PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006...

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PPPs for Infrastructure Financing Framework conditions for success Istanbul – Istanbul – 8 november 8 november 2006 2006 François BERGÈRE Secretary General

Transcript of PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006...

Page 1: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

PPPs for Infrastructure Financing

Framework conditions for success

Istanbul – Istanbul – 8 november 20068 november 2006

François BERGÈRE

Secretary General

Page 2: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Choose PPP for the right reasons :

Money for value

Delivery speed up

Cost guarantee

Not off-budget financing

off-balance sheet accounting

Page 3: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Build a broad based support across society

Ensure across the lines political support

Strive for consensus in public opinion

Explain that PPP is not outright privatization

Page 4: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Provide right legal framework

Particularly in written-law countries, a robust legislation should be put in place:

Consistent with multinational rules or guidance (EU, WTO, WB…)

And adapted to local conditions

Page 5: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Structure Public sector to actively manage the process

Through national or sectorial PPP task-forces or dedicated units

Through project team organization at public contracting authority level

Page 6: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Ensure broadest participation by private actors

Both national or foreign, industrial and financial

Encourage private initiative

Indemnify non-retained candidates for bid costs

Page 7: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Make sure the risk is effectively transferred

Risk = single most important reason to resort to a PPP

Must be appropriately allocated

Page 8: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Monitor & adjust the system

Framework to evolve over time as new issues or problems are identified

Try & keep it simple (standardization of contracts)

Share information & experience with other countries or multilateral organisations

Set-up data base on projects and keep track of project implementation over time

Page 9: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Capitalize the knowledge

Public sector ofter ill-equipped to retain operational knowledge & expertise

Incentivize public sector to build in-house resources

Page 10: PPPs for Infrastructure Financing Framework conditions for success Istanbul – 8 november 2006 François BERGÈRE Secretary General.

Thank you for your attention

François BERGÈRE