National and provincial PPPs: Issues of supervision and accountability

This article focuses on the key requirements for an enabling framework for the implementation of public‐private partnerships (PPPs) in South Africa. It contends that such an enabling framework should facilitate coherent government policies and legislation, secure procurement reform, enhance capacity, foster stringent ‐ albeit not constraining ‐financial regulation and put in place supportive institutional arrangements. Arguing that PPPs revolve around risk sharing between the public and private sector, value for money and affordability, key features of the South African policy environment as it affects PPPs are discussed. Amid considerable progress, policies across sectors could still be better aligned, legislative inconsistencies straightened out, procurement procedures and approaches updated to focus more sharply on value for money (rather than lowest price) and financial uncertainties countered. It is also noted that PPPs currently occur in an institutional vacuum in the public sector. It is therefore proposed that a dedicated institutional capacity be created to support PPPs more effectively.

Notes

Respectively, Private Consultant, McIntosh Xaba & Associates; Senior Manager, Budget Office, Department of Finance, Pretoria. The authors wish to thank the various experts who contributed to the Department of Finance's research process for their contributions and gratefully acknowledge the financial support of USAID.