Public-private partnerships
A public-private partnership is an arrangement in which government and a private company share the work, the risk and the reward of delivering a public asset or service. The PPP Directorate is the part of NIB that makes this happen in Sierra Leone.
About PPPs
Since the 1990s the term has covered many kinds of contract in which a private party takes real responsibility for a project that benefits society. The public side contributes its regulatory role. The private side contributes technical skill and capital.
Done well, PPPs improve how projects are delivered and maintained, bring in private capital, encourage innovation, and lead to better decisions because each project is tested by a feasibility study and a lifecycle analysis first.
Sierra Leone's position
The Government is committed to expanding infrastructure through PPPs in energy, transport, agriculture, tourism and ICT. Infrastructure gaps still hold back private business and reduce the country's competitiveness, and the Government has made PPPs a standing way of attracting investment and improving services.
NIB was set up by the National Investment Board Act 2022 to oversee and coordinate investment, including the management of PPP projects. The PPP Directorate is the specialist unit that carries this out in line with national priorities and the law, giving technical support and keeping the process open.
What the directorate does
Find and assess opportunities
Identify, evaluate and rank possible PPP projects with ministries, departments, agencies and local councils.
Develop projects
Prepare concept notes and carry out feasibility and due diligence studies so that projects are viable and fit national goals.
Procure and structure
Run the procurement process and project structuring, and make sure private partners are chosen openly and fairly.
Manage contracts
Negotiate and finalise PPP contracts and oversee them, with clear performance measures and compliance with law and policy.
Monitor and evaluate
Track implementation and contract performance, and assess results for value for money, sustainability and impact.
Keep to the law
Make sure every PPP activity follows the NIB Act 2022 and related policy.
Promote and manage the pipeline
Promote opportunities, keep a pipeline of bankable projects and talk to prospective investors.
Build capacity
Train and advise line ministries, agencies and local councils so they can develop and manage PPPs.
Common forms of PPP
Build-operate-transfer
The private partner builds and runs an asset, then hands it over at the end of the contract period.
Design-build-finance-operate
The private partner takes on everything from design to operation.
Lease
Government keeps ownership while the private partner operates and maintains the asset.
Service contract
A private firm provides a specific service under government supervision.
How a PPP starts
Project identification
Government identifies the need and carries out feasibility studies.
Structuring
The procurement structure, the allocation of risk and the tender documents are prepared.
Bidding
Private partners are chosen through competitive bidding.
Implementation
The contract is awarded, the project is built and the service is delivered.