SADC PPP Network Current Status and Prospects OECD

SADC PPP Network Current Status and Prospects OECD PPP Training Programme in Livingstone, Zambia 19 March 2012 Dr Herrick Mpuku SADC DFRC, Botswana

Agenda » Introduction to the Development Finance Resource Centre » Background to the PPP Network » Milestones to Setting up the network » Key parameters of the network » Network activities in 2011 » Recent Developments » Planned Activities of the Network » Opportunities for PPP Practitioners 2

Introduction to the DFRC » The SADC Development Finance Resource Centre is the recognised Secretariat of SADC Development Finance Institutions Network, set up under the SADC Finance and Investment Protocol. The DFI Network has a membership of 31 national DFIs from across SADC currently; reports to DFI sub-committee and Ministers of Finance through STOs; » Its main function is to facilitate cooperation and collaboration of SADC national development finance institutions in capacity building, policy research and advisory services, cross-border investment, joint ventures, with a view to enhancing the role and efficacy of development finance in the regional development agenda; » The principal focus of the DFRC activities is on capacity building, policy research and advisory services, and stakeholder engagement, with emphasis on infrastructure, PPPs and SMEs.

Activities of the DFRC » Training and Development Programmes on investment appraisal, risk management, project management, entrepreneurship development and SME project appraisal. The DFRC has also developed a special purpose programme on Quantitative Appraisal of PPPs, based on surveys undertaken in Southern Africa; Technical assistance and staff exchanges, etc; » Policy Research and advisory services in identifying and resolving DFI problems, advising on establishing and restructuring DFIs, and documenting these activities; studying and advising on development of financial and capital markets to SADC governments; » Facilitation of interaction amongst DFIs to promote joint ventures, cross-shareholding, and other mutually beneficial arrangements, particularly promoting resource mobilisation, and investment across the region.

Background to PPP Network » Infrastructure financing gap across Africa and SADC recognised – inadequate public resources, and need for private participation in infrastructure provision; » Role of PPPs recognised in mobilising financial resources for infrastructure investment under the SADC Finance and Investment Protocol; » Under the Protocol, SADC recognises the use of Project Preparation and Development Facility (operational), Regional Development Fund (under discussion), as well as partnerships amongst the DFIs, and engagement with the private sector, as well as public finance; » SADC Ministers of Infrastructure reaffirmed important role of PPPs in infrastructure development. 5

Regional PPP initiatives » SADC Ministers mandated SADC secretariat and DFRC to promote PPPs in SADC at their 2010 meeting at Victoria falls, Zimbabwe; » Work on development of SADC Capacity Development Strategy with German Development Corporation (GIZ); » Draft strategy completed in 2011 with six pillars, capacity building, networking, business development, policy and regulations, awareness and marketing and institutional development. » Consultative meetings with SADC Secretariat, Development Bank of Southern Africa, World Banking Institute and the DFRC led to regional forum on PPPs;

Regional Dialogue on Strategy » Consultations of key partners led to the need to have wider consultations amongst the governments, government agencies, state-owned enterprises, donors and other stakeholders to establish current status of PPPs in region in terms of practices, policies and activities; » Reflection on current needs, and determination of appropriate strategy to strengthen the use and efficacy of PPPs in infrastructure delivery.

Network launch in Feb 2011 » A 3 -day regional conference with 130 participants from 27 countries held in South Africa in February 2011 to discuss the status of PPP institutions, policies and practices in the SADC region; Recognised that SADC countries were at different levels of in terms of institutions and policies, and had faced different challenges in using PPPs to their fullest potential; » Agreed that a regional Network could potentially address some of the challenges and priorities in PPPs, by providing opportunities for learning from one another, and comparing experiences; » Provided clear mandate to DFRC to elaborate on institutional structure, a mission statement and a business plan for the Network. » Established Task Force from SADC member countries and state institutions to provide early consultation and feedback on the conceptual process. 8

Consultative meeting with Task Force in June 2011 » European PPP Expertise Centre (EPEC) at European Investment Bank, Luxembourg, contracted to provide technical and comparative advice to conceptualisation process; » EPEC held stakeholder consultations in Botswana and South Africa; » Task Force met and held discussions on organisation, membership, resources, programme, etc, based on EPEC survey and report; » Mandate for DFRC and EPEC to summarise discussions in Mission Statement and Network note. 9

Meeting with Heads, PPP units in Aug 2011 » Reviewed and documented status of PPPs; » Agreement on mandate and tasks, membership, governance, resources and implementation strategy; » Endorsement of network concept note by meeting; » Mandate given to DFRC to submit network note and mission statement to SADC Senior Treasury Official Committee (and Ministers 10 of Finance).

Endorsement by STOs/ Ministers meeting in Oct 2011 » Submission of agreed Mission Statement and Network note to SADC Senior Treasury Official Committee (to Ministers of Finance). » Endorsement by STOs (Ministers of Finance) incl. placement within DFRC, governance arrangements and mission. » Mandate for DFRC to secure adequate resources to operationalise the Network. 11

Key Parameters of SADC PPP Network » Mission – Strengthen the capacity of the public sector to engage in PPP projects. » Membership – inclusive, open to all PPP practitioners from the SADC region. » Governance – § § § Steering Committee comprising a representative (and alternate) from each SADC member state for programmatic and technical guidance; Secretariat placed within DFRC for budget planning and advice, and reporting to the Steering Committee; Advisory committee comprising financial and technical partners, SADC DFRC, SADC Secretariat, etc, to advice on funding and programmes; » Instruments – Training, working groups, other network events and website. 12

Resourcing the Network » Endorsement of SADC PPP Concept and Mission Statement by Ministers of Finance in October, 2011; » Identification of resources from DBSA, GIZ and World Bank Institute and others, to meet operational and administrative costs; » Recruitment of the Head of the SADC PPP Network; » Development of the SADC PPP Network Website and Newsletter. 13

Network activities in 2011/12 Training » PPP in Health- Video conference( 8 Nov. 2011) » Preparing Bankable PPP projects (6 -7 Dec. 2011) Website » Network info (programmes, activities, events, etc) » Country resources » Topical resources/ Working Group meetings references » Working Group meeting on » Monthly Newsletter PPP units, Policies and Laws (2 March 2012) 14

Recent developments » Steering Committee appointed by member states, as approved by the Ministers of Finance in October, 2011; » First Steering committee meeting held 1 st March 2012 in South Africa; » Full time Head of Network recruited, commencing duty 1 st April 2012; » Draft business plan and budget prepared and approved at Steering Committee, 1 st March; » Website (www. sadc-dfrc. org) and newsletter now operational; » Mobilisation of more technical and financial partners (ACBF, Df. ID, AFD, ADB, etc) ongoing 15

Planned Activities of PPP Network 2012 and forward » » » 16 Work Streams in 2012 Delivery Mode Target Groups Deliverables Draft Method Statements

Work Streams in 2012 » This business plan was prepared by SADC DFRC and widely consulted with SADC member states between Aug-Dec 2011 during the Task Force, Heads of PPP units meetings. » Four work streams were identified: • • 17 Project preparation, procurement and process PPP units, policies and laws PPPs in social infrastructure (e. g. hospitals, schools) Small-scale and municipal PPPs

Delivery Mode » Topical working group meetings to discuss best practice; » Peer reviews as input into change management for individual SADC countries; » Dedicated training events. 18

Target Groups » Heads of PPP units and equivalents; » Public sector PPP practitioners; » All members, i. e. public and private sector PPP practitioners. 19

Network Events and Deliverables for 2012 » 7 network events in the form of working group meetings and/or training, » 2 Steering Committee meetings (1 st March, 2012, September 2012) » 1 Advisory Committee meeting to review financial and technical support; » Continuous update of the website including (i) case studies, (ii) a PPP database, (iii) links to selected PPP guides and narratives, and (v) a list of third-party PPP events and trainings in the region. 20

Method Statements 21

Project preparation, procurement and process » Main objectives: Aimed at Heads of PPP units wishing to learn about international best practice in project preparation, procurement and PPP processes with the aim of benchmarking their own standards and procedures. » Expected output: A portfolio of best practice guidance on the Network website. » Methodology: The focus in 2012 will be on training, with a possible deepening of the topic in working groups and peer reviews in the following year. » Membership: All SADC Heads of PPP units and equivalents. Additional observers may be admitted if resources allow. » Dissemination: All presentations and related documents to be publicly available on the website. » Resources: Opportunity for Partners to provide trainers; budget allocation for two events. » Timetable: Dec 2011 – Dec 2013 22

PPP Units, Policies and Laws » Main objectives: An exchange on international and regional best practice of establishing PPP institutions, the networking of the heads and future heads of these PPP units and the possibility to peer review the blueprints of these new institutions. » Expected output: A portfolio of best practice guidance on the Network website. An analytical summary of the discussions and lessons learned if resources permit. » Methodology: The focus in 2012 will be on working group meetings and peer reviews and the facilitation of networking among senior PPP officials. » Membership: All SADC Heads of PPP units and equivalents. Additional observers may be admitted if resources allow. » Dissemination: All presentations and related documents to be publicly available on the website. » Resources: Budget allocation for two events. No explicit need for Partner intervention. » Timetable: Aug 2011 – Aug 2013 23

PPPs in Social Infrastructure (e. g. hospitals, schools) » Main objectives: Training on international best practice and a discussion on regional experiences on PPPs for health and education will mainstream the topic, inform policy makers and network practitioners. » Expected output: A portfolio of case studies and best practice guidance on the Network website. Certain topical papers on performance indicators, unsolicited bids etc. if resources permit. » Methodology: The focus in 2012 will be on training, with a possible deepening of the topic in working groups and peer reviews in the following year. » Membership: As wide as resources permit. This may be an opportunity for an all-members event. » Dissemination: All presentations and related documents to be publicly available on the website. » Resources: Given the interest of many international donors in health and education, any event should seek to attract third-party funding as well as external speakers. » Timetable: Nov 2011 – Jul 2013 24

Small-scale and municipal PPPs » Main objectives: SADC members have expressed interest in small PPP projects. As small investments cannot be financed on a project finance basis and as municipalities have often limited capacity in planning complex infrastructure projects, the work stream should look at international and regional best practice in financial instruments and standardised procurement packages for small PPPs. » Expected output: A portfolio of case studies and best practice guidance on the Network website. » Methodology: The focus in 2012 will be on training, with a possible deepening of the topic in working groups and peer reviews in the following year. » Membership: Public sector practitioners and DFIs. » Dissemination: All presentations and related documents to be publicly available on the website. » Resources: Opportunity for IFIs/DFIs to provide trainers and possibly even additional sponsorship. » Timetable: 2012 – 2013 (to be determined based on resources) 25

Opportunities for Membership » Capacity Building opportunities for PPP professionals (technical seminars, leadership programmes, specialised conferences and seminars in Network; » Peer Review of PPP practices, policies and laws, etc; » Benefit from Advisory opportunities of PPP experts worldwide; » Networking with PPP Professionals and Experts worldwide; » Access to information on training, conferences and activities of PPP professionals in the region; » Linkages with emerging African PPP network, Global PPP Network, European PPP Expertise Centre; » Access to resources professional, academic, research and case resources. Those interested in joining will be required to submit their CVs through the website (www. sadc-dfrc. org) and email (info@sadc-dfrc. org). This will be fully operational by second week of April, 2012. 26

For more information Dr Herrick Mpuku Tel. : +267 (319) 1146 Email: hmpuku@sadc-dfrc. org Or visit us on the web: www. sadcpppnetwork. org 27