Infrastructure Development & Public Private Partnerships
The strengthened effort by government to engage with the private sector on large infrastructure projects is largely driven by its current inability to effectively mobilise financial resources to meet the need for efficient road networks, rail networks, power infrastructure, water, housing, health and telecommunication facilities.
It is therefore imperative for the Zimbabwean government to engage with the private sector for investment. Zimbabwe’s liquidity crisis means there are few local investors with the ability to inject capital into large infrastructure projects. The need to unlock international investment capital is critical in bringing projects to life.
Public sector funding is a major challenge given the scarcity and lack of adequate financial resources. The need arises for the government to make itself available to public private partnership structuring methodology that has the ability to match returns from projects with the cost of private capital and perceived risks.
The ability to engage government with the intention of making projects attractive to lenders, suppliers and investors through a credible security package, balanced allocation of attendant project risks, and acceptable rates of return is key in unlocking medium to long term financing. Provision for discounting the opportunity costs in the form of a possible investment in another sector also play a part in creating an attractive investment.
Manokore Attorneys has a dedicated Infrastructure Development & Public Private Partnerships practice group, and several team members with great experience as well as international PPP training under their belts. Our international affiliations and alliances put us in an excellent position to tap into global knowledge of PPP structures and models.
Our transaction experience includes some of these recent mandates.