National Treasury Amends Treasury Regulation 16 to Reform PPP Framework

Posted 17 June 2026 Written by Acts Online
Category Financial Services

Brought to you by SAnews: National Treasury has amended Treasury Regulation 16 under the Public Finance Management Act, No. 1 of 1999, to streamline the Public-Private Partnership (PPP) framework and accelerate infrastructure delivery.

The amendments, which came into effect on 1 June 2026, introduce a simplified approval process for smaller PPP projects valued at below R2 billion. Previously subjected to multiple protracted approval stages, these smaller-scale projects can now be fast-tracked. Under the revised system, accounting officers are empowered to approve certain project milestones internally, reducing the administrative burden and reliance on multiple layers of National Treasury approval. Oversight is maintained through the PPP Advisory Unit, which continues to provide technical guidance and strategic recommendations.

Guidelines on Unsolicited Bids and Fiscal Commitments

Complementing the regulatory amendments, two key guidelines took effect on 31 October 2025:

  • Unsolicited Bid Proposal (USP) Guideline: Establishes a structured and transparent framework for private entities to submit project concepts directly to government institutions, provided they align with national development priorities. To ensure competitive fairness, all unsolicited proposals remain subject to a competitive procurement process. To incentivise private sector innovation, the guideline introduces provisions for the partial reimbursement of development costs incurred by bidders in preparing proposals, even if they are not awarded the contract.
  • Fiscal Commitments and Contingent Liabilities (FCCL) Guideline: Provides a framework to assess, manage, and approve government’s financial commitments and risks, ensuring that PPP projects remain fiscally sustainable.

Furthermore, amendments to the Municipal PPP Regulations under the Local Government: Municipal Finance Management Act, No. 56 of 2003, are currently nearing finalisation and will be implemented once gazetted.

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

  • For yourself: No direct individual obligations; professional development is required to master the streamlined Treasury Regulation 16 approval pathways and the new USP framework.
  • For your business: Advisory firms and project developers can target smaller infrastructure projects (under R2 billion) with reduced regulatory delays and leverage the partial cost reimbursement mechanism when submitting unsolicited bids.
  • For your clients: Public sector clients (accounting officers) must update their internal delegation frameworks to exercise their new milestone approval powers, while private sector clients can prepare and submit structured unsolicited proposals under the new USP guidelines.

Originally published at https://www.sanews.gov.za/south-africa/new-public-private-partnership-reforms-fast-track-infrastructure-delivery

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