Capacity-building for Public-Private Partnerships Ljiljana Stancic Secretary, Team of Specialists on Public-Private Partnerships United Nations Economic Commission for Europe _______________________________ 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 capacitybuilding in public administration
PPP MARKET DEVELOPMENT Stage One Stage Two Stage Three • Define policy framework • Introduce legislative reform • Fully defined, comprehensive “system” • Test legal viability • Publish policy and practice guidelines • Legal impediments removed • Identify project pipeline • Develop foundation concepts • Apply lessons from earliest deals to other sectors • Start to build marketplace • Establish dedicated PPP units • Refine PPP delivery models • Continue to foster marketplace • Expand project pipeline • Extend to new sectors • Leverage new sources of funds • 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 privateequity 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 j A coherent PPP policy k Strong enabling institutions l Legal framework “fewer, better, simpler” m Cooperative risk sharing and mutual support n Transparency in partner section o Putting people first p 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
ACHIEVING SUCCESS will require serious commitments to capacitybuilding in public administration… 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
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
THANK YOU FOR YOUR ATTENTION! FOR MORE INFORMATION Please visit: http: //www. unece. org/ceci/ppp. html Or contact: ljiljana. stancic@unece. org
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