The Government of Namibia has made steady progress towards the PPP agenda. The National PPP Policy was approved in 2012 and PPP Directorate is functional within our Ministry of Finance.
We embrace the dichotomy that through PPPs we channel relatively expensive private capital for developing the projects that would serve the public at large, where affordability will be an important consideration.
PPP projects are a suitable solution as we derive substantial efficiencies from the involvement of the private sector.
Value for Money is enhanced by the two fundamental principles of output orientation and competitive procurement.
We undertake PPPs because we are able to facilitate projects that are additional to the scope of public funds.
We place an emphasis on PPPs that have a potential natural revenue inflow base.
Our PPPs contracts in most cases create financial obligations for the government in the form of ‘direct’ funding commitments or ‘contingent’ liabilities.
Core principles of value for money, affordability, and competitive procurement are adhered to in order to ensure PPPs that are successful and are in public interest.
By emphasising on clear and upfront output requirements, we allow for the private sector participation to bring about innovation and come up with the most efficient means to achieve these outcomes.
Such efficiencies are brought about by the private sector utilising the most suitable technologies, innovative design, superior operations or a combination of these factors.
We have clear output specifications provide the ground work for competitive procurement, where the government invites competing commercial offers from firms that are assessed to be technically and financially competent to develop the project at hand.
We believe in a competitive bidding scenario, private sector firms seek to explore the most efficient sources of finance (including concessional loans from their host countries of development finance institutions) and importantly, have conservative profitability expectations.
Principles or risk transfer and performance-based payments would necessarily need to be satisfied.
