MAKERERE UNIVERSITY

BUSINESS SCHOOL
BACHELOR OF SCIENCE IN ACCOUNTING
ENTREPREURSHIP DEVELOPMENT
SEMESTER II
YEAR 2
GROUP 15
NAME REG NO SIGNATURE
1. NAIGAGA JOANITA BUFUMBO 17/U/15116/PS
2. TATWEBWA ANNMAGRET 17/U/17462/PS
3. SABANO OLIVER 17/U/17141/PS
4. AYEBALE IMMACULATE 17/U/12123/PS
5. AKUGIZIBWE CHRICENT 17/U/11561/EVE
6. NAKAGULIRE GRACE 17/U/15194/PS
7. NANSEREKO ABISAGI 17/U/16147/PS
8. KAVUMA ALOZYIOUS 17/U/13267/PS
9. RUHUMA SETH 17/U/17110/EVE

PUBLIC PRIVATE PARTNERS

Definition of PPP
Back ground and the ministry which operates PPP
The Vision of PPP
The Mission of PPP
Weakness that led to PPP
Objectives of PPP
Roles of PPP
Advantages of PPP
Challenges faced by PPP
Implementations

PPP- Public Private Partnership

Definition of PPP
Public Private Partnership involves commercial contracts between the public authorities (state or
local) and private businesses in the design, construction, financing and operation of public sector
such as motorways, hospitals, schools and power.
Back ground of PPP
Public Private Partnerships of Uganda have been introduced by government to acquire and
develop Nationwide infrastructure as well as offer opportunities to improve service delivery. In
2002, the Ministry of Local Government with assistance from the United Nations Development
Programme implemented a PPP for Urban environment. The project was implemented by the
Ministry of Finance, Planning and Economic Development in collaboration with non-
government organizations living earth Uganda across 6 municipalities of Uganda and served to
highlight the benefits of PPP such as improved standards of living. In 2010, the government
adopted the PPP framework policy for Uganda. Further to this in 2013 the Ministry of Local
Government and the United
Nations Development Project developed PPP guidelines for local government. The country has
received assistance from the Public Private Infrastructure Advisory Facility (PPIAF) in order to
develop the country’s infrastructure and other partners include Ministry of Public Service.
PPP is regulated by the ministry of finance planning and economic development.
The vision of PPP
The vision is that 10 years from now Telecommunication and IT will be integrated towards a
common goal.

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The mission of PPP
To promote and encourage the Public Private Partnership as a way to achieve economic growth
and poverty eradication and intend to strengthen partnership with the private health sector.
Weakness that led to the PPP
1. Bureaucracy -This means the many steps went through to pass a policy, to provide a service
or a good to people. Commonly the government sector has very many procedures it goes
through hence leading to PPP so as to reduce on delays.
2. Poor service delivery –Since the public sector alone usually provide goods and services at no
cost that is they do not expect profits, so they cared less about high quality goods since they
expected nothing in return so they would provide goods even if it has low quality and since
these goods have non restricted consumption led PPP so as to improve on quality of the
products.
3. Corruption –most people working in public sector do not get high pay which demotivate
them leading to embezzlement of funds and engaging in corruption and services were not
rendered as expected hence merging with the private sector.
4. Inadequate funds to fund huge budgets –the government had many things to fund and could
not find the money needed to finance the different activities in budget hence need for PPP.
5. High levels of poverty –poverty had become rampant among the citizens of the country so
PPP was necessary. By constructing infrastructures people were employed hence improving
the standards of living since they earn money.
6. Inequalities that prevailed among the citizens –some citizens were low income earners who
could only afford public schools and hospitals and some were in middleclass who could
afford the private services hence leading to PPP so as to eliminate that gap.
7. Costly goods and services provided by the private sector –The private sector used to offer
expensive services and sell highly priced goods to the citizens because it bases more on profit
maximization hence forming PPP so as to provide subsidized goods and services.

Objectives of public private partnership

1. To ensure the principle of transparency. This involves providing all the information related to
both operational and pipeline projects including PPP database in a timely manner so as to
give equal opportunity to the citizens hence enhancing accountability.

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2. To achieve value for money. In provision of infrastructure and public service this may be
achieved through optimal allocation of risks to private parties and maximization of the
benefit to be obtained from expertise and financing by the private parties.
3. To ensure accountability. This can be achieved through producing periodic reports regarding
the revenues and expenditures of PPP which helps in decision making.
4. To enable more investment in infrastructure by increasing project financing options. This is
through fulfilling sustainable funding requirements in supply of infrastructure through
mobilization of private sector funds so as to improve quality, quantity and efficiency of
services.
5. To ensure quality and proportionality through ensuring that both the private and public sector
have equal services required by citizens for hospitals the services in the private sector are
same with those in the public sector.
Roles of PPP
1. To improve the standards of living. This is by ensuring job creation by PPP which provide
income to citizens to facilitate them effectively to meet their needs and wants like health care
services, education services leading improved standards of living.
2. To ensure efficient service delivery to all citizens. This is through making sure that the public
and private sector is managing funds and carrying out the many projects and activating that
urgently need to be funded in the society.
3. To ensure the development of infrastructures for example hospitals that is the extension in
Mulago hospital, schools and roads.
4. To ensure provision of high quality goods and services to the public. This is because PPP
aims at customer satisfaction which helps in promoting high quality services offered to the
citizens for examples quality health services offered by Doctors in various hospitals such as
Nakawa Naguru hospital.

Advantages of PPP
1. Excess profit through refinancing. Refinancing involves the private partner paying off its
original loan by taking out a new loan after the construction of the infrastructure is
completed. Since most risks for the project have been removed at this stage, financing is

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 available at much lower interest rate than before the construction. For example in hospitals
such Nakawa Naguru hospital.
2. Efficiency. This involves placing the human resources in the right place where they are best
so as to achieve the goals of PPP. This reduces government budget and budget deficits and
helps to improve on the quality of products and services throughout the life cycle of the
project.
3. Generation of government revenues. PPP generate government revenues through taxes
levied on the projects which help the government in facilitating its operations for example
construction of infrastructures such as roads, hospitals and schools hence economic growth.
4. Improvement in mobilization of budgetary and non-budgetary resources including from our
own domestic resources and from bilateral and multi-lateral donors. For example setting up a
Project Development Facilitation Fund would help fund Project preparation and a robust
PPP.
5. Reduction in the levels of corruption. This through increased mobilization and supervision in
PPP projects which has helped in maximum utilization of resources in PPP projects such as
in hospitals that is Mulago hospital
6. High quality standards of living. PPP has helped the citizens in achieving high quality
standards through offering high quality goods and services in the country. Also PPP has
created employment opportunities to the public which has enabled the earn incomes to meet
their needs and wants. For example many people are employed in Nakawa Naguru hospital.
7. Improved service delivery. PPP makes sure that the citizens of Uganda get services as needed
through putting the right resources in the right place which promotes efficiency in the
country hence high products and services. For example in schools and hospitals.

Challenges faced by PPP projects

1. Lack of human resources to effectively operate/apply Public Private Partnership. Most of the
citizens in the country lack skills and competence needed in the operations of PPP in the
country for example the Officials.
2. Inadequate funds. Most of the PPP projects lack adequate financial, technical and managerial
capabilities to enable growth. This has resulted into limited growth in infrastructures such as

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 roads are poorly developed in Uganda hence putting the objectives of the PPP to a lower
growth.
3. Political interferences. This is often a barrier to effective implementations of PPP. The
government has put many legal obligations on the PPP projects which have mostly limited
growth in the projects. For example the steps followed in the operation of PPP projects are
complicated.
4. Embezzlement of funds. Some officials in the PPP projects are corrupt who diverge funds
allocated for development to their personal benefits hence limiting growth in the PPP
projects.
5. Lack of awareness about PPP as a means of implementing big projects. Most people in
Uganda are not well sensitized about PPP benefits and there for they have ignored them. This
has generally limited growth of PPP in the country.
6. Lack of competent service providers: The country lack people with competence and skills to
offer services needed by the people that is in hospitals there is lack of qualified Doctors to
offer services needed hence delays in service delivery.
7. Lack of necessary infrastructures like power and roads to support the project. The country’s
infrastructures are poorly developed which makes the operations of the PPP difficulty. For
example roads are poorly developed which makes the transportation of resources needed in
various hospitals expensive.

Implementations of PPP
The PPP’s unit the Ministry of Finance Planning and Economic Development have the lead role
as the centre of excellence and expertise in PPPs. It also assists other government departments in
operational work on project management. More detailed and specific aspects of PPP project
planning. Preparation and on- going management are the responsibility of government ministries,
agencies and local government. The PPP unit under the mandate of the Ministry of Finance,
Planning and Economic Development, keeps an overview of the policy and practical issues in
relation to PPPs as they evolve and develop.
The roles of the main actors in relation to PPP are;
Parties Role
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 1. The PPP unit: The PPP Unit which advises appropriate use of PPPs in the context of the
development plan and other specific advice in relation to particular PPP
projects.
2. The Ministry of Provides funding and oversight for PPP unit, developing policies and
Finance, planning guidelines for the implementation of PPP.
and Economic
Development.
3. The cabinet : Cabinet approves the budget for all PPP projects.
4. Cocession Are to design, build and finance and operate arrangements, except that the
Private sector contractor recovers its cost either through direct user
charges or through a mixture of user charging and public subventions.
5. Lease Contracts are used for the provision of tangible assets. (eg IT systems or
vehicle fleets). There are two main types of lease. Finance leases where
the lessee (the public sector) and the value of asset is shown on the
lessee’s balance sheet and operating leases, where the risks and rewards
of ownership remains on the balance sheet of the lessor.
Examples of PPP.
1. UMEME. This has distributed electricity more effectively in the country.
2. Entebbe International Airport -The extension
3. China construction communications commission.
4. Oil refinery.

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