commuter) MOFNP Opportunities Investment in Zambia pipeline projects Proposed Roads Projects • Dualling and Tolling of T2 Kapiri-Nakonde road 1,140km (North- South Corridor) • Dualling and Tolling of Chipata-Lundazi-Isoka road 550km • Kasama-Mansa-Mufulira road 780km • Mpulungu- Mbala-Nakonde-Nyala Road Project Roads Under Procurement ◦ Kitwe-Solwezi-Chingola-Mwinilunga-Jimbe rd (Lobito Corridor); ◦ Dualling and Tolling of Livinstone - Ndola (North-South Corridor) ◦ Dualling and Tolling of Chirundu-Kafue rd (North-South Corridor) MOFNP Opportunities Investment in Zambia pipeline projects Airports Extension of Lusaka International Airport Energy ◦ Kafue Gorge Lower Hydro (DBOT) 600 MW ◦ Petroleum Importation, refinery Study ◦ Itezhi-Tezhi ◦ Various Mini-Hydros such as ◦ Kabompo, ◦ Mombututa, ◦ Mambilima, ◦ Zambia-DRC Transmission line. ◦ Chishimba MOFNP Other Pipeline of PPP Projects Information and Communication Technologies • ICT Parks in the MFEZ; • E – Governance programme Housing • A National deficit of 1,6 million exists in Zambia and is begging for Investment • Low and medium cost Housing • High rise building MOFNP Pipeline of PPP Projects Agriculture Farm blocs Multi-polar Cotton Cluster Development; Irrigation schemes MOFNP ZAMBIA Unsolicited Bids • Contracting Authority receives unsolicited bid; • Undertake preliminary evaluation; • Advertise the unsolicited proposal for competitive proposals for the same project; • Evaluate the new bids and compare • Contracting Authority may – Accept original unsolicited bid; – Request the originator to match any competing bids and if so award to the originator; – Reject the unsolicited bid and accept competing bid; – Accept both the originator‟s and competing and negotiate terms MOFNP Challenges Limited Local Capacity to undertake PPP Projects; Limited Local Capacity to finance PPP projects by Commercial Banks and Development Financial Institutions; Post HIPC Country Conditionalities Heightened expectations for PPPs as a Panacea to long standing Developmental problems Mofnp Investment Opportunities in Communications and Transport Transport Sector Transport Infrastructure in Zambia is being developed to serve both national and regional economic communities including COMESA, SADC and EAC as a „spoke and hub‟ network for transportation of goods and passengers. This is mainly through development of Railways, Roads, Air and Water Transport networks via trade development corridors under spatial development initiatives. This initiative connects Zambia‟s local transport networks with those in its region hence promoting both domestic, regional and international trade. RAIL PROJECTS FOR PPPs Chingola-Sol-Jimbe Nseluka-Mpulungu sprail Chipata-TZR Mpika Kafue-Lions Den Livingstone-Katima M RSZ TAZARA TAZARA PROPOSED RAILWAY PROJECTS S/N PROJECT DESCRIPTION OBJECTIVE STATUS 1 Kafue-Zambia to Link to Port Beira in Develop shortest Need for feasibility Lion‟s Den in Mozambique via railway access to study and Investor Zimbabwe Zimbabwe sea for Zambia on BOT basis 2 Railway link with Link Livingstone and Join Lubumbashi SADC & DBSA Zambia-Botswana Katima Mulilo via Corridor to Walvis showing strong and Namibia Kazungula and Bay Corridor support for this connect to the project. Need for Namibian System at full feasibility (Border) studies 3 Njanji Mass Urban Rehabilitate and To decongest the Need for feasibility Transit Train (14km) upgrade the Njanji centre business study and Investor Urban Transit Railway district of Lusaka on BOT basis Service by providing alternative urban transport 4 Chingola to Jimbe Link the RSZ line in Build railway line Need for feasibility (Border with Chingola through to support the new study and Investor Angolan) in North– Solwezi to the boarder mines in North on BOT basis Western Province town of Jimbe then to Western Province the Port of Lobito(Angola). AIR TRANSPORT PROJECTS S/N PROJECT DESCRIPTION OBJECTIVE STATUS 1 Develop an develop an To make Zambia a Need for International air International Air regional center of feasibility study hub logistics Hub Logistics excellence for the and Investor on center and Center and Inland distribution of air BOT basis inland port Ports cargo and management of inland dry ports 2 Upgrade Ndola Rehabilitate and To modernize the Airport and Mfuwe upgrade the two airports & enhance Infrastructure International international their capacity to Master Plan Airports Airports support the tourism available, seeking sector developer on PPP basis INLAND PORTS TO SUPPORT THE RAILWAY AND ROAD NETWORK S/N PROJECT DESCRIPTION OBJECTIVE STATUS 1 Kapiri Mposhi Develop an inland To increase Need pre- Inland Port logistics port at logistics capacity feasibilty studies Kapiri Mposhi at Kapiri Mposhi and Investor on PPP basis 2 Chipata Inland Dry Construct a Dry To increase Pre-feasibility Port Port Road and logistics capacity study available. Railway Transport at Chipata to EU funding logistics in facilitate trade on detailed feasibility Chipata Nacala Corridor. & designs. Need a This will developer immediately serve the newly developed Chipata/Mchinji Railway Line WATER TRANSPORT S/N PROJECT DESCRIPTION OBJECTIVE STATUS 1 Commercial Boat Acquisition of Large To Need an Services Provision on Craft Vessel to commercially investor on PPP Lake Tanganyika operate on Lake service Lake basis. Tanganyika Tanganyika facilitate trade 2 Inland Water Provide technical To improve 1700Km of Transport Service support and inland water Canal Provision equipment (vessels) transport waterways services serving 3 provinces INFORMATION AND COMMUNICATIONS TECHNOLOGIES S/N PROJECT DESCRIPTION OBJECTIVE STATUS 1 E- Provide Technical To improve Seeking e-government Government Assistance, hardware government implementation Support and software service delivery partners, following the solutions for through ICTs Indian ICT development implementation of e- model government THE END THANK YOU! MOFNP.