Treasury Proposes Scrapping 30-Year Limit on PPP Contracts

The National Treasury has proposed sweeping changes to the Public-Private Partnerships (PPP) framework through a new amendment Bill. The reforms aim to simplify project implementation and attract more private investment into public infrastructure.

The proposals appear in the Public-Private Partnerships Amendment Bill, 2026. Treasury says the changes will make the approval and implementation of PPP projects more efficient.

30-year contract limit faces removal

One of the biggest proposals seeks to remove the current 30-year reference period for PPP contracts. The duration of future agreements would instead depend on the type and structure of each project.

According to the draft Bill, different contract categories will determine the applicable project tenure. Treasury says the move will align the law with the various contracts listed under the PPP Act.

Officials believe the proposal could support long-term infrastructure projects. Investors may receive enough time to recover project costs before transferring assets to the government.

PPP Directorate role set to change

The Bill also proposes reducing the oversight powers of the PPP Directorate. Contracting authorities would assume greater responsibility for evaluating bids submitted by investors.

The Directorate would no longer review tender evaluation reports prepared by government agencies. Instead, it would provide advisory support during different stages of project development.

Treasury also wants contracting authorities to consult the Directorate while conducting feasibility studies. The proposal replaces the current arrangement that places the process under the Directorate’s direction.

State corporations to gain new powers

The proposed law expands the list of institutions allowed to undertake PPP projects. Government-owned enterprises would qualify as contracting authorities under the new framework.

The change would allow state corporations to initiate and manage infrastructure partnerships. Treasury believes this will increase opportunities for private investment across different sectors.

County governments would also follow a different approval process. County executive committees would approve PPP agreements instead of county assemblies.

Treasury plans public consultations

The amendment Bill also introduces measures to speed up project implementation. Contracting authorities would appoint multiple representatives to implementation teams where necessary.

Project implementation teams would also handle bidder prequalification under the proposed law. Treasury says the changes will reduce delays and improve project delivery.

Before presenting the Bill to Parliament, the ministry will conduct public participation across the country. The forums will begin on July 13, 2026, to collect views on the proposed amendments.

Members of the public will also submit written memoranda through the National Treasury. The proposals come as the government continues pursuing major PPP projects, including the planned JKIA expansion.

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