Aninver delivers first PPP training in Zambia

Aninver Development Partners has recently started an exciting consultancy assignment with the World Bank to support the Government of Zambia in enhancing its capacity to manage Public-Private Partnerships (PPPs). This initiative, part of the broader PPP Institutional Capacity Support Project, aims to build essential skills within key government ministries and agencies to effectively plan, structure, and monitor PPP concessions. This article provides an overview of the assignment, details of the first mission and training, the content covered, and a summary of the two-day training held in May 2024.

Summary of the Assignment

The Government of the Republic of Zambia (GRZ) is actively seeking to increase private sector involvement in infrastructure projects to improve quality and address funding constraints exacerbated by the COVID-19 pandemic. With a focus on the road sector, the GRZ has initiated several PPP concessions, such as the Lusaka–Ndola Road project. The World Bank, recognizing the need for enhanced capacity within GRZ's key ministries, is supporting this effort through a series of training and capacity-building initiatives.

The primary objectives of the consultancy assignment are:

a) Conducting a capacity needs assessment of key implementing ministries and agencies.

b) Developing a national strategy and action plan for institutional capacity building.

c) Delivering targeted training and capacity development activities for government officials.

Description of the First Mission and Training

The first mission took place on May 6-7, 2024, at the Radisson Blu Hotel in Lusaka. This initial training session aimed to introduce the PPP project, evaluate current levels of experience, and discuss insights to inform future training rounds. Participants included key staff and officials from various government entities involved in PPP processes, such as the Ministry of Finance and National Planning (MFNP), the Road Development Agency (RDA), the Ministry of Housing and Infrastructure Development (MHID), and the Ministry of Transport and Logistics.

The agenda for the first day included:

a) Introduction to the project and the purpose of the training.

b) Overview of PPPs, including key concepts and the PPP project lifecycle.

c) Discussion of current PPP experiences in Zambia.

d) Presentation on Zambia’s PPP framework and contractual arrangements.

e) Training on PPP project identification and evaluation.

Day two focused on more detailed aspects of PPP management:

a) Introduction to PPP pipelines and project appraisal.

b) Detailed overview of the PPP procurement process.

c) Discussions on contractual risks and mitigation strategies.

d) Interactive sessions on unsolicited proposals and competitive procurement.

Description of the Training Content

The training sessions conducted during the first mission in Lusaka were meticulously designed to equip Zambian government officials with both theoretical knowledge and practical skills related to Public-Private Partnerships (PPPs). The agenda spanned two intensive days, covering a broad spectrum of essential PPP topics. On the first day, the sessions began with an introduction to the PPP project, setting the stage for a comprehensive understanding of key concepts and the overall lifecycle of PPP projects. Participants were introduced to the fundamental principles of PPPs, including their definition, benefits, and the reasons for their adoption in infrastructure projects. This was followed by a guided discussion on current PPP experiences in Zambia, which allowed participants to share their insights and challenges, fostering a collaborative learning environment.

The training then delved into the specifics of Zambia’s PPP framework. This session provided a detailed overview of the legal and institutional structures that support PPPs in the country, emphasizing the steps involved in the PPP project cycle for the road sector. Participants gained a thorough understanding of the regulatory landscape and the critical components of PPP agreements. The afternoon was dedicated to exploring PPP project identification and evaluation, where attendees learned about the criteria for screening and prioritizing PPP projects, as well as the strategic and financial considerations necessary for determining PPP potential.

The second day of training focused on the practical aspects of managing PPP projects. It began with an introduction to the concept of PPP pipelines and project appraisal, highlighting the importance of developing a robust pipeline of potential projects and conducting thorough economic and financial assessments. This session aimed to equip participants with the skills to evaluate the commercial viability and value for money of proposed PPP projects. Detailed discussions on the PPP procurement process followed, covering the various stages of procurement, from initial project conception to the final bid evaluation and contract award.

Risk management was a critical component of the training, with sessions dedicated to identifying common risks associated with PPP contracts and developing strategies for their mitigation. Participants were provided with practical tips on negotiating PPP agreements and managing contractual risks effectively. The interactive nature of the training was reinforced through breakout group discussions and quizzes, which enabled participants to engage actively with the material and apply their learning in a collaborative setting.

Overall, the training sessions were comprehensive and interactive, designed to build the capacity of Zambian officials to manage PPP projects effectively. The content was tailored to address the specific needs of the participants, providing them with the knowledge and skills necessary to support the successful implementation of PPP initiatives in Zambia.

Trainers and Participants

The training sessions were delivered by experienced professionals from Aninver Development Partners, including:

Jose de la Maza, CEO of Aninver Development Partners, who has over twenty years of experience managing consulting projects internationally, particularly in PPPs and infrastructure. He has previously worked with organizations like McKinsey & Company and has led numerous PPP-related assignments worldwide.

Andrea Stucchi, an expert in PPP legal and institutional frameworks, who provided detailed insights into Zambia’s PPP structures and contractual arrangements.

Constanzo Marullo Diaz, Senior Consultants of Aninver Development Partners, helped with facilitation of the training.

Participants included a diverse group of key government officials and staff, such as:

a) Senior representatives from the Ministry of Finance and National Planning (MFNP).

b) Officials from the Road Development Agency (RDA).

c) Members of the Ministry of Housing and Infrastructure Development (MHID).

d) Representatives from the Ministry of Transport and Logistics.

e) Staff from the National Road Fund Agency (NRFA) and other related agencies.

Summary of the Two Days Training

The first day of training began with an introduction to the PPP project, followed by an overview of PPP concepts and the lifecycle. Participants engaged in discussions about their current experiences with PPPs in Zambia, which provided valuable insights into the challenges and successes of ongoing projects. The afternoon sessions focused on Zambia’s PPP framework and contractual arrangements, providing participants with a solid understanding of the legal and institutional structures supporting PPPs in Zambia.

The second day delved into more detailed aspects of PPP management, including project appraisal and procurement processes. Participants learned about the importance of developing PPP pipelines and conducting thorough economic and financial assessments. The training also addressed contractual risks and mitigation strategies, offering practical advice on managing and negotiating PPP agreements.

Interactive sessions, including breakout groups and quizzes, helped to ensure that participants could apply the concepts learned and engage with the material actively. The feedback collected during these sessions will inform the design of future training activities, ensuring they are tailored to the specific needs of Zambian officials.

Conclusion

The first mission of the consultancy assignment for the World Bank in Zambia has laid a strong foundation for building the capacity of government officials to manage PPPs effectively. Through comprehensive training and interactive discussions, participants gained valuable knowledge and skills that will support the successful implementation of PPP projects in Zambia. This initiative marks an important step towards enhancing the quality of infrastructure provision in the country and fostering greater private sector involvement in its development.