In March 2015, the Government approved a Public-Private Partnership (PPP) Policy framework for Saint Lucia.

The policy details the criteria for engaging in PPPs, and will provide an alternative source of funding for the government in meeting the infrastructure and public sector needs while at the same time ensuring fiscal and debt sustainability.

A Public-Private Partnership (PPP) is defined as a “long term contract between a private party and a Government agency, for providing or managing a public asset and associated services, in which the private party bears significant risk and management responsibility."

PPPs can help increase the availability, quality and resilience of infrastructure and other public assets, and associated services while reducing fiscal commitment and risk involved in providing them.  PPPs can also help mobilize additional funding and financing sources for infrastructure and public services. Furthermore, in addition to providing value for money, PPPs provide for adequate maintenance funding, innovation and efficiency, focus on services delivery and accountability.

With the approval of the policy, the Government will now be able to engage in long term contractual relationships with private sector entities which will introduce resources and expertise into the delivery of public assets and services. 

Assistance for the policy was provided by the World Bank and consultations were held with both the private and public sectors in its formulation. The initiative was coordinated by the National Competitiveness and Productivity Council (NCPC) in collaboration with the Department of Finance.

The Policy has several objectives. PPPs will provide value for money as the will be structured to achieve the optimal combinations of benefits and costs to the Government and users. They will demonstrate fiscal responsibility where the impact of PPP projects is well understood, expected costs are affordable and the level of fiscal risk is acceptable. There will be transparency and probity in how PPPs are identified, developed, procured and managed. The environmental and social sustainable impacts of PPP projects will be carefully assessed and managed appropriately. There will be partnership and inclusiveness where PPPs meet and balance the objects of all interested parties – the government agency and its private sector partners, end users, employees and other stakeholders. It is also expected that PPPs will be managed through a spirit of partnership and cooperation to achieve common goals of improved infrastructure. 

The work of the PPP focal team will be strengthened by technical support through the Caribbean Development Bank (CDB).