Download - Second Stakeholders Meeting for Amendment to Sindh PPP Act 2010 and Review of AAS Program
Second Stakeholders Meeting for Amendment to Sindh PPP Act 2010
and Review of AAS Program
Facilitated by Baela Raza Jamil-ITA- Technical Adviser (honorary) and
Reform Support Unit (RSU) November 25, 2013
Under Performing Schools of Sindh
Low Performing Government Schools Functional =41,697 –Closed 5697 - SEMIS
Responsei. Improving Systems and Performance of E&LD
ii. Expanding Partnerships(PPPs) for Systemic Improvement for Quality, Equity & Access (ECE to Secondary levels)
Low Enrolment Low Learning Outcomes
Poor Governance
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Poor Facilities
National & Sindh Education Profile (ECE,Primary & Middle)
- Table : GER ECE< NER Primary, NER Middle PSLMs 2011-2012
REGION AND PROVINCE
GER ECE, NET PRIMARY and Elementary Level ENROLMENT (PERCENT)
2011-2012GER ECE
2011-12NER Primary (Age 6-10)
2011-12 NER Middle (Age 11-13)
MALE
FEMALE
BOTH
MALE
FEMALE
BOTH
MALE
FEMALE
BOTH
Pakistan 43 41 44 72 63 68 41 33 38
Punjab 49 50 50 77 72 74 43 38 40
Sindh 33 31 32 65 53 59 39 29 34
KPK 39 45 41 72 59 66 41 30 36
Balochsitan 25 41 30 59 36 49 32 14 24
ANNUAL STATUS OF EDUCATION IN SINDH
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• ..
Key Indicators Sindh- Where we are and Where we want to be?
SOURCE: PSLMs 2011-12
Teacher presence
Student attendance
Functioning facilities
2018 Baseline
2018 Baseline
2018 Baseline
Enrolment (6-10 years) 2018
5 Source: ASER 2012
83%Govt.
60%Govt.
?
?
?
?
Toilet 48 %Water 56 %B.Wall 65 %
59%OVERALL
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PPPs - mostly with partners’ funds PPPs- with Government FundsLo- autonomy for Partners in: Management Hi - Autonomy for Partners in: Recruitment; transfers; Changes in systems Management; Recruitment /transfers Minimal Transfer of resources (SMCs only) Changes in systems Partners bringing in resources Transfer of Govt. ResourcesHi to Lo Accountability – performance Hi Accountability – Performance
Adopt a School Sch. Imp. Partnerships School Consolidation Sindh Educ. Foundation NGOs/Donors through E&LD RSU/Partnerships-SEF as Tech. Facilitator + AAS program
Types of PPPs for School Improvement
One off” PartnershipsBased on Powerful linkages SMB- IRC KhairpurEndowments Not scalable
More autonomous modelsFinancial transfersfrom govt. to partnersUnder PPP Act 2010 AAS-Charters/ Academies
Low learning outcomes Poor Facilities Poor Governance Low enrolment
Sub-Optimal Public Sector Schools
Continuum of PPPs – Low to High in Sindh
Low learning outcomes Insufficient and Poor Facilities Poor Governance Low enrolment (esp. girls)
LO- AutonomyHi Responsiblity
Hi- AutonomyHi Responsiblity
91% Primary Schools 5% Middle Schools 3% Second. Schools .3% Higher Sec.Schools Low transition rates
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School Partnerships Models – Triggered by:
SEF (Facilitator/Capacity
building partner)E&LD Provincial
Director E&LD District
Adopters (Many)
E&LD Provincial
District SIP – Partner
Adopter(All SIP programs
through partnerships-
INGOs/NGOs - SMB-)
District Government
EDO –DEO District Adopter
(IRC)
We have 3-4 models with different agencies – volume small – what is desirable ?
AAS Agreement SEF 2012 –
Part IParties – School/s
Preamble – purpose
Part II Roles and Responsibi
lities
Part III Governanc
e and Duration .
Part IVIndemnifica
tion & Adopters
cannot sub-contract
Key Actors Provincial Govt. E&LD
Director –Division DEO- District
Adopter
Duration Up to 10 years Performance based Exit with 3 months notice
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Suggestions to Improve Agreement for AAS
Parts of the Agreement
• AAS Agreement has 4 parts• Part I (Pg. 1) relates to the parties and the
preamble stating the purpose of adoption and the specific school with SEMIS code
• Part II about the ’obligations’ of the a) Govt. b) Adopter, c)District Govt. (as enabler) and d) SEF(facilitator)
• Part III about the composition and purpose of the Steering Committee and duration of the agreement
• Part IV covers Indemnification (of Govt. E&LD) for loss or damage and Responsibility of the adopter not to assign any part of the agreement to a ‘third party”
Suggestions for Amendment Part I: needs to have terms amended and defined viz. ‘upgrade”, means something specific as education vocabulary; Schools will be “developed” by the adopter needs to be defined as a menu of options AAS- Objective is improving student learning outcomes through SDP-.may need to be rephrased /elaborated - Part II. 1.1-1.4. Govt. provincial: all strategic tasks assigned to the province whereas the school may be very distant – some reworking is needed with strategic principles assigned and closer district level responsibilities –1.1 SDP is not the driver of capital expenditure – only minor op-ex ones- so a rethink there too; 1.2 amend ‘the adopter is ‘allowed entry to government schools’ – it is a defensive statement, -the tone and wording must change in an official government’s scheme 2.1 gives the impression that Supervisor /ADEO are off the hook so reword this sentence too 2.2 Have the SMC rules been amended to ensure that “adopted schools have a Patron’ if not this may be important to amend too 2.10- can be done in the rules for 25 A Sindh Compulosry Free Education Act 2013 3.1-3.3 Some of the operational responsibilities be reassigned to district level from 1.1-.to-1.4 (Provincial) 4.1-4.9 SEF is a technical facilitator of many important areas – Part III – 5.1 Steering Committee does not have Special Secretary (schools) and not the relevant Director /Division and DEOs. From the districts where schools are adopted . 5.4 should read as Coordinator AAS- SEF and the District E&LDSignatures to include: Adopter; Director of Schools; EDO/DEO’ SEF and Special Secretary and Secretary E&LD s •
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Suggestions on Institutional Modalities • School Improvement Programs through a variety of PPPs
– AAS – through SEF, District E&LD;Provincial E&LD – SIP through NGOs/INGOs/Donors through E&LD– Special SIPs – with other modalities through E&LD-
• Institutional Modalities – – A) SEF -RSU (SEMIS) with other line depts. – B) RSU & E&LD– C) PPP Node in the E&LD working with RSU to engage with the PPP unit if needed with transparent and responsive mechanisms in place.
• PPP Node establishment a must within E&LD for implementation of the PPP Act 2010
• SEF M.D’s strong advice for a coherent modality with Govt. in the driving seat- SEF seeks to continue with the AAS with buy in from partners/donors to upgrade more govt. schools at each level and expansion beyond Karachi (annex SEF Note on AAS recommendations)
Decisions at Stakeholders 2nd meeting November 25 2013 • SEF AAS to remain with goodwill and confidence of adopters; why shift a good practice – improve it. • EFS- a section 42 Company may step into other/new School Improvement Programs (SIP) through PPPs (UK 40 mill. facility) • Draft Policy for AAS to be designed for consideration – flexible and accountable • Agreement of AAS to be amended as more proactive – balanced; increased responsibility of district office • Small AAS schemes can be stand alone and not be part of the PPP Act 2010 – larger programs of AAS – above a certain funding
ceiling may qualify or chose to be part of the PPP Act • Innovative programs of adopters to be considered and shared across SEF and PPP Node in E&LD for PPP Act 2010
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2ND MEETING OF STAKEHOLDERS NOVEMBER 25TH 2013
PPP Act 2010 Proposed Amendments
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Definition of PPPs in the PPP Act 2010 “A partnership carried out under a Public-Private Partnership Agreement between the public sector represented by an Agency and a private party for the provision of an infrastructure facility, management functions and / or service with a clear allocation of risks between the two parties”
Task: To align and amend the PPP Act 2010 with the definition above- services marginalized in a largely infrastructure driven act with a bias towards mega projects
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PPP Act-Policy- Governance, Institutional & Financial Arrangements
• Each PPP Project to have an Agreement- & Project Implementation Unit in
• PPP Node in Department- Not in place-
• PPP Unit in Finance Dept.
• PPP Board
PPP Act2010
PPP Policy 2011 (rules embedded
here )
Viability Gap Fund
Project Development Facility Fund
PPP Unit – Objectiveshttp://www.pppunitsindh.gov.pk
In particular the PPP Unit was established to achieve following objectives:• Promoting social development and inclusive economic growth through development
of infrastructure;• Ensuring sustainable long-term funding for infrastructure development through
mobilization of private investments;• Ensuring technical, economic and financial viability of infrastructure projects through
adequate project preparation;• Improving the efficiency of management, operation and maintenance of infrastructure
facilities through introduction of modern technology and management techniques;• Achieving a larger scope and better quality of infrastructure services for end users
through the additional financial and human resources mobilized from the private sector;
• Ensuring financial sustainability of infrastructure services through full cost recovery supplemented by viability gap funding (VGF), if necessary; and
• Protecting the best interests of all stakeholders including end users, the Government and the private sector. 13
PPP Unit- a happening Unit! http://www.pppunitsindh.gov.pk
• Legal Framework – Law- Policy – (Rules)
• Institutional Framework– PPP Unit/ Finance-Dept.– PPP Node- Line Depts.
• Regulatory Framework– PPP Board
• Financial Support– Project Development Facility (PDF) Fund – Viability Gap Fund (VGF) – VGF Guidelines- Sindh – 4.6 (p.9): VGF can be financed through the
budgets, gifts, grants, transfers or by any other means the Finance Dept. deems appropriate -
– some donors can provide grants for VGF
• •
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•Projects under PPP Act 2010 •2 operational rest in pipeline •Hyderabad MirpurKhas Dual Carriageway (HMDC) Project •Jhirk Mulla Katiar Bridge and Link Road •NICH Safety & Security •Sindh Nooriabad Power Project •Run-of-the-River Hydro Power Project at Rohri Canal RD-15 •Karachi Thatta Dual Carriageway •Food Storage - Silos •Five (5) 20MW Solar Power Projects •Existing Gas Based Power Projects •Bus Rapid Transit System (BRTS) Karachi •Khairpur Khajoor Mandi (KKM) Project •Hyderabad Tando Muhammad Khan (HTMK) Dual Carriageway
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PPP Cycle of
Procurements
Source: VGF Guidelines 2012 –GoSindh p.7
Financing http://www.pppunitsindh.gov.pk/site/index.php?pid=25
Project Development Facility Fund
To enable departmental PPP Nodes to undertake feasibility tudy and related project preparation Project Development Fund has been created. Furthermore, to support the execution of projects of socio-economic significance, which the government agencies would otherwise either not initiate or be able to complete, Viability Gap Fund has been created. Both of these funds would encourage the agencies/departments to pursue the government’s objectives regarding PPPs.
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For the PPP Nodes to undertake feasibility study and related project preparation Project Development Fund has been created. Furthermore, to support the execution of projects of socio-economic significance, which the government agencies would otherwise either not initiate or be able to complete, Viability Gap Fund has been created. Both of these funds would encourage the agencies/departments to pursue the government’s objectives regarding PPPs.
Viability Gap Fund (VGF) Guidelines 2012– Sindh • 2.1The VGF will provide the funds for those projects approved by the Government that
are economically viable but financially unviable. The funds shall be disbursed to the private sector operator/ project company which has been contracted to carry out the project under any PPP variants mentioned in the Sindh PPP Act, 2010.
• 2.2 The VGF will therefore cover all of the contractual payment where the users or beneficiaries are not required to pay. Alternatively, the VGF will pay the difference between the contractual payment necessary for the Developer to recover his costs and to meet his agreed return on investment and the estimated amount that will be recovered from the users. This will entice the interest of the private sector in important public infrastructure projects as they will be satisfied that there are sufficient funds to allow successful project implementation. It will also provide the necessary reassurance to the lenders of the project company by enhancing the creditworthiness of the project.
• ( Dept of Finance GoSindh: p. 6)
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4.6 (p.9): VGF can be financed through the budgets, gifts, grants, transfers or by any other means the Finance Dept. deems appropriate -
some donors can provide grants for VGF
PPP Act 2010- Comprises
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• Chapter I: Preliminary • Chapter II: Organizational Framework • Chapter III: Project Delivery Process• Chapter IV: Procurement • Chapter V: Finance • Chapter VI: Other Issues • Schedule I
“Services” – to be consistently added to the PPP Act 2010
• Definition Proposed for Review and Finalization• Option A Preferred Definition by Stakeholders – Generic to All sectors • Service: Service means any of professional activities concerning imparting of public
benefits in publicly owned institution/facility and/or programme related or ancillary to the objective of that facility (s) and institution (s).
• Option B• Service means an act of support that may be intellectual, technical or strategic in nature required to
ensure quality of a project, programme, facility or institution. • Examples of services in education may include intangible products such as technical assistance,
consultancy, planning, expertise, content development, training, strategy development, marketing, transportation, procurement, incubation ideation units etc.
• Sectors listed in Schedule I will have domains of work for which specific professional services may be
required.• By Amima Saiyid- TRC/PCE and Naveed Sheikh 19
“Services” as defined to be consistently added to the PPP Act 2010 for amendment
• Definition Proposed and Finalized by Stakeholders • Service means “any of professional activities concerning
imparting of public benefits in publicly owned institution/facility and/or programme related or ancillary to the objective of that facility (s) and institution (s) (as per list in Schedule 1) .
– Amima Saiyid- TRC/PCE and Naveed Sheikh
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Amendments Proposed A. Add services as agreed and defined by stakeholders throughout the Act where deemed appropriate - to be considered by the Board /Law Dept. B. Chapter I – Preliminary – Definitions: clauses to be considered for amendments p) Local Govt. reference to be updated t) Add services after infrastructure x) ..community facilities and services for improving access, quality and equityAfter z) insert and reorder alphabets aa) “Service” means any of professional activities concerning imparting of public benefits in publicly owned institution/ facility and/or programme related or ancillary to the objective of that facility (s) and institution (s)- as per list in Schedule I
bb) Sindh Public Procurement Rules
cc) “Viability Gap Fund” means the funds from the Government which are made available to the private party to cover revenue and human resource/capacity/materials shortfalls where the users or beneficiaries are not required to pay for socio-economic benefits through grants, subsidies or guarantees;
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Amendments cont... • C. Suggestions on the
Board-Governance • 1. The composition is not balanced
to reflect PPPs in true spirit; majority members from public sector headed by the CM
• 2. CM may be over-worked political representative with potential conflict of interest
• 3. Instead of the CM, CS to select the 3 Private sector members and sector specialist
• 4. Private sector and sector specialists must be represented with the right generic profiles across all sectors- especially social sectors
• D. Chapt 3 PROJECT DELIVERY PROCESS Article 16 – (3) The draft Public-Private Partnership Agreement shall include but not be limited to the following provisions, as applicable:
• An additional clause be added after XXI • XXII: Type and amount of service
relevant to the sector ensuring baseline, midterm and end of term target/s assessment for outcomes based performance
• •
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E: Schedule 1 Proposed additional sectors
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see sections 2 (j) ]INFRASTRUCTURE & SERVICE SECTORSCanals or dams; Education –(Pre-School to Higher Sec. level 1-12 , non-formal and Higher/tertiary Education) ; (TVET already including in STEVTA Law) Special EducationHealth facilities; Housing;Information technology; Land reclamation;Power generation facilities; including Coal and power generation Roads (provincial highways, district roads, bridges or bypasses); Sewerage or drainage;Solid waste management;Sports or recreational infrastructure, public gardens or parks; Trade fairs, or cultural centers; Tourism and Resort DevelopmentUrban transport including mass transit or bus terminals; Water supply or sanitation, treatment or distribution; and Wholesale markets, warehouses, slaughter houses or cold storages.
PPP Act 2010 Amendments to be aligned to the Elaborate – Institutional /Governance Arrangements
• Amendments proposed in the PPP Act 2010 would have to be reviewed by legal experts and reflected in all its support documents/facilities viz. – PPP Policy 2011 – PPP Board – Viability Gap Fund (VGF) – Project Development Facility – Fund- – PPP Node and Project Implementation Unit (PIU) TORs
Routing of Amendments proposed : a) cleared through the Law dept. and b) presented to the PPP Board formally–
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Schedule 1 Amendments proposed
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see sections 2 (j) ]INFRASTRUCTURE & SERVICE SECTORSCanals or dams; Education –(Pre-School School 1-12 , non-formal and Higher Education) ; (TVET already including in STEVTA Law) Special EducationHealth facilities; Housing;Information technology; Land reclamation;Power generation facilities; including Coal and power generation Roads (provincial highways, district roads, bridges or bypasses); Sewerage or drainage;Solid waste management;Sports or recreational infrastructure, public gardens or parks; Trade fairs, or cultural centers; Tourism and Resort DevelopmentUrban transport including mass transit or bus terminals; Water supply or sanitation, treatment or distribution; and Wholesale markets, warehouses, slaughter houses or cold storages.
PPP Act 2010 has an Elaborate – Documentation & Institutional
Paraphernalia
• Amendments proposed in the PPP Act 2010 would have to be reflected in all its support documents viz. – PPP Policy 2011 – Viability Gap Fund (VGF) – Project Development Facility – Fund
Routing of Amendments: The proposed amendments will have to be routed through Law dept. and presented to the PPP Board formally– – TORs of Board, PPP Unit and PPP node would have to be amended as
well if there are any implications for the text and definitions 26
What Impact are We Looking for from PPPs?
• This needs to be elaborated by :– Sub-sector – Types of Services – Key Indicators
• Must have appropriate institutional support and mechanisms –
for implementation • Must be performance and accountability oriented which can be
measured and shared publicly
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ImpactOutcomeMore Children in Schools More Children persisting in schoolsMore Children learning well .. With measurable outcomes
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Journey towards Higher Outcomes through PPPs
Higher enrolment
Higher attendance
Teacher presence
Facilities improved- expaned
Quality Improved –
Higher Learning
outcomes
Poor teaching
Insufficient facilities
Low Attendance
Children not in school
Low level of learning
29http://www.globalpost.com/sites/default/files/imagecache/gp3_full_article/photogallery/gallery_1763684/Pakistan_06_02_09_Stuteville_InsidePoorGovtSchool_EDIT.jpg
Next Steps – Final Meeting and Presentation to the Minister /CS/ACS
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Key Steps Decided 1. 2. 3.
Date of Final meeting prior to the Final Presentation of the task ,process and outcomes
Venue
List of All Stakeholders by Institution
• HANDS
• Sindh Education Foundation
• SZABIST
• TRC
• UNICEF
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Thank you
VGF Definitions –Infrastructure Oriented- need to expand them to services and soft areas
• The amount of money needed to fund the ongoing operations or future development of a business or project that is not currently provided by cash, equity or debt. Funding gaps can be covered by investment from venture capital or angel investors, equity sales, or through debt offerings and bank loans.
• In Context Of Public Private Partnership:• The Viability Gap Funding Scheme provides financial support in the form
of grants, one time or deferred, to infrastructure projects undertaken through public private partnerships with a view to make them commercially viable. GoI has established a Viability Gap Fund to aid the PPP infrastructure projects which face the viability gap due to inherent nature of the project. The Scheme is administered by the Ministry of Finance. (Govt. of India)
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