BEE code for Public Private Partnerships

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The National Treasury has released a Code of Good Practice for BEE in Public Private Partnerships (PPP).

This Code provides for a balanced scorecard with indicative targets and weightings for each element of the private party's equity structure, management, sub-contracting and local socio-economic impact.

It also guides institutions on how to make appropriate decisions about BEE targets during feasibility and procurement phases

In the PPPs concluded to date, black equity has been successfully achieved at between 25 and 40 percent of the private parties' shareholding, and sub-contracting in those deals have gone to a similar percentage of black enterprises.

SMEs have also benefited people at a local level, and black management control was acquired and extended in all the projects.

Finance Minister Trevor Manuel has submitted this code to Mr Mphahlwa, requesting that he consider issuing it in terms of the BEE Act after advice from the Council once it was established.

Source: BuaNews

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