NASSAU, Bahamas – PUBLIC-private partnerships (PPPs) mean governments will have one less infrastructure project on their balance sheets.
But the main deciding factor for such projects should be the possibility of value for money rather than just fiscal prudence, according to Perry Christie.“I must stress that such a consideration (private sector’s financial responsibility) should not be the main driver for the initiation of any PPP project which, I believe, must first and foremost be driven by an efficiency objective,” said the Bahamian prime minister at CIBC First Caribbean’s infrastructure conference, which was held at the Atlantis Resort in the Bahamas last week.“The main reason that government would contemplate such arrangements is that they offer the possibility of an improvement in value-for-money for the government,” he said. “This is achieved through the transfer of risks to the private sector where it is best placed to assess and handle those risks.”Furthermore, private sector involvement in building roads, bridges, airports and other structures should lead to both better quality services and lower cost services.One of the Bahamas ports is owned in part by the Government, a private company, Arawak Cay Port Development Holdings, and citizens. Private interests also manage the Lynden Pindling International Airport in Nassau.According to Christie, the government is looking at leasing public building infrastructure and office complexes.Bahamas is also open to possible partnerships in health, schools, water and electricity production and distribution, he said.Indeed, PPPs warrant regulatory framework, which sets out policies to guide the delivery of services.Christie noted that Bahamas is presently in the process of expounding the policies and procedures in respect of the development and implementation of future PPPs.The leader of the archipelagic state also said that a sound regulatory framework, possibly enshrined in the legislation, ensures accountability of the government and private sector partners by strengthening bid processes and limiting contract re-negotiations.It’s still early days yet for countries to decide if and how to etch the guidelines in their constitutions.Jamaica’s PPP activity up to now has been executed outside of a comprehensive policy framework and procedural guidelines.One government official of Barbados, Minister Darcy Boyce, figures that a legislative approach may not be flexible for the southern island. He holds a preference for a strong policy framework.“I don’t know that we have to do any special legislation,” said the minister in the Office of the Prime Minister in Barbados. “PPPs are driven by contractual arrangements between various parties and our contract law is sufficiently robust to deal with the issue. There are some people who think that it is good to have legislation.”View the original article here
"Infrastructure projects should seek value for money"
