Strengthening South Africa’s P3 framework
The World Bank selected CPCS to help South Africa reform its public-private partnership (PPP or P3) regulations. CPCS will develop comprehensive frameworks, guidelines, tools, and provide training to enable this reform.
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Sector: Transport, Roads & Highways Client: The World Bank Group Client type: Economic Integration Union Location: South Africa Project type: Institutional Development, Reform and Capacity Building Main services: Regulatory Analysis and Design and Enabling Legislation/Laws |
Challenge
South Africa wants to reform how it governs its P3s for infrastructure. At the core is an overhaul of the legal and regulatory framework, targeting the management of unsolicited proposals (USPs) and fiscal commitments and contingent liabilities (FCCL). Without defined roles, actionable tools, and seamless collaboration across all levels of government, the reform risks stalling before implementation even begins. The challenge isn’t just rewriting the rules—it’s making them work in practice.
The genesis of this project is an earlier mandate wherein CPCS conducted a review of the PPP framework in South Africa. We identified gaps and bottlenecks in the regulatory and institutional framework that may impact the bankability and marketability of PPP projects. Following the review, the National Treasury drafted amendments to the National Treasury Regulations 16 (NTR 16). The current work is to operationalize and facilitate the implementation of these amendments. This is truly our Impact in Action!
Solutions
Our work focused on two areas:
Managing FCCL for PPP projects
- Assessment of operational practices and institutional responsibilities for management of FCCL
- Conduct stakeholder consultations at federal sphere of government
- Review international best practices
- Development of guidelines and long-term fiscal planning tool to provide stakeholders operational guidance
- Capacity building of National Treasury Budget Office, GTAC and contracting authorities
Managing USPs for PPP projects
- Assessment of current guidance on how USPs are managed
- Conduct stakeholder consultations at federal sphere of government
- Review international best practices
- Development of guidelines and templates for managing USPs
- Capacity building
Impact
South African institutions will be equipped with the tools and knowledge to manage fiscal risks and unsolicited infrastructure proposals more effectively. It will support improved institutional coordination, strengthen regulatory compliance, and enable better planning at levels of government.
