[ Home ] [ Speeches & statements ]

25 November 2008

Programme director
Honourable councillors
Heads of departments
Officials from the national and provincial treasuries
Private sector representatives
Officials from municipalities and public entities
Distinguished guests
Friends and compatriots
Members of the media
Ladies and gentlemen

American hotelier and founder of the Hilton Hotel chain, Conrad Hilton once said and I quote:
"Achievement seems to be connected with action. Successful men and women keep moving. They make mistakes, but they don't quit."

I start with this quotation, programme director, ladies and gentlemen, to symbolise your commitment towards achieving the product that you are launching today. It is a product that you were committed to see through to the end. It might have been difficult along the way, you made mistakes – but you never thought of quitting.

Indeed, we are honoured as a province, to host a seminar of this magnitude and also to launch the Public Private Partnership (PPP) Policy for the province. We are delighted as a province, because the policy that we are launching today could not have come at a better time, that of speeding up service delivery. It will guide us as to how to engage the private sector, in terms of their financial muscles and expertise, to assist government, provincial and local, in fast-tracking especially infra-structure delivery.

The private sector has huge capital which can contribute and assist government in terms of designing the implementation of projects and programmes, which will benefit our people. By partnering with the sector, government would also be able to transfer the risks associated with huge infra-structure projects to the private sector, where the risk would be best managed. Experience has shown us that the private sector is mostly capable to manage and deal with the risk associated with infra-structure projects, compared to the public sector.

We can all agree ladies and gentlemen, that Public Private Partnerships (PPPs) are the way to go, as they provide us with an alternative and will compliment our normal and traditional procurement processes in terms of service delivery. However when implementing such joint initiates, we should at all times ensure that the historically disadvantaged individuals, primarily black people, women, the youth and people with disabilities, benefit – in terms of having a stake in the ownership of companies being awarded the tenders. We are not talking window dressing or fronting in this instance, but real empowerment. Furthermore, it is quite significant as well that there is direct participation by historically disadvantaged individuals at the management level of these companies, so that they are empowered and capacitated, and that skills are transferred to them.

It is also important that sub-contracting of companies comprising of historically disadvantaged individuals (HDIs) takes place at operational levels. This will imply broader and wider spread of the economy and therefore broader beneficiation. All these will be a symbol of growth, upliftment and development because by so doing, more skills will be developed, more jobs created, communities will receive improved and better quality services.

I also need to indicate that by going the PPP route, we will hold the private sector liable for the maintenance and up-keep of our infra-structure, as in most cases, we lack proper maintenance plans. Our experience with regard to the normal or traditional procurement is that we procure services from contractors, develop infrastructure and occupy. However, unfortunately there is no maintenance plan and budget, hence we find new infrastructure not being maintained.

We must admit that we have serious challenges regarding infra-structure delivery turn-around time through our traditional procurement processes. Even though we are advocating for these partnerships, we must at the same time guard against being taken for a ride, thus compromising our people.

I need to indicate programme director with caution though, that it is important that as we want to embark on these processes of Public Private Partnerships (PPPs), that it is also important that we ensure that we have sufficient capacity to manage contracts. We must appoint project managers who will be able to monitor projects constantly and ensure that private parties comply with all aspects of contracts signed. We need to ensure that government receives value for money. It should be noted that we remain responsible as government, even if we have shifted the risk. Our commitment as the African National Congress (ANC)-led government towards bettering the lives of our people remains unwavering and no one can challenge that.

In concluding, Programme director, Ladies and gentlemen, I take this opportunity to appreciate the contribution made by the National Treasury, in walking with us, to ensure that we are able to create these forms of enablers to speed-up service delivery in an effective manner, without compromising the quality of service. It is through this type of support, that we can enhance our capacity to fulfil our Constitutional obligations. We will continue to seek guidance from them in future. To the Provincial Treasury team, thank you for your dedication and believing that you too, can make it. Commitment and dedication always pays the best interest.

With those few words programme director, ladies and gentlemen, I urge you engage one another in fruitful discussions throughout this seminar. Let us use this platform to suggest possible PPP projects that you think we could engage on – the most significant objective being, that of speeding up service delivery for the betterment of the lives of our people.

"Without passion, you don't have energy; without energy, you have nothing. Nothing great in the world, has been accomplished without passion."
(Excerpt by: Donald Trump)

I now have the honour to declare this seminar open, and wish you rewarding engagement.

I thank you!

Issued by: Mpumalanga Provincial Government
25 November 2008