Rwanda has enacted a new legal framework to enable the public and private sectors to collaborate in infrastructure investments and services.
The public-private partnerships (PPP) law provides for co-operation between the government and the private sector on projects such as roads, railways, airports, bridges, waterways, inland ports, energy, tourism, natural resources and the environment, minerals, waste disposal, telecommunication and information technology.
The new PPP law No. 14/2016, signed by President Paul Kagame recently, puts Rwanda in the same league with Kenya, Tanzania, Uganda and Burundi, which have similar legislation that provides for contracting procedures and selection procedures of private partner to perform tasks and a period of reimbursement of capital invested.
The Centre for Trade and Investment Law & Policy (CTILP) said that the PPP law aims to transform Rwanda through capital-intensive projects that the government may find difficult to finance alone due to budget constraints.
“The PPP will strengthen the legal and regulatory environment of business and boost investment by attracting foreign direct investment in public infrastructure and services,” said CTILP’s executive director, Faustin Ntezilyayo.
Dr Ntezilyayo, however, added that the PPP regulation does not apply to contracts subject to laws governing public procurement, the privatisation or divestiture of enterprises, assets and any infrastructure facility owned by government.
He said prior to issuing a tender notice, the contracting authority must conduct a project feasibility study approved by the steering committee. This is expected to ensure that the procurement process adheres to tenets of competition, transparency, fairness, efficiency and effectiveness.