The Role of The CommissionThe PPP Commission was established as the Privatisation Commission under the Public Enterprises (Privatization) Act of 1996. It started operation in April 1996 with its Head Office in Blantyre, the commercial capital of Malawi. It was established to implement divestiture of direct or indirect state interests in state owned enterprises (SOEs). The Government of Malawi embarked on the privatization programme in April 1996 after the promulgation of the Public Enterprises (Privatization) Act which has since been repealed following incorporation into the PPP Act.
The privatization programme primarily involved the disposing of existing state owned enterprises although there were occasional awards of concessions especially in the transport and tourism sectors. The privatization programme had been established upon recognising that efforts to promote agricultural and industrial development and increasing the standard of living of the indigenous population through direct market intervention had not been successful. Accordingly, the Government decided to divest its interest in commercial public enterprises and to encourage and promote private sector participation in the delivery of goods and services. Over the years the PC successfully divested or liquidated a number of SOEs. It contributed to growth of the stock exchange and increased the general public ownership of previously state-owned enterprises.
As the programme shifted more towards private sector participation in infrastructure, it became apparent that the general public was not in favour of complete sale of public assets especially those relating to infrastructure. The resistance was particularly more pronounced where land and strategic infrastructure were involved against the likelihood of acquisition by foreign investors. In reaction to this, the Government of Malawi decided to introduce an alternative policy framework for the involvement of the private sector in infrastructure development.
Following increased popularity and success stories of public private partnerships in various countries around the world and within the region, the country embraced the concept for the first time in 2005. The passing of the PPP policy in May 2011 and later the PPP Act in December of the same year as the enabling tools for implementation of PPPs. The PPP Act was made effective from 1st July 2012 having been assented to on 22nd December 2011. Following the passing of the PPP bill, the PC was renamed the PPP Commission in 2013 to spearhead the implementation of PPPs in the country.
How The PPPC Conduct Projects?
The PPP project cycle covers five distinct phases; project identification, initial viability assessment, project preparation and development, project procurement and the post contract phase.
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