Public, Private Partnerships (PPP)

The Government of Malawi (GoM) is committed to promoting infrastructure investment in Malawi, as one tenet of spurring economic growth, thereby improving the quality of life through reduction of poverty. In this vein the public Private Partnership (PPP) framework will be used as a new form of procuring and financing infrastructure projects and services in the public sector.

A Public-Private Partnership (PPP) is a legally enforceable contract in which a Contracting Authority partners with a private sector Partner to build, expand, improve, or develop infrastructure or service in which the Contracting Authority and private sector Partner contribute one or more of know-how, financial support, facilities, logistical support, operational management, investment or other input required for the successful deployment of a product or service, and for which the private sector partner is compensated in accordance with a pre-agreed plan, typically in relation to the risk assumed and the value of the result to be achieved. Usually the private entity performs infrastructure service delivery functions that would otherwise have been provided through traditional public sector procurement and assumes the associated risks through a long term contract (typically ranging from 10 to 50 years). In return, the private entity receives a benefit/financial remuneration according to predefined performance criteria, which may be derived:

    • entirely from service tariffs or user charges,
    • entirely from GoM’s budgets, and or
    • a combination of the above.

 

Eligible Areas

It is Government’s intention to encourage innovation in as many areas as possible. However the focus is on the traditional physical and social infrastructure sectors identified as key priority areas in the national development and economic strategy - such as energy (electricity, oil and natural gas) telecommunications and information technology, transport (air transport, airports, inland waterways, inland ports, railways roads, urban public transport, inter-modal) tourism, public utility (water, irrigation and municipal and liquid waste management and sanitation sectors), health and education sectors.

To read more about this, download the PPP Policy here.