As the rest of Africa was plundering its mineral wealth through nationalisation and mismanaged parastatals, Botswana chose the PPP path and stuck to it. Moreover, the wealth from the Debswana partnership was used wisely and did not act as a catalyst for unnecessarily grandiose projects and an orgy of looting. Through Debswana, Botswana has topped the world diamond sales league by value. Critics may say that other countries in Africa (Ivory Coast is a good example) have achieved the same status with other natural wealth with or without a 50-50 PPP. But the difference is that the fruits from the Debswana PPP have been channelled to successfully develop a once dirt-poor country. Of course, the fact that the Debswana arrangement has worked for Botswana does not mean that we close our eyes to its unedifying aspects.
But the broad picture indicates that in comparative terms, the Debswana arrangement has worked well for Botswana. Crucial in this success has been fairly good management and the fact that our leaders have not been corporate raiders and pirates voraciously feeding off state resources like famished hyenas.
via www.mmegi.bw
Very interesting. A successful PPP.
On the subject of PPPs, this is an email I got from a partner who did not want to even contemplate bidding for a PPP
From: A person
Sent: 17 April 2012 10:09 AM
To: Another person
Subject: Re: RFP GSM/12/03/0428 - Transaction Advisor for proposed Durban Dig-Out Port
The reality is that it wouldn't pass our bid/no bid criteria on the basis of chances of winning, so a no in this instance.
From: Another person
Sent: Tuesday, April 17, 2012 08:33 AM
To: A person
Subject: RE: RFP GSM/12/03/0428 - Transaction Advisor for proposed Durban Dig-Out Port
I understand that concern but it is a massive project and they don’t come around too often.
We would not fund the bid costs and therefore it is no problem if you elect not to bid.
This same sentiment is echoed in a FM Supplement, conveniently entitled Infrastructure.
Companies have expressed frustration with abandoned processes and policy flips. Moreover, the money that they pump into tenders has been wasted. Basil Read, which is part of the consortium that won the tender to build the R10bn N1/N2 winelands toll road, had been working to win it for over 10 years. Government's freeze on all new toll roads makes its future uncertain.
"Recent experience with PPPs has not been good. We have spent tens of millions preparing tender proposals which, in some cases, have not even been opened. But with limited state funding, they will have to be an option in one form or another," M&R's Henry Laas says.
The financial costs of bidding are not mitigated against the likelihood of succeeding. Many believe that the bid will never be awarded and so can't justify the expense. Who has the money and personnel to sit on a bid for 10 years?
An unfortunate feature of the stagnant Zuma government (probably inherited it from Mbeki who was a big a failure).