New policy to better manage public private partnership projects |23 March 2016

A new policy which establishes clear guidelines and principles for more efficient management and successful realisation of Public Private Partnership (PPP) projects has been launched officially.

The policy document, which has been developed with financial support from the Investment Climate Facility for Africa (ICFA), was completed and approved by the Cabinet of ministers last year.

The launch on Monday at the Eden Bleu Hotel was through a series of different presentations attended by the Minister for Finance, Trade and the Blue Economy Jean-Paul Adam as well as the Minister for Investment, Entrepreneurship Development and Business Innovation Michael Benstrong, who also addressed everyone present.

Public and private sector officials, chief executives, procurement officers, the chief executive of the ICFA William Asiko, a representative of the African Development Bank (AfDB), which is also providing financial support to Seychelles, Carina Sudgen, among other concerned stakeholders, also attended the ceremony and took part in a subsequent networking session on potential PPPs in the country. 

Addressing everyone present Minister Adam noted that PPP projects are not new to Seychelles which has been successful in carrying out several such projects which are today bringing numerous benefits to our country and people.

He noted that with support from AfDB and ICFA the government, through the PPP policy, has a more comprehensive document to guide it through long-term investments with more confidence.

He said the PPP policy will provide more transparent and clear procurement process as well as protect investors’ rights.

Minister Benstrong also stressed on the fact that Seychelles has been undertaking PPP projects for many years. He cited the development of the fishing port as a good example of such projects.

He noted that for the past eight years the government has repositioned itself from provider to facilitator and that the PPP policy has come at a crucial time to provide the necessary framework to strengthen transparency, to reinforce and encourage private sector development.

“It is good news for the private sector as it will create more opportunities for them to explore new lines of business, working closer to government and with no doubt the opening of new sectors,” Minister Benstrong said.

He took the opportunity to appeal to the private sector to come forward and play their role.  

Minister Benstrong cited as another example of ongoing PPP project the facilities going up at Ile du Port to support the Blue Economy concept.

He pointed out that potential areas for PPP investment are for instance required in road infrastructure and other services at the Providence industrial estate, the master plan to develop Victoria has large avenues for investment by the private sector.

“The Victoria Master Plan will be an opportunity for the private sector to work closely with government. While it will provide investment opportunities for large businesses, small entrepreneurs will see the possibility to flourish,” Minister Benstrong stressed.

It is expected that following the discussions everyone involved will be better prepared to engage in future PPP projects.

Mr Asiko noted that ICFA strives to build an enabling environment for the private sector and it is always good to be associated with growth following difficult reforms like is the case for Seychelles.

“Seychelles has implemented very difficult reforms so we can help set a basis for future growth,” Mr Asiko said.

He remarked that this is thanks to the shift in thinking compared to 20 years back when development did not include the private sector and nobody saw the need for its involvement.

“But over the years, governments around the world including Africa have seen the importance of the private sector in development as it creates jobs, pays taxes, thus boosting development, growth and wealth.   

Jude Commettant, the head of public investment management in the Ministry of Finance, Trade and the Blue Economy, presented the different components, aspects and scope of the policy document while everyone present were able to learn more on the different successful PPP projects and the different sectors where there is great opportunities for such projects namely in eco-tourism, land use and housing, energy, sports and community development sectors.