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

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
‣ While the Regulations are being prepared and passed, their related Operations
Guidelines and Standard Documents & Procedures are prepared, institutional
arrangements are readied, and support from Government and Donor are put into place,
the PPP program will operate within the Privatisation Commission;
‣ The legal basis for the PC to conduct PPP transactions will be provisions of the Public
Enterprises (Privatisation) Act that allow for the use of concessions as one of the
approved methods of privatization; and
‣ A core team of 4-5 professionals will be identified in the PC as the ones who will be
responsible for conducting the PPP Program, and they will transfer to the PPP Unit
when it is set up in the Ministry of Finance in approximately 12 months.
The process of constructing a PPP Legal Framework around this option would involve the
preparation of a Draft PPP Act, which is provided in the Appendices to this report, and a set of
PPP Regulations, which are also provided as an Appendix to this report. It is important to note
that the draft Act is based upon a U.N. model that has been edited to adapt it to the Malawian
legal system, so the draft should not be viewed as a form of turn-key document that can be
presented to Parliament. If Government wants to enact such an Act, we will be pleased to
communicate with the relevant officials and fine tune the document as needed. The PPP
Regulations we have provided are also based on an international model, i.e. South Africa. IP3
was involved in the drafting of the South African PPP Regulations, so we feel comfortable in
presenting them in this report.
Our approach to designing a PPP Framework has been based on the following: Policy creates
Law, and then Law creates Institutions. Accordingly, the next section presents the Institutional
Framework design required by the Policy and Legal Frameworks that have been established in
this section, and in the preceding section on Policy.
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