PUBLIC PRIVATE PARTNERSHIP UNIT OFFICE OF THE VICE PRESIDENT
Republic of Sierra Leone
ANNUAL PROGRESS REPORT
2019
SUBMITTED TO:
SECRETARY TO THE VICE PRESIDENT
PREPARED BY:
PPP UNIT
2 | PPP Unit Annual Report for the year 2019
Table of Content
Executive Summary………………………………………………………………………………………………………..3
1.0 Introduction ..................................................................................................................................................... 5
2.0 Our Mandate, Vision, Mission, Goals and Objectives………………………………………………........5
2.1 Mandate of the PPP Unit……………………………………………………………………………….……………6
2.2 -2.5 Vision, Mission, Goals and Objectives of the PPP Unit for 2019……………….…………….6
3.0 Resources…………………………………………………………………………………………………………………7
4.0 Update on Projects and Activities for the Year 2018 and 2019………………………………........8
4.1 Engagement with MDAs…………………………………………………………………………………………….8
4.2 Project Implementation Supported by Donor Partners……………………………………………….9
4.2.1 Update on Implementation of UNDP LGDP/PFSDP Project………………….……….…………..9
5.0 PROGRESS TOWARDS FACILITATION OF PPP PROJECTS .......................................................... 11
6.0 KEY STAKEHOLDERS ................................................................................................................................ 17
6.1 Government of Sierra Leone................................................................................................................... 17
6.2 United Nations Development Programme (UNDP) ....................................................................... 18
7.0 CHALLENGES, RECOMMENDATIONS AND THE WAY FORWARD ........................................... 18
7.1 Challenges ...................................................................................................................................................... 18
7.2 Recommendations ...................................................................................................................................... 19
7.3 THE WAY FORWARD ................................................................................................................................. 20
3 | PPP Unit Annual Report for the year 2019
EXECUTIVE SUMMARY The PPP Unit annual report comprises the operations and overview of the administration of the Unit for the year spanning January through December and also highlights the technical support provided to MDAs. The report also contains current status of projects and activities undertaken by the Unit as well as challenges and recommendations. Our engagements with the UNDP continued in 2019 on the implementation of the Local Government Development (LGD) projects following a successful completion of the Private & Financial Sector Development Project (PFSDP) for the just concluded UNDP funding cycle. The key expected output of the LGD 2019 is to enhance National and local capacity to establish and participate in public-private partnerships is enabled to generate economic opportunities for pro-poor sustainable livelihoods especially for female-headed households and youth at national and local levels. The established target agreed per LOA for the achievement of the output includes an indicator the number of PPP Arrangements signed and/ or reviewed with a target of 2 Local and 1 national PPP agreements signed.
We welcome the 2019 fiscal year with effective collaboration with the Ministry of Fisheries
and Marine Resources on a competitive procurement process for the selection of a private
partner for each of the four fish receiving centres at Goderich, Tombo, Shenge and Bonthe.
We also further our facilitation roles in the Ministry of Energy with transaction lead on
projects in the development, procurement and ongoing PPP arrangements. There has been
tremendous improvement on PPP projects development, procurement and negotiations
work in the 2019 and some of these efforts translated into signed 3 PPP project agreements
signed in the fisheries sector and near-completion of a competitive procurement process in
the health sector on Pharmacy PPP Cost Recovery project with a pilot case at the Connaught
Hospital in Freetown.
The Unit noted the increasing calls for PPP technical support particularly on social projects
with more engagements leaning on advisory requisitions and initial intervention of the PPP
Unit at the earlier phases and in some cases post-MOU stages of MDAs project relationships
with private developers on the Unsolicited approach. Following round-table discussions and
initial due-diligence work coordinated by the PPP team, we proffered appropriate advisory
note for due consideration and action by the respective MDAs.
Subsequent to the Vice President’s laudable speech to Local Councils on the need for
heightened decisions by Councils to intensify revenue collection and enhance fiscal
sustainability and promote the culture of self-dependence and less reliance on the Central
Government; Local Council’s request for technical and advisory support has took an upward
trend and our response strategy has being swift with more visits to Councils on trainings and
transaction support.
2019 is another successful year for the PPP Unit as most of the projects that achieved Cabinet and Parliamentary approvals in 2017 were renegotiated on the grounds of achieving better value for money, approved by relevant authorities and the respective developers reached
4 | PPP Unit Annual Report for the year 2019
financial close or nearing financial closure. The Unit in collaboration with Ministry of Energy completed renegotiations on the Karpowership which achieved 2 US$ Cents savings for EDSA per KWh purchased and renegotiations and approval of the 50MW Planet Solar Energy project which ensured a reduction in tariff from 13.7 US$ Cents per KWh to a more affordable tariff of 12 US$ Cents per KWh. Also, renegotiations of the Bumbuna II Hydro Electric Project and Bekongor III Hydro project is nearing completion as the Developers are to respond to GoSL’s position requesting for a huge reduction in both the total project costs and the tariffs. Our primary role is to enhance the development and conclusion of PPP opportunities/projects through facilitation & providing technical backstopping to ensure affordability, fair risk allocation and better value for money. These can be ensured if PPP staffs involved in transactions are better capacitated. In that regard, the Unit maintained its long standing relationship with UNDP on human resource development programs for PPP Unit staff, line ministries and related agencies. During the month of July 2018, the Unit completed trainings on PPP Projects Monitoring and Appraisals for four middle-tier staffs whose roles are related to the course organized in Ghana. To enhance our operations, our Unit is engaged in dialogue forums with regional and continental PPP outreach forum out of which invitations were extended to the Unit for 3 core staffs that benefitted from the first Glocal Infrastructure Hub & Infrastructure, Norton Rose Fullbright UK and the Infrastructure Concession Regulatory Commission of Nigeria joint conference on PPPs in Abuja in October of 2018. The Unit has the opportunity of building on its network of Partners and gaining meaningful insights into the operations, best practices for efficiency, challenges and next steps for PPPs based on presentations from over 20 countries across Africa. We have as our mandate the responsibility to facilitate transactions not only of high capitalization or of infrastructure types but also to provide support to municipal-based PPPs which we referred to as Public Private Community partnerships (PPCPs). These projects are big on social impacts within Local Councils and in 2018, the Unit engaged the services of a specialized Consultancy firm that conducted an all-inclusive study on the revenue streams of Kenema City Council, Kambia District Council and Port Loko City Councils to identify untapped revenue sources, identify potential private sector partners and recommend best practice solutions to enhance revenue mobilization enhancement within the targeted Councils on a PPCP outsourcing model. The Consultant sealed its deliverables on the contract which included a detailed report on the studies, provided comprehensive procurement package with standard templates of Request for Proposals and standard revenue outsourcing contracts for adaptation. This is an extension of the roll-out program conducted inter-alia for the Makeni City Council, Bo City Council and Koidu New Sembegun City Council, all of which are financed wholly from UNDP funding. We benefitted immensely in 2019 from effective supervision and guidance from the Office of the Vice President and also, several project opportunities were directed from the OVP including the Kissy Oil Jetty project and meeting with proposed American Developers for an innovative housing estate project. We also work immensely with the Honorable Vice President Dr. Mohamed Juldeh Jalloh on the concept document and proposal for the establishment of the National Investment Board (NIB) for the review and decision of Cabinet.
5 | PPP Unit Annual Report for the year 2019
1.0 INTRODUCTION
Public Private Partnerships (PPPs) are being adopted by Governments all over the world as
an innovative approach to addressing the needs of society both on infrastructure and social
impact projects. With the limited-resource environment for most economies globally, there
are rising challenges for Countries to deliver effective public services to its citizenry. This
has led many Governments across the Globe including Sierra Leone to embrace PPPs as a
sustainable solution to meeting public demand for infrastructure and social services. PPPs
present a number of recognized advantages for the private sector to exploit. These include:
the ability to raise private sector finance in an environment of budgetary limitations, make
the best use of private sector experience & operational efficiencies to reduce cost and
increase quality of service to the public and the ability to fast track infrastructure
development. Others include:
a) Employment generation
b) Reduction in the overall total cost of service provision, freeing national or public funds for other
social goods and services
c) Provisional of excellent service to the citizens at optimal cost
d) Provision of scarce public goods at reduced prices
Given the huge gap in infrastructure and social service delivery, PPPs provide an alternative
for the Government of Sierra Leone to foster a quantum leap on infrastructure and social
service provision whilst the contracted private partners recoup their investments from user
charges or scheduled annuity payments. Presently, there is need for PPP arrangements in
the housing, transport, energy, health, education, water and agriculture sectors for notable
socio economic impact.
2.0 OUR MANADATE, VISION, MISSION, GOAL AND OBJECTIVES
The PPP Unit in Sierra Leone was initiated in 2013 and the enactment of the PPP Act in 2014.
The Unit over the years had been supporting MDAs in the development, procurement and
implementation of PPP projects especially in the energy, fisheries, housing, agriculture,
transport and tourism sectors.
6 | PPP Unit Annual Report for the year 2019
2.1 MANDATE OF THE PPP UNIT
The mandate of the Unit in Section 2 of the PPP Act 2014 empowers the Unit to perform its
roles in the facilitation, conclusion and implementation of any PPP agreement undertaken
between a Contracting Authority and a Private Partner.
Our Mandate is to accelerate development through provision of technical support to
Ministries, Departments & Agencies (MDAs) in the implementation of infrastructure and
social-impact projects under an ideal PPP arrangement between MDAs and private partners.
The PPP Unit intended to achieve this goal by directing its efforts towards implementation
of projects specified in the list of PPP pipeline projects contained in the New Direction
Agenda and also partnering with MDAs to identify new or emerging projects that align with
H.E. President Bio’s Agenda.
2.2 OUR VISION
The vision of the PPP Unit is to serve as champion of public-private partnerships for the
country’s inclusive growth and sustainability as a model for infrastructure development
2.3 MISSION STATEMENT
The PPP Unit’s mission statement is "Fostering an enabling environment that encourages
private sector participation in achieving sustainable infrastructural development"
2.4 GOAL OF THE PPP UNIT
Our goal is to “Contribute to national development by involving the private sector in public
infrastructure delivery through competitive and sustainable Public Private Partnerships
(PPPs)"
2.5 OBJECTIVES OF PPP UNIT
The main objective is to encourage and promote private sector participation in the provision
of resources for PPP opportunities or projects in terms of investment capital, managerial
skills and technology.
The Specific Objectives:
7 | PPP Unit Annual Report for the year 2019
To develop and maintain an enabling legal and institutional framework to guide
investments in PPP opportunities
Communicating the government’s public private partnership strategy clearly and
consistently to all spheres MDAs, investors and other stakeholders.
Assisting MDAs to prepare and implement cost-effective and affordable public-
private partnership projects. Such assistance would be available throughout the PPP
project cycle, from project identification through to financial closure.
To facilitate and maintain fair, equitable, transparent, competitive and effective
procurement processes for PPPs
To adopt established operational guidelines and criteria for PPPs
To mobilize resources from Government and Donor Agencies for the development of
PPP projects
To build capacity of the PPP unit, the MDAs and other stakeholders on PPP concepts
and procedures develop institutional capacities for technical analysis and negotiation
of PPPs and associated contracts
To help identify and evaluate projects at MDA level that may have socio-economic
impacts for consideration as PPP candidate projects to be updated in the list of
Pipeline projects
To provide technical assistance to MDAs through project feasibility studies, PPP
procurement and contract management
3.0 RESOURCES
The Unit has as its head the Director who report directly to the Office of the Vice President.
The PPP team comprises 8 core staff and 5 support staff. In October 2019, the Unit in
following the approval of the OVP, completed the recruitment process for 3 additional
technical staff to fill the vacancies for Project Appraisal Specialist, Planning & Outreach
Specialist and Monitoring & Evaluation Officer with the aim to get them join the team come
1st January, 2020. Staff emoluments are being paid from the national payroll and the Unit is
under the Office of the Vice President’s budget line which is received through
monthly/quarterly allocations from the Consolidated Revenue Fund.
The Unit continues as a beneficiary from the UNDP under the Local Government
Development Project 2019 (LGDP) which obligated the Unit to deliver on 4 key activities as
part of the Unit’s deliverables as contained in the Letter of Agreement (LOA) signed with the
8 | PPP Unit Annual Report for the year 2019
UNDP. The LGDP aims to foster national & local capacity to establish and participate in PPPs
to generate economic opportunities for pro-poor sustainable livelihoods especially for
female-headed households and youth at national and local levels. The LGDP project also seek
to ensure that targeted government institutions are enabled to participate in sustainable
CSR.
4.0 UPDATE ON PROJECTS AND ACTIVITIES IN THE YEAR 2018 and 2019
4.1 ENGAGEMENTS WITH MDAS
The PPP Unit in collaboration with the procurement Unit at the Ministry of fisheries and
Marine Resources lead the Procurement process for the recruitment of a private partner on
a R O T (Rehabilitate, Operate and Transfer) for a PPP concession arrangement for the Four
fish landing sites. Evaluation and negotiations were completed in March 2019 and the ROT
Concession PPP agreement for the Tombo Fish Receiving Centres, Shenge and Bonthe
facilities were all signed in June 2019 and the contract with the selected private partner
signed for the Goderich site signed in October 2019.
Our work within the year was also focused on engagements with Consultants hired by the
MCCU (Adam Smith) as part of their mandate in the Threshold program to reform the energy
and water sectors. We played key role in the several engagement meetings & stakeholders’
workshops on Unlocking the Potential for Grid-Connected Solar Power through Private
Sector Investment with sponsorship from the World Bank/PPIAF. We are also part of the
steering committee on the Rural Renewable Energy Project nicknamed Solar Mini-Grid
project across the 190 Chiefdoms in Sierra Leone and we work closely with the Ministry of
Energy and the UK DfID approved implementing partner – the United Nations Office for
Project Services (UNOPS). Implementation of this project is far advanced and we have
completed Work Package 1 and now reviewing work on milestones for private partners on
Work Package 2 during Regular Project Steering Committee Meetings. Our work with the
World Bank Group International Consultant and the Ministry of Health is ongoing with
preparation work continuing for the development of Terms of Reference for the recruitment
of a Consultant to develop an integrated Policy for Health PPPs. The Global Consultant now
in town and the first stakeholders Workshop will be hosted in Freetown.
9 | PPP Unit Annual Report for the year 2019
We are in continuing engagement with the Ministry of Trade working on an unsolicited
proposal from a private partner on the Kissy Oil Jetty opportunity with the vision of
promoting oil importation and 24-7 availability through a tank farm and retailing schemes.
4.2 PROJECT IMPLEMENTATION SUPPORTED BY DONOR PARTNERS
On the Donor support aspect, the Unit received its first tranche funding from UNDP in July
and to make up for lost time commenced implementation on the following components:
4.2.1 Update on Implementation of UNDP PFSDP Project for 2019
On the Donor support aspect, the Unit received its first tranche funding from UNDP in July
and to make up for lost time commenced implementation on the following components:
COMPONENT/ACTIVITY UPDATE ON IMPLEMENTATION
FOR QUARTER 3
RESULT/IMPACT OF
ACTIVITY
Support relevant MDAs on the
development and tendering of
RFP’s selection of the preferred
bidder and signing of the contracts
whilst transferring knowledge to
three institutions for the effective
PPP contract negotiations and risk
allocation
Having successfully completed a training workshop on PPP Orientation & Risk Analysis for MDAs in July 2019, the Unit further Completed two days intensive training workshop session on PPP Project Development and Tendering Process for Local Councils. The workshops were conducted in the targeted Councils with Tonkolili District Council benefitted from the training on 24th to 25th September, 2019 whilst Moyamba District Council hosted the workshop on 26th to 27th September, 2019. The implementations were very successful and participants contributions during the workshop were phenomenal with each district’s plenary sessions highlighted a minimum of 2 project proposals for the upcoming funding opportunity from the World Bank & Government of Sierra Leone on their joint cooperation to deepen sustainability and fiscal independence of councils through financing high revenue stream projects. The Honorable Vice
The Workshop gathered
political & official
representatives from
each of the two targeted
local councils, a number
of chiefdom
representatives, youth &
feminist groups, MDA
representatives for each
of the two districts, local
and international NGOs,
civil societies, state
security forces, private
sector representatives,
pressure groups (Okada
riders, motor drivers
Unions, petty traders)
and the media.
10 | PPP Unit Annual Report for the year 2019
President made a remarkable speech on Councils’ approach to fiscal sustainability going forward and launched the World Bank project on same during the month of September, 2019.
Conduct assessment on the number
of jobs and corporate social
responsibilities honored at the
community through the PPCP and
Facilitate and train relevant MDAs
on the PPP process for the
development of a project proposal
for funding by relevant private
sector investor
Publication of advertisement on the recruitment ended on 18th July, 2019 and procurement stage completed in August 2019. The Unit signed a contract with the Consultant and following the terms of the agreement paid mobilization fees to the Consultant for the commencement of work in all of the 6 local councils that benefitted from the PPCP interventions under the Private & Financial Sector Development Project implemented by the Unit for the period 2016 to 2018. Targeted councils are: Makeni City Council, Bo City Council, Koidu New Sembehun City Council, Kambia District Council, Port Loko City Council and Kenema City Council.
The Consultant has
submitted the
inception report which
has been reviewed and
we facilitated initial
engagement meetings
with each of the 6
councils. We now
await the draft report
from the Consultant by
the end of November
2019
11 | PPP Unit Annual Report for the year 2019
.
Implementation of South-South
cooperation for enhanced
capacityof the Unit’s staff
Three technical staff benefitted from
the South-South component for the
period and having finalized
arrangements with the course
providers (the African Institute for
Management Sciences – AIMS), the
Program Manager of the Unit and
Business Adviser attended a week long
course on PPP Legal Documentation
from 1st October to 5th October 2019.
The course was designed to capacitate
staff on developing draft
documentation for PPP agreements
for the review and enhancement of
legal officers. It is crucial in enabling
the Unit be on top of negotiations,
review of redrafting oif relevant
clauses and addresiing legal risks in
PPP agreements.
Also, the Unit sponsored the Research
& Planning Officer with Top-up
Allowance to enable him attend the
Smart Cities Course Under the Belt-
and-Road Initiative. This is crucial to
infrastructure sector and improves
our participant knowledge on the
dynamics to smart city development
and financing scheme for private
sector collaboration.
It is expected that
beneficiaries will be
more resourceful in
PPP transaction
engagements and
could also maximize
knowledge obtained
from the training
through in-house
training sessions and
on-the-job coaching of
non-beneficiaries
5.0 PROGRESS TOWARDS FACILITATION OF PPP PROJECTS
PPP project development and implementation spans across years and for some complex
PPP projects negotiation stage can last for more than a year as subsequent to the signing of
the PPP agreement between the Developers and the Contracting Authority, Lender
engagements can demand a fresh negotiations on key aspects of the agreement.
12 | PPP Unit Annual Report for the year 2019
During the period January to November 2019, we were able to register some progress
towards project inception & preparation, transaction advisory services, PPP private
partner procurement, project implementation and stakeholders’ management. The table
below highlights progress update for the period:
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
1 PPP TRANSACTIONS
a Fish Receiving
Centres and Jetties at
Goderich, Tombo,
Shenge & Bonthe
Fisheries -
MFMR
PPP
Procurement
completed and
4 PPP
agreements
signed
Private partner are pursuing
financing and the Partner for
the Tombo Site has made
tremendous improvements and
is working towards
commencing operations in
2020.
b 128 MW Western
Area Generation
Project- Energy
Project
Energy -
Ministry of
Energy
World Bank
advised on the
cancellation of
the project due
to certain
challenges
which was
effected.
Project has attracted the
interest of OPIC and the
Ministry of Energy in
collaboration with the PPP
Unit has held local and
international meetings in
the USA on possibility for
partnership for supply of
thermal base load power
on an IPP model
c 160MW Bumbuna II
Hydro-Electric
Project
Energy Ongoing as
negotiations on
total project
cost and tariff
is yet to get
consensus on
the part of both
parties
Initial Negotiations
completed and PPA &
Implementation Agreement to
be signed
EPC contractors
evaluation in progress
Value engineering
completed & project EPC
13 | PPP Unit Annual Report for the year 2019
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
value reduced & affordability
enhanced
WB to issue PRG &
revision of financial model
ongoing
GoSL’s position is for
substantial reduction on
project costs & tariff
d 25 MW Betmai Run-
off River Hydro
Electric Project
Energy Financing stage
– Developers
are yet to
achieve
financial close
and timeline
for that activity
is now the
crucial factor
PPA & IA signed and
ratified in 2017
Private Partner
requested from GoSL the
partial risk guarantee which
pose a challenge
Developer is far on
negotiation with lenders to
reach financial close
e Kissy Oil Jetty PPP
Concession
Transport MOU
developed and
partnership
ongoing
Draft PPP Concession
agreement developed and
negotiations ongoing
f Pharmacy PPP Cost
Recovery Pilot
Project for
Connaught Hospital
Health Private partner
selected and
negotiations
soon to
commence
Lead the assessment and
development of proposals
and standard template
agreement for international
competitive PPP process
Serve as subject-matter-
specialist in the evaluation
14 | PPP Unit Annual Report for the year 2019
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
and eventually negotiations
to commence
2 PROJECTS FOR WHICH THE UNIT COMPLETED PRE-FEASIBILITY STUDIES
King Jimmy Market,
Shopping Mall &
Leisure Business
Park Project
Local
Council/FCC
Initial
engagement
with
unsolicited
Developers
suspended and
FCC has a fresh
initiative for
partnerships
PPP team in initial
engagements with FCC and
assessment work of critical
importance to furtherance of
project
50MW Solar Energy Energy-
Ministry of
Energy
Pre-feasibility
study
completed by
PPP Unit
Competitive
procurement completed in
2017
PPA reviewed and
ratified in 2017
GoSL re-convene
negotiations and achieved
reduced tariff at US$12
Cents/KWh
Developers have
reached financial close
d Affordable Housing
Project
Housing -
Ministry of
Works,
Housing &
Infrastructure
Pre-feasibility
study report
completed
Downstream work
towards development of a
business model and options
analysis to be completed
Financing for additional
work still remote
15 | PPP Unit Annual Report for the year 2019
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
e Road Maintenance
Project
Roads - Road
Maintenance
Fund
Authority
Pre-feasibility
study report
completed
Downstream work
towards development of a
business model and options
analysis to be completed
Financing for additional
work still remote
f Studies on the
Establishment of the
PPP Project
Transaction Support
Fund (P3TSF)
PPP Unit Studies
completed and
processes
being followed
for the
establishment
of the Fund
Engaging financiers for
funds still ongoing but not a
dime has been committed
RfP already developed
for the recruitment of the
Fund manager
g Rural Waste
Collection and
Recycling Project
Rural
Development-
KCC, BCC &
MCC
Pre-feasibility
study
completed
Report submitted to
Makeni and Kenema City
Councils
Roll-out of the Bo waste
management and recycling
project to Makeni & Kenema
has been launched in Makeni.
The implementing agent is
Welt-Hunger Hilfe and fully
financed by DfID.
Revenue
Mobilization
Rural
Development-
KC, KC & PC
Procurement
Stage
Procurement of the
PPCP Consultant completed
Consultants work with
communities ongoing
3 MANAGEMENT OF THE UNIT
a Development and
Update of the PPP
Unit Website
PPP Unit/OPII Website
established
Enhanced online
visibility of the Unit's
activities and that of OPII
16 | PPP Unit Annual Report for the year 2019
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
and
operational
Act as a marketing
conduit for PPP opportunities
and ongoing projects
b Configuration of the
Unit's IT Network
PPP Unit IT network
developed and
effective
IT network & peripheral
modules fully supporting the
Unit's operations
c Capacity
Development of the
PPP Unit's Team
PPP Unit Training &
capacity
development of
the PPP team
continues
Skills and experience of
the team heightened on PPP
Financial Model analysis,
Legal Document and PPP
strategies, methods and
project structuring techniques
Further training on PPP
project appraisal, monitoring
& assessment, negotiations
and contract management is
of utmost importance in 2020
d Capacity Building of
MDAs, Local
Government
Authorities & Private
Sector Entities
MDAs/Local
Government -
MLGRD
Regional-based
trainings of
LGA staff and
private entities
on PPP project
development &
Tendering
process
completed in
September
2019
Comprehensive
trainings on
The Unit organized
comprehensive trainings for
Tonkolili and Moyamba
Districts with participants
drawn from all quadrants in
each districts. Outcome was
very rewarding with each
Councils reps proposing at
least 2 projects for
implementation towards
sustainable operation of
Councils
17 | PPP Unit Annual Report for the year 2019
No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE
Orientation &
Risk Analysis
Training
workshops for
MDAs &
private sector
Trainings held in Freetown in
July 2019 with full
representation from invitees
and generated meaningful
impacts in terms of media
coverage, participants
knowledge of PPPs and how
to interface with the PPP team
for transaction inception and
support
6.0 KEY STAKEHOLDERS
6.1 Government of Sierra Leone
GoSL is key initiator and financier of the PPP Unit and the Unit’s success is champion by the
Office of the Vice President. The GoSL has been fully committed to PPP as a way forward to
supporting infrastructure and social-impact project development. The Unit continues to
receive support from GoSL in spite of the fiscal challenges and our annual allocation and
actual disbursements received from the Consolidated Fund is growing and was better in
2019. PPP Unit continues to receive the over-arching leadership support of H.E. the
President and more specifically the Office of the Vice President in providing oversight &
unlocking challenges encountered in executing the Unit’s roles.
GoSL still remains the biggest financier to the PPP Unit and accounts for nearly 100% of the
Unit’s Recurrent Expenditures in 2019. The relationship between the Unit and sister MDAs
continues to grow and has been very effective with key public institutions including the
Ministry of Finance, Ministry of Planning & Economic Development (MoPED), Ministry of
Energy, Ministry of Fisheries and Marine Resources (MFMR), Ministry of Transport &
Aviation (MTA), Ministry of Basic & Senior Secondary Education (on the JAM assisted school
feeding project), Ministry of Tertiary & Higher Education (initially supported the FEMAB –
IPAM new school campus at Bureh Town), Ministry of Agriculture Forestry & Food Security
18 | PPP Unit Annual Report for the year 2019
(MAFFS), Ministry of Health & Sanitation (MoHS), the District Local Councils including City
Councils, Sierra Leone Roads Authority (SLRA), SALHOC, Freetown City Council.
In 2019, the Unit’s plan was to maintain existing relationship with MDAs and work to
strengthen coordination as well as build capacities. We sought out for new collaboration
work with other MDAs and we realize good opportunities in the education sector and for
which consultative meetings and project discussions ongoing for new projects.
6.2 United Nations Development Programme (UNDP)
UNDP has been and continues to provide support to the Unit as part of caoacity development
goal and to enhance the Unit for implementation of the just completed Private and Financial
Sector Development Project (PFSDP) and now the Local Government Development Project
(LGDP) in 2019. A large part of the funding is directed towards interventions within
MDAs/Councils trainings on PPPs and the assessment work on number of jobs and Corporate
Social Responsibilities (CSR) on the part of 6 Councils (Makeni, Kambia, Bo, Koidu, Port Loko
and Kenema City/District Councils) following interventions using the PPCP outsourcing
model for revenue mobilization enhancement.
7.0 CHALLENGES, RECOMMENDATIONS AND THE WAY FORWARD
7.1 Challenges
The following challenges are encountered during the third and fourth quarters:
ACCESS TO FINANCE
Funding to support the Unit’s activities are sometimes delayed or not allocated due to the
tight fiscal space within which the GoSL operates.
For the unit to build up the confidence of investors as well as expand its operations, the unit
looks forward to the GoSL and Donor Partners to increase their support towards the unit for
it to create a better enabling environment for the unit to thrive.
Subventions in 2019 were regular though inadequate especially for the preparation of
project opportunities into bankable proposals in pursuit of our primary objectives and
mandate. We now await the fourth quarter 2019 allocations and ramp up on activities
pending for the year 2019.
19 | PPP Unit Annual Report for the year 2019
COOPERATION FROM MDAs
The PPP Unit does not own projects but provide technical support to MDAs. Some of the
MDAs are committed to following the PPP process whilst others shy away from the PPP
process thus creating setbacks or delays especially at the inception stage.
INADEQUATE CAPACITY AND AWARENESS AMONGST SOME MDAs ON PPPs
WILLINGNESS TO CONTRACT USING THE PPP APPROACH
UNDER-DEVELOPED MARKET FOR PARTNERSHIPS AND PROJECT FINANCING STRUCTURE
7.2 Recommendations
The following are recommendations of the Unit:
INCREASE IN FUNDING FOR THE PPP UNIT’S AGENDA
The PPP Unit must match up with other PPP Units in the Continent. For this to happen, the
financial resources provided by the GoSL and Donor must be increased. For sustainability of
the Unit the PPP Transaction Support Fund (P3TSF) should be funded. MoF should increase
allocations for the recurrent expenditure of the Unit. This will capacitate MDAs and PPP
staffs so as to improve public education, strengthen operations, conduct outreach activities
and establish regional offices.
MINIMIZE DELAYS
Delays generally frustrate stakeholders and directly impact on the timely achievement of
milestones as scheduled. Consultants must ensure that strategies are adopted to swerve
their work against emerging challenges from unforeseen circumstances. MoF should strive
towards providing financial subventions as stipulated in the budget to avoid delays caused
by MDAs on project delivery and performance.
MDAs should be aware that they have the absolute responsibility to deliver sector
responsibility and the PPP Unit was primarily established to support them in achieving their
set goals through water-tight collaboration & cooperation amongst stakeholders.
20 | PPP Unit Annual Report for the year 2019
7.3 THE WAY FORWARD
PPP projects without doubts will bring long-term benefits to the country. For the Unit to
achieve this goal, PPP projects must be well designed, developed, executed and managed. As
a way forward the public and private sectors should be capacitated on the PPP process to
avoid shortcuts. For the PPP to be effective in its operations, Government must ensure and
enforce that all PPP projects are sent to the Unit before execution. International agencies as
well as GoSL to fund the Transaction Support Fund (P3TSF) so that pre-feasibility studies
can be done which will enable the Unit to develop project pipelines and in the
implementation of projects.
For PPP projects; you either do it right, and get result, otherwise failure is inevitable. In 2019
and beyond, it is hereby posited that the role of experts cannot be over emphasized.
According to leading global monitors of PPPs, institutions such as PPP units that can deliver
the scale of projects needed, lack the personnel and technical capacity to successfully deliver
projects and build strategic programs that leverage the power of PPP. They recommended
the use of external consultants to help fast track PPP successful outcomes on feasibility
studies and project transaction advisory for innovative projects. We look forward to
receiving the necessary support from the Office of the Vice President to secure funding for
project development and transaction pursuit.