The Treasury is seeking powers over county governments’ authority to enter into debt agreements with developers through public private partnerships (PPPs). In draft regulations intended to safeguard the national government from having to pay for non-viable ventures and runaway debts incurred by county governments, the Treasury has set tough conditions for devolved units seeking PPPs to finance major capital expenditure projects. The proposed County Government PPP Regulations 2014 further give powers to the Treasury Secretary to put caps on the value of partnership projects that counties may undertake. All PPP proposals by counties will only be approved upon submission of comprehensive feasibility study reports to prove viability of the targeted projects both in terms of affordability and value for money. The proposals will also undergo mandatory approval by the Treasury’s Debt Management Office to assess contingent liabilities to the national or county governments.
Posted on: Tue, 07 Oct 2014 08:16:37 +0000
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