Development of Policy, Legal, and Insitutional Framework for - ppiaf

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Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi Final Report Health: Management of hospital infrastructure. There are a number of opportunities for PPPs in the health sector such as cleaning, catering, laundry, etc, but there are concerns over the capacity of the private sector to deliver their part of the bargain. Education: The private sector could operate public schools under a management contract with the schools remaining publicly owned and funded. Public schools and universities could contract out to the private sector to manage canteen, healthcare, and related facilities. The private sector could design, finance, construct and/or maintain and operate the facility under suitable contract with the public sector. There are several contractual variants possible for this, such as Build-Operate-Transfer, Build- Transfer-Lease and Build- Lease-Transfer. Forestry Act The new policy also recognises the role of the private sector not only in utilisation but also in the management of the forest resources. Since many parties external to forestry department have significant influence on the sector, institutional change has to be examined from a broader perspective, although the Forestry Department remains the institution with vested interest in drawing attention to the needs and potentials of the sector. There are two key institutional changes that are underway as the result of the change in forest policy, namely industrial plantations management by the private sector and community management of forest and tree resources. Tourism The Ministry of Information and Tourism is already familiar with PPP projects. The commonest are the concessions and management agreements of tourist facilities in various parts of the country. Ownership remains with the Government. Management is what is transferred to the private sector. The level the further risk to be transferred to the private sector will be a function of whether it is a concession or a mere management agreement. As Malawi remains one of the unspoilt destinations for eco-tourism but with very little infrastructure, opportunities are huge. Development in this sector remains dismal despite the Government’s declaration that this sector is a high priority sector. Partnership with the private sector thus presents one of the only remaining viable option for the development of tourism. Transport Sector The construction and upgrading of the road sector has provided new opportunities for local contractors. Toll-roads are likely not to be viable, unless the government is willing to subsidise them, as the traffic volumes are too low. THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 102
Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi Final Report Telecommunications and Postal Services Privatising the retails operations of the post office. Presently franchising of lossmaking post offices is underway. Mail distribution and transport could be outsourced. There is also potential for outsourcing of services such as cleaning, maintenance, etc. Opportunities for PPPs in telecommunications will be greater once Malawi Telecoms is privatised. Outsourcing of services, maintenance, and installation are all possibilities for PPPs. Energy Sector There are opportunities for PPPs in small-scale power generation, such as photovoltaic power plants, micro hydro power plants, and the conversion of medium- and low-voltage customers to become electricity retailers. There are opportunities for outsourcing billing and collection, cleaning, maintenance, staff services, etc. There are possibilities of developing the coal sector using PPPs, although foreign partners would be required because of high levels of capital investment and technology. The development of strategic fuel reserves could be done as a PPP. Current reserves are between ten to fifteen days of demand. Law Development - Executive Branch Most of the laws that are tabled in the National Assembly for debate emanate from the Executive Branch of the Government 5 . A Government Department will provide the general outline – instructions so to speak – to the Ministry of Justice covering the gist of the issue that the instructing Ministry wishes to achieve through the proposed legislation. The Ministry of Justice then drafts the Bill and after it is agreed with the instructing Government Department, it is thereafter presented to the Cabinet Committee on Legal Affairs. If the matter subject of the law affects a sector committee of Cabinet 6 , the draft law needs to be considered by that sector Cabinet committee as well before it goes to full Cabinet. It is only after the Cabinet has approved the Bill that it is published in readiness for consideration by the National Assembly. Parliament Parliament in Malawi comprises not just the elected representatives of the people (MPs) but also the President. Legislative powers are vested in Parliament. Malawi has a unicameral system of Parliament. As discussed above, Bills are mainly tabled by the Executive Branch of Government. Any Bill needs to go through several stages: readings, committee stage, reporting stage, voting and passing into an Act of Parliament. Once passed, the President may assent or reject it. If it is rejected, it may be brought back to the House and if it is again adopted by the National Assembly, the President has no option over the matter but to assent to the Bill. 5 There are draft laws that come into Parliament through Private Members’ Bills, but these are by far in the minority. 6 In the case at hand, it is possible that the Cabinet Committee on Commerce may wish to review any new legislation that affects investment in the PPP arena. THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 103
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Development of Policy, Legal, and Insitutional Framework for - ppiaf

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