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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 ______________________________________________________________ Sarajevo, 25 September 2009. WHY PPPs? WHY UN?.

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Capacity-building for Public-Private Partnerships

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  1. 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

  2. WHY PPPs? WHY UN? • PPPs -- alternative option for low income countries to modernize infrastructure • Success depends on improving the performance of institution surrounding PPPs • UNECE engaged in regional intergovernmental process • Success will require serious commitment to capacity-building in public administration

  3. 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 DEVELOPMENT

  4. PPP MARKET MATURITY CURVE

  5. 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

  6. UNECE GUIDELINES ON PROMOTING GOOD GOVERNANCE IN PPPS7 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

  7. 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

  8. Putting People First • Define the public interest • Consult with people • Inform: disclose information in contracts • Oversee by objective third party • Involve independent auditors

  9. ACHIEVING SUCCESS will require serious commitments to capacity-building 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

  10. 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

  11. 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

  12. 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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