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Government Points to Transparency as a Challenge in Public-Private Partnerships

Government Points to Transparency as a Challenge in Public-Private Partnerships

Mozambique’s Minister of Economy and Finance, Max Tonela, today pointed to achieving full transparency and accountability as challenges in the country’s Public-Private Partnerships (PPP).

“It is essential to recognise that these partnerships are not without their challenges. It is essential to guarantee transparency, responsibility and fairness at all stages of the partnership process,” said Tonela.

He was speaking in the Assembly of the Republic in response to questions from opposition MPs about the advantages the country is gaining from the concessions awarded by the government under the PPP model.

“Rigorous supervision and accountability are fundamental to ensuring that public interests are protected and that the benefits are distributed in a fair and equitable manner,” he said.

Max Tonela said that the government would maintain this model in infrastructure and services that structure the economy, with the aim of boosting the country’s competitiveness and attracting more foreign investment.

“Public-Private Partnerships represent an innovative model of collaboration between the public and private sectors, aimed at providing quality public services, developing infrastructure and stimulating sustainable economic growth,” he emphasised.

The Minister of Economy and Finance pointed to the possibilities of access to private financing for the development of infrastructure projects needed to provide better services to citizens as a major advantage of PPPs.

By mobilising resources from the private sector, the expectation is to reduce pressure on the state budget, he added.

Referring specifically to the concessions awarded by the Mozambican state to public-private entities in the railway, port and customs sectors, the Minister of Economy and Finance pointed out that the state has made gains in fees, taxes and dividends, having increased efficiency in performance in these areas.

He pointed to the case of Sociedade de Desenvolvimento do Porto de Maputo (MPDC), which has managed the port of Maputo since 2000, noting that it has already invested more than 835 million dollars (762.9 million euros), increasing its handling capacity to 37 million tonnes a year.

During the concession period, the Mozambican state collected 690 million dollars (630.4 million euros) in taxes, fees and dividends, said Max Tonela.


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