Public-Private Partnership: Turbulent Takeoff
By LUKONG Pius, Cameroon Tribune
In a bid to pull the private sector into the country’s development
chain, government proposed a bill which was incidentally voted into law
by the National Assembly enabling a symbiotic
action from both the public and private sectors in the whole gamut of
project execution. Hypothetically, the programme went operational in
2009 under the guidance of the Ministry of the Economy, Planning and
Regional Development as well as the Support Council
for the Execution of
Partnership Contracts better known by its French abbreviation, CARPA.
Practically, it effectively took off, unfortunately lazily, four years
after when in 2013; nine projects were streamlined for execution. From
every indication, none of these projects finally saw the light of day.
The whole scenario continued in 2014 when 14 projects were identified
for execution and nothing was done as at the end of the year. This
state of affairs has kept no one indifferent. It is for this reason,
that government which represents the public sector and is the initiator
of the programme, proposed to redefine strategy beginning with the
sensitisation of project owners to let them further understand the need
to work hand in glove with the private sector in the execution of the
country’s project. As to whether or not the Ministry of the Economy,
Planning and Regional Development, CARPA and other public structures
will succeed in putting the programme on fast track is another question.
But the big worry remains. Why should such a lofty programme that is
capable of changing the economic face of the nation met with such
unenthusiastic attitude?
Even though the President of CARPA denies the lazy takeoff of the
programme, the signs are clear for anyone to see. The Head of State in
one of his speeches decried the inertia that has gripped the
administration. The execution of the public-private partnership
programme is a good example. In effect, the contours of the PPP are
clear. It is the public sector that proposes projects to the private
sector for execution. It all begins with the project master which could
be a ministry, a council or any state owned institution. Once the
project has been identified, it is sent to CARPA for assess its
eligibility. According to the legal expert in CARPA, all projects are
not obligatorily eligible for PPP. The question now is, which ones are
eligible? On what bases are some projects declare fit for PPP? The
answer according to the legal expert is in the financial and technical
potentiality for the public contract.
Complexities and Hurdles
That notwithstanding, it is important to underscore the complexity
that surrounds the Cameroon public contract system which alone is
capable of withholding streamlined projects beyond their expected life
spans. The second reason why this lofty idea has not been able to
effectively takeoff is the low technical and financial capacity of local
companies. In effect, projects that are placed in the PPP pipeline are
usually those that the public sector is unable to handle financially,
technically or both. It is for this reason that the few projects
highlighted for PPP by CARPA are likely to be grabbed by foreign
companies that have the financial and technical means. These include the
Limbe-Douala-Edea-Yaounde petroleum pipeline, the multifunctional
quarry in Limbe, the National Insurance building in Douala and the
maintenance of the Hydrocarbons Terminal at the Kribi Deep Seaport.
This whole package of complexity does not exclude the doubtful
business climate which hypothetically rekindles lots of hope but
practically continues to nurse confusion in the minds of business
people. Business people continue to decry the tax system which according
to them remains unfriendly.>>>
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