Transcript PPP policy for private panel discussion

POLICY OF THE CZECH REPUBLIC
PUBLIC PRIVATE PARTNERSHIP
PRESENTATION FOR THE LONDON PRIVATE PANEL
7. OCTOBER 2003
TIMETABLE
2003
7
PHASE 1 –
IMPLEMENTATION
STRATEGY
8
9
10
Set up of the
TEAM
2004
11
12
1
2
3
4
5
6
7
Inside government
workshop on PPP
Preparation of the
implementation
strategy
Final report to Minister of
Finance
Legal analyses
Optimisation in relation to
new budget rules
PHASE 2 –
APPROVAL BY
GOVERNMENT
Amendments
and
comments
Communication with
stakeholders
Action plan
PHASE 3 –
OPERATIONAL
RULES AND
LEGISLATION
PHASE 4 IMPLEMENTATION
Legislative preparation
Implementation of steps
independent on legislation
Implementation of steps
dependent on legislation
1
TEAM AND ORGANIZATION
TEAM OF SOLUTION
PROVIDERS (MINISTERIES)
• Co-ordinate the PPP
PROJECT STEERING
COMMEETEE
•
•
•
•
taskforce among public
administration bodies
• To evaluate and approve
Jiří Volf (MFCR)
Jan Juchelka (NPF)
Kateřina Helikarová (MFCR)
Filip Drapák (NPF)
documents submitted by
Steering Committee
PROJECT MANAGEMENT
• Methodology and regulation
(MFCR )
• Implementation (FNM CR)
• Ensure amendments and
comments by the
government offices
Communication to
private sector
Legal counsel and
legislators
communication support
– International
experience
– Recommendations by
private sector
• Legal support
•
•
•
•
•
•
•
(organization, time, planning)
Supervision of the performance of
project management teams and team of
solution providers, feedback on the key
conclusions
Providing key decisions and solutions
Provide feedback to advisors and to
third party stakeholders
Manage daily the project
Lead analytical and methodical teams
Identify problems and solutions
Submit recommendation to Steering
committee
Communication to
public
• Petra Krainová (FNM)
Team of professional
support
-Partnerships UK
-IPFA
-WB
• Communication plan
• Conference calls
• Papers
• Training
Allen Overy
• Information and
• Project overall management
2
WORK PLAN FOR THE PHASE 1 (AUGUST)
JULY
TASKS
AUGUST
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Setting up the team
• Steering Committee
• Press announcement (MFCR a NPF)
• Opening of WEB side
• Letter by Minister of Finance
• Setting up the team of solution providers
Organizational set up
• Building private sector contacts
• Legal and legislative counsel
• Building the contact list
• Specific timetables
• Planning of the tasks and deliveries
Preparation of implementation strategy
• Legal analyses
• Policy for Czech republic
• Regulation and methodology
• Institutional set up
• Analyses of private sector opinions,
recommendations and analyses
• Identification of pilot projects
• Manual for PPP task force set up on
Ministries
• Analyses of the deal flow, bottle necks
and approval processes
3
WORK PLAN FOR THE PHASE 1 (SEPTEMBER)
SEPTEMBER
TASKS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Preparation of the policy
• Legal analyses
• Policy framework paper
Training PUK UK
• Reccommendation on legislative
changes
• Regulation
• Institutional set up of PPP
• Analyses of private sector
recommendations
• Pilot projects analyses
• Analyses of PPP transactions and
teams on relevant public bodies
• PPP processes and approvals –
model for Czech republic
• Paper for the government
4
WORK PLAN FOR THE PHASE 1 (OCTOBER)
OCTOBER
TASKS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Amendments and discussions on
PPP policy
• Approval within Ministry of
Finance
• Decision by the Ministry of
Finance
• Comments by the interministrial
PPP group
• External amendments procedure
• Discussions with private sector
– Private PPP panel in London
– Private PPP panel in Prague
• Publlic PPP panel in Prague
• Final amendments to the Policy
• Policy being delivered to the
Czech government
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POLICY DRAFT
THIS POLICY PAPER HAS NOT BEEN APPROVED BY THE
GOVERNMENT AND IS FOR THE DISCUSSION WITH THE PRIVATE AS
WELL AS PUBLIC STAKEHOLDERS.
6
WHAT SHOULD PUBLIC PRIVATE PARTNERSHIP BRING TO CZECH
REPUBLIC (Introduction to the Policy)
Real financial benefit and a better utilisation and allocation of public funds;
Development of efficient public infrastructures in shorter terms than otherwise;
Ensure of good quality public services;
Economic growth and boosted direct international investments by giving
Incentives to private investment in public infrastructure and public services;
Efficient control over the formation of long-term private sector liabilities;
Limitation of negative impact of non-systematic execution of PPP projects;
Increased possibility of drawing on EU funds by a higher co-financing share taken
by the private sector in projects of public interest.
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SUPPORT TO PPP
It is the Czech Government's policy to support the introduction and
application of PPP anywhere that can bring any advantages to the
public sector in the provision of public services and infrastructure,
both at the level of the central government and in regions.
In respect of PPP, the Government acts in the capacity of a partner and
a customer of the private sector while purchasing services from it.
The private sector would provide public infrastructure (services) at
its own cost and the Government, in the capacity of its client, would
pay regular fee in exchange for such investment until the expiration of
their PPP-based contract(s).
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PRECONDITIONS FOR PPP APPLICATION (A)
The introduction of PPP is conditioned by its programme and systematic
application that makes known the PPP fiscal concept and that guarantees
compliance with (inter alia) the following fundamental principles set out by the
Czech Government:
(a)
Value for Money – It is the main requirement that the resulting economic
value of a PPP project should be lower than if implemented in a traditional manner of
public sector funding. Since PPP represents a long-term and comprehensive
concept, the total resulting economic value should also be viewed in a comprehensive
manner (total costs of the public sector and opportunity costs) rather than solely from
the sum of the cash payable from public budgets. The total economic value of a PPP
project must be determined prior to launching the relevant PPP tender.
(b)
Risk Transfer – That party best capable of managing risk should be that party
to bear it; any material risks should be transferred to the private sector.
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PRECONDITIONS FOR PPP APPLICATION (B)
(c)
Specification of Public Service Standards – The public sector in the
capacity of a client must define standards applicable to public services, both in order
to guarantee optimum public services and taking into account the economics of such
standards.
(d)
Maintenance of Public Assets Value – Since public assets would not be
usually transferred to the PPP operator or they should come back to the public sector
upon the expiration of the contract, it is essential to define clearly the relevant rules
applicable to the maintenance of the value of such public assets managed by the
private sector under PPP contracts (as a rule, 5-60 years).
(e)
Ensuring Innovation and Competition – PPP contracts must not result in a
monopoly of a single contractor; rather, PPP should manage competition so that it
brings about utmost innovations in the given public service.
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GENERAL REVIEW OF PPP FEASIBILITY
The Government expects the public sector to take into consideration
PPP when assessing its investment goals.
The Government expects
UNIVERSAL TESTING.
UNIVERSAL
CONSIDERATION
not
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AUTHORITY
The Government wishes to declare that the authority to decide on a
PPP application, the determination of any expected outcome of PPP
projects in the form of public services, and their implementation, will
remain with the relevant state administration and self-administration
bodies (the "Beneficiary") in charge of the provision of the public
services or infrastructure in question.
The Ministry of Finance would set up a body to manage PPP
implementation (the "PPP Centre").
It is the Government's intention that the PPP Centre should assist the
Beneficiaries in the implementation of their PPP projects.
The Government further expects all components of the public sector
to draw on resources available at the PPP Centre when implementing
PPP.
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EXPERT BACKING AND COSTS
The Ministry of Finance would ensure that the PPP Centre should draft
certain standard PPP procedure and provide a methodology support
to individual PPP Beneficiaries.
The Government appreciates that PPP would require higher
transactional costs at its outset than in the event of standard tenders
but it is convinced that such higher costs would be more than
balanced by the advantages from implemented PPP projects.
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STATE REGULATION
The Government would propose that any mandatory disbursements on
account of future budgets in excess of certain limits should be subjected
to an approval by the Ministry of Finance in respect of all components of
the public sector.
The Ministry of Finance has been requested to draft a methodology
serving the assessment and approval of PPP, as well as the approval of
launching preparatory work for specific PPP projects.
The Ministry of Finance, having been requested to define unequivocally
the scope of PPP projects to be subjected to regulation, provided:
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PPP DEFINITION
Those contracts between the public and private sectors will be
considered PPP if they would bind the private sector to supply
and/or operate public services or infrastructure projects that have
typically been the realm of the public sector. They will mainly be
projects or services that meet any of the following features:
1)
Shared responsibility for the supply of infrastructures or services
whereby the private sector accepts higher risk, typically combining the
design, construction, funding, management and maintenance elements.
2) A long-term commitment (at least 3 years) by the private sector to
provide good quality public services defined by the public sector.
3)
Shared expertise and capabilities by the private and public sectors so
that the public sector may optimise the exposure and guarantee a
higher value of public expenditure application, mainly while making use
of qualities inherent to the private sector in the technical, financial,
management, and innovation fields.
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PAYMENTS BY CUSTOMERS
The Government is aware that certain public infrastructure projects could
not be implemented without the introduction of payments for such
infrastructure use (e.g., toll paid for crossing a specific bridge).
The Government wishes to declare that currently no introduction of such
specific payments has been considered.
If it should be introduced in future it will be preceded by careful
assessments and consideration of any social and economic effects.
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TRANSPARENT IDENTIFICATION OF PRIVATE PARTNERS
The Government expects PPP contracts to be executed in compliance with
the rules in force in the Czech Republic and the European Union, and that
the associated processes will be both transparent and just.
The Government is aware of the specific and exacting manner of identification of
PPP partners and execution of PPP contracts.
Therefore, it will support flexibility on the part of the Beneficiaries subject to
compliance with the above-described criteria.
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REQUIRED LEGISLATIVE CHANGES
The Government is prepared to support certain amendments to the
legislation required in order to facilitate PPP implementation.
Also, the Government will strive to adopt amendments to the legislation
required for the protection of the public sector against risks of
indiscriminate application of PPP.
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LEGISLATIVE ENVIRONMENT
1)
2)
3)
4)
5)
6)
Scope of authority
Fiscal regulation
Transactions involving public property
Public procurement
Concession agreements
Clarity of cash flows
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SCOPE OF AUTHORITY / FISCAL REGULATION
• Uncertainty regarding authority of public bodies to delegate rights /
responsibilities
• Uncertainty regarding the avoidance of budget - approval rules by way of
indirect creation of future liabilities
• Recommended clear authorisation subject to approval by Ministry of Finance
20
LIMITATIONS IN TRANSACTIONS WITH PUBLIC PROPERTY
• Very limited disposal, acquisition and leasing at state level
• Pledges and guarantees by state prohibited
• Some limitations on regions and municipalities
• Recommended relaxation of the rules, subject to approval by Ministry of
Finance.
21
PUBLIC PROCUREMENT
• EU - compliant legislation underway
• No room for negotiated approach
• No exemptions for public works concessions
• Recommended inclusion of all options available under EU Directives
(including the new Directives)
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CONCESSION AGREEMENTS
• New concept to Czech law
• Recommended:
– Open approach (no “list of approved types of concessions”)
– Court jurisdiction
– Limited right of rescission on the grounds of public interest
23
CASH FLOWS
• Payments by users will in most cases require special law
• Specific projects may require adjustment to rules of cash flow
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Ladies and gentlemen, thank you for your attention
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