Finance Minister Enoch Godongwana has amended the National Treasury Regulation 16 (NTR 16), in terms of Section 76 of the Public Finance Management Act, which rationalises the approvals for smaller projects and provides a clear delineation of institutional roles and responsibilities in terms of the public-private partnership (PPP) advisory function and the regulatory function.

The changes are expected to drive higher confidence and investment in PPPs as well as greater private-sector participation, Treasury said in a statement on February 13.

“Government recognises the importance of PPPs as a lever to deliver much-needed infrastructure and ease pressure on stretched government finances. However, although the economic landscape has significantly changed over the years, the PPP regulatory framework has remained static for close to 15 years.”

The amendments provide a clear framework for receiving and processing unsolicited PPP proposals and incentives to ease entry for the private sector.

Further, the PPP Advisory Unit’s roles and responsibilities have been expressed in the amendments to support institutions in the planning and procurement process for PPPs and to fast-track the conclusion of PPP projects to reach financial close.

The legislative amendments also provide mechanisms to report, track and manage fiscal commitments and contingent liabilities through the reporting requirements for Treasury approvals.

Additionally, the provisions for granting exemptions to NTR 16 have been improved to ensure good governance. The provisions for institutions applying for approvals for amendments to PPP agreements have also been improved and clearly explained to ensure good governance.

Meanwhile, a provision was also made in the amendments to empower national departments to establish dedicated units tasked with adopting a programmatic approach to support PPPs on behalf of other organs of State within the strategic sectors under their jurisdiction.

The PPP Advisory Unit will collaborate closely with these departmental units to ensure effective coordination and execution of PPP initiatives, Treasury added.

“The National Treasury is advancing the implementation of recommendations from the comprehensive review of the PPP regulatory framework across all three spheres of government.

“Further details will be provided in the Budget Review documents covering supporting processes to enable procuring institutions to meet the new requirements introduced by the amendments,” it said.

Godongwana is schedule to deliver his Budget speech on February 18.

Treasury has made good progress in addressing the public comments and amending NTR 16. It will also issue communications in response to all public comments received on NTR 16.

Meanwhile, the amendments to the Municipal PPP Regulation 309 require more time because of procedural processes, including consultation with Parliament.

These amendments will be finalised by June, Treasury said.