Pitesti sibiu highway ppp project
Transcript of Pitesti sibiu highway ppp project
Country of transition from North-West to South-East of Europe.
Only 530 km of Highway Takes 14 hours to reach Bucharest from the
western border with Hungary (650 km) and 16 hour up to the southern border with Bulgaria (720 km)
Most of the roads pass through the cities Frequent accidents
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Class Exercise P i t e s t i – S i b i u H i g h w a y
Present situation
P r e s e n t s i t u a t i o n
A c t u a l s i t u a t i o n
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P i t e s t i – S i b i u H i g h w a y
Length 116 to 160 km; Last Feasibility Study 2008 (116 km); Tender for a new Feasibility Study (160km); Speed limit 120 km/h with possibility to
increase to 140 km/h; Cost of the Feasibility Study 10 million Euro Protect the environment; Connection with Rm. Valcea City. Possibility to extend with an additional line
after10 years To include two option of route.
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Pitesti – Sibiu Highway
Romanian Legislation regarding the PPP In order to complement national legislative framework governing works and service
concessions (GEO no. 34/2006 regarding the award of public procurement contracts, public works concession contracts and services concession) of Law no. 178/2010 public-private partnership. Also on December 13, 2010 was published the Government Decision no. 1239/2010 approving the Methodological Norms for applying Law no 178/2010 on Public-Private Partnership, and for approval of reorganization measures Central Unit to coordinate public-private partnership of the Ministry of Public Finance.
Less than a year after the adoption, at the request of the European Commission infringement acquis on public procurement, Law no. 178/2010 was modified by Ordinance No. 39/2011 which, however, only partially solved the problems encountered by European institutions.
Although it was long overdue international and domestic investors, this law presents major shortcomings that make it virtually inapplicable in this moment: Regulatory:
The object of the law is unclear, there is a risk of confusion between the type of public-private partnership contract provided by Law no. 178/2010 and works concessions and services covered by GEO no. 34/20006;
Low no. 178/2010 establish a new form of management of public goods infringing art. 136 para. (4) of the Constitution;
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Pitesti – Sibiu Highway
Prohibits public partner contribution in cash in violation of the principle of free forms of financing specific public-private partnership;
The Project Company can be established only in the form of joint stock companies.
The provisions of GEO no. 34/2006 and its implementing rules now allow the development of public-private partnerships in the form of works and service concessions.
Thus, by these measures, was chosen to replace the notion of "public-private partnership" with those of "public works" and "service concession" as a particular form of this concept, defined more specifically in the acquis (Directive 17/2004 / EC 18/2004/ EC).
It should be noted that the Romanian legislation in the field of concessions has been fully harmonized with EU legislation, so far no significant conflicts between domestic and European rules regarding the institution of law.
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Pitesti – Sibiu Highway
At EU level, the PPP concept is governed by the following regulations: EU Directive 17/2004// EC of the European Parliament and of the Council of 31 March
2004 coordinating procedures for the award of contracts in the water, energy, transport and postal services
EU Directive 18/2004/EC of the European Parliament and of the Council of 31 March 2004 coordinating procedures for the award of public works, supply and services,
EU Directive 665/89/EEC of the European Parliament and of the Council of 21<decembrie1989privind coordination of laws, regulations and administrative provisions relating to the procedures on appeals against the award of public supply and public works contracts;
EU Directive 13/92/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications;
EU Directive 2007/66 / EC of the European Parliament and of the Council of 11 December 2007 amending
Council Directives 89/665 / EEC and 92/13 / EEC with regard to improving the effectiveness of review procedures concerning the award of procurement;
EU Regulation (EC) no. 1564/2005 of 7 September 2005 establishing standard forms for the publication of notices in the procedures for awarding public contracts in accordance with Directives 2004/17 / EC and 2004/18 / EC of the European Parliament and the Council.
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Pitesti – Sibiu Highway
Project Stakeholders: Ministry of Transport National Authority for Roads Local authorities Local communities Business associations
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Class Exercise Pitesti – Sibiu Highway
Best Practice Observed / Not O Capacity requirements necessary to conduct feasibility studies, risk
allocation, and financial modelling and rationale for PPP Units Using a PPP Unit to structure, promote, and monitor viable PPP
projects, institutionalize the procurement process, and serve as a communication tool - See more at:
Feasibility study requirements: economic, financial, social, legal/regulatory, and technical criteria
Creating a standardized process (checklist) for PPP project screening Developing a feasibility index and ranking opportunities for investment
decisions Analysis of risks and applicable allocation strategies to the most
suitable party Developing security packages (legal agreements) to mitigate project
risks Use of financial models to determine cost recovery and the level of
tariff
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Pitesti – Sibiu Highway
The role of insurance risk mitigation Illustrating the art of determining “value for money” and design a
“cost comparator” model to evaluate PPP options Analysing best practices in conducting financial, economic, and
technical feasibility studies Analysing case study experiences in structuring bankable PPP
deals Evaluating risk identification, mitigation, and allocation among
parties involved in a PPP project Engaging in a simulated PPP pre-feasibility analysis, a simulated
PPP transaction negotiation, or simulated PPP monitoring exercise Developing an overall strategy for contract writing, management,
and negotiation Identifying key clauses required for technical and financial contract specifications Developing contract/project monitoring plans for better compliance
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Pitesti – Sibiu Highway
Recommendations: Clear and well prepared Feasibility Study, Good technical project Capacity to work under pressure and
capacity to adapt to situations Continue dialog with local and central
authorities
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Class ExercisePitesti – Sibiu Highway