Pretoria: The Minister of Finance, Enoch Godongwana, has announced amendments to the regulations governing Public Private Partnerships (PPPs) to facilitate essential infrastructure delivery and alleviate the financial burden on government resources. In a statement, the National Treasury highlighted that although the economic conditions have evolved over the past years, the PPP regulatory framework had remained unchanged for nearly 15 years.

According to South African Government News Agency, the amendments fall under section 76 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), specifically targeting National Treasury Regulation 16 (NTR 16). The National Treasury is working on implementing recommendations from a thorough review of the PPP regulatory framework across all government spheres. The anticipated changes aim to boost confidence and investment in PPPs and increase private sector involvement.

The amendments, as addressed in the 2024 Budget, were proposed for National Treasury Regulation 16 (NTR 16) and Municipal PPP Regulation 309. These regulations are crucial in managing PPPs. The public was invited to comment on the amendments from February 19 to April 15, 2024. National Treasury has made significant progress in incorporating public feedback and revising NTR 16, with the final amendments published in Gazette Notice 5841.

Key changes include adjustments to approval processes for smaller projects, setting thresholds to exempt certain projects from specific Treasury Approvals. The PPP Advisory Unit’s roles have been clarified to improve support for institutions in planning and procuring PPPs, expediting financial closure. The amendments also outline institutional roles in advisory and regulatory functions, empowering national departments to create dedicated units for PPP program management.

The updated regulations introduce mechanisms for reporting and managing Fiscal Commitments and Contingent Liabilities, enhancing governance. They also refine the process for amending PPP agreements and provide a framework for processing Unsolicited Proposals, easing private sector entry. Responses to public comments on NTR 16 will be communicated, with further details in the 2025 Budget Review. Amendments to Municipal PPP Regulation 309, pending parliamentary consultation, are expected by June 2025.