PPPs to aide government in infrastructure development

As COVID-19 challenges continue to affect the government’s budget for various proposed and ongoing infrastructure development, the Botswana Finance Minister presenting the proposed 2021/22 budget said government is considering Public Private Partnerships (PPPs) to deliver on planned projects.

“With respect to engagement of the private sector in the implementation of projects using the PPP method, several Ministries have already identified suitable projects. Private sector partners will be contracted, in the coming financial year, to finance, construct and operate these projects,” said Thapelo Matsheka, minister of Finance and Development Planning.

He said requests for expressions of interest to build, finance and operate some of the country’s mega projects on a PPP basis has been issued for the coming financial year:

Projects on the PPPS pipeline include; the Zambezi AgroCommercial Development project and the Chobe-Zambezi Water Transfer Scheme, Tshele Hill Bulk Fuel Storage Facility, Sepopa Prison Farm; Headquarters for Botswana Prison Services, Serowe Magistrate Court, the Francistown-Nata Road; Maun-Mohembo road; and the Mmamabula-Lephalale and MosetseKazungula Railways.

Outside the PPPs, some of the projects that government has plans to embark on include construction of mini-health centres at Sir Seretse Khama International Airport, Maun Airport and Kasane Airport, as well as upgrading health care facilities in Maun and Kasane, redevelopment and repair of Lobatse Athlone Hospital, and further facelift of Mahalapye and Sekgoma Hospitals.

In addition, the Ministry of Land Management, Water and Sanitation is expected to embark on major investment in water and sanitation infrastructure which includes the ongoing construction of the Maun Water Supply and Sanitation Scheme, which will provide potable water and sanitation networks to benefit the localities of Sexaxa, Matsaudi, Sekampane and Shorobe. The projects will be an addition to ongoing construction of the Masama – Mmamashia 100 kilometre pipeline.

“The project will inject an additional sixty-four million cubic litres of water per day (64Ml/day) into the Greater Gaborone, Lobatse, Kanye, Ramotswa, Molepolole and Borolong areas,” said Matsheka.

Other significant water projects include the next phase of North South Carrier project under the NSC 2.2 Palapye – Mmamashia Water Pipeline, including the Mmamashia Water Treatment Plant expansion; NSC 2.3 Mmamashia – Gaborone Pipeline and implementation of Gaborone Water Master Plan; implementation of Lobatse Water Master Plan; Moshupa Sanitation project; connection of Tswapong South villages to the North South Carrier. Government is also constructing a Water Treatment Plant in Kasane and the Mahalapye and Palapye Water Treatment works.

As part of implementing the Economic Recovery and Transformation Plan initiatives, Matsheka said a budget provision has been made for major transport infrastructure projects.

“To this end, the second largest share at P1.85 billion or 12.51 percent is allocated to the Ministry of Transport and Communications. All the roads in the ERTP will be done on an expression of interest in the coming Financial Year, including the Nata-Maun road, dualling of A1 and Gaborone Eastern bypass. Other transport projects to be implemented in the coming year include the Francistown-Nata, MaunMohembo, Palapye Martin’s Drift and Mmathethe-Bray roads; and the Mmamabula-Lephalale and MosetseKazungula railway projects,” said Matsheka.

Government to construct a Min-Clinic at Sir Seretse Khama International Airport using PPP

Financial goal setting during the 2nd wave of Covid -19

Tumelo Sejo Boitumelo These are indeed trying times for all of us. The impacts are not only health related, but we now continue to feel the actual economic impacts particularly in our households. When covid 19 first hit the global village, we all learnt new ways of survival. For most people, the idea was that the pandemic will be gone by 2021, but great businesses introduced the new order of doing things. The change was not a temporary processes, but they were strategies vital for survival and long term practices for their entities. In the second wave of the pandemic it is important to actually acknowledge that the virus is here, and we must learn new ways of coexisting with it.

In the previous article, we highlighted on having an emergency fund, adjusting your budgeting, avoiding to make emotional financial decisions and lastly cost saving. These remain the core concepts of financial management. In any given scenario, it is crucial to have an emergency fund, to prepare for such pandemics. The assumption, therefore, remains that we did not practice the above momentarily, but we adapted them.

The curfew presents an opportunity for most of us to reduce costs. The time we spend outside the confines of our homes is significantly reduced. There are very few opportunities to travel and to generally spend money. In a crisis, it is important to accumulate and prepare for the worst case scenario. Save as much as you can for rainy days, or any unforeseen circumstances.

In the first phase of the pandemic various financial institutions offered relief measures but for a limited time. It is imperative to continue communicating and negotiating with your bank or relevant financial institution if your situation has not changed. Negotiate for a debt restructuring or any viable solution to your current financial setting.

The lending rate has been reduced as one of the economic resuscitation measures. This has increased affordability, reduced interest rates and freed up a bit of cash. Before you react to this measure, assess if it is necessary or you are taking a loan because interest rates are low. Pre loan counselling is vital in this case, to ensure that, the loan you are borrowing will be put to good use. It is critical to ensure that once the interest goes up, you will still be able to afford the loan. Enquire about the insurance products available for the loan. Learn and understand the difference between the insurance products offered as well as the terms and conditions. A retrenchment cover will be a great product to buy alongside your new loan, given the uncertainty surrounding job security in this pandemic.

Once again, this is a global health crisis, which has a massive impact on the global economy. Often times, the economic impacts are experienced later than the health effects, which are usually immediate. The death toll is rising, and the economy is suppressed due to precautions put in place. Retrenchments are looming, and some companies have been forced to shut down. At a household level it is important to prepare for an event where the loss of job will strike your home. This calls for venturing into income generating opportunities that are aligned to essential products and services. These are enterprises that existed before the pandemic and shall continue to be in demand beyond the pandemic. It is time we turn the crisis into thriving opportunities. This is to diversify our sources of income, but to also play a role in resuscitating the economy.

Start working on getting out of debt. This can be successfully achieved by having a comprehensive debt repayment plan. It is important to pay off small loans to increase disposable income. This will give you an opportunity to look at investment opportunities and work towards financial independence and ultimately financial freedom.

In 2020 we were unable to attain most of our financial goals. It is time to employ a new approach. This is to twig the goals and make them much more resilient, during times of a pandemic. We must not lose hope. It is time to be disruptive and adapt to the new changes. Set up an appointment with a financial planner, to revise your plans.