PPP projects under US$5m classified as small-scale

PUBLIC Private Partnership (PPP) projects valued at US$5 million and below have been classified as small-scale, while those exceeding the threshold will be treated as large-scale investments requiring higher-level approval, according to new guidelines.

The Public Private Partnerships Guideline, issued through the Zimbabwe Investment and Development Agency (ZIDA), provides a framework for collaboration between Government and the private sector on infrastructure development, public services and other PPP initiatives.

All contracting authorities and counterparties seeking to enter into PPP agreements are expected to comply with the guideline.

Under the new framework, projects are categorised based on value, with different approval processes designed to improve efficiency while maintaining oversight.

“All PPP projects which are valued at less than or equal to US$5 million shall be classified as small-scale projects,” reads part of the document.

The classification is aimed at accelerating the implementation of smaller projects, making them more attractive to investors seeking quicker turnaround times.

However, the guideline emphasises that scalability is a key factor in determining classification.

“Any PPP project that is scalable resulting in an aggregate value over US$5 million shall not be appraised as a small-scale but a phased large-scale PPP project.”

The framework also provides room for flexibility, allowing the PPP Committee to escalate certain projects for Cabinet consideration where necessary.

“However, the PPP Committee in its discretion can consider recommending select projects to Cabinet for determination even if they fall below the minimum threshold.”

Projects exceeding US$5 million will be classified as large-scale and subjected to more rigorous scrutiny at the highest level.

“All PPP projects which are valued at more than US$5 million shall be classified as large-scale PPP projects. These projects shall be appraised and recommended for approval by Cabinet in accordance with the provisions of this Guideline.”

Such projects typically involve capital-intensive investments with significant economic impact, including major infrastructure developments.

“Notwithstanding the thresholds, all PPP projects shall be appraised and approved in line with the provisions of the ZIDA Act and this Guideline.”

The structured classification is expected to enhance efficiency in project delivery while ensuring accountability and transparency across all PPP investments.

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