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PPPs as “Soft” Enablers of SMART Rwanda. Jacob Gahamanyi, SMART Rwanda Days 17 th -18 th June 2013. PPP’s in the ICT Sector in Rwanda. Close to ½ a Billion USD worth of 18 projects in the ICT SSP 2013-2018. A Public-Private Partnership?. Public . Private. Definition.
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PPPs as “Soft” Enablers of SMART Rwanda Jacob Gahamanyi, SMART Rwanda Days 17th-18th June 2013
PPP’s in the ICT Sector in Rwanda Close to ½ a Billion USD worth of 18 projects in the ICT SSP 2013-2018
A Public-Private Partnership? Public Private
Definition “Contractual arrangements between the Public and Private sector under which the private firm delivers a public infrastructure asset and/or a public service …...” -Rwanda National Investment Policy Private party assumes substantial financial, technical and operational risk throughout the lifecycle of the project
Benefits • Gov focuses better on fulfillment of politically social responsibility. • Better utilization &allocation of public funds • Efficient and good quality public infrastructure and services • Improved service delivery • Increased investment in public infrastructure • Quicker delivery of project • Better Value for money • Increased budget/financing certainty • Access to finance in times of financial crises
Private Public
Disadvantages • Higher borrowing costs • Might lead to higher consumer prices • An expensive tender and negotiation process • Rigid/inflexible/long contracts • Complicated and lengthy tender process • Price of transferring risk • Creation of Monopoly Markets
Value for Money Due Diligence !! Public Sector Comparator
Beef up PPP-Specific capabilities • Build Experience • Curb Expertise Flight