Lilongwe, August 25: Vice President Dr. Saulos Klaus Chilima has called on Cabinet Ministers and their deputies to embrace the Public Private Partnership (PPP) initiative aimed at achieving social economic growth of the country.
The Vice President made the call Monday at Malawi Institute of Management (MIM) in Lilongwe at the opening of a day-long orientation workshop for ministers and deputy ministers on the intricate processes involved in the implementation of PPP.
Dr. Chilima said the workshop was aimed at equipping the cabinet in dealing with modern business practice as they are positioned at the helm of implementation process of all Government policies and strategies.
“Government has been implementing the Malawi Growth and Development Strategy II (MGDS II) as a tool for achieving economic growth and reducing poverty or if we put it from a positivist approach, we should be creating wealth and new wealth.
“The MGDS II, currently under review, recognizes the role of infrastructure in spurring economic growth and thereby uplifting the quality of life for the people of Malawi,” he said.
The VP further explained that Government is aware that the level of access to essential public services such as electricity, clean water and ICT services need significant attention, and that there is need to have radical approach if the essential services are to be provided to Malawians.
He bemoaned the situation of access to electricity in Malawi saying Malawi’s access to electricity is at 10 percent and is one of the lowest access rates in the SADC region.
“As a country we require significant resources in order to improve access to electricity, clean water, health and education,” said Dr. Chilima.
He said in order to correct the situation, government was counting on and courting the private sector to complement its efforts in improving delivery of social services to the people hence the policy decision to involve the private sector in the supply of required infrastructure in key sectors.
Said Dr. Chilima: “This will be done through the promulgation of the Public Private Partnership Act of 2011 which provides the institutional and legal framework to support the conception and development of PPP projects in Malawi.
“The Act was put in place upon realization that, throughout the world, the private sector has so much to offer in augmenting the supply of infrastructure,” said the VP.”
He said Empirical evidence shows that the private sector has sustainable competitive advantage over the state in mobilizing financing and managing risks associated with conceptualization, design, financing, construction and management of infrastructure.
Dr. Chilima added that the recent International Investors Conference which Malawi hosted demonstrated the confidence that the local and international investor community have for this country.
On her part, PPP Commissioner Rosemary Mkandawire said the workshop aimed appraising cabinet on implementation of Government initiative of PPP noting that ministers are key stakeholders in the effective implementation of the initiative which was enacted in 2011.
The workshop was also expected to clarify the institutional arrangements that are already in place to support the PPP projects and how to promote Malawian participation in the projects.
