PUBLIC-PRIVATE PARTNERSHIPS: REGULATORY AMENDMENTS UPDATE

PUBLIC-PRIVATE PARTNERSHIPS: REGULATORY AMENDMENTS UPDATE

• 14 February 2025
• National Treasury
• SA Legal Academy

National Treasury has issued a media statement drawing attention to 1999 Public Finance Management Act Regulation 16, an amendment to which was gazetted on 7 February 2025. This is noting the importance of public-private partnerships (PPPs) in leveraging infrastructure delivery by easing pressure on ‘stretched government finances’.

Released in February 2024 for public comment, the amendment proposed at the time has been refined to address some of the issues raised. According to the statement, its purpose is to:

• rationalise the smaller project approval process by introducing a threshold exempting smaller projects from certain procedural requirements
• clarify the role and responsibilities of PPP advisory units in order to support institutions in the planning and procurement process and to fast track the conclusion and financial closure of PPP projects
• clearly delineate institutional roles and responsibilities in the context of PPP advisory unit and regulatory functions
• ‘empower’ national departments to ‘establish dedicated units tasked with adopting a programmatic approach to support PPPs on behalf of other organs of state within the strategic sectors under their jurisdiction’ (this is expected to facilitate closer collaboration and the ‘effective coordination and execution of PPP initiatives’)
• ‘report, track and manage fiscal commitments and contingent liabilities’ at specific stages in the approval process
• facilitate ‘good governance’ in the context of:
  • granting exemptions to Regulation 16
  • applications for the approval of amendments to PPP agreements, and to
• provide a ‘clear framework’ for:
  • receiving and processing unsolicited PPP proposals, and
  • incentives to ‘ease’ private sector participation.

Also released in February 2024 for public comment, the draft municipal PPP Regulation 309 is still being revised for finalisation.

• amended Regulation 16
• media statement

Published by SA Legal Academy Policy Watch

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