National Treasury Issues New PPP Guidelines for FCCL and Unsolicited Proposals

Posted 25 November 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: National Treasury has released new guidelines for the management of Fiscal Commitments and Contingent Liabilities (FCCL) and Unsolicited Bid Proposals (USP) within the Public-Private Partnership (PPP) framework.

In terms of the Public Finance Management Act, No. 1 of 1999 (PFMA) and Treasury Regulation 16, these guidelines represent the latest phase in the implementation of recommendations from the National Treasury’s comprehensive review of the PPP regulatory framework. The documents are designed to improve decision-making, strengthen institutional arrangements, and ensure the rigorous reporting of fiscal risks.

Scope and Application

The guidelines apply to both new and existing PPP projects to ensure a uniform approach to fiscal management across all spheres of government. The primary objectives include:

  • Enhancing the identification and quantification of fiscal commitments;
  • Standardising the evaluation and management of unsolicited proposals from the private sector; and
  • Safeguarding public finances through improved reporting of contingent liabilities.

The 113-page Framework and Guidelines for Management of FCCLs provides a technical methodology for assessing the long-term financial obligations incurred by the state in PPP agreements. The Guidelines for Management of Unsolicited Proposals establishes the criteria and procedural steps for government institutions when considering private sector-initiated projects.

Click here to download the Framework and Guidelines for Management of FCCLs.

Click here to download the Guidelines for Management of Unsolicited Proposals.

What this means for you, your business, or your clients

  • For yourself: You must update your technical knowledge of the PFMA regulatory environment to include the new FCCL reporting requirements, particularly if you are involved in public sector auditing or financial reporting.
  • For your business: Advisory firms must integrate these guidelines into their project finance and procurement advisory workflows to ensure that all PPP feasibility studies and bid evaluations comply with the updated National Treasury standards.
  • For your clients: Clients in the construction and infrastructure sectors must ensure that any unsolicited proposals submitted to government entities strictly adhere to the new USP Guidelines to avoid summary rejection or procedural challenges.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-guidelines-public-private-partnerships-ppps

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