Transcript Good Governance in Public

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:
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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
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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
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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: [email protected]