Pro-poor Public-Private Partnerships for local service delivery in Namibia Policy and Capacity Development for Local Service Delivery
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1 Pro-poor Public-Private Partnerships for local service delivery in Namibia Policy and Capacity Development for Local Service Delivery Ms. Regina Ndopu-Lubinda, Director of Decentralisation Coordination, MRLGHRD July
2 Outline I. Background II. Establishing the Policy and Regulatory environment for pro-ppps III. Local Authorities Act, 1992 provisions for PPPs initiatives IV. Guiding principles for development of sustainable and mutually beneficial PPPs V. Challenges faced VI. Government s response to identified challenges VII. Lessons learnt VIII. Support needed from UNDP and CoP 2
3 I. Background PPP s experience in delivery of urban services in Namibia began in Government requested support from UNDP which resulted in a National PPPUE capacity development programme providing a clear Pro-Poor people centred strategy to improve the delivery and equitable provision of basic services. The overall goal was to support local authorities with technical advisory and support services to identify, select and implement pro-poor PPP initiatives. 3
4 I-Background cont The support included: Review existing national policies. Development of Policy Guidelines and Guiding principles for PPPs in service delivery. Sensitisation and awareness creation for all stakeholders to understand the benefits and opportunities offered through Pro-poor PPP designed partnerships. Training and capacity building local authorities, regional councils and private sectors on PPPs. Provision of technical advice for the development of partnership projects ulti stakeholders engagements. 4
5 II-Establishing the Policy and Regulatory environment for PPPs The process of establishing enabling policy environment for PPP for the urban environment in Namibia started with the establishment of national policy task force. 5
6 II-Establishing the Policy and Regulatory environment for PPPs cont Mandate involved: Review of all existing policies and legislation related to PPP at local level to determine the status quo for PPP development. List provisions that may cause bottlenecks to PPP development. Consult with private sector partners, municipalities that have initiated PPPs. Review the by-laws and operating practices of a representative sample of 10 municipalities. Analyse potential barriers and disincentives for PPP that should be addressed Produce a set of preliminary guidelines. 6
7 II-Establishing the Policy and Regulatory environment for PPPs cont Results of national policy taskforce: Development of guiding principles and policy guidelines for public-private partnership projects Apart from establishing the policy and legal framework, the need to redefine the traditional PPPs to local conditions that allowed for participation of other actors besides the private sector was identified. adapt concept to the needs of the poor considering service levels affordability, procurement and contracting arrangements. 7
8 II-Establishing the Policy and Regulatory environment for PPPs cont The following pieces of legislation provide for and have an impact with regard to PPPs: Local Authorities Act 1992 as amended Regional Councils Act 1992 as amended Decentralisation Enabling Act 2000 Trust Fund for Regional Development and Equity Provisions Act 2000 National Water Policy National Environment Health Policy 8
9 III- Local Authorities Act, 1992 provisions for PPPs initiatives LA Act is the governing law relating to local government affairs. The Act empowers the Minister of Regional and Local Government to make regulations relating to the entering into of joint business ventures by a LA and the commercialisation of any service rendered or function or duty exercised or carried out by a local authority, respectively. 9
10 III - Local Authorities Act, 1992 provisions for PPPs initiatives cont The Minister has made regulations relating to the entering into of joint business ventures by local authority and those regulations were promulgated in The Minister has also made regulations to the commercialisation of services or duties and those regulations were promulgated in
11 III- Local Authorities Act, 1992 provisions for PPPs initiatives cont The law prescribes two mechanisms for PPPs: Joint Business ventures. Commercialisation of Services, functions and duties. The entering into of a joint business venture is the most preferred instrument for public private partnerships Entering into an agreement with the Government, a ministry, a regional council, another local authority council, a parastatal, an NGO or CBOs relating to the joint business 11
12 IV- Guiding principles for development of sustainable and mutually beneficial PPPs 14 guiding principles have been agreed based on worldwide best practice: transparency, competition, contestability, accountability, legitimacy and legality, stakeholder participation, equity, economic and finance sustainability, risk management, clarity and predictability, environmental sustainability, specificity, empowerment, and choice. 12
13 V. Capacity building Interventions Development of a PPPP Management Course at the Polytechnic of Namibia with the support of the Ministry and UNDP. The course content covers: locating and linking partnerships in urban governance and management, building on the assets of potential partners, establishing appropriate org. and contractual arrangements, establishing sound partnership principles, etc. Training of Council staff and Decision makers Technical and financial support provided to pilot PPP projects 13
14 V. Challenges faced Certain gaps in existing legislation: Not all revenue generating services normally performed by a local authority are clearly spelled out in the regulations. which exclude certain groups to be involved in joint venture businesses. Prior approval of the Minister for an LA to enter into joint ventures might cause delays 14
15 VI-Challenges faced Understanding of institutional responsibilities and roles of the local authorities, private sector and communities. Clear structures to allow for consultation and enhance participation. Limited access to investment funding Lack of credit worthiness of some Las due to absence of improved revenue collection mechanisms to recover costs of investment Perceived risks in the local authorities by financial institutions Inability of local authorities to plan for financing, budgeting and management of contractual aspects of projects. 15
16 VII-Government s response to identified challenges Facilitating the development of strategic and management plans at local levels. Targeted skills development in the areas of financial management, planning, and governance. Monitoring service performance and ensuring compliance. Facilitating discussions and negotiations with the financial sector. Providing needed financing for projects and raising awareness on service options 16
17 VIII- Lessons learnt Improvement of the regulatory environment is vital and the Government should take the lead role. Comprehensive Capacity building strategies to support PPPs. Success of pilot PPPs, was mainly based on ownership by LA, funding availability, and consultative process with key stakeholders. Implementation of PPPs relies heavily on the enhancement of capacity at all levels. Inclusive partnership building at both national and local levels, dialogue with strategic partners and local actors is important. 17
18 VIII- Lessons learnt cont PPP initiatives to be driven by national and local country demand to enhance true ownership. Lack of understanding of each other s needs and interests among partners can be eliminated through active stakeholder engagements, open dialogues and discussion of roles and risks. Concrete political support for PPPs should be ascertained prior to each PPP arrangement being entered into. Unless there is political will and commitment at both national and local levels to support pro-poor initiatives may start off well, but will definitely fail or perform poorly. 18
19 IX. Support needed from UNDP and CoP Support for Knowledge management interventions at country level. Funding for capacity building. Support for comprehensive capacity building needs assessments and implementation at country level. Provision of technical expertise in identified areas to strengthen PPPs. Continue with CoP sessions. 19
20 Thank You 20
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