Obtaining private investment for Government buildings construction

Obtaining private investment for Government buildings construction

The Government has to spend a large sum of money from the annual budgetary allocations for the Government buildings construction such as schools, universities, hospitals and offices and also consume time and funds to construct and maintain such buildings.

As such, focus has been made to find the possibility of obtaining private sector investments for the construction of Government buildings to enable the Government funds to be utilized for other priority activities.

A proposal has been made to adopt the Public Private Partnership Model to construct the new Government buildings in the fields of education, higher education, skills development & vocational training and health.

According to this method, the private investor will construct a building for a Government institute and after a lapse of a period of 15 to 20 years, the Government will acquire the building.

During this period the maintenance of the building will be carried out under the Public Private Partnership basis and the Government will pay the guaranteed rental to the private investor.

Accordingly, the proposal made by Ranil Wickremasinghe, the Prime Minister in his capacity as the Minister of National Policies and Economic Affairs, to take action to call for proposals from private investors under the said system in relevance to the above fields to construct the buildings required by the Government, was approved by the Cabinet.

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