Benin - PPP/Strategic dialogue between the private sector and the communes of Borgou: Adecob, forerunner of the concept of territorial attractiveness
The Association pour le Développement des Communes du Borgou (Adecob) organized a meeting on Thursday December 19, 2024, at the Centre Le Rucher de Komiguéa in the commune of N'Dali. At the heart of the discussions were ambitious partnerships between the private sector and the communes of the Borgou department, which could be the subject of investments in Public-Private Partnership (PPP) mode. Financed by the Swiss Cooperation, this activity is part of the first phase of the Programme d'Appui à la Gouvernance Locale et au Renforcement de l'Attractivité Territoriale (Agora).
The Association Développement des Communes du Bougou brought together potential investors and Bougou communes to exchange ideas on potential investment projects. According to presenter Alain Zomadi, an expert in public-private partnerships, marketing and territorial attractiveness, Benin offers two possibilities for local authorities, which are contracting authorities, to purchase goods, infrastructure or equipment: the public procurement code and the law on public-private partnerships in the Republic of Benin.
Indeed, local authorities have always applied the public procurement code since 2003, when the first council of communes was set up. Now there's an innovation. "Since 2016, there has been a law on public-private partnership, but which has experienced many difficulties in taking to facilitate the supply of infrastructure on communal territories. This law was revised in July 2024. We have the revised law, No. 2024-30 of July 23, 2024, which has made things easier for communes," explains Alain Zomadi, who insists "...communes can enter into partnerships with the private sector, including the potential investors you have seen here, who have come with great enthusiasm. They can form partnerships around infrastructure projects, concession projects, leasing projects, to be able to offer quality public services to citizens". In summary, participants had the opportunity to explore the new legal framework governing PPPs, investment promotion tools, and the benefits and challenges of PPPs.
Building strategic alliances
Following the expert's inaugural presentation, Tidjani Bani Chabi, president of the Association pour le Développement des Communes du Borgou (Adecob) and mayor of Kalalé, underlined in his speech the objective of the initiative: "This workshop offers a unique opportunity for direct interaction between our communes and businesses.direct interaction between our communes and private companies to identify investment opportunities and build strategic alliances", he said, before adding "we firmly believe that synergy between the public and private sectors is an essential lever for transforming our territories". The message from Benin's youngest mayor is clear: seize the opportunities offered by the communes of Borgou and forge solid partnerships to bring to fruition structuring projects that will bring development and transformation to the territories of Borgou.
To this end, consular bodies such as the Chamber of Commerce and Industry, Apiex (Société d'Investissements et de Promotion de l'Industrie), the Chamber of Trades, etc. were present during the event to support potential investors. Moreover, to support craftsmen who wanted to position themselves, Adecob facilitated the acquisition of their trade register. A total of 134 applications were processed, including 62 for women, by Apiex.
Technical and financial challenges...
According to the PPP Expert, there are small PPP contracts. Whoever has the capacity to enter into a contract, the mayor's office defines its contracting and investment framework. There are standard procedures, such as open calls for tender. There are derogatory procedures, such as direct agreement or unsolicited bids. There are many mechanisms that people can use. The challenge is both technical and financial. First of all, the public sector needs to get organized. According to the consultant, town halls need to make sure they have executives who know what they're talking about. Signing a PPP contract, managing a PPP contract, means knowing how to collaborate with the executive secretary of the PPP support commission, which was created by decree. So, collaborating technically, knowing what we're talking about and identifying the right projects with high potential or economic impact; conducting studies; having the right budgetary solidarity, and so on... So, this requires internal organization, in a project management approach with technicians worthy of the name who will lead the process. "Since a municipality may subsidize a project, it may contribute resources to ensure its success. We go into private partnership when there are risks, when we can't carry the project ourselves," emphasizes Alain Zomadi.
Then, in relation to the private sector, the challenge is to take things seriously; above all, to work together to be stronger. We don't have that culture in Benin," laments the workshop's communicator. It's all about big groups with partners behind them. "...because when we create a project company to manage the private partnership contract on complex projects, it means that we have several stakeholders involved. Investors, laws, capital, suppliers, this and that. So, expertise is required here too", he defended.
To close the workshop, the President of Adecob handed over a consignment of valuable computer equipment to the guichet du territoire, a strategic center for the distribution of agri-food products. Each of Borgou's communes set up a stand to present investment opportunities in their area to the companies present. A real territorial marketing campaign to attract investors. This event, which is a first in the septentrion, lays the foundations for the concept of territorial attractiveness, as yet unknown to the general public.
Source: lemondelocal.com