IFC advises Somalia on PPP framework
The government of Somalia has mandated the IFC in an advisory role for the implementation of a legal framework for PPPs in the country. The DFI estimates the project budget at $1.6 million.
The government passed its current PPP law – the Public Procurement, Concessions and Disposal Act – in a unanimous cabinet vote in May 2014. The new IFC assistance on PPPs appears to be an overarching one. The World Bank has been working on a PPP framework for Somalia’s healthcare sector since October 2020.
The World Bank’s interest in the Somali case is partly spurred by its own assistance with the country’s response to the Covid-19 pandemic, and the bank's interest in Somalian PPP law stretches back several years, to the adoption of the current law in 2014.
A previous analysis of the law by the development bank found: no PPP unit – any and all PPP projects are to be launched and implemented by the relevant ministry; no provisions for dispute resolution or rights and obligations of either the public or private partners; and the Ministry of Finance has sole responsibility of issuing a Certificate of Concession to a private partner.
The United Nations ceased labelling Somalia as a failed state in December 2015 and the Federal Government of Somalia replaced the provisional government in August 2012 alongside the adoption of a new constitution. However, in spite of these steps towards stability the East African state is still in the throes of civil war and remains a risky destination for foreign investment.
