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 Implementation Unit – Legal Mandate There is growing unanimity that it would be preferable to have a unit that would facilitate PPPs in Malawi. This report discusses options for the possible institutional set up. Possible agencies could include the PC, MIPA, Office of the Directorate of Public Procurement, Department of Statutory Corporations, Public Enterprise Reform and Monitoring Unit (PERMU) or indeed a government department/ministry. What would be the ramifications from a legal point of view? Existing Organisation If an existing organization such as the PC or MDC were to be used for this purpose, we would suggest that the enabling Act should mention such an organization by name. As such a body would play a regulatory role, it would be beneficial to give it appropriate legal authority. This is true also if the Government chose to utilize a government ministry. Our view in such a case is that it would again be preferable to accord such government legal authority probably through the PPP legislation. Any administrative arrangements that would seek to utilize a government body without the accompanying legal authorization would be no improvement on the current status quo. New Organisation If a new organization altogether was to be set up, this could be achieved through the PPP-specific legislation. This would probably be the most natural choice, as it would obtain the highest legal recognition. Conceivably, there would be no legal obstacle why such an entity could not be a company incorporated under the Companies Act. We must confess though that since this organization would play regulatory role more than a trading one, we would have no immediate justification for proposing that this route be adopted. UPDATED IMPLEMENTATION TIMETABLE RESPONSIBLE OFFICE TIMING & RATIONALE Finalise PPP Concept and Immediate; to avoid duplication of effort and Synchronize with other PC, & Ministry of the possibility of initiatives with conflicting initiatives by other GoM Finance agendas Departments Develop PPP Policy PC & Ministry of By the end of October, 2006. IP3 have been Document Finance recruited to undertake this work. Secure Approval of PPP Policy Document PC, OPC, & By the end of December, 2006. Ministry of Finance Draft PPP Bill PC & JUSTICE By March, 2007. IP3 will provide a crude draft of the PPPspecific Legislation by the end of the THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 104
Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi Final Report Secure approval of the Cabinet Committee on Legal Affairs Secure approval of Cabinet Adopt Policy and Draft PPP Legislation Submit PPP Legislation to Parliament Upon approval of the PPP Legislation by Parliament, secure Assent of Bill by the President current assignment. PC & JUSTICE By May, 2007. JUSTICE Justice & Ministry of Finance JUSTICE JUSTICE Ensure that New PPP Act is Ministry of Finance made operational Resource the PPP Implementation Agency Ministry of Finance and Launch the Programme Set up PPP Implementation Office and fill vacancies & generally undertake the recruitments PC & Ministry of Finance By June, 2007. Cabinet now meets once every week. How quickly Cabinet considers a matter is a function of how much the sponsoring Minister is pushing it and the perceived importance of the particular matter. By June, 2007 Consideration may be given to a low key publicity initiative By August, 2007 The pipeline of Bills awaiting presentation to the National Assembly is large. Thus, to get a Bill through the approval process in the National Assembly could be an unpredictable exercise. By October/Novermber, 2007 This should really be a matter of course unless during the approval process, Parliament introduces significant amendments to the PPP Legislation. By January, 2008 This will require a Media Campaign that will aim at informing the public as to what is being contemplated by the new law. By April, 2008 Preferably by the time the Act is being made operational, the funding should have been provided for. This may entail the making of appropriate provisions in the 2007/2008 GoM Budget. By April, 2008 It is envisioned that by this date, the Head of the Implementation Agency will have been recruited and he/she in turn will facilitate the recruitment of the rest of the identified support staff. THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 105
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