Capacity-building for Public-Private Partnerships
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Transcript of Capacity-building for Public-Private Partnerships
Capacity-building for Public-Private Partnerships
Ljiljana Stancic
Secretary, Team of Specialists on Public-Private Partnerships
United Nations Economic Commission for Europe
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Sarajevo, 25 September 2009
WHY PPPs? WHY UN?
1. PPPs -- alternative option for low income countries to modernize infrastructure
2. Success depends on improving the performance of institution surrounding PPPs
3. UNECE engaged in regional intergovernmental process
4. Success will require serious commitment to capacity-building in public administration
PPP MARKET DEVELOPMENT
Stage One•Define policy framework
•Test legal viability
•Identify project pipeline
•Develop foundation concepts
•Apply lessons from earliest deals to other sectors
•Start to build marketplace
Stage Two•Introduce legislative reform
•Publish policy and practice guidelines
•Establish dedicated PPP units
• Refine PPP delivery models
•Continue to foster marketplace
•Expand project pipeline
•Extend to new sectors
•Leverage new sources of funds
Stage Three•Fully defined, comprehensive “system”
•Legal impediments removed
•PPP models refined and reproduced
•Sophisticated risk allocation
•Committed, long-term deal flow
•Long-term political consensus
•Use of full-range of funding sources
•Thriving infrastructure investment market involving pension funds and private-equity funds
•Well-trained civil service applying lessons from PPP experience
PPP MARKET MATURITY CURVE
KEY CHALLENGE: Improving governance and institutional certainty
TO AVOID:
• Protracted negotiations• Lack of transparency in partner solution• Conflict of interest• Cancellation of projects • Burden on future taxpayers
UNECE GUIDELINES ON PROMOTING GOOD GOVERNANCE IN PPPS
7 PRINCIPLES
A coherent PPP policy
Strong enabling institutions
Legal framework “fewer, better, simpler”
Cooperative risk sharing and mutual support
Transparency in partner section
Putting people first
Achieving sustainable development
Capacity-Building
• Train personnel for required skills for PPPs• Establish PPP Unit• Offer national PPP training programmes,
guidelines• Learn to choose right consultants to help on
projects• Networking for success
Putting People First
• Define the public interest
• Consult with people
• Inform: disclose information in contracts
• Oversee by objective third party
• Involve independent auditors
Situation today in transition economies: • There are few capacity-building programmes
• No practical training for policy makers and project managers
• Numerous international conferences on PPPs but no substitute for real practical hands-on training
ACHIEVING SUCCESS will require serious commitments to capacity-building in public administration…
UNECE WORK IN PPPs
• International recognition, level playing field
• Focus on good governance
• Identifying best practice
• Training modules
• Conferences and advisory missions
• Co-operation with other organisations
CONCLUSION• PPPs are an instrument that continue to be of
great interest to governments…
• But they are not a quick fix and require good
governance in order to provide real value for money
FOR MORE INFORMATION
Please visit: http://www.unece.org/ceci/ppp.html
Or contact: [email protected]
THANK YOU FOR YOUR ATTENTION!