National Agency for Public Private Partnerships to ensure equitable project risk allocation between public and private sectors
Head of Sri Lanka’s National Agency for Public Private Partnerships (NAPPP), Thilan Wijesinghe has reportedly said that measures would be taken to ensure equitable allocation of risk between the public and private entities in a project.
Wijesinghe has been quoted in the media as telling a forum recently that a central agency for public private partnerships (PPPs) was necessary to provide a third source of financial resources to stimulate capital formation.
The forum was the L. S. De Silva Memorial Lecture held by the Chartered Institute of Logistics and Transport (CILT).
The NAPPP is attached to the Ministry of Finance and is also responsible for project risk assessment and the equitable allocation of risk between the public entity and the private entity.
According to Wijesinghe, oversight of the Ministry of Finance is essential to ensure fiscal cost and fiscal risk and recourse to the national capital budget, if any, is optimized.
Line ministries under which a PPP comes and the private sector also requires a single facilitation point, he has said.
The NAPPP will also help tap into technical assistance funds for feasibility studies, Wijesinghe has noted while focusing on the need for a Public-Private-Partnership Framework and cooperation in transport and logistics.
OSL take:
The statement by the head of Sri Lanka’s NAPPP is an encouraging sign for foreign businesses/investors looking at doing business with Sri Lanka. Given the assurance of equitable risk allocation in PPP projects, foreign businesses could explore the possibilities of engaging in PPPs in Sri Lanka.
| Article Code : | VBS/AT/20181128/Z_3 |