Building Markets and Improve Governance with Trust Crafting Solutions with PPPs that can Help...

Building Markets and Improve Governance with Trust

Crafting Solutions with PPPs that can Help Mitigate

the Current Economic Crisis

© Elena Panaritis 1615 L Street NW #`1200, Washington DC, 20036

[email protected]; [email protected]

2

Flexible and creative private sector - adapting to local market Public Private Partnerships – Traditionally perceived catalytic

to introducing the private sector, promoting efficiency, quality, development, and sustainable economic growth to emerging markets

Based on:Theory: Econ/Social Positive Impacts- Enabling Private Investment Practice: Bilateral Mitigation of Risks

Use a holistic approach - Private involvement in regulatory changes / services / infrastructure. Historically PPPs focused on Infrastructure (e.g. BOT)

Solutions that Help Establish Trust and Enable Private Sector Involvement



2

Latin America (Argentina / Bolivia in 2000) o Water concession: Government bridged its agreement –

private partner in loss

Eastern Europeo Hospital improvement – Fees collection became difficult o Corruption in the process was difficult to monitor

What needs to be done in order to have successful PPPs that will Increase Trust and the Confidence Level and Improve Governance?Involve Transparently 3 Parties –

Private/Public/Beneficiaries

Lessons Learned in PPPs Some Distressed Markets Remain

Distressed



Ingredients

Due Diligence (Macro and Micro: legal, economic and social)

that leads to clear definition of: The Players – The Contract -

Dispute Resolution – Insurance – Exit

Players:

1. Government agency that will engage in the contract

2. The market (sector) that you are addressing (type of product, service)

3. The users that you depend on



Successful PPPs – Macro Level

Due Diligence at a Macro Level – Identify: Priority sectors (Infrastructure, Services, Regulatory:

Agroindustry, SMEs, etc) Check out IMF/World Bank 5 year econ plan

Demand and the local market: what is the Good or Service that needs to be financed and delivered

Appropriate Central Government Agency Risks Country and Currency Insurance (MIGA, OPIC, EU, your Country of Origin) Payment Method and EXIT ADR



Succesful PPPs – Micro Level

Due Diligence Micro Level:

Transparency of your contract with the public agency (publicize if possible)

Focus the Product you Deliver Avoid “Christmas Tree” Projects Create a Governance Board that Includes both

Private/Public Clearly Define the Payment Method with Measurable

Milestones Underwrite your Project with Insurance



Trust

Trust is based on both your relationship with the Government

but mainly in your relationship with the beneficiaries.

Clarity of the Outputs and Outcomes – both Social and Financial (measurable indicators are helpful)

Clear Contract Terms Clear Milestones and Acceptance Criteria



Contact Information

Elena Panaritis – Panel Group LLC

2330 Massachusetts Av. NW

Washington DC 20008

[email protected]

USA Tel: +1-202-468-8833

Greece Tel: +30-6974-75-84-95

mailto:[email protected]

Building Markets and Improve Governance with Trust Crafting Solutions with PPPs that can Help...

Documents

Transcript of Building Markets and Improve Governance with Trust Crafting Solutions with PPPs that can Help...