Transcript Model diagram to consider infrastructure projects in Serbia

Model diagram to consider
infrastructure projects in Serbia
Aleksandar Kovacevic
Five distinctive roles of the Government
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Legislation
Jurisprudence
Regulatory authority
Executive governance
Government as a private owner of commercial assets
Primary project classification
• Commercial investment intended to generate profit and
perform commercial services
or
• Investments intended to enhance public goods (enhance
competition, security of supply, environmental protection
and good governance or complement market performance)
Government Commercial Investments
• Does it diverts investment resources away from private
investors by offering higher interest and/or lower risk?
• Does it involve any state guarantee, state aid, priority
market access or use of public goods?
• Does it create any monopoly power, transit rent or natural
resource rent for the Government? If yes, is there
mechanism in place to control effects to the quality of
governance?
• Does it add to competition and / or other public goods? If
yes, which public goods?
Investments into enhancements of public
goods
• Property rights and rule of law
• Multilateral and bilateral international agreements of
general nature
• Environmental public goods
• Competition, security of supply, etc.
• Narrow definition of “General Economic Interest”
• Require public participation in formulation and decision
making
• Multilateral and bilateral agreements related with
implementation and projects
• Attention to crossover derogation and interrelations
Link to State Aid regulations
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Special case under State Aid regulation
Services of General Economic Interest
Universal Service Obligation
No offset rule
Firms could provide service with net loose
Covers externalities and public goods
Should not lead to undue market distortions
Benefits / costs analyzes
Strategic process
Hide & seek game between information and the real life
Strategy (Re) creation
Strategy formulation
A range of materialized decisions that
compose the strategy
Formulation that enables evaluation,
learning, (re) creation and better
implementation
Strategy evaluation
Strategy implementation
Analyzes of environment, impacts,
capacities and many other
circumstances that facilitate a new
strategy process
Range of decisions based on imperfect
knowledge and applied in uncertain
environment
Structure of strategic decision
Goal
KFS
SDF
Sector
strategies
SDF
Originated Projects
objectives
Secondar
y
objectives
Aarhus Convention
• The subject of the Aarhus Convention goes to the heart of the
relationship between people and governments. The Convention
is not only an environmental agreement, it is also a Convention
about government accountability, transparency, and
responsiveness.
• The Aarhus Convention grants the public rights and imposes on
Parties and public authorities obligations regarding access to
information and public participation.
• The Convention recognizes that people have the right to take
part in basic decisions affecting their lives. It also recognizes
that the quality of these decisions can be improved through the
active involvement of the public concerned. Public participation
in decision-making pulls together many of the threads of the
Convention into concrete results, and thus is one of its most
important subjects. Article 6 is to be enforced by article 9,
paragraphs 2 and 3.
Aarhus Convention – samples
• List of activities (annex)
• Non-listed activities
• National defence exemption
Article 6,
paragraph
1
Requires Parties to guarantee
public participation in decisionmaking with a potentially significant
environmental impact
Article 6,
paragraph
2
Sets requirements for notifying the
• Early in the process
public concerned about the decision • “Adequate, timely and
making
effective”
• Minimum contents
Article 6,
paragraph
4
Requires that public participation
take place early inde cision-making
• Options are open
• Public participation may not be
pro forma
Article 9
paragraph
2
Provides review procedures relating
to public participationun der
article 6 and other relevant
provisions
of the Convention.
• Judicial or other independent
and impartial review
• Possibility for preliminary
administrative review procedure
• Standing requirements
Case: Energy Community Treaty
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Article 14
The Parties recognize the importance of the rules set out in Council Directive
96/61/EC of 24 September 1996 concerning integrated pollution prevention and
control. Each Contracting Party shall endeavor to implement that Directive.
Article 16
The “acquis communautaire on environment”, for the purpose of this Treaty, shall
mean (i) Council Directive 85/337/EEC of 27 June 1985 on the assessment of the
effects of certain public and private projects on the environment, as amended by
Council Directive 97/11/EC of 3 March 1997 and Directive 2003/35/EC of the
European Parliament and of the Council of 26 May 2003, (ii) Council Directive
1999/32/EC of 26 April 1999 relating to a reduction in the sulphur content of certain
liquid fuels and amending Directive 93/12/EEC, (iii) Directive 2001/80/EC of the
European Parliament and of the Council of 23 October 2001 on the limitation of
emissions of certain pollutants into the air from large combustion plants, and (iv)
Article 4(2) of Directive 79/409/EEC of the Council of 2 April 1979 on the
conservation of wild birds.
Case: Energy Community Treaty
• Annex II
1. Each Contracting Party shall implement Council Directive
85/337/EEC of 27 June 1985 on the assessment of the effects of certain
public and private projects on the environment, as amended by Council
Directives 97/11/EC of 3 March 1997 and Directive 2003/35/EC of the
European Parliament and of the Council of 26 May 2003, on the entry
into force of this Treaty.
Recommendations
• Develop flow diagram of decision making process for
projects aimed to enhance public goods
• Develop decision making matrix to prioritize projects
• Identify loopholes in the legal framework and harmonize
basic definitions and principles with the EU acquis
• Make the procedure and the matrix legally binding
• Empower public participation through targeted assistance
and training where needed.
• Set up appropriate check list prior to appraisal and
prioritization of projects