PPP projects are complex, long-term investments involving many stakeholders. Though PPPs can deliver better value to taxpayers, this is only possible when they are correctly developed and effectively executed.
Government entities are responsible for implementation of PPP projects. However, the specialised nature of PPP procurement necessitates technical support being provided to the government entities, and the size of the financial commitments requires involvement of the Ministry of Finance and Economic Development in addition to the Public Procurement and Assets Disposal Board (PPADB) and the Competent Authority (under the Local Authorities Procurement and Asset Disposal Act) statutory oversight of the procurement processes.
Accordingly, the institutional framework for implementation of PPPs in Botswana is as follows:
The sector ministries with their departments and public enterprises (parastatals) have the primary responsibility for service delivery. As such they are responsible for implementation of PPP projects. This involves identifying projects, project development, and PPP procurement, managing and monitoring their PPP projects.
The sector ministries will establish a PPP Project Team for each project to oversee project implementation. A PPP Transaction Advisor and other relevant experts will provide technical assistance to the sector ministries during project implementation.
Public Procurement and Asset Disposal Board
PPADB is responsible for the statutory oversight of the PPP procurement process to ensure the integrity of the procurement process.
Ministry of Finance and Economic Development
Ministry of Finance and Economic Development is responsible for planning and coordination of PPP projects, providing technical assistance, advice and guidance during project implementation, supporting PPP capacity building in the sector ministries and PPP advocacy and public education/awareness. The ministry is also responsible for the approval process of PPP projects including making provisions for necessary finances and ensuring that such finances will be available during the life of the project.
A PPP is essentially a specialised form of procurement, albeit one that involves a detailed procurement process and substantial financial commitment by Government over a longer time frame. The legal and regulatory framework is therefore embodied in the Public Procurement and Asset Disposal Act for central government projects and the Local Authorities Procurement and Asset Disposal Act for local authorities’ projects.
Under these laws, specific regulations will be adopted to govern the procurement of PPPs within the overall legislative framework. Standard documents for covering the various PPP process will also be developed to ensure standard application of the PPP process.
PPP projects will also be regulated by the various sector specific laws and regulations as well as the Public Finance Management Act.