National Treasury has proposed key amendments to municipal legislation and National Treasury Regulation 16 (NTR 16) following a review of the Public-Private Partnerships (PPPs) Framework, which is now open for public comment until March 23.
This is in line with the announcement made by Finance Minister Enoch Godongwana in the 2023 Medium-Term Budget Policy Statement that the publication of amendments to the respective regulations would be communicated in the 2024 Budget.
The proposed amendments relate to the reduction in processes required for planning, and the procuring related to PPPs, which would result in simpler regulations that align with project size and complexity.
The amendments make provision for the setting up of two PPP pathways – one for high-value projects and a simplified version for projects valued at less than R2-billion.
The proposed new regulations clarify the institutional arrangements in terms of who is responsible for what across the PPP project cycle.
Additionally, the proposed amendments make it easier for the private sector to engage with investment opportunities, while taking account of the risks that are inherent with PPPs, Treasury explains.
Treasury adds that the regulations are being amended to improve the discipline in project execution by limiting the ability of accounting officers to cancel good projects, while providing greater certainty to investors.
In terms of NTR 16, the amendments aim to provide for unsolicited proposals and a clear framework to enable the private sector to pursue projects under clear rules, which Treasury believes is a deliberate policy move to signal that South Africa is open to private sector participation in infrastructure development.
The amendments follow various calls by private sector stakeholders to simplify PPP processes and requirements, so that South Africa’s economic recovery can be accelerated.
A detailed explanatory note on the amendments can be found on Treasury’s website.
Interested participants can submit comments to commentspppdraftlegislation@treasury.gov.za.