What are PPPs?

Public–private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sectorcompanies. These schemes are sometimes referred to as PPP, P3 or P3.

  PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer. In other types (notably the private finance initiative), capital investment is made by the private sector on the strength of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructuresector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by providing guaranteed annual revenues for a fixed period.

 Typically, a private sector consortium forms a special company called a "special purpose vehicle" (SPV) to develop, build, maintain and operate the asset for the contracted period[1]. In cases where the government has invested in the project, it is typically (but not always) allotted an equity share in the SPV.[2] The consortium is usually made up of a building contractor, a maintenance company and bank lender(s). It is the SPV that signs the contract with the government and with subcontractors to build the facility and then maintain it. In the infrastructure sector, complex arrangements and contracts that guarantee and secure the cash flows make PPP projects prime candidates for project financing. A typical PPP example would be a hospital building financed and constructed by a private developer and then leased to the hospital authority. The private developer then acts as landlord, providing housekeeping and other non-medical services while the hospital itself provides medical services.

Highlights

Mombasa Workshop

After the PPP PAUN Project Implementation Technical Team completes its circular mission.


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Team on Circular Mis...

The PPP PAUN Project Implementation Technical Team is on its third week on circular mission.


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Member

PPP Activity

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EACCIA News

EAOGS 2018

Global Event Partners of the UK, the organizers of East Africa Oil and Gas Summit (EAOGS) in partnership with East African Chamber of Commerce, Industry and Agriculture (EACCIA) are inviting delegates, speakers, sponsors, media groups, corporates, investors, government officials and other professionals to a summit and exhibition where, in 2018 this prestigious, government-led summit and exhibition will once again provide a platform for East African ministries and the national oil companies to engage with international and local investors to examine the hugely significant opportunities across the East Africa region. To join the event, download the Delegation Booking Form here, Exhibition Space Booking Form here, and the
Floor Plan here.

East Africa Trade Week 2018

In hosting the East African Trade Week 2018, our primary objective is to promote economic growth in the region and the continent, at large, through the network of Chambers of Commerce and business associations and to advance the East African Community (EAC) regional integration as well as Africa-wide development agenda, as championed by the African Union Commission (AUC), notably, the Boosting of Intra-African Trade (BIAT) to accelerate and deepen the con t's market integration by ensuring that we realize the Continental Free Trade Area (CFTA) agenda. The continental chambers of commerce and industry, through the Pan African Chamber of Commerce and Industry (PACCI) are some of the key drivers of CFTA. The objective of the EATW 2018 is to promote investment and trade through partnerships and joint ventures in key sectors such as agriculture and agro-allied ventures, financial services, small and medium enterprises, textiles and infrastructure. It will institutionalize strategic economic partnership between the East African Community member States, rest of Africa and Globe. It is seen as the beginning of a long-term strategic partnership between the rest of the Continent and East Africa with the rest of the globe for mutual benefits.  The target countries are Burundi, Ethiopia, Eritrea, Kenya, Rwanda, Somalia, Tanzania and Uganda, in the Eastern Africa region. The EATW will also feature some national and regional project portfolios with regional investment and export trade opportunities that require international financing and partnerships. Venue: Kenyatta International Convention Centre (KICC), Nairobi. DATE: 3rd – 6th April, 2018. More information about this event will be posted soon.

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