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Finance and Economic Development Minister, Cde Patrick Chinamasa

Prosper Ndlovu Business Editor—
THE Joint Ventures Bill, which seeks to pave way for increased economic activity in the country through unlocking value from major investment projects, sailed through the National Assembly on Tuesday. Finance and Economic Development Minister Patrick Chinamasa steered the Bill through the Lower House after President Robert Mugabe had concluded his State of the Nation Address and it now awaits to be tabled in the Senate.

The Bill, a major boost for Zim-Asset, demonstrates the government’s commitment to implement policy by establishing rules governing Public Private Partnerships (PPPs).It seeks to promote investment by providing guidelines for the implementation of joint venture agreements between the government and the private sector, both domestic and foreign.Delivering his State of the Nation Address, President Mugabe stressed the importance of joint ventures in resuscitating parastatals and state-owned enterprises. He said the joint venture approach was part of the 10-point strategic plan to revive the economy.

The types of joint venture projects covered by the Bill include power generation plants and power transmission and distribution networks, roads and bridges, inlands ports and harbours, inland container depots and logistics hubs as well as gas and petroleum infrastructure such as refineries, storage depots and distribution pipelines.Water supply, treatment and distribution systems, solid waste management works, renewable energy works and educational and health care facilities are also covered by the Bill.The other sectors are urban transport systems, housing, information communication technology projects, agriculture and irrigation development.

Joint Venture Agreements come in various forms such as Build 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) and Develop, Operate and Transfer (DOT).

The other JVAs are Rehabilitate, Operate and Transfer (ROT), Rehabilitate, Own and Operate, Build, Own, Operate and Maintain Contract, Lease Management Contract, Management Contract, Service Contract, Contract for Services and Supply, Operate and Transfer.The Bill will become law once President Mugabe assents to it and it is gazetted as a Statutory Instrument. The new law will also establish a Joint Venture Unit (JVU) which will be a department of the Ministry of Finance and Economic Development and under direct control and supervision of the permanent secretary.According to the Bill, approval of JV agreements will be the preserve of Cabinet after recommendations from the committee.

This will ensure transparency and that the government and the investment partner are not prejudiced.The Secretary for Finance and Economic Development will chair the Joint Venture Committee (JVC) comprising secretaries for the ministries of Industry and Commerce, Transport and Infrastructural Development, Energy and Power Development, Local Government, Public Works and National Housing and Justice, Legal and Parliamentary Affairs.A representative of the Attorney General at the level of director and a director of the JVU will complete the committee. The committee will be responsible for assisting the Minister of Finance and Economic Development to formulate policy guidelines on joint ventures and to ensure that all projects are consistent with national priorities specified in the relevant policy on joint ventures.

The Unit will also be responsible for examining requests for project proposals to ensure they conform to approved feasibility studies, advise the government on joint venture projects generally and develop best practice guidelines in relation to all aspects of joint ventures.Whenever the government or any of its parastatals or enterprises want to enter a joint venture, they are expected to invite for applications, where appropriate, through public advertisements in the media, undertake or cause to be undertaken a feasibility study where it considers that a project may be implemented under an agreement and submit it to the JVU for its approval.In his address to the nation, President Mugabe said these measures would be buttressed by positive policy implementation “that will improve the business environment, and promote, and attract both domestic and foreign investment”.

Some of the priority policies include the National Diaspora Policy, an urgent overhaul before end of the year of the Companies Act and all pieces of allied legislation which have hitherto hindered the ease of doing business. “We expect a clear and robust legislative and regulatory framework to be urgently put in place in order to create a One Stop Investment Centre that streamlines processes and procedures. This is now a very urgent and high priority matter for which those responsible will be held to account,” said the President.He also highlighted the need to fine tune procurement processes and announced that a new Procurement Bill would be drafted and tabled in Parliament before the end of 2015.

The President said the Bill would incorporate Comesa procurement guidelines which emphasise devolution of power to award tenders to procuring entities.The procuring entities would comprise government ministries, parastatals, state enterprises and local authorities.