Public-Private Partnerships in Mongolia: Now and Futures Prospects
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Transcript Public-Private Partnerships in Mongolia: Now and Futures Prospects
PUBLIC-PRIVATE PARTNERSHIPS
IN MONGOLIA
Now and Futures Prospects
E.Enerelt, ADB
June 6, 2014
WHAT IS PPP?
ADB’s PPP Operational Plan (mid-2012) defines publicprivate partnership as:
“… a contractual arrangement between public (national,
state, provincial, or local) and private entities through
which the skills, assets, and/or financial resources of
each of the public and private sectors are allocated in a
complementary manner, thereby sharing the risks and
rewards, to seek to provide optimal service delivery and
good value to citizens.”
Public procurement
NOT
Privatization
2
WHY CHOOSE PPP?
Risk transfer
Whole of life-costing/
maintenance
Innovation
Maximization of asset utilization
Disadvantages:
-Off-balance
financing
-Cost of capital is
expensive
-Can be complex
and difficult to
implement
Mobilization of additional resources
3
HOW TO IDENTIFY A PPP PROJECT?
4
PPP MODALITIES
5
SHARE OF PUBLIC INVESTMENT
DELIVERED THROUGH PPPS IN 2011
Country
Share
(percent)
Australia
>10 - 15
Canada
>1 - 3
Czech Republic
>0 - 1
Finland
>10 - 15
Germany
>3 - 5
Italy
>1 - 3
Korea
>5 - 10
Luxembourg
>5 - 10
Mexico
>15
New Zealand
>1 - 3
Norway
>3 - 5
South Africa
>3 - 5
Spain
>3 - 5
United
Kingdom
>15
Source: Burger and Hawkesworth (2013). OECD.
6
ADB SUPPORT FOR PPPS IN
MONGOLIA
ADB’s country partnership strategy for Mongolia,
2012–2016
- Inclusive and sustainable growth;
- Support for PPPs will bring in private financing for the infrastructure needed
to improve access to essential public services.
Current Status
- ADB has supported Mongolia’s PPP work since 2009:
1. The first technical assistance (TA) helped draft the Concessions Law
and establish a PPP Unit as a coordinating body for PPPs;
2. A follow-on TA strengthened PPP regulations, helped build the capacity
of the PPP Unit and develop a pipeline of PPP projects and more;
3. The third TA, “Developing a Conducive Environment for PPPs”, was
approved in December 2012.
- In June 2011, ADB was appointed as the mandated adviser to the PPP for
CHP5, the mandate was renewed in December 2013 (A $1.2 million TA that
will fund additional advisers);
- Other IFIs and countries such as the World Bank Group are in discussion
with the government.
7
PPP LEGAL FRAMEWORK
•
Parliamentary Ad hoc committee on PPPs - Nov 2008
•
State Policy on PPP - Oct 15, 2009
• to promote private sector participation in all sectors of
economy
•
The Law on Concession - Jan 28, 2010
• Defines the processes of PPP implementation.
•
In 2010, the Government has approved several regulations
regarding the detailed bidding process and evaluation of bid
proposals
III. LIST OF CONCESSION PROJECTS
In 2010, the Government approved the list of 121
concession projects.
The Cabinet made amendments to the list of Concession
projects (reduced to 51 projects) 2013.09.06 №317
BY SECTORS
–7
Road and transportation – 17
Pipeline transport – 2
Airport – 2
Energy -12
Environment – 4
Education - 2
Health – 1
Culture and sport - 4
Infrastructure
BY TYPES OF PPP
BOT – 8
BOO – 12
BT – 19
OTHER - 12
Contact:
Enerelt Enkhbold
[email protected]