Wednesday, March 5, 2014

Public-Private Partnership Programme for the Government of Jamaica: The PPP Policy | UHY Dawgen Chartered Accountants Blog

Public-Private Partnership Programme for the Government of Jamaica: The PPP Policy | UHY Dawgen Chartered Accountants Blog:

A public-private partnership (PPP) is a long-term procurement contract between the public and
private sectors, in which the proficiency of each party is focused in the designing, financing,
building and operating an infrastructure project or providing a service, through the appropriate
sharing of resources, risks and rewards. The definition of PPPs, as outlined in this Policy, is limited
to assets of high value and areas where the Government is faced with fiscal constraints and is
obligated to provide the infrastructure service.
The Jamaican PPP Policy sets out the principles that should guide decision-making by MDAs which
are considering utilising PPPs to improve infrastructure and the delivery of public services.
The PPP Policy seeks to define PPPs, highlight how they can assist in economic development,
outline the PPP selection process, and identify roles and responsibilities in managing PPPs. In
providing a comprehensive framework for PPPs, the Jamaican Government aims to standardise
how PPPs are implemented, attract private investment, increase productivity and limit fiscal
exposure while providing public services and infrastructure projects.
Asset Mobilisation has been identified as one of one of three priority themes underpinning the
growth impetus of the Government’s medium-term economic programme of which PPPs are a
critical component. The Asset Mobilisation initiatives are a set of supply-side initiatives aimed at
mobilising “idle” or “latently productive” human, physical and financial assets in both the public and
private sectors, increasing the mobility of these assets and enabling greater efficiency in the use of
these assets to support production.

It is the Government’s responsibility to consider innovative mechanisms for the delivery of those
services or activities in which the Government has a continuing interest (in other words, must
ensure is done) but need not do itself. It is by using PPPs – as opposed to conventional public
procurement projects – that greater value for money will be achieved through:
• Risk Transfer
• Whole-of-life costing
• Innovation
• Asset utilisation
• Focus on service delivery
• Predictability of costs and funding
• Mobilisation of additional funding
• Accountability
The PPP Policy will ensure that the programme is guided in all cases by the following over-riding
principles:
• Optimal risk transfer – each identified project risk shall be allocated to the party that is
better able to manage, control and bear the impacts of that risk.
• Achieving value for money for the public – the PPP must have benefits that exceed its costs,
and be the least-cost practical way to achieve those benefits.
• Being fiscally responsible – any PPP that involves fiscal support (whether through planned
payments or guarantees) will be scrutinised to ensure that the fiscal commitments are
affordable, and not likely to be destabilising. more
'via Blog this'

No comments:

Post a Comment

Featured Post

Dawgen Global Firm Profile

Dawgen Global is an integrated multidisciplinary professional service firm We are integrated as one firm and provide several profession...