PPP is right development approach

PPP is right development approach
ekantipur, 23-Oct-08

The government and the private sector have concluded that Public Private Partnership (PPP) was necessary to spur involvement of the private sector in the nation building process at a time when the government is reeling under resource constraints.

At the end of a 2-day PPP symposium, they also agreed to work together in key sectors like education, infrastructure, health, tourism, hydropower and agriculture for their rapid development. Different ministries have also expressed commitment to eliminate legal and administrative predicaments to encourage involvement of the private sector in those sectors.

Presenting a conclusion paper on Thursday, Rajendra Bahadur Shrestha, advisor of PPP National Conference said PPP was the right instrument to enhance investment and increase technological inputs in health, tourism, agriculture, infrastructure, hydropower, education and other sectors.

“There were no second thoughts on the importance of PPP for development efforts and effective service delivery. But what we need is a conducive environment and favourable policy plus a hassel-feee bureaucratic system,” said Shrestha.

Representatives from the private sector pointed out lack of clear and stable government policy and supportive rules and regulations; lack of political consensus and traditional bureaucratic mentality as a the major obstacles in implementing the PPP concept in the country.

Federation of Nepalese Chamber of Commerce and Industry (FNCCI) President Kush Kumar Joshi said the private sector was ready to work with the government under the concept of PPP by participating in different development activities and the service sector.

“The concept of PPP will be effective in sectors where the government is lacking in resources and technology,” Joshi said. “But we want the government to play a catalyst’s role in this regard.”

National Planning Commission Vice Chairman Dr. Pitamber Sharma stressed on the need to link the agriculture sector with the industrial sector so as to encourage commercialisation in this sector.

“We can not get separate the agriculture sector from the private sector as farmers are also a non-government force. So development of agriculture depends on how it is linked with the industry,” said Sharma.

Representatives of the private sector also underlined the need to initiate export of pharmaceutical products, commercialisation of agriculture and increase private investment by formulating a clear and stable policy on PPP.

The 2-day symposium was organised jointly by the government, FNCCI and UNDP in a bid to explore common consensus between the private sector and the government on PPP. More than a dozen working papers were presented during the symposium attended by about 700 participants.

Elaborating the rationale of PPP in the education sector, Joint Secretary at the Ministry of Education and Sports Lekhanath Poudel said the PPP concept was crucial to increase management capacity, promote innovation, and generate resources.

He also informed that the government was coming up with different forms of PPP in education under the School Sector Reform Plan-2008 where community management for basic education, cost sharing for higher education, cooperative schools, management contracts and school choice will be taken as major policy options.