admin Phinias Tafa Infrastructure Report
As discussed last week, this week I present to you the first part of my proposed integrated national infrastructure policy framework or blueprint. I have structured the framework into three categories, The Vision, The Regulatory and The Project Value Proposition.
The seven related high priority supply-side issues discussed last week will all be incorporated into the policy blueprint seamlessly.
Remember the issues are:
Selection and preparation of appropriate projects, Finance, Pricing, Access, Governance and management, Policy and regulatory policies and Climate change. Let me elaborate on the three recommended policy categories.
First, the defined and communicated strategic infrastructure vision aggregates and priorities the country’s infrastructure pipeline, defines a viable role for private investors and sets out a national infrastructure communication strategy.
The second category addresses critical policy and regulatory impediments to infrastructure investment.
Third, each potential project and investment must show a clear investor value proposition.
In summary, the three thematic areas are summarised as:
Strategic vision
Create an integrated infrastructure pipeline
Define a viable role for investors
Develop a multi-level communication strategy
Policy and regulatory enablers
Limit renegotiation risk
Create an efficient, predictable and standardised procurement process
Facilitate predictable project permitting processes
Review and assess tax policy
Investor value proposition
Analyse project returns from the investors’ perspective; focus on financial returns
Create a robust risk allocation methodology
Conduct market sounding with investors
Integrated National Infrastructure Policy
Introduction
Infrastructure is critical to the socio-economic development of any country. Under ZimAsset, the government of Zimbabwe (GoZ) identified infrastructure and utilities as one of its four main priority areas for socio-economic development.
The other three are food security and nutrition, social services and poverty eradication and value addition and beneficiation.
The effectiveness of the role of infrastructure is largely dictated by the soundness of the guiding policy and the strategies utilised in implementing the policy. Since public policy cannot be static, it must be regularly reviewed and revised where necessary. This will keep it alive and perceptive to its operating environment.
This reviewing can be done by setting up a fairly inclusive steering committee. It must include people and interest groups from all key sectors of infrastructure. After reviewing the policy, the committee will make policy recommendations and develop a long-term vision framework for Zimbabwe’s integrated national infrastructure policy.
In this generic policy framework, I tried as much as I could to consider several conflicting views on specific policy issues. Nonetheless and inevitably, public policy by nature must reflect government’s position on what will best serve the overall national interest.
To that end, this policy proposal will thus not satisfy all interests on all matters. The major issue is to gain broad acceptance.
Background
Zimbabwe’s public infrastructure system is beset by fundamental policy difficulties, cited as follows:
National infrastructure development is taking place in the absence of a comprehensive and well-articulated Integrated National Infrastructure Policy that should guide its overall development, ensuring that specific infrastructure initiatives are integrated into the overall vision for economic and social development.
Given the absence of a comprehensively integrated set of policy principles and strategic directions, it becomes impossible for the public sector to identify what it must do better, what it must stop doing and what it can subcontract and to who.
Whilst our public resources have proved to be inadequate to fund infrastructure investments, components of the system thought to be financially self-sustaining like state enterprises remain fragile.
Government must be commended for instituting institutional reforms aimed at effectively meeting the needs of the country’s socio-economic system.
These include the various sector policies like the national transport policy 2012, the ICT policy of 2014 and the energy policy of 2012.
Sadly, many of these reforms are not yet fully operational due to institutional challenges and others may require further refinement.
Broadly speaking, there is still limited capacity within the public sector to:
Effectively superintend and guide the development of the economy-wide infrastructure system.
Manage infrastructure related public resources.
Enforce infrastructure regulations, in relation to consumer protection, safety and illegal public activities.
These problems are compounded by a lack of reliable data that would allow scientific decision making by our policy makers.
Vision Statement
Regional hub for sustainable, safe, reliable and environment sensitive infrastructure networks providing world class transport, communication, energy, water and sewer services by the year 2050.
Objectives
To help foster regional and national economic and social growth. Infrastructure facilities and services are the architectureon which to base Government’s objectives as set out in its economic blueprints, like Zim-Asset .
To increase Zimbabwe’s competitiveness in the global environment, through reduction of production related costs and time.
To underpin continuous human capital development by attracting and harnessing foreign investments.
To reduce poverty through provision of employment that is empowering.
To provide education to all through both traditional and innovative modes like e-learning
To empower marginalised communities like rural areas and new agriculture communities. A robust infrastructure system will support the development of a thriving rural and agricultural economy.
To address gender inequality, productivity imbalances and promote social equity.
To enhance national security
Policy Themes
The crafting of the Integrated National Infrastructure Policy remains guided by sound policy principles and a clear sense of purpose. The existing policies such as the National Transport Policy, the Energy Policy and ICT Policy, among others, also guided this policy. Below are this policy’s guiding principles.
Competition:
Competition and market forces should guide the integration of a national infrastructure system to achieve efficient, affordable and responsive services. Providers of the various infrastructure systems should be able to fairly compete within their various modes.
Cost Recovery:
Infrastructure users and providers should contribute to the real cost of resources, facilities and services provided to them at public expense
Economic Development:
The country’s economic fabric and growth must be served by an effective and efficient integrated infrastructure system.
Consultation:
Shared public or private infrastructure facilities must be a result of broader consultation on funding and spending decisions.
Private Sector Participation:
As far as possible and practical, certain services should be provided by the private sector.?
Environmental Protection:
Infrastructure facilities and service should be provided in sustainable methods that achieves minimum environmental disruptions. There should also be an in-built system that recovers environmental degradation via direct fees, tariffs and user charges.
Equal Access to Infrastructure systems:
All Zimbabweans should have reasonable access to the infrastructure system.
Energy Efficiency:
All modes of infrastructure usage should be guided by efficiency, cost and energy saving.
Alignment:
In order to ensure alignment to prescribed national development plans, the various sectoral policies and plans will then be generated from this Integrated Policy framework.
Fundamental Aims of the Policy
The fundamental aims of the proposed policy are to:
Support the goals of ZimAsset for sustainable economic growth and social development
Establish legislative and administrative structures to support the policy objectives
Guarantee the development of an integrated infrastructure system against the background of the realities of the global village and the national fiscal situation?
Ensure compliance of the infrastructure sector with international security provisions and safety standards
Provide a robust framework in which appropriate institutional arrangements can be created and strengthened;
Establish and emphasize the human and physical resource requirements for implementation of the policy
Ensure efficient use of the infrastructure facilities and services by the Government and other stakeholders
Ensure that the infrastructure will be developed and operated in a safe and environmentally friendly manner;
Generate real confidence to both foreign and local private capital to invest in and grow the infrastructure sector.
Key priorities of the Policy
The policy has established the following areas as its key priorities:
Attract and encourage greater private sector participation.
Improve inter-agency co-ordination across all infrastructure systems.
Cost recovery, were users contribute towards the costs of infrastructure provision.
Offer s subsidies to the vulnerable in society so that they can also access infrastructure services.
Promote massive policy awareness by government, in partnership with all stakeholders.
Promote broad-based participation in policy development and implementation (Reviews)
Improve the integration of infrastructure policy planning, appraisal and implementation across all systems
Improve the integration of this policy with other policies and critical areas like land-use.
Improve access to reliable and efficient infrastructure facilities and services in marginalised areas like rural and farming communities.
Ensure availability and adequacy of international safety, security and environmental regulations.
Ensure safety and security of infrastructure facilities and services through robust legal frameworks, among other interventions.
Promote the reduction of cost of infrastructure provision, for example through good procurement systems free of corruption.
Join me next week for the second part where I will pronounce the various strategic and integrated policy issues.
Online Reporter