“Diversifying the sources of funding for public infrastructure initiatives means looking for progressive approaches that combine public-private partnerships specifically,” the Tunisian Prime Minister, Ms Najla Bouden, advised individuals of a seminar titled Public-Non-public Partnerships in North Africa for sustainable and inclusive development that was held on 15-16 June in Tunis.
The occasion, organized by the Occasion générale tunisienne de partenariat public-privé (IGPPP), the Caisse des dépôts et consignations tunisienne and the African Growth Financial institution Group, offered a possibility to take inventory of public-private partnerships (PPPs) in Africa, examine challenges and constraints related to utilizing them and spotlight success tales.
“North Africa has immense potential by way of infrastructure growth, which is crucial for sustainable financial development,” mentioned Mohamed El Azizi, African Growth Financial institution Managing Director for North Africa.
“Given the funding and upkeep wants of infrastructure, PPPs supply an acceptable strategy to assembly the challenges going through African nations. Nonetheless, we should acknowledge that PPPs aren’t with out their shortcomings and pitfalls. Greater prices, advanced contractual processes and potential monopolies are simply among the challenges we have to tackle diligently,” he warned.
For PPPs to be efficient, there should be robust political will, a clear, accountable and pretty aggressive setting, but in addition sound regulatory frameworks, clear procurement procedures and efficient contract administration, El Azizi harassed.
The occasion featured a roundtable dialogue of the challenges and constraints of PPPs. Among the many high-level panelists was Mr. Ziad-Alexandre Hayek, chairman of the World Affiliation of PPP Skilled Models. He mentioned: “African nations have usually reached excessive ranges of indebtedness and wish to draw personal funding to finance their infrastructure initiatives. The prices of making ready these initiatives, that are by definition advanced, are excessive. Political leaders see PPPs as procurement somewhat than growth devices, whereas African monetary markets aren’t sufficiently developed to satisfy financing wants. We due to this fact want to maneuver to an built-in strategy to de-risking PPP initiatives politically, financially and operationally.”
Eyup Vural Aydin, President of the Istanbul Public-Non-public Partnership Heart of Excellence, identified that Turkey is a pioneer in the usage of public-private partnerships. For the reason that Eighties, the nation has been within the forefront of OECD nations utilizing PPPs to finance main infrastructure initiatives within the transport, vitality and tourism sectors. Examples from the previous ten years embrace the brand new Istanbul airport, the Yavuz Sultan Selim bridge (the third bridge in Istanbul), the Eurasia tunnel, the Osmangazi bridge, the Yozgat and Mersin hospitals and the Istanbul-Ankara high-speed practice line.
The mobilization of private-sector assets by means of PPPs to finance sustainable and inclusive infrastructure is thus one resolution to the lowered fiscal room for maneuver that many African nations are going through owing to tough financial situations globally and excessive ranges of public debt.
Regardless of a authorized framework and businesses devoted to PPPs in Tunisia, Morocco, Egypt and Mauritania – with Libya and Algeria additionally placing these in place – build up a portfolio of bankable PPP infrastructure initiatives has been gradual, regardless of the existence of a important mass of initiatives.
In a speech broadcast through video, Ms Bouden known as for “redoubled efforts to mobilize financing as a way to construct a high-performance infrastructure community that serves cities and financial areas. The trajectory of growth is intently linked to the modernization of those infrastructures to catalyze funding and consolidate establishments as a way to create jobs and enhance individuals’s high quality of life.”
The Assist Fund for Public-Non-public Partnerships in Tunisia has been launched, and the capacities of IGPPP Tunisia have been strengthened, added Prime Minister Bouden.
A number of delegations offered to the viewers quite a lot of bankable PPP initiatives. The Tunisian Minister of Economic system and Planning, Mr. Samir Saïed, thus indicated that the State had recognized as potential PPPs the initiatives of the Sfax metro, the Gargour-Sfax logistics zone, the agricultural manufacturing platform of Sidi Bouzid, the headquarters of a number of ministries, the Zaghouan cable automobile, the hydro-mechanical transport of phosphate and the marina of Sidi Bou-Saïd.
Saïed additionally talked about the necessity to guarantee “investments with triple profitability: monetary and financial profitability, social profitability—social justice and growth must be the principle goal of financial growth—and environmental profitability at a time the place the planet is burning.” Initiatives corresponding to desalination of seawater, manufacturing of photovoltaic electrical energy, reuse of wastewater fall inside this framework, he mentioned.
The African Growth is working in direction of the institution of a multidonor Africa PPP Growth Fund to allow the creation of well-prepared and bankable initiatives.
In view of the seminar’s success as a platform for exchanging concepts and strengthening cooperation in North Africa, Mr. El Azizi introduced that the Financial institution could be “working to make it an annual discussion board.”
Mr. Atef Majdoub, President of IGPPP Tunisia, welcomed the announcement. “We can have a seminar yearly, with the group rotating to every of the six nations within the area for the needs of sharing expertise and transferring know-how,” he mentioned.
The seminar introduced collectively all of the our bodies in command of PPPs within the six nations of the area, in addition to promoters, banks, representatives of assorted administrations and monetary backers.