World Bank guidance on PPPs seeking win win situation

10Apr 2019
The Guardian Reporter
DAR ES SALAAM
The Guardian
World Bank guidance on PPPs seeking win win situation

NEW World Bank proposed guidelines are seeking to guarantee fair sharing between the public and private sectors, a move which will boost confidence in public private partnerships (PPPs).

WORLD BANK

World Bank’s Senior Counsel, Christina Paul said in Dar es Salaam yesterday during a stakeholders meeting to discuss the proposed 2019 Contractual Provisions for Public Private Partnerships (PPPs) by the bank.

“This is a guidance note meant to help governments prepare PPPs that deliver much-needed infrastructure and public services,” said Paul before over 50 representatives from the public and private sector plus donors.

“The Guidance explains how governments can protect their rights while ensuring the reasonable rights of their private partners,” Paul added.

The complexity of PPPs frequently means that considerable time and expense is involved in preparing and finalizing their contracts. To make the contractual drafting process quicker and less expensive, many countries—and especially those with well-established PPP programs—have undertaken efforts to standardize the provisions in such contracts, the World Bank said.

According to the World Bank Group’s 2018 Procuring Infrastructure PPPs Report, 52 out of 135 surveyed countries developed at least one model contract and/or standardized document applicable to PPP transactions.

To assist contracting authorities in developing and emerging markets to prepare PPP contract clauses in line with international good practice and standards, the World Bank initially developed the Guidance on PPP Contractual Provisions, 2017 edition, which focused on eight critical contractual provisions that are most essential for a project’s bankability and are found in virtually every PPP contract.

The 2017 edition is now being updated, taking into consideration stakeholder feedback that was received after its publication. The draft document has been shared for public consultations and is accessible on the World Bank’s consultation page, the bank added. 

This consultation period started in February and will run through April 2019 with the aim to capture inputs and recommendations by all relevant stakeholders to help inform the updated version, expected to be released in mid-2019.

“The guidance offers great learning material for legal and other PPP practitioners both from the public and private sector. Use of this document will increase confidence in PPPs and avoid disputes during their implementation,” said the Senior Counsel of the bank.

The consultative meeting attracted a wide range of stakeholders from the private sector, including banks, pension funds and law firms, as well as PPP units, ministries, departments and authorities but also local government officials.

Currently, the government is working on developing model documents for small, low-risk PPPs. The model documents have been developed with World Bank assistance through the Tanzania PPP Support Program funded by the United Kingdom’s Department of International Development.