Govt gazettes Joint Venture Bill

cabinetHerald Reporter
Government has gazetted the Joint Venture Bill that seeks to provide for the implementation of joint venture agreements between contracting authorities and counter-parties.

The Bill also seeks to establish a set of rules governing public-private procurement. It further seeks to establish a Joint Venture unit within the Ministry of Finance and Economic Development in line with the Zim-Asset cluster on Infrastructure and Utilities.

The Bill, which was published on Friday in the Government Gazette, will be tabled before Parliament soon for debate and will pass with or without amendments. It is expected that the enactment of such a law would stimulate economic growth, unlock value in the economy and support major projects, especially infrastructure development, in various sectors.

The Bill would be a major boost for Zim-Asset and a demonstration of Government’s commitment to implementing the policy and promotion of investment.

Clause three of the Bill established the Joint Venture unit in the Ministry of Finance and Economic Development under direct control and supervision of the permanent secretary.

The clause provides for the functions of the unit, some of which include considering project proposals and assess whether they were affordable, provide value for money and whether they provide for the optimum transfer of technical, operational and financial risks to the counterpart and whether it was competitive, among other issues.

Clause four provides for a Joint Venture committee to be chaired by the permanent secretary of Finance and whose membership will be drawn from several ministries such as Industry and Commerce, Transport and Infrastructural Development, Energy and Power Development, Local Government, Attorney-General’s office at director level, among others. Clause five provides for the setting up of staff for the Unit while Clause Six outlines the functions of the Joint Venture Committee.

Some of the functions include assisting the Minister in formulating policy guidelines on joint ventures, ensure that all projects were consistent with national priorities and make recommendations to Cabinet.

Clause eight provides for preliminary procedures for conclusion of Joint Ventures, one of which includes identification, appraisal of a project to be implemented and invite expression of interest in the given project among other issues. Clause nine provides for a feasibility study to be conducted by the contracting authority to establish the advantages of the project.

Types of Joint Venture projects in the Bill include power generation plants and power transmission and distribution networks, roads and bridges, inland ports and harbours, inland container depots, gas and petroleum infrastructure such as refineries, storage depots and distribution pipelines.

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