PPP Project Pipeline Development In Zambia
Description of project
The Government of the Republic of Zambia (GRZ) aims to enhance private sector participation in developing and improving infrastructure projects. This initiative is driven by the government's desire to improve the quality of infrastructure and address limited fiscal resources, which have resulted in reduced public funding for such projects. The decrease in public financial support has been further worsened by the effects of the Covid-19 pandemic over the past few years.
To address these challenges, GRZ is launching an ambitious plan to adopt the Public-Private Partnership (PPP) model for delivering infrastructure projects and programs. Various government entities are currently engaged in developing and procuring several PPP concessions, especially in the road sector. Notably, GRZ has signed multiple concession agreements to upgrade and develop road corridors, such as the Lusaka-Ndola Road, which connects the Copperbelt region with the capital city, Lusaka. Additionally, GRZ is negotiating concessions aimed at reducing traffic congestion between Zambia and Congo. GRZ is also seeking to implement as a PPP for the rehabilitation of the Mutanda to Mwinilunga to Jimbe Road including One stop Border Post facility at Jimbe.
The assignment aims to support the Bank and GRZ in creating a comprehensive framework for developing a PPP project pipeline, with a focus on a few pilot projects. This includes building the capacity of local practitioners to monitor and develop the pipeline, taking into consideration Zambia's development priorities and global best practices.
Services provided
Here's a summary of the consultancy activities:
- Macroeconomic Context: Analyze Zambia's economic landscape, focusing on resilience and potential growth. Assess fiscal space for developing PPPs, with attention to the economy's diversification efforts, infrastructure development, and foreign direct investment.
- PPPs in Zambia Overview: Examine Zambia's PPP framework established by the 2023 PPP Act, including legal and regulatory support. Assess PPP institutions, frameworks, and identify gaps, providing recommendations for improvement. Review past and current concessions to identify lessons and align with Zambia's development goals.
- Current PPP Pipeline: Identify and analyze promising PPP projects within Zambia's pipeline, prioritizing them based on economic, social, and sectoral needs. Develop an assessment tool to evaluate potential PPP projects.
- Pre-feasibility of Three Projects: Conduct pre-feasibility studies for three selected PPP projects, including technical, economic, and financial analysis. Engage potential investors, explore risk mitigation, and evaluate operational capacity for project implementation.
- PPP Delivery Approach for Selected Projects: Prepare a comprehensive report on technical and operational aspects. Propose PPP implementation options, outline AfDB’s role as a transaction adviser, define third-party advisory services, and prepare an implementation plan and budget for advisory services, including third-party costs.
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