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
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
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Policy and Legal Framework
PPP Policy approved in 2007
PPP Act enacted in August 2009
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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;
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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
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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)
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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)
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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)
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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)
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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
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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
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Pipeline of PPP Projects
Agriculture
Farm blocs
Multi-polar Cotton Cluster Development;
Irrigation schemes
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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
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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
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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
Lion‟s Den in
Zimbabwe
Link to Port Beira in
Mozambique via
Zimbabwe
Develop shortest
railway access to
sea for Zambia
Need for feasibility
study and Investor
on BOT basis
2 Railway link with
Zambia-Botswana
and Namibia
Link Livingstone and
Katima Mulilo via
Kazungula and
connect to the
Namibian System at
(Border)
Join Lubumbashi
Corridor to Walvis
Bay Corridor
SADC & DBSA
showing strong
support for this
project. Need for
full feasibility
studies
3 Njanji Mass Urban
Transit Train (14km)
Rehabilitate and
upgrade the Njanji
Urban Transit Railway
Service
To decongest the
centre business
district of Lusaka
by providing
alternative urban
transport
Need for feasibility
study and Investor
on BOT basis
4 Chingola to Jimbe
(Border with
Angolan) in North–
Western Province
Link the RSZ line in
Chingola through
Solwezi to the boarder
town of Jimbe then to
the Port of
Lobito(Angola).
Build railway line
to support the new
mines in North
Western Province
Need for feasibility
study and Investor
on BOT basis
AIR TRANSPORT PROJECTS
S/N PROJECT DESCRIPTION OBJECTIVE STATUS
1 Develop an
International air
hub logistics
center and
inland port
develop an
International Air
Hub Logistics
Center and Inland
Ports
To make Zambia a
regional center of
excellence for the
distribution of air
cargo and
management of inland
dry ports
Need for
feasibility study
and Investor on
BOT basis
2 Upgrade Ndola
and Mfuwe
International
Airports
Rehabilitate and
upgrade the two
international
Airports
To modernize the
airports & enhance
their capacity to
support the tourism
sector
Airport
Infrastructure
Master Plan
available, seeking
developer on PPP
basis
INLAND PORTS TO SUPPORT THE RAILWAY AND ROAD NETWORK
S/N PROJECT DESCRIPTION OBJECTIVE STATUS
1 Kapiri Mposhi
Inland Port
Develop an inland
logistics port at
Kapiri Mposhi
To increase
logistics capacity
at Kapiri Mposhi
Need pre-
feasibilty studies
and Investor on
PPP basis
2 Chipata Inland Dry
Port
Construct a Dry
Port Road and
Railway Transport
logistics in
Chipata
To increase
logistics capacity
at Chipata to
facilitate trade on
Nacala Corridor.
This will
immediately
serve the newly
developed
Chipata/Mchinji
Railway Line
Pre-feasibility
study available.
EU funding
detailed feasibility
& designs. Need a
developer
WATER TRANSPORT
S/N PROJECT DESCRIPTION OBJECTIVE STATUS
1 Commercial Boat
Services Provision on
Lake Tanganyika
Acquisition of Large
Craft Vessel to
operate on Lake
Tanganyika
To
commercially
service Lake
Tanganyika
facilitate trade
Need an
investor on PPP
basis.
2 Inland Water
Transport Service
Provision
Provide technical
support and
equipment (vessels)
To improve
inland water
transport
services
1700Km of
Canal
waterways
serving 3
provinces
INFORMATION AND COMMUNICATIONS TECHNOLOGIES
S/N PROJECT DESCRIPTION OBJECTIVE STATUS
1 E-
Government
Support
Provide Technical
Assistance, hardware
and software
solutions for
implementation of e-
government
To improve
government
service delivery
through ICTs
Seeking e-government
implementation
partners, following the
Indian ICT development
model
THE END
THANK YOU!
MOFNP