PPPs as “Soft” Enablers of SMART Rwanda Jacob Gahamanyi, SMART Rwanda Days 17 th -18 th June 2013

PPP’s in the ICT Sector in Rwanda Close to ½ a Billion USD worth of 18 projects in the ICT SSP

A Public-Private Partnership? Public Private

Definition “Contractual arrangements between the Public and Private sector under which the private firm delivers a public infrastructure asset and/or a public service …...” -Rwanda National Investment Policy Private party assumes substantial financial, technical and operational risk throughout the lifecycle of the project

Benefits Gov focuses better on fulfillment of politically social responsibility. Better utilization &allocation of public funds Efficient and good quality public infrastructure and services Improved service delivery Increased investment in public infrastructure Quicker delivery of project Better Value for money Increased budget/financing certainty Access to finance in times of financial crises

Private Public

Higher borrowing costs Might lead to higher consumer prices An expensive tender and negotiation process Rigid/inflexible/long contracts Complicated and lengthy tender process Price of transferring risk Creation of Monopoly Markets Disadvantages

Value for Money Public Sector Comparator Due Diligence !!

1.Beef up PPP-Specific capabilities 2.Build Experience 3.Curb Expertise Flight

[Amashi Ngo Kachi Kachi!!!]