Zambia Investment Forum (2011)

Kuala Lumpur, Malaysia

PUBLIC PRIVATE PARTNERSHIPS

FRAMEWORK IN ZAMBIA:

PRESENTED BY:

Mr. Hibene Mwiinga, Deputy Director of National Policy

and Programme Implementation

MINISTER OF FINANCE AND NATIONAL PLANNING

MOFNP

OUTLINE:

PPP Policy and Legal Framework

What is PPP Agenda in Zambia

Objectives of PPPs in Zambia

Background of PPP in Zambia

Pipeline of PPP Projects

Key elements of a PPP project

Unsolicited Bids

Challenges

Investment Opportunities in Communications and Transport Sectors

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Policy and Legal Framework

PPP Policy approved in 2007

PPP Act enacted in August 2009

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What is the PPP Agenda in

Zambia?

To enhance Economic Development in the Country through

partnerships between Govt and Private sector;

To support the National Vision of the Country which is to

make “Zambia to a Prosperous and Middle-Income Country

by 2030”;

PPPs present a Paradigm shift in way of doing business in

Zambia;

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Rationale of taking the PPP route

in Zambia Facilitation of Government Service Delivery

Public Debt Reduction

Promotion of Public Sector Savings

Project Cost Savings

Value for Money

Efficiency in Public Sector Delivery

Attraction of Private Sector in Public Goods & Services Investment

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Background of PPPs in Zambia

• PPPs are a „recent‟ phenomena in Zambia

• Old and classic examples

– Zambia Railways Line (Cape-Cairo dream by Cecil

Rhodes)

– TAZAMA

• More recent examples

– Railway Systems of Zambia (RSZ) Concession

– Urban Markets (BOT)

– Maintenance of the Government Complex (Maintenance

Service)

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Opportunities Investment in

Zambia pipeline projects

• Multi-Facility Economic Zone (MFEZ);

• Modernisation of the Zambia International Trade Fair facility

in Ndola;

• Construction of an Ultra Modern Convention Centre in the

Livingstone (Tourist Capital of Zambia)

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Opportunities Investment in

Zambia pipeline projects

Development of an Air Cargo and logistics centre in Lusaka adjacent

to the MFEZ;

Development of a various Inland Ports and Logistics Centres at:-

Chipata

Kapiri-Mposhi

Development of Railway Projects

Chipata-Tazara Railway Connection (TAZARA Corridor)

Livingstone – Kazungula- Sesheke (North-Corridor)

Kafue-Lions Den (Beira Corridor)

Intra-City Lusaka mass transit system ( Njanji commuter)

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Opportunities Investment in

Zambia pipeline projects Proposed Roads Projects

• Dualling and Tolling of T2 Kapiri-Nakonde road 1,140km (North-

South Corridor)

• Dualling and Tolling of Chipata-Lundazi-Isoka road 550km

• Kasama-Mansa-Mufulira road 780km

• Mpulungu- Mbala-Nakonde-Nyala Road Project

Roads Under Procurement

◦ Kitwe-Solwezi-Chingola-Mwinilunga-Jimbe rd (Lobito Corridor);

◦ Dualling and Tolling of Livinstone - Ndola (North-South Corridor)

◦ Dualling and Tolling of Chirundu-Kafue rd (North-South Corridor)

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Opportunities Investment in

Zambia pipeline projects Airports

Extension of Lusaka International Airport

Energy

◦ Kafue Gorge Lower Hydro (DBOT) 600 MW

◦ Petroleum Importation, refinery Study

◦ Itezhi-Tezhi

◦ Various Mini-Hydros such as

◦ Kabompo,

◦ Mombututa,

◦ Mambilima,

◦ Zambia-DRC Transmission line.

◦ Chishimba

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Other Pipeline of PPP Projects

Information and Communication Technologies

• ICT Parks in the MFEZ;

• E – Governance programme

Housing

• A National deficit of 1,6 million exists in Zambia

and is begging for Investment

• Low and medium cost Housing

• High rise building

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Pipeline of PPP Projects

Agriculture

Farm blocs

Multi-polar Cotton Cluster Development;

Irrigation schemes

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ZAMBIA

Unsolicited Bids

• Contracting Authority receives unsolicited bid;

• Undertake preliminary evaluation;

• Advertise the unsolicited proposal for competitive proposals for the same

project;

• Evaluate the new bids and compare

• Contracting Authority may

– Accept original unsolicited bid;

– Request the originator to match any competing bids and if so award to

the originator;

– Reject the unsolicited bid and accept competing bid;

– Accept both the originator‟s and competing and negotiate terms

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Challenges

Limited Local Capacity to undertake PPP

Projects;

Limited Local Capacity to finance PPP

projects by Commercial Banks and

Development Financial Institutions;

Post HIPC Country Conditionalities

Heightened expectations for PPPs as a Panacea

to long standing Developmental problems

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Investment Opportunities

in Communications and

Transport

Transport Sector

Transport Infrastructure in Zambia is being developed to serve both national and regional economic communities including COMESA, SADC and EAC as a „spoke and hub‟ network for transportation of goods and passengers.

This is mainly through development of Railways, Roads, Air and Water Transport networks via trade development corridors under spatial development initiatives. This initiative connects Zambia‟s local transport networks with those in its region hence promoting both domestic, regional and international trade.

RAIL PROJECTS FOR PPPs

Chingola-Sol-Jimbe

Nseluka-Mpulungu sprail

Chipata-TZR Mpika

Kafue-Lions Den

Livingstone-Katima M

RSZ

TAZARA

TAZARA

PROPOSED RAILWAY PROJECTS

S/N PROJECT DESCRIPTION OBJECTIVE STATUS

1 Kafue-Zambia to

Lion‟s Den in

Zimbabwe

Link to Port Beira in

Mozambique via

Zimbabwe

Develop shortest

railway access to

sea for Zambia

Need for feasibility

study and Investor

on BOT basis

2 Railway link with

Zambia-Botswana

and Namibia

Link Livingstone and

Katima Mulilo via

Kazungula and

connect to the

Namibian System at

(Border)

Join Lubumbashi

Corridor to Walvis

Bay Corridor

SADC & DBSA

showing strong

support for this

project. Need for

full feasibility

studies

3 Njanji Mass Urban

Transit Train (14km)

Rehabilitate and

upgrade the Njanji

Urban Transit Railway

Service

To decongest the

centre business

district of Lusaka

by providing

alternative urban

transport

Need for feasibility

study and Investor

on BOT basis

4 Chingola to Jimbe

(Border with

Angolan) in North–

Western Province

Link the RSZ line in

Chingola through

Solwezi to the boarder

town of Jimbe then to

the Port of

Lobito(Angola).

Build railway line

to support the new

mines in North

Western Province

Need for feasibility

study and Investor

on BOT basis

AIR TRANSPORT PROJECTS

S/N PROJECT DESCRIPTION OBJECTIVE STATUS

1 Develop an

International air

hub logistics

center and

inland port

develop an

International Air

Hub Logistics

Center and Inland

Ports

To make Zambia a

regional center of

excellence for the

distribution of air

cargo and

management of inland

dry ports

Need for

feasibility study

and Investor on

BOT basis

2 Upgrade Ndola

and Mfuwe

International

Airports

Rehabilitate and

upgrade the two

international

Airports

To modernize the

airports & enhance

their capacity to

support the tourism

sector

Airport

Infrastructure

Master Plan

available, seeking

developer on PPP

basis

INLAND PORTS TO SUPPORT THE RAILWAY AND ROAD NETWORK

S/N PROJECT DESCRIPTION OBJECTIVE STATUS

1 Kapiri Mposhi

Inland Port

Develop an inland

logistics port at

Kapiri Mposhi

To increase

logistics capacity

at Kapiri Mposhi

Need pre-

feasibilty studies

and Investor on

PPP basis

2 Chipata Inland Dry

Port

Construct a Dry

Port Road and

Railway Transport

logistics in

Chipata

To increase

logistics capacity

at Chipata to

facilitate trade on

Nacala Corridor.

This will

immediately

serve the newly

developed

Chipata/Mchinji

Railway Line

Pre-feasibility

study available.

EU funding

detailed feasibility

& designs. Need a

developer

WATER TRANSPORT

S/N PROJECT DESCRIPTION OBJECTIVE STATUS

1 Commercial Boat

Services Provision on

Lake Tanganyika

Acquisition of Large

Craft Vessel to

operate on Lake

Tanganyika

To

commercially

service Lake

Tanganyika

facilitate trade

Need an

investor on PPP

basis.

2 Inland Water

Transport Service

Provision

Provide technical

support and

equipment (vessels)

To improve

inland water

transport

services

1700Km of

Canal

waterways

serving 3

provinces

INFORMATION AND COMMUNICATIONS TECHNOLOGIES

S/N PROJECT DESCRIPTION OBJECTIVE STATUS

1 E-

Government

Support

Provide Technical

Assistance, hardware

and software

solutions for

implementation of e-

government

To improve

government

service delivery

through ICTs

Seeking e-government

implementation

partners, following the

Indian ICT development

model

THE END

THANK YOU!

MOFNP