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Public–Private Partnership in Zambia: The regulatory regime

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The new dawn government’s economic agenda, as echoed by the new Republican President on numerous fora, is anchored on ‘promoting joint ventures’ between Zambians to drive economic growth. The trade and investment generated though such joint ventures will be the driving force for jobs, business opportunities and other related aspects of social and economic development.


Public –Private Partnerships remain one viable option where such joint ventures with Zambians can thrive. In this brief we highlight the regulatory regime for public –private partnerships in Zambia.


For any business interested in public-private partnerships, the go to statute is the Public –Private Partnership Act, 2009.


The Public –Private Partnership Act, 2009 defines a public –private partnership as an investment through private sector participation in an infrastructure project or infrastructure facility. In an era of constrained public spend on account of the meagerness of the public purse and increasing areas for its spread, public-private partnerships come in handy by unlocking private finances for public infrastructure. Other benefits of public –private partnerships include efficiency advantages from using private sector skills and from transferring risk to the private sector; potentially increased transparency and enlargement of focus from only creating an asset to delivery of a service, including maintenance of the infrastructure asset during its operating lifetime.


The Act is aimed at promoting and facilitating the implementation of privately financed infrastructure projects and effective delivery of social services by enhancing transparency, fairness and long-term sustainability.

The Act establishes a specialized unit and council as governing bodies mandated to promote and deal with public –private partnership matters in the country, general principles of transparency, economy and fairness in the award of contracts by public authorities through specific procures for the award of projects.


The Act further provides for the mandatory terms and conditions to be contained in any public private partnership agreement including the nature and scope of works to be performed, assistance to be rendered to the private concessionaire for the successful implementation of the project, procedures for review of the agreement, duration, compensation and other financial terms.


Though there is a robust public procurement procedure to be followed, the Act introduces flexibility by welcoming unsolicited proposals from the private sector for projects. Public authorities are mandated to evaluate these.


Built and Transfer (BT), Build Lease and Transfer (BLT), Build Operate and Transfer (BOT), Build Own and Operate (BOO), Build Own Operate and Transfer (BOOT), Build Transfer and Operate (BTO), Contract Add and Operate (CAO), Develop Operate and Transfer (DOT), Rehabilitate Operate and Transfer (ROT), Rehabilitate Own and Operate (ROO), Management Contract and Supply Operate and transfer (SOT) are some of the recognized public partnership arrangements that are recognized and can be exploited under the Act.


Though improvements can always be made, and are definitely welcome, it is safe to conclude that Zambia has an existing public private partnership regulatory regime in the Public –Private Partnership Act, 2009 which can be deployed and utilized for the enhanced joint ventures between the public and private sector.
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Client Legal Alert – Equitas Legal Practitioners@2021
*This scholarly article is a general guide and does not contain definitive legal advice. Readers considering acting on any of the issues discussed should speak to their legal advisors before taking any such action. Equitas disclaims any liability whatsoever arising from acting on this article.

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Professional Bio

Mr. Lungisani Zulu

partner

Mr. Lungisani Zulu (Partner – Banking, Tax and Finance) is a highly experienced legal practitioner with expertise in banking, financial services regulation, tax, and corporatebfinance. He holds a Master of Laws (LLM) in International Commercial Law from Cornell University School of Law, New York and a Bachelor of Laws (LLB) from the University of Zambia (UNZA)

He is an Advocate of the High Court of Judicature for Zambia with rights of audience before the Court of Appeal, Constitutional Court, and Supreme Court of Zambia, and is also a Commissioner for Oaths and Notary Public.

Mr. Zulu has over 15 years of standing on the Roll of Legal Practitioners in Zambia and possesses extensive experience in financial services regulation, legislative drafting, and corporate and commercial law. Having previously served as Associate for Tembo Ngulube and Associates and as Senior Counsel for the Bank of Zambia, his core competencies include banking and finance transactions, regulatory compliance, policy formulation, legal drafting, contract negotiation, and dispute resolution.

He has significant expertise in advising on financial laws, regulatory frameworks, and capital markets, as well as in providing legal support in litigation and arbitration matters. His practice also encompasses corporate governance, board advisory, and complex commercial transactions.

Mr. Zulu server as President of the Law Association of Zambia (LAZ) and also serves as President of savannah Law Network and a member of the Chartered Institute of Arbitrators (UK) and the Institute of Directors of Zambia and sits on the boards of both public and private companies.

Professional Bio

Ms. Chiluba Mumba

managing partner

The Firm’s Managing Partner, Ms. Chiluba Mumba, is a highly accomplished legal practitioner with primary expertise in Energy, Mining, Infrastructure, and Corporate Advisory. She holds a Master of Laws (LLM) in Corporate and Commercial Law from the University of London and a Bachelor of Laws (LLB) from the University of Zambia (UNZA). She is an Advocate of the High Court of Judicature for Zambia with rights of audience before all Superior Courts.

Ms. Mumba has over 15 years of standing on the Roll of Legal Practitioners in Zambia and has extensive experience in corporate and commercial law. Her core competencies include corporate advisory, regulatory compliance, project structuring, contract negotiation, and risk management, particularly within the energy, mining, and infrastructure sectors.

Previously she served as Associate for various firms and as Director Legal for the Energy Regulation Board. Her work experience spans across the energy sector in particular, electricity, petroleum, and renewable energy, with a strong focus on regulatory frameworks, licensing processes, project development, and investment structuring. She also has experience in commercial and civil dispute resolution, as well as governance and board advisory matters within highly regulated industries.

Ms. Mumba is equally a member of the Law Association of Zambia (LAZ) and the Institute of Directors of Zambia. She also serves as the Southern Africa Regional Coordinator for the Africa Minigrid Developers Association (AMDA) and is an Associate Member of the Chartered Institute of Arbitrators.