Public-private partnership (PPP) projects are reshaping Zambia’s infrastructure landscape. Since the Public-Private Partnership Act No. 18 of 2023 came into force on 25 January 2024, foreign and local investors alike have a clear, investor-friendly roadmap for delivering roads, power plants, dams, rail lines, and more. This guide shows you how to win PPP projects in Zambia—from tendering and evaluation to risk allocation and local participation—so your bid rises to the top.
1. The New Legislative Framework
1.1 Why the 2023 PPP Act Matters
The 2023 Act swept aside the outdated 2009 law and fixed its biggest pain points: fuzzy mandates, slow approvals, weak enforcement, and scant room for Zambian suppliers. Today, a single PPP Office headed by a presidentially appointed Director General drives the entire pipeline, while a lean nine-member PPP Council issues the final “yes” or “no.”
1.2 Built-In Investor Confidence
- Transparent rules: Every PPP must follow a published project lifecycle—from concept to hand-back—so bidders know exactly where they stand.
- Project Development Support Fund: Government money now covers early feasibility and transaction-advisory costs, preventing deals from stalling at the study stage.
- Local-content clarity: Minimum subcontracting quotas and SME windows (see Section 4) are written into law, eliminating guesswork.
2. Tendering & Procurement Procedures
2.1 Competitive Paths to Market
The Act sets out three formal routes:
- Solicited bids issued by the PPP Office (most common).
- Unsolicited proposals—still allowed, but now screened for strategic value before exclusivity is granted.
- Direct procurement for urgent, small, or highly specialised projects.
For solicited projects, a mandatory feasibility study confirms economic viability, social impact, and environmental safeguards before the tender is advertised.
2.2 Evaluation Criteria
Tenders are scored on two balanced pillars:
| Pillar | What the PPP Office Looks For |
| Technical | Sound engineering, robust O&M plan, ESG compliance, service-quality guarantees, continuity of supply |
| Financial | Lowest present-value tariff or government payment, firm funding, sensible construction budget, socioeconomic benefits |
Extra points go to bids that embed local technology transfer and citizen-owned suppliers, in line with the Citizens Economic Empowerment Act.
2.3 Timeline Discipline
Endless talks kill deals. Zambia now caps final negotiations at 90 days, with any extension needing PPP Council sign-off. Performance bonds are gone, slashing entry costs for private sponsors.
3. Risk Sharing: Getting the Balance Right
3.1 Core Principles
- Assign risk to the party best able to manage it.
- Reward risk-takers with commensurate returns.
- Lock risk allocation into the concession agreement and monitor it.
3.2 Typical Allocation Matrix
| Risk | Private Sector | Government |
| Design & construction | ✔️ | |
| O&M performance | ✔️ | |
| Financing & interest-rate swings | ✔️ | |
| Exchange-rate shocks | Shared (indexed tariff) | Shared |
| Land acquisition | ✔️ | |
| Force majeure & policy shifts | ✔️ (with relief events) |
A live risk register—updated at each construction milestone—keeps both sides honest and lets lenders track exposure.
4. Local Partner Rules & Citizen Empowerment
4.1 Mandatory Subcontracting
Every concessionaire must award at least 10 percent of the total project value to citizen-owned contractors and suppliers. Failure triggers penalties or even contract termination.
4.2 Preferential Procurement
When goods or services are available in Zambia, bidders must source locally—unless they prove an equivalent product is impossible to find or wildly more expensive.
4.3 SME-Scale PPPs
A new Small & Medium Scale PPP window simplifies documentation and approval for projects under a designated cap (the Ministry revises the ceiling annually). This opens the door for Zambian engineering firms and community co-operatives to deliver mini-grids, rural water schemes, and digital infrastructure.
5. Deal Pipeline: Where the Action Is
| Project | Sector | Value (USD) | Status |
| Lusaka–Ndola Dual Carriageway | Transport | 600 m | Under construction |
| Kariba Dam Rehabilitation | Energy | 300 m | Procurement |
| Choma Solar Power Station | Renewable | 70 m | Feasibility |
| Lobito Corridor Rail | Transport | 1.2 b | Concession signed |
The PPP Office updates the pipeline quarterly; savvy sponsors track it to pounce on pre-feasibility opportunitie
6. Winning Strategies for Sponsors
- Know the rules cold. Build your timeline around the 90-day negotiation cap and SPV-incorporation deadline.
- Lead with local value. Outline how Zambian contractors, graduates, and rural SMEs slot into your supply chain.
- Show iron-clad funding. Debt-equity structures that match construction cash-flow needs—and include credible DFI or export-credit backing—score high.
- Present a watertight risk plan. A clear allocation matrix plus contingency budgets signals professionalism.
- Deliver bankable ESG. Investors—and the PPP Council—scrutinise carbon intensity, community resettlement, and gender-inclusion KPIs.
7. Conclusion
Zambia’s updated PPP framework is pro-investor yet pro-citizen. By mastering the streamlined tender process, crafting bankable risk-sharing models, and embedding genuine local participation, sponsors can secure profitable, long-term concessions that also accelerate Zambia’s growth. The door is open—step through it with a winning bid.
