Growth in Seychelles in 2015 was dynamic, with economic growth estimated at 4.3 percent by the Central Bank of the country. Tourism is the main driver of growth in Seychelles. However, according to the Global Competitiveness Index (GCI) 2015-2016, the state of infrastructure is worsening as its score decreased from 4.71 in 2012 to 4.51 in 2015.
The 2010 Investment Act proposed the creation of a new entity, the Seychelles Investment Board, designated as a facilitating and coordinating agency for private investments.
Seychelles has previously had some limited experience in PPPs, including in the transport (20-year concession for the operation and maintenance of the Victoria port) and ICT sectors (through a joint venture between the Government and a private telecommunications operator to operate the submarine cable system connecting Seychelles with the continent). However, these arrangements have been identified, appraised, and negotiated on an ad-hoc manner and there is no clear monitoring framework.
The Government has recently started revamping its legal framework with the intent to promote PPP projects, starting with its 2010 Investment Act. The Energy Act that was introduced in 2012 further specified the regulatory environment for future independent power producers.
The African Development Bank (AfDB), in partnership with the Investment Climate Facility for Africa (ICF), is currently assisting the Government of Seychelles to procure specialized advisory services for the Ministry of Finance Trade and Blue Economy (MFTBE). Through this support the Government has been able to finalize its PPP Policy, which was approved on July 1, 2015.
Sectors currently of interest for PPP development include independent power producers (IPPs) and large-scale infrastructure projects (such as a planned expansion of the port and, in the longer term, the airport terminal and runway).
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.
XS-Axis Consulting, Wehrheim (The Cross Sector Advisory) has been engaged by the Client, Southern African Development Community --Development Finance Resource Centre PPP Network (SADC3P) to prepare 14 country papers taking a look at current practice of PPPs with a specific focus on PPP Policy, Institutional Arrangements, and Legal Frameworks as a follow-up of the Draft Regional Strategy paper submitted to SADC3P in November, 2012. This paper focuses on Seychelle’s PPP Policy, Institutional Arrangements and Legal Frameworks as a Member State in SADC providing specific recommendations for the implementation or enhancement of private sector participation in the development of public infrastructure in the country. The main objective is to...