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?

Pub

lic 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

Higher borrowing costsMight lead to higher consumer pricesAn expensive tender and negotiation

process Rigid/inflexible/long contracts Complicated and lengthy tender process Price of transferring risk Creation of Monopoly Markets

Disadvantages

Value for Money

Public Sector Comparator

Due Diligence !!

1. Beef up PPP-Specific capabilities2. Build Experience3. Curb Expertise Flight

[Amashi Ngo Kachi Kachi!!!]