submitted to: secretary to the vice president … · partner for each of the four fish receiving...

PUBLIC PRIVATE PARTNERSHIP UNIT OFFICE OF THE VICE PRESIDENT

Republic of Sierra Leone

ANNUAL PROGRESS REPORT

2019

SUBMITTED TO:

SECRETARY TO THE VICE PRESIDENT

PREPARED BY:

PPP UNIT

2 | PPP Unit Annual Report for the year 2019

Table of Content

Executive Summary………………………………………………………………………………………………………..3

1.0 Introduction ..................................................................................................................................................... 5

2.0 Our Mandate, Vision, Mission, Goals and Objectives………………………………………………........5

2.1 Mandate of the PPP Unit……………………………………………………………………………….……………6

2.2 -2.5 Vision, Mission, Goals and Objectives of the PPP Unit for 2019……………….…………….6

3.0 Resources…………………………………………………………………………………………………………………7

4.0 Update on Projects and Activities for the Year 2018 and 2019………………………………........8

4.1 Engagement with MDAs…………………………………………………………………………………………….8

4.2 Project Implementation Supported by Donor Partners……………………………………………….9

4.2.1 Update on Implementation of UNDP LGDP/PFSDP Project………………….……….…………..9

5.0 PROGRESS TOWARDS FACILITATION OF PPP PROJECTS .......................................................... 11

6.0 KEY STAKEHOLDERS ................................................................................................................................ 17

6.1 Government of Sierra Leone................................................................................................................... 17

6.2 United Nations Development Programme (UNDP) ....................................................................... 18

7.0 CHALLENGES, RECOMMENDATIONS AND THE WAY FORWARD ........................................... 18

7.1 Challenges ...................................................................................................................................................... 18

7.2 Recommendations ...................................................................................................................................... 19

7.3 THE WAY FORWARD ................................................................................................................................. 20


EXECUTIVE SUMMARY The PPP Unit annual report comprises the operations and overview of the administration of the Unit for the year spanning January through December and also highlights the technical support provided to MDAs. The report also contains current status of projects and activities undertaken by the Unit as well as challenges and recommendations. Our engagements with the UNDP continued in 2019 on the implementation of the Local Government Development (LGD) projects following a successful completion of the Private & Financial Sector Development Project (PFSDP) for the just concluded UNDP funding cycle. The key expected output of the LGD 2019 is to enhance National and local capacity to establish and participate in public-private partnerships is enabled to generate economic opportunities for pro-poor sustainable livelihoods especially for female-headed households and youth at national and local levels. The established target agreed per LOA for the achievement of the output includes an indicator the number of PPP Arrangements signed and/ or reviewed with a target of 2 Local and 1 national PPP agreements signed.

We welcome the 2019 fiscal year with effective collaboration with the Ministry of Fisheries

and Marine Resources on a competitive procurement process for the selection of a private

partner for each of the four fish receiving centres at Goderich, Tombo, Shenge and Bonthe.

We also further our facilitation roles in the Ministry of Energy with transaction lead on

projects in the development, procurement and ongoing PPP arrangements. There has been

tremendous improvement on PPP projects development, procurement and negotiations

work in the 2019 and some of these efforts translated into signed 3 PPP project agreements

signed in the fisheries sector and near-completion of a competitive procurement process in

the health sector on Pharmacy PPP Cost Recovery project with a pilot case at the Connaught

Hospital in Freetown.

The Unit noted the increasing calls for PPP technical support particularly on social projects

with more engagements leaning on advisory requisitions and initial intervention of the PPP

Unit at the earlier phases and in some cases post-MOU stages of MDAs project relationships

with private developers on the Unsolicited approach. Following round-table discussions and

initial due-diligence work coordinated by the PPP team, we proffered appropriate advisory

note for due consideration and action by the respective MDAs.

Subsequent to the Vice President’s laudable speech to Local Councils on the need for

heightened decisions by Councils to intensify revenue collection and enhance fiscal

sustainability and promote the culture of self-dependence and less reliance on the Central

Government; Local Council’s request for technical and advisory support has took an upward

trend and our response strategy has being swift with more visits to Councils on trainings and

transaction support.

2019 is another successful year for the PPP Unit as most of the projects that achieved Cabinet and Parliamentary approvals in 2017 were renegotiated on the grounds of achieving better value for money, approved by relevant authorities and the respective developers reached


financial close or nearing financial closure. The Unit in collaboration with Ministry of Energy completed renegotiations on the Karpowership which achieved 2 US$ Cents savings for EDSA per KWh purchased and renegotiations and approval of the 50MW Planet Solar Energy project which ensured a reduction in tariff from 13.7 US$ Cents per KWh to a more affordable tariff of 12 US$ Cents per KWh. Also, renegotiations of the Bumbuna II Hydro Electric Project and Bekongor III Hydro project is nearing completion as the Developers are to respond to GoSL’s position requesting for a huge reduction in both the total project costs and the tariffs. Our primary role is to enhance the development and conclusion of PPP opportunities/projects through facilitation & providing technical backstopping to ensure affordability, fair risk allocation and better value for money. These can be ensured if PPP staffs involved in transactions are better capacitated. In that regard, the Unit maintained its long standing relationship with UNDP on human resource development programs for PPP Unit staff, line ministries and related agencies. During the month of July 2018, the Unit completed trainings on PPP Projects Monitoring and Appraisals for four middle-tier staffs whose roles are related to the course organized in Ghana. To enhance our operations, our Unit is engaged in dialogue forums with regional and continental PPP outreach forum out of which invitations were extended to the Unit for 3 core staffs that benefitted from the first Glocal Infrastructure Hub & Infrastructure, Norton Rose Fullbright UK and the Infrastructure Concession Regulatory Commission of Nigeria joint conference on PPPs in Abuja in October of 2018. The Unit has the opportunity of building on its network of Partners and gaining meaningful insights into the operations, best practices for efficiency, challenges and next steps for PPPs based on presentations from over 20 countries across Africa. We have as our mandate the responsibility to facilitate transactions not only of high capitalization or of infrastructure types but also to provide support to municipal-based PPPs which we referred to as Public Private Community partnerships (PPCPs). These projects are big on social impacts within Local Councils and in 2018, the Unit engaged the services of a specialized Consultancy firm that conducted an all-inclusive study on the revenue streams of Kenema City Council, Kambia District Council and Port Loko City Councils to identify untapped revenue sources, identify potential private sector partners and recommend best practice solutions to enhance revenue mobilization enhancement within the targeted Councils on a PPCP outsourcing model. The Consultant sealed its deliverables on the contract which included a detailed report on the studies, provided comprehensive procurement package with standard templates of Request for Proposals and standard revenue outsourcing contracts for adaptation. This is an extension of the roll-out program conducted inter-alia for the Makeni City Council, Bo City Council and Koidu New Sembegun City Council, all of which are financed wholly from UNDP funding. We benefitted immensely in 2019 from effective supervision and guidance from the Office of the Vice President and also, several project opportunities were directed from the OVP including the Kissy Oil Jetty project and meeting with proposed American Developers for an innovative housing estate project. We also work immensely with the Honorable Vice President Dr. Mohamed Juldeh Jalloh on the concept document and proposal for the establishment of the National Investment Board (NIB) for the review and decision of Cabinet.


1.0 INTRODUCTION

Public Private Partnerships (PPPs) are being adopted by Governments all over the world as

an innovative approach to addressing the needs of society both on infrastructure and social

impact projects. With the limited-resource environment for most economies globally, there

are rising challenges for Countries to deliver effective public services to its citizenry. This

has led many Governments across the Globe including Sierra Leone to embrace PPPs as a

sustainable solution to meeting public demand for infrastructure and social services. PPPs

present a number of recognized advantages for the private sector to exploit. These include:

the ability to raise private sector finance in an environment of budgetary limitations, make

the best use of private sector experience & operational efficiencies to reduce cost and

increase quality of service to the public and the ability to fast track infrastructure

development. Others include:

a) Employment generation

b) Reduction in the overall total cost of service provision, freeing national or public funds for other

social goods and services

c) Provisional of excellent service to the citizens at optimal cost

d) Provision of scarce public goods at reduced prices

Given the huge gap in infrastructure and social service delivery, PPPs provide an alternative

for the Government of Sierra Leone to foster a quantum leap on infrastructure and social

service provision whilst the contracted private partners recoup their investments from user

charges or scheduled annuity payments. Presently, there is need for PPP arrangements in

the housing, transport, energy, health, education, water and agriculture sectors for notable

socio economic impact.

2.0 OUR MANADATE, VISION, MISSION, GOAL AND OBJECTIVES

The PPP Unit in Sierra Leone was initiated in 2013 and the enactment of the PPP Act in 2014.

The Unit over the years had been supporting MDAs in the development, procurement and

implementation of PPP projects especially in the energy, fisheries, housing, agriculture,

transport and tourism sectors.


2.1 MANDATE OF THE PPP UNIT

The mandate of the Unit in Section 2 of the PPP Act 2014 empowers the Unit to perform its

roles in the facilitation, conclusion and implementation of any PPP agreement undertaken

between a Contracting Authority and a Private Partner.

Our Mandate is to accelerate development through provision of technical support to

Ministries, Departments & Agencies (MDAs) in the implementation of infrastructure and

social-impact projects under an ideal PPP arrangement between MDAs and private partners.

The PPP Unit intended to achieve this goal by directing its efforts towards implementation

of projects specified in the list of PPP pipeline projects contained in the New Direction

Agenda and also partnering with MDAs to identify new or emerging projects that align with

H.E. President Bio’s Agenda.

2.2 OUR VISION

The vision of the PPP Unit is to serve as champion of public-private partnerships for the

country’s inclusive growth and sustainability as a model for infrastructure development

2.3 MISSION STATEMENT

The PPP Unit’s mission statement is "Fostering an enabling environment that encourages

private sector participation in achieving sustainable infrastructural development"

2.4 GOAL OF THE PPP UNIT

Our goal is to “Contribute to national development by involving the private sector in public

infrastructure delivery through competitive and sustainable Public Private Partnerships

(PPPs)"

2.5 OBJECTIVES OF PPP UNIT

The main objective is to encourage and promote private sector participation in the provision

of resources for PPP opportunities or projects in terms of investment capital, managerial

skills and technology.

The Specific Objectives:


To develop and maintain an enabling legal and institutional framework to guide

investments in PPP opportunities

Communicating the government’s public private partnership strategy clearly and

consistently to all spheres MDAs, investors and other stakeholders.

Assisting MDAs to prepare and implement cost-effective and affordable public-

private partnership projects. Such assistance would be available throughout the PPP

project cycle, from project identification through to financial closure.

To facilitate and maintain fair, equitable, transparent, competitive and effective

procurement processes for PPPs

To adopt established operational guidelines and criteria for PPPs

To mobilize resources from Government and Donor Agencies for the development of

PPP projects

To build capacity of the PPP unit, the MDAs and other stakeholders on PPP concepts

and procedures develop institutional capacities for technical analysis and negotiation

of PPPs and associated contracts

To help identify and evaluate projects at MDA level that may have socio-economic

impacts for consideration as PPP candidate projects to be updated in the list of

Pipeline projects

To provide technical assistance to MDAs through project feasibility studies, PPP

procurement and contract management

3.0 RESOURCES

The Unit has as its head the Director who report directly to the Office of the Vice President.

The PPP team comprises 8 core staff and 5 support staff. In October 2019, the Unit in

following the approval of the OVP, completed the recruitment process for 3 additional

technical staff to fill the vacancies for Project Appraisal Specialist, Planning & Outreach

Specialist and Monitoring & Evaluation Officer with the aim to get them join the team come

1st January, 2020. Staff emoluments are being paid from the national payroll and the Unit is

under the Office of the Vice President’s budget line which is received through

monthly/quarterly allocations from the Consolidated Revenue Fund.

The Unit continues as a beneficiary from the UNDP under the Local Government

Development Project 2019 (LGDP) which obligated the Unit to deliver on 4 key activities as

part of the Unit’s deliverables as contained in the Letter of Agreement (LOA) signed with the


UNDP. The LGDP aims to foster national & local capacity to establish and participate in PPPs

to generate economic opportunities for pro-poor sustainable livelihoods especially for

female-headed households and youth at national and local levels. The LGDP project also seek

to ensure that targeted government institutions are enabled to participate in sustainable

CSR.

4.0 UPDATE ON PROJECTS AND ACTIVITIES IN THE YEAR 2018 and 2019

4.1 ENGAGEMENTS WITH MDAS

The PPP Unit in collaboration with the procurement Unit at the Ministry of fisheries and

Marine Resources lead the Procurement process for the recruitment of a private partner on

a R O T (Rehabilitate, Operate and Transfer) for a PPP concession arrangement for the Four

fish landing sites. Evaluation and negotiations were completed in March 2019 and the ROT

Concession PPP agreement for the Tombo Fish Receiving Centres, Shenge and Bonthe

facilities were all signed in June 2019 and the contract with the selected private partner

signed for the Goderich site signed in October 2019.

Our work within the year was also focused on engagements with Consultants hired by the

MCCU (Adam Smith) as part of their mandate in the Threshold program to reform the energy

and water sectors. We played key role in the several engagement meetings & stakeholders’

workshops on Unlocking the Potential for Grid-Connected Solar Power through Private

Sector Investment with sponsorship from the World Bank/PPIAF. We are also part of the

steering committee on the Rural Renewable Energy Project nicknamed Solar Mini-Grid

project across the 190 Chiefdoms in Sierra Leone and we work closely with the Ministry of

Energy and the UK DfID approved implementing partner – the United Nations Office for

Project Services (UNOPS). Implementation of this project is far advanced and we have

completed Work Package 1 and now reviewing work on milestones for private partners on

Work Package 2 during Regular Project Steering Committee Meetings. Our work with the

World Bank Group International Consultant and the Ministry of Health is ongoing with

preparation work continuing for the development of Terms of Reference for the recruitment

of a Consultant to develop an integrated Policy for Health PPPs. The Global Consultant now

in town and the first stakeholders Workshop will be hosted in Freetown.


We are in continuing engagement with the Ministry of Trade working on an unsolicited

proposal from a private partner on the Kissy Oil Jetty opportunity with the vision of

promoting oil importation and 24-7 availability through a tank farm and retailing schemes.

4.2 PROJECT IMPLEMENTATION SUPPORTED BY DONOR PARTNERS

On the Donor support aspect, the Unit received its first tranche funding from UNDP in July

and to make up for lost time commenced implementation on the following components:

4.2.1 Update on Implementation of UNDP PFSDP Project for 2019

On the Donor support aspect, the Unit received its first tranche funding from UNDP in July

and to make up for lost time commenced implementation on the following components:

COMPONENT/ACTIVITY UPDATE ON IMPLEMENTATION

FOR QUARTER 3

RESULT/IMPACT OF

ACTIVITY

Support relevant MDAs on the

development and tendering of

RFP’s selection of the preferred

bidder and signing of the contracts

whilst transferring knowledge to

three institutions for the effective

PPP contract negotiations and risk

allocation

Having successfully completed a training workshop on PPP Orientation & Risk Analysis for MDAs in July 2019, the Unit further Completed two days intensive training workshop session on PPP Project Development and Tendering Process for Local Councils. The workshops were conducted in the targeted Councils with Tonkolili District Council benefitted from the training on 24th to 25th September, 2019 whilst Moyamba District Council hosted the workshop on 26th to 27th September, 2019. The implementations were very successful and participants contributions during the workshop were phenomenal with each district’s plenary sessions highlighted a minimum of 2 project proposals for the upcoming funding opportunity from the World Bank & Government of Sierra Leone on their joint cooperation to deepen sustainability and fiscal independence of councils through financing high revenue stream projects. The Honorable Vice

The Workshop gathered

political & official

representatives from

each of the two targeted

local councils, a number

of chiefdom

representatives, youth &

feminist groups, MDA

representatives for each

of the two districts, local

and international NGOs,

civil societies, state

security forces, private

sector representatives,

pressure groups (Okada

riders, motor drivers

Unions, petty traders)

and the media.


President made a remarkable speech on Councils’ approach to fiscal sustainability going forward and launched the World Bank project on same during the month of September, 2019.

Conduct assessment on the number

of jobs and corporate social

responsibilities honored at the

community through the PPCP and

Facilitate and train relevant MDAs

on the PPP process for the

development of a project proposal

for funding by relevant private

sector investor

Publication of advertisement on the recruitment ended on 18th July, 2019 and procurement stage completed in August 2019. The Unit signed a contract with the Consultant and following the terms of the agreement paid mobilization fees to the Consultant for the commencement of work in all of the 6 local councils that benefitted from the PPCP interventions under the Private & Financial Sector Development Project implemented by the Unit for the period 2016 to 2018. Targeted councils are: Makeni City Council, Bo City Council, Koidu New Sembehun City Council, Kambia District Council, Port Loko City Council and Kenema City Council.

The Consultant has

submitted the

inception report which

has been reviewed and

we facilitated initial

engagement meetings

with each of the 6

councils. We now

await the draft report

from the Consultant by

the end of November

2019


.

Implementation of South-South

cooperation for enhanced

capacityof the Unit’s staff

Three technical staff benefitted from

the South-South component for the

period and having finalized

arrangements with the course

providers (the African Institute for

Management Sciences – AIMS), the

Program Manager of the Unit and

Business Adviser attended a week long

course on PPP Legal Documentation

from 1st October to 5th October 2019.

The course was designed to capacitate

staff on developing draft

documentation for PPP agreements

for the review and enhancement of

legal officers. It is crucial in enabling

the Unit be on top of negotiations,

review of redrafting oif relevant

clauses and addresiing legal risks in

PPP agreements.

Also, the Unit sponsored the Research

& Planning Officer with Top-up

Allowance to enable him attend the

Smart Cities Course Under the Belt-

and-Road Initiative. This is crucial to

infrastructure sector and improves

our participant knowledge on the

dynamics to smart city development

and financing scheme for private

sector collaboration.

It is expected that

beneficiaries will be

more resourceful in

PPP transaction

engagements and

could also maximize

knowledge obtained

from the training

through in-house

training sessions and

on-the-job coaching of

non-beneficiaries

5.0 PROGRESS TOWARDS FACILITATION OF PPP PROJECTS

PPP project development and implementation spans across years and for some complex

PPP projects negotiation stage can last for more than a year as subsequent to the signing of

the PPP agreement between the Developers and the Contracting Authority, Lender

engagements can demand a fresh negotiations on key aspects of the agreement.


During the period January to November 2019, we were able to register some progress

towards project inception & preparation, transaction advisory services, PPP private

partner procurement, project implementation and stakeholders’ management. The table

below highlights progress update for the period:

No PROJECT/ACTIVITY SECTOR/MDA STATUS OUTPUT/UPDATE

1 PPP TRANSACTIONS

a Fish Receiving

Centres and Jetties at

Goderich, Tombo,

Shenge & Bonthe

Fisheries -

MFMR

PPP

Procurement

completed and

4 PPP

agreements

signed

Private partner are pursuing

financing and the Partner for

the Tombo Site has made

tremendous improvements and

is working towards

commencing operations in

2020.

b 128 MW Western

Area Generation

Project- Energy

Project

Energy -

Ministry of

Energy

World Bank

advised on the

cancellation of

the project due

to certain

challenges

which was

effected.

Project has attracted the

interest of OPIC and the

Ministry of Energy in

collaboration with the PPP

Unit has held local and

international meetings in

the USA on possibility for

partnership for supply of

thermal base load power

on an IPP model

c 160MW Bumbuna II

Hydro-Electric

Project

Energy Ongoing as

negotiations on

total project

cost and tariff

is yet to get

consensus on

the part of both

parties

Initial Negotiations

completed and PPA &

Implementation Agreement to

be signed

EPC contractors

evaluation in progress

Value engineering

completed & project EPC



value reduced & affordability

enhanced

WB to issue PRG &

revision of financial model

ongoing

GoSL’s position is for

substantial reduction on

project costs & tariff

d 25 MW Betmai Run-

off River Hydro

Electric Project

Energy Financing stage

– Developers

are yet to

achieve

financial close

and timeline

for that activity

is now the

crucial factor

PPA & IA signed and

ratified in 2017

Private Partner

requested from GoSL the

partial risk guarantee which

pose a challenge

Developer is far on

negotiation with lenders to

reach financial close

e Kissy Oil Jetty PPP

Concession

Transport MOU

developed and

partnership

ongoing

Draft PPP Concession

agreement developed and

negotiations ongoing

f Pharmacy PPP Cost

Recovery Pilot

Project for

Connaught Hospital

Health Private partner

selected and

negotiations

soon to

commence

Lead the assessment and

development of proposals

and standard template

agreement for international

competitive PPP process

Serve as subject-matter-

specialist in the evaluation



and eventually negotiations

to commence

2 PROJECTS FOR WHICH THE UNIT COMPLETED PRE-FEASIBILITY STUDIES

King Jimmy Market,

Shopping Mall &

Leisure Business

Park Project

Local

Council/FCC

Initial

engagement

with

unsolicited

Developers

suspended and

FCC has a fresh

initiative for

partnerships

PPP team in initial

engagements with FCC and

assessment work of critical

importance to furtherance of

project

50MW Solar Energy Energy-

Ministry of

Energy

Pre-feasibility

study

completed by

PPP Unit

Competitive

procurement completed in

2017

PPA reviewed and

ratified in 2017

GoSL re-convene

negotiations and achieved

reduced tariff at US$12

Cents/KWh

Developers have

reached financial close

d Affordable Housing

Project

Housing -

Ministry of

Works,

Housing &

Infrastructure

Pre-feasibility

study report

completed

Downstream work

towards development of a

business model and options

analysis to be completed

Financing for additional

work still remote



e Road Maintenance

Project

Roads - Road

Maintenance

Fund

Authority

Pre-feasibility

study report

completed

Downstream work

towards development of a

business model and options

analysis to be completed

Financing for additional

work still remote

f Studies on the

Establishment of the

PPP Project

Transaction Support

Fund (P3TSF)

PPP Unit Studies

completed and

processes

being followed

for the

establishment

of the Fund

Engaging financiers for

funds still ongoing but not a

dime has been committed

RfP already developed

for the recruitment of the

Fund manager

g Rural Waste

Collection and

Recycling Project

Rural

Development-

KCC, BCC &

MCC

Pre-feasibility

study

completed

Report submitted to

Makeni and Kenema City

Councils

Roll-out of the Bo waste

management and recycling

project to Makeni & Kenema

has been launched in Makeni.

The implementing agent is

Welt-Hunger Hilfe and fully

financed by DfID.

Revenue

Mobilization

Rural

Development-

KC, KC & PC

Procurement

Stage

Procurement of the

PPCP Consultant completed

Consultants work with

communities ongoing

3 MANAGEMENT OF THE UNIT

a Development and

Update of the PPP

Unit Website

PPP Unit/OPII Website

established

Enhanced online

visibility of the Unit's

activities and that of OPII



and

operational

Act as a marketing

conduit for PPP opportunities

and ongoing projects

b Configuration of the

Unit's IT Network

PPP Unit IT network

developed and

effective

IT network & peripheral

modules fully supporting the

Unit's operations

c Capacity

Development of the

PPP Unit's Team

PPP Unit Training &

capacity

development of

the PPP team

continues

Skills and experience of

the team heightened on PPP

Financial Model analysis,

Legal Document and PPP

strategies, methods and

project structuring techniques

Further training on PPP

project appraisal, monitoring

& assessment, negotiations

and contract management is

of utmost importance in 2020

d Capacity Building of

MDAs, Local

Government

Authorities & Private

Sector Entities

MDAs/Local

Government -

MLGRD

Regional-based

trainings of

LGA staff and

private entities

on PPP project

development &

Tendering

process

completed in

September

2019

Comprehensive

trainings on

The Unit organized

comprehensive trainings for

Tonkolili and Moyamba

Districts with participants

drawn from all quadrants in

each districts. Outcome was

very rewarding with each

Councils reps proposing at

least 2 projects for

implementation towards

sustainable operation of

Councils



Orientation &

Risk Analysis

Training

workshops for

MDAs &

private sector

Trainings held in Freetown in

July 2019 with full

representation from invitees

and generated meaningful

impacts in terms of media

coverage, participants

knowledge of PPPs and how

to interface with the PPP team

for transaction inception and

support

6.0 KEY STAKEHOLDERS

6.1 Government of Sierra Leone

GoSL is key initiator and financier of the PPP Unit and the Unit’s success is champion by the

Office of the Vice President. The GoSL has been fully committed to PPP as a way forward to

supporting infrastructure and social-impact project development. The Unit continues to

receive support from GoSL in spite of the fiscal challenges and our annual allocation and

actual disbursements received from the Consolidated Fund is growing and was better in

2019. PPP Unit continues to receive the over-arching leadership support of H.E. the

President and more specifically the Office of the Vice President in providing oversight &

unlocking challenges encountered in executing the Unit’s roles.

GoSL still remains the biggest financier to the PPP Unit and accounts for nearly 100% of the

Unit’s Recurrent Expenditures in 2019. The relationship between the Unit and sister MDAs

continues to grow and has been very effective with key public institutions including the

Ministry of Finance, Ministry of Planning & Economic Development (MoPED), Ministry of

Energy, Ministry of Fisheries and Marine Resources (MFMR), Ministry of Transport &

Aviation (MTA), Ministry of Basic & Senior Secondary Education (on the JAM assisted school

feeding project), Ministry of Tertiary & Higher Education (initially supported the FEMAB –

IPAM new school campus at Bureh Town), Ministry of Agriculture Forestry & Food Security


(MAFFS), Ministry of Health & Sanitation (MoHS), the District Local Councils including City

Councils, Sierra Leone Roads Authority (SLRA), SALHOC, Freetown City Council.

In 2019, the Unit’s plan was to maintain existing relationship with MDAs and work to

strengthen coordination as well as build capacities. We sought out for new collaboration

work with other MDAs and we realize good opportunities in the education sector and for

which consultative meetings and project discussions ongoing for new projects.

6.2 United Nations Development Programme (UNDP)

UNDP has been and continues to provide support to the Unit as part of caoacity development

goal and to enhance the Unit for implementation of the just completed Private and Financial

Sector Development Project (PFSDP) and now the Local Government Development Project

(LGDP) in 2019. A large part of the funding is directed towards interventions within

MDAs/Councils trainings on PPPs and the assessment work on number of jobs and Corporate

Social Responsibilities (CSR) on the part of 6 Councils (Makeni, Kambia, Bo, Koidu, Port Loko

and Kenema City/District Councils) following interventions using the PPCP outsourcing

model for revenue mobilization enhancement.

7.0 CHALLENGES, RECOMMENDATIONS AND THE WAY FORWARD

7.1 Challenges

The following challenges are encountered during the third and fourth quarters:

ACCESS TO FINANCE

Funding to support the Unit’s activities are sometimes delayed or not allocated due to the

tight fiscal space within which the GoSL operates.

For the unit to build up the confidence of investors as well as expand its operations, the unit

looks forward to the GoSL and Donor Partners to increase their support towards the unit for

it to create a better enabling environment for the unit to thrive.

Subventions in 2019 were regular though inadequate especially for the preparation of

project opportunities into bankable proposals in pursuit of our primary objectives and

mandate. We now await the fourth quarter 2019 allocations and ramp up on activities

pending for the year 2019.


COOPERATION FROM MDAs

The PPP Unit does not own projects but provide technical support to MDAs. Some of the

MDAs are committed to following the PPP process whilst others shy away from the PPP

process thus creating setbacks or delays especially at the inception stage.

INADEQUATE CAPACITY AND AWARENESS AMONGST SOME MDAs ON PPPs

WILLINGNESS TO CONTRACT USING THE PPP APPROACH

UNDER-DEVELOPED MARKET FOR PARTNERSHIPS AND PROJECT FINANCING STRUCTURE

7.2 Recommendations

The following are recommendations of the Unit:

INCREASE IN FUNDING FOR THE PPP UNIT’S AGENDA

The PPP Unit must match up with other PPP Units in the Continent. For this to happen, the

financial resources provided by the GoSL and Donor must be increased. For sustainability of

the Unit the PPP Transaction Support Fund (P3TSF) should be funded. MoF should increase

allocations for the recurrent expenditure of the Unit. This will capacitate MDAs and PPP

staffs so as to improve public education, strengthen operations, conduct outreach activities

and establish regional offices.

MINIMIZE DELAYS

Delays generally frustrate stakeholders and directly impact on the timely achievement of

milestones as scheduled. Consultants must ensure that strategies are adopted to swerve

their work against emerging challenges from unforeseen circumstances. MoF should strive

towards providing financial subventions as stipulated in the budget to avoid delays caused

by MDAs on project delivery and performance.

MDAs should be aware that they have the absolute responsibility to deliver sector

responsibility and the PPP Unit was primarily established to support them in achieving their

set goals through water-tight collaboration & cooperation amongst stakeholders.


7.3 THE WAY FORWARD

PPP projects without doubts will bring long-term benefits to the country. For the Unit to

achieve this goal, PPP projects must be well designed, developed, executed and managed. As

a way forward the public and private sectors should be capacitated on the PPP process to

avoid shortcuts. For the PPP to be effective in its operations, Government must ensure and

enforce that all PPP projects are sent to the Unit before execution. International agencies as

well as GoSL to fund the Transaction Support Fund (P3TSF) so that pre-feasibility studies

can be done which will enable the Unit to develop project pipelines and in the

implementation of projects.

For PPP projects; you either do it right, and get result, otherwise failure is inevitable. In 2019

and beyond, it is hereby posited that the role of experts cannot be over emphasized.

According to leading global monitors of PPPs, institutions such as PPP units that can deliver

the scale of projects needed, lack the personnel and technical capacity to successfully deliver

projects and build strategic programs that leverage the power of PPP. They recommended

the use of external consultants to help fast track PPP successful outcomes on feasibility

studies and project transaction advisory for innovative projects. We look forward to

receiving the necessary support from the Office of the Vice President to secure funding for

project development and transaction pursuit.

submitted to: secretary to the vice president … · partner for each of the four fish receiving...

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