Public-Private Partnerships : Surmount Obstacles To Progress

As the African idiom “one hand cannot tie a bundle” says, the government alone can not develop the country and ensure economic growth and quality service delivery. It thus requires the contributions of all and sundry especially the private sector in pushing forward the national development agenda as inscribed in the National Development Strategy 2020-2030. Thus, the government of Cameroon launched the Public-Private Partnership (PPP) model in 2003. PPP is a public contract in which a public body and one or more private partners agree to carry out all or part of the design, construction, financing, operation, and maintenance of public infrastructure and/or associated services. PPPs are long-term agreements between public authorities and private firms. Under these contracts, the private sector helps finance, build, or operate public services or infrastructure. In return, it may earn revenues from user fees or government payments. Cameroon is increasingly turning to Public- Private Partnerships (PPPs) to tackle urgent infrastructure challenges and stimulate economic growth. Key sectors that have so far benefitted from this financing model include energy (Natchtigal Hydropower dam, Kribi Power Plant), Transportation (Kribi Deep Seaport and roads like the Yaounde-Douala motorway) and urban development, amongst others. Cognizant of the importance and complexities involved in public-private partnerships especially as it involves large-scale investment projects, the government put in place a robust legal and institutional framework to guide the operations. PPP in Cameroon is regulated by Law No. 2006/012 of 29 December 2006 on general partnership contracts, Decree No. 2008/035 of 23 January 2008 outlining PPP procedures and Law No. 2023/008 of 25th July 2023, which sets the general legal framework for PPP contracts. This legislation aims to promote collaboration between the public and private sectors in delivering infrastructure and essential services. Institutionally, the Prime Minister’s Office coordinates PPP operations through the PPP Support Unit (CARPA), operating under the Ministry of the Economy, which ensures that projects align with national priorities and legal standards. PPPs have been a mixed blessing for Cameroon in several ways. Apart from unlocking the infrastructural growth, Public-Private Partnerships presents other advantages such as efficiency in execution and management of projects, closes the funding gap as private and foreign investors pump in money without adding to public debt, reduced public risk as risk is shared between the government and the private partner as well as supports job creation through major projects. Despite the merits of PPPs, several obstacles still surround the implementation of the lofty initiative, preventing the national economy from leveraging from the resources of the private sector. Though the contribution of private sector actors to the economic development of Cameroon is recognized, several factors make it difficult for them to engage in this process. These include corruption, embezzlement, a weak regulatory framework, a lack of monitoring and evaluation skills, and administrative delays. As a result of these problems, PPPs are generally not established on the basis of the technical, financial, or physical capacity of the contracting company, which hampers the development of basic infrastructure. Another major hurdle to the progress of...