Botswana, a small landlocked country, is the world's largest producer of diamonds and its trade has turned it into a middle-income nation. The government has recognized the necessity of creating a solid environment aimed at encouraging and attracting the private sector for infrastructure and service delivery.
The MOF passed a PPP policy and implementation framework in 2009. The policy is based on the 2002/2003 Budget Speech and National Development Plan 9, when the government of Botswana announced that PPPs would be used extensively as a form of procuring and financing infrastructure projects in the public sector with the goal of ensuring sustainable investment in infrastructure and restoring soundness in public finances.
Draft legislation is currently under review and a new committee has been established to work on implementing an enabling environment for the PPP framework.
The PPP Unit, under the Ministry of Finance, acts as an approval body to oversee the process of conducting economic analysis and pre -feasibility analysis of PPPs. The Ministry of Finance and Development Planning (MFDP) also provides its approval to the first economic-benefit analysis. There is also a PPP Project Committee involved throughout the procurement process along with the PPP Unit. The Project Committee reviews and advises the Office.
In 2007, a project involving the provision of accommodation services for the offices of the Land Tribunal and Ombudsman was signed. This project was used by the Government of Botswana as a pilot project to test PPP procurement and develop the required skills. The construction of new headquarters and a conference center for SADC in Gaborone was also developed in 2007 under a PPP contract. The country has also signed one power IPP, with Karoo Sustainable Energy for the 90 megawatt Orapa emergency power plant. In December, an Asian consortium was appointed as preferred bidder to construct and operate two coal fired power plants at the pithead of Morupule Coal Mine. There were other attempts, including an effort to build a new science and technology university through a PPP.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.