PPPD to be set up to attract Foreign Direct Investment

In the wake of the unity government’s effort to attract Foreign Direct Investment (FDI) and diversify loss-making state ventures, two strategic ministries, Finance and Development Strategies and International Trade, are in the process of setting up a novel ‘Public-Private-Partnership Division (PPPD) to carry out programmes relating to diversification and FDIs.

The Cabinet Committee on Economic Management and the Cabinet have given the green light to go ahead with the establishment of the PPPD at an estimated cost of Rs.75 million.

A joint cabinet memo by Ministers Ravi Karunanayaka and Malik Samarawickrama says that a PPP refers to a contractual arrangement between the implementing agency and the project proponent for the financing, design, construction, operation and maintenance or any combination thereof and any project or facility, which in alignment with national priority and economic agenda where the proponent bears significant risk and management responsibility or both.

“The setting up and operating a PPPD housed in the Treasury, recruiting personnel with commercial and technical expertise will be the first step of leveraging the maximum number of solicited and unsolicited proposals submitted for PPP’s,” the memo says.

The necessity for a Central Division has arisen for assisting, advising and facilitating the activities of PPP projects.

It said the main objectives expected to be achieved through a PPPD are, managing project selection and implementation, providing project transaction advice, and PPP cells will be organized in the relevant ministries to handle the work as well as to liaise with the PPPD.

“The primary role of this division to be established would be to provide oversight, transparency, good governance, the formulation of policies and recommendations to the Cabinet Committee on Economic Management.

The proposed structure will initially comprise 17 personnel who will be recruited on a 3-year contract with the option for renewal. (Sandun A. Jayasekera)