Amendments to the PPP Act’s exec regs drop
Introducing the new and improved PPP Act: Prime Minister Moustafa Madbouly yesterday signed off on amendments to the executive regulations of the PPP Act aimed at making it easier for private sector firms to partner with the government on key projects. The regulations were published in the Official Gazette yesterday, after the cabinet greenlit them earlier this month.
Among the important changes:
- Going solo: Companies are no longer required to be part of a consortium to bid for projects and can bid individually;
- The right to appeal: Companies who have their pre-approvals rejected can now appeal the decision;
- Taking initiative: Companies can now propose new projects provided they handle the feasibility studies and the financing.
REMEMBER- The government’s plans to reduce state involvement in the economy are expected to see it sell down assets to private sector firms via PPPs. Industries including electric and gas utilities, pharma, and education have been pushing for more involvement through a more efficient and flexible PPP framework. Mobilizing private sector investment in state-funded mega-projects is also on the IMF’s wishlist amid ongoing talks with the government on an assistance loan.