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Municipal Public Private Partnerships

Regulatory Framework for Municipal PPPs. Why do we use PPPs. Contents. Unsolicited bid . Regulatory Framework for Municipal PPPs. Key Acts, Regulations and Guidelines. Municipal Finance Management Act (2003)Section 120 on PPPsSection 33 on long term contractsMunicipal Systems ActSection 76, 77,

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Municipal Public Private Partnerships

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    1. Municipal Public Private Partnerships

    2. Contents *: This is presentation is not meant to be a stand alone presentation but should be delivered after the National/Provincial PPP Presentation*: This is presentation is not meant to be a stand alone presentation but should be delivered after the National/Provincial PPP Presentation

    4. Key Acts, Regulations and Guidelines Municipal Finance Management Act (2003) Section 120 on PPPs Section 33 on long term contracts Municipal Systems Act Section 76, 77, 78 on different delivery mechanisms, including PPPs Municipal PPP Regulations (2005) Supply Chain Regulations (2005) Municipal Service Delivery and PPP Guideline Combines and harmonizes the requirements of all of the above in one document

    5. Key Features of Harmonized Framework One feasibility study process with common basic requirements Differentiation possible depending on size, complexity, and risk Three tests for a PPP (apply to all types of PPPs) Affordability Value for money Appropriate risk transfer Three types of PPPs Municipal Service (MSA and MFMA apply) Support Activity (only MFMA apply) Example: waste collection and disposal is a “municipal service” but composting and recycling is a “support activity” Use of municipal property for commercial purposes (only MFMA apply) Example of difference between “Municipal Service” and “Support Activity”: In the case of waste management, waste collection and disposal is a “municipal service”. Whereas recycling and composting is considered a “support activity” as it does not involve services directly to the community. Composting and recycling “support” the disposal function because it results in less waste being sent to the landfill. Office accommodation is another example of a “Support Activity” Example of difference between “Municipal Service” and “Support Activity”: In the case of waste management, waste collection and disposal is a “municipal service”. Whereas recycling and composting is considered a “support activity” as it does not involve services directly to the community. Composting and recycling “support” the disposal function because it results in less waste being sent to the landfill. Office accommodation is another example of a “Support Activity”

    6. Key Features of Harmonized Framework (con’t) MSA’s separate internal and external assessment streamlined Decision to explore external mechanism can be delegated Assessment can be done in one process but decision still separate

    13. Unsolicited bid process Municipality receives unsolicited proposal

    14. ?

    15. Contact Details LINDOKUHLE HLATSHWAYO PPP Unit National Treasury 240 Vermeulen Street Pretoria South Africa Tel: +27 12 315 5525 Fax: +27 12 315 5477 Lindokuhle.hlatshwayo@treasury.gov.za www.ppp.gov.za www.treasury.gov.za

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