Guidelines for Public-Private Partnerships Unveiled To Enhance Local Economic Development

In a significant step towards decentralizing development initiatives, Uganda’s Minister of State for Finance Planning and Economic Development, Amos Lugoloobi, officially launched the Public-Private Partnership (PPP) Guidelines and Pooled Financing Principles for Local Governments.

The initiative, supported by the World Bank, the United Nations Capital Development Fund (UNCDF), and the Global Fund for Cities Development (FMDV), is poised to revolutionize local economic development across the country.

Local Governments in Uganda are entrusted with the responsibility of planning, economic development, infrastructure, utilities, social infrastructure, and public services in their respective cities and towns. However, limited financing has been a persistent challenge in meeting these crucial roles.

The Local Government Public-Private Partnership Guidelines and Pooled Financing Principles launched on December 13 at Sheraton Hotel Kampala aim to address this issue by supporting Local Governments to enhance their institutional capacity and human capital.

The focus is on adopting PPPs as an alternative financing mechanism for infrastructure projects. The move is anticipated to usher in a new era of improved service delivery, enhanced project quality, and job creation, ultimately fostering a more robust local economy.

Lugoloobi emphasized that integrating Public-Private Partnerships with the Parish Development Model (PDM) is a strategic initiative to decentralize development activities. This integration allows local communities to participate in decision-making processes actively, ensuring that projects align with their specific needs and priorities.

The comprehensive framework provided by the PPP Guidelines and Pooled Financing Principles covers the development, procurement, financing, and management of PPPs and other projects at the local government level. The guidelines adhere to the PPP Act of 2015, ensuring transparency, accountability, and efficiency during project implementation.

The Executive Director of the Public-Private Partnerships Unit, Jim Mugunga, highlighted that the initiative also adopts Pooled Financing Principles, a collaborative funding mechanism supporting local government infrastructure development.

The guidelines underwent testing on actual project ideas sourced from local government authorities, resulting in a Pilot Pipeline of 20 project concepts, some of which have received initial approval.

Notably, the Kampala Capital City Authority (KCCA) is actively exploring PPP mechanisms, moving away from traditional funding sources.

Julian Chia a program officer at FMDV noted the success of coaching activities under the PIFUD program, which involved working with local governments to formulate project concepts. The program has already produced concept notes for projects in KCCA, Nansana, and Entebbe, both of which are exploring PPP mechanisms, moving away from traditional funding sources.

The PIFUD program emphasizes the importance of effective collaboration between the private and public sectors, acknowledging that PPPs are most beneficial when each sector has its strengths.

The involvement of trusted and independent advisors, along with thorough pre-feasibility and feasibility studies, ensures that PPPs are appropriate for specific projects.

The launch event saw Ramathan Ggoobi affirming the government’s commitment to using PPP as an alternative funding method for public projects. He expressed confidence that the PPP guidelines would serve as a strong catalyst for the success of the Parish Development Model and empower local governments in driving sustainable development.