Implementing an effective PPP programme with a focus on ... · Plan of action & prioritization...
Transcript of Implementing an effective PPP programme with a focus on ... · Plan of action & prioritization...
Implementing an effective PPP programme
with a focus on international experience –
The case of Greece
Despina Tomadaki
Financial Advisor
Special Secretariat for Public Private Partnerships
Ministry of Economy and Finance
Greece
Transfer of infrastructure
What is a Public Private Partnership ?
Construction and maintenance rights
Banks / shareholders
Special Purpose Vehicle
Debt / Equity
End Users
Availability of the system
Capital/interest dividends
Contracting Authority Ministry of Environment
Yearly availability payments
Usage fees
Allocation of risks
Private Sector: design, construction, financing, operation, maintenance, management risks
Public Sector: regulatory and legal framework
3 major transport concession projects in operation
Their contracts had to be ratified by the Greek Parliament as distinct laws
The Government announced its intention to create a market friendly environment for PPPs
3 years before …
Today…
“…the world’s fastest growingPPP program…”
World Bank, PPPI Days,
Washington, December 2008
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
The need for a new legal framework
Need for a legal framework that would enable the wider implementation of PPPs
Overcome the legal gap that led each co-financed project to the Parliament for ratification
Overcome obstacles that delayed the implementation of projects
Framework for the implementation of projects that are not repaid by the end-users (“availability payments)
New legal framework – Law 3389/2005
Result of extensive consultation
“Umbrella” framework
Incentives for the private sector
Clear approval and tendering process for PPP projects
Establishment of Inter-Ministerial PPP Committee
Establishment of a PPP Unit within the Ministry of Economy and Finance
Specialization of government policy for the implementation of PPPs
Regular Members: Minister of Economy and Finance, Minister of Environment –Physical Planning & Public Works and the Minister of Development
Approves projects
The Inter-Ministerial PPP Committee
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
PPP Unit
Solid and clear structure
Public sector’s partner
Identification of possible projects
Assistance to public authorities
Standardization of tender documents
Continuous follow-up
Private sector’s partner
In touch with market’s needs
Extroversion
www.ppp.mnec.gr
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
Integrating PPPs in government policies
Preparation and finalization of a completeplan of actions
Identification of the primary objectives ofthe PPP Unit, classified both by sector andgeographically
Establishment of clear priorities, as to theprojects that should be implemented first
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
Taking care of the funding issue
Segregation of funds to be used for availability payments
Total availability payments of approved projects account for 6 - 7% of Public Investments Program
5th year target: 10-12%
Limit: 15%
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
Briefing the market and educating the public sector
Disseminate knowledge
Presentations across Greece
Participation in international conferences
Publication of guides
Internet Site
Seminars for public administration
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
Projects’ pipeline
Structure a pipeline of pilot PPP projects
Try implement successful examples
Open different sectors
Group similar projects
Keep same pace with the market
52 projects approved – 5.7 B Euros* NPV
* Indicative Budget
Procedure for the implementation of a PPP project
Procedure for the implementation of a PPP project
I. Public Sector Accommodation
22 projects
Of a total value of 1.687 bn Euros
One project about to reach financial close
4 tenders already launched
II. Education
8 projects
Of a total value of 800 M Euros
4 tenders already launched
III. Justice
2 projects
Of a total value of 360 M Euros
2 tenders already launched
IV. Health
4 projects
Of a total value of 1 bn Euros
1 tender already launched
V. Tourism and sports
3 projects
Of a total value of 340 M Euros
1 tender already launched
VI. Ports Infrastructure
Security systemsn in 12 ports - € 342 M
VII. Environment
3 projects
Of a total value of 450 M Euros
VIII. Defense
5 projects
Of a total value of 420 M Euros
IX. Transportation
2 projects
Of a total value of 140 M Euros
X. Municipal PPP projects
2 projects
Of a total value of 50 M Euros
What it takes to set up a PPP programme?
Clear legal framework
PPP Unit
Integration of PPPs in government policies
Plan of action & prioritization
Taking care of the funding issue
Briefing the market & educating the public sector
Pipeline of projects
Smooth and transparent tender process
Smooth and transparent tender process
Tenders in accordance with EU legislation
Restricted procedure is used (2 phases)
Phase I - EoI : Pre selection of bidders
Phase 2 - Submission of Final offers : Input and detailed output specifications are provided to pre selected bidders
Pre-selection and selection based solely on objective criteria
Minimized bidding costs for contractors
Minimized risks for legal challenges
Conclusion
PPPs have created new opportunities for both public and private sector
Overcome budgetary constraints
Improved public administration
Created long term thinking in both public and private sector
Improved transparency and monitoring of costs of public services delivery
Greece: focal point on the map of PPPs across Southeastern Europe and the Mediterranean Sea
Last remark
Public Private Partnerships have proven to be beneficial not only for the public and the private sector, but…
mainly for the citizens
Contact details
Special Secretariat for PPPs
Ministry of Economy and Finance
Greece
Tel: +30 210 3375750
www.ppp.mnec.gr
e-mail: [email protected]