PUBLIC PRIVATE PARTNERSHIP –CROATIAN EXPERIENCE

Kamilo Vrana, B.Sc.E.E.Managing Director

Beograd, November 18, 2010.

1. LAUNCHED PPP PROJECTS AND LESSONS LEARNED

2. LEGAL FRAME

3. INSTITUTIONAL FRAME

4. SEE PPP NETWORK

Content

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1. LAUNCHED PPP PROJECTS

Highways 1995.-2004. (concession):

• Istrian Y

• Zagreb-Macelj

Education 2005.-2008. (PFI):

• renovation or construction of more than 30 schools and sport halls in Varaždin county

• Secondary school in Koprivnica

Sport 2007.-2008. (PFI):

• sport halls in Split, Zagreb and Varaždin

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Long-term relationship and goals strategic approach PPP program (pipeline) fiscal sustainability and stability

New role of public sector setting of standards and supervision of quality of delivered services, instead of delivery of services itself output specification (standards of delivered services) instead of input specifications (description of means for delivery of services)

Whole life costs, including costs of occurrence of risk-related events Net Present Value (NPV) risk matrix Public Sector Comparator (PSC)

1. LESSONS LEARNED - FUTURE AS CHALLENGE

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1. LESSONS LEARNED – NET PRESENT VALUE (NPV)

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1. LESSONS LEARNED – RISK MATRIX

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1. LESSONS LEARNED – PUBLIC SECTOR COMPARATOR (PSC)

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1. From 1991. to 2006. year:• Act on ownership and other legal matters (OG 91/96, 73/00,

114/01)• Utilities Act (OG 26/03, 82/04, 110/04)• Public Roads Act (OG 180/04), • Other sectoral regulations (concessions)

2. From 01.09. 2006. to 15.11.2008.:• Guidelines for implementation of contractual forms of PPP

(OG 98/06)• Ordinance on granting prior approval for PPP contract

concluding based on the PFI model (OG 20/07)

3. From 15.11.2008.:• Act on PPP adopted in the Croatian Parliament on

24.10.2008., entered into force on 15.11.2008. (OG 129/08)• 4 regulations, adopted on the Government session on

7.05.2009., entered into force on 21.05.2009. (OG 56/09)• Ordinance on the organization and keeping of the Register

of the PPP contracts

4. “Step-by-step” guide to PPPs published on 21.07.2009.and available on www.ajpp.hr

2. PPP LEGAL FRAME DEVELOPMENT IN RoC

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• Public procurement, concessions and PPP – EU acquis communautaire

Directive 2004/18/EZ (award procedures of public procurement contracts for goods, works and services)

Directive 2004/17/EZ (award procedures of contracts with entities operating in water, energy, transport and postal services)

Green Paper COM(2004) 327 on PPP

Eurostat decision 18/2004 on deficit and dept

Commission interpretative communication 2008/C 91/02 on the application of the Community law on public procurement and concessions to institutionalized PPPs

• 18.06.2004. – RoC get the status of EU candidate

• 03.10.2005. – Opening of the accession negotiations with the EU

• 19.12.2008. – Fulfillment of benchmarks for beginning of negotiations within Chapter 5 - Public Procurement

2. LEGAL FRAME – HARMONISATION WITH EU

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2. LEGAL FRAME – CHAPTER 5, PUBLIC PROCUREMENT

a. Public procurement (contract award procedures)• Public Procurement Act

(OG 110/07 and 125/08)

b. Concessions (contract award procedures)• Concession Act

(OG 125/08)

c. Public Private Partnership (PPP)• PPP Act

(OG 129/08)

d. Remedies (common within the whole public procurement system)• New Act on State Commission for the

Supervision of the Public Procurement Procedures (DKOM) – in the parliamentary procedure

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2. PPP LEGAL FRAME

PPP Act (OG 129/08)

PPP Regulations:

Regulation on the criteria for Assessment and Approval of the PPP Projects (OG 56/09)

Regulation on the Content of PPP Contract (OG 56/09)

Regulation on the Supervision of the Implementation of PPP Projects (OG 56/09)

Regulation on Training of Participants in Procedures for PPP Projects Preparation and Implementation (OG 56/09)

Ordinance on the Organisation and Conduction of the Register of PPP Contracts

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1. STEP: PPP Project Proposal

2. PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL

AGENCY FORPUBLIC-PRIVATE

PARTNERSHIP(APPP)

OPINION 1:MINISTRY OF FINANCE

OPINION 2:SECTORIALMINISTRIES

APPROVAL FORTHE IMPLEMENTATION

OF PPP

PREPARATION OF THE TENDERING DOCUMENTS FOR A PRIVATE

PARTNER SELECTION

CONTRACTING(PUBLIC) BODY

PPP PROJECTPROPOSAL

DECISION FORTHE PREPARATIONOF THE TENDERING DOCUMENTATION

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2. STEP: Tendering Documentation

AGENCY FORPUBLIC-PRIVATE

PARTNERSHIP(APPP)

DRAFT PROPOSALOF THE TENDERINGDOCUMENTATION

OPINIONS OF THE MINISTRY OF FINANCE

AND/OR SECTORIAL MINISTRIES

(IF REQUIRED)

TENDERINGDOCUMENTATION

APPROVAL

PRIVATE PARTNERSELECTION PROCEDURE

PPP PROJECTAPPROVAL

CONTRACTING(PUBLIC) BODY

DECISION FOR LAUNCHINGA PROCEDURE FOR

PRIVATE PARTNER SELECTION

2. PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL

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3. STEP: Contract Final Draft

AGENCY FORPUBLIC-PRIVATE

PARTNERSHIP(APPP)

FINAL DRAFTOF CONTRACT OPINION OF

THE MINISTRY OF FINANCE

RISK SHARINGAND COMPLIANCE

CHECK

CONTRACTING(PUBLIC) BODY

DECISION FOR SELECTIONOF THE PRIVATE PARTNER

(AWARD OF THE CONTRACT)

2. PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL

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1. Recording of PPP contracts into PPP Register- Ordinance on organization and keeping of the Register of PPP contracts

2. Follow-up of the execution of contracted PPPprojects- Regulation on the Supervision of the Implementation of PPP Projects

3. Training and education (17 modules, within three programs: basic, advanced, sectoral)- Regulation on Training of the Participants in Procedures for PPP Projects Preparation and Implementation

2. PPP LEGAL FRAME - PROJECTS FOLLOW-UP & EDUCATION

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AGENCY FOR PUBLIC PRIVATE PARTNERHIP:

Leading national body for implementation of the PPP Act in the Republic of Croatia

Evaluate and approve PPP project proposals, related tendering documentations and final contract drafts

Organise and conduct the Registar of PPP contacts

Supervise projects/contracts execution

Cooperate with PPP units in other countries and with PPP units and centres of knowledge in international organisations

Provide education programs and organise education and training of participants in preparation and implementation of PPP projects

EDUCATION AND TRAINING = THE KEY SUCESS FACTOR!!!

CRUCIAL ROLE OF THE MINISTRY OF FINANCECONCERNING FISCAL RISKS AND BUDGET PLANNING!

3. PPP INSTITUTIONAL FRAME

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Administrative Court

Legal protecttion(2. stage)

State Commission for Supervision ofPublic Procurement Procedure

Legal protection(1. stage)

MELE, Directorate forPP System

Public Procurement (policy, legislation,

supervision, education)

Agency for PPP

Public Private Partnership(project assessment and

approval, register, execution follow-up, education)

Ministry of finance

Concessions(policy, legislation,

register, budget planning, fiscal risks assessment)

Central Procurement Office

Central Public Procurement (awarding procedures for central

governmental bodies)

Concession Provider

Concession Award(regulation for particular sectors)

Key institutions, their authorities and relations

3. INSTITUTIONAL FRAME – CHAPTER 5, PUBLIC PROCUREMENT

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SouthEast European PPP Network(SEE PPP Network):

Initiative in RCC framework

Croatian APPP – implementing body(Initial Secretariat)

Cooperation between the competent PPP authorities in order to create harmonised regional legal and institutional frame and favorable conditions for investments including preparation and implementation of national and cross-border PPP projects

Launching of joint initiatives for crossborder PPP projects

4. SOUTHEAST EUROPEAN PPP NETWORK

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Objectives:

• Alignment with the EU standards and creation of favorable investment climate

• Synergy of knowledge and experience in the preparation of cross-border PPP projects

• Opening new economic opportunities and improving the competitiveness of national economies

• Investment promotion in the development of public infrastructure in terms of crisis

4. SOUTHEAST EUROPEAN PPP NETWORK

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Kamilo Vrana, B.Sc.E.E. Kamilo Vrana, B.Sc.E.E.

Managing DirectorManaging Director

THANK YOU FOR YOUR ATTENTION!

Phone: +385 1 5550- 613Phone: +385 1 5550- 613

Fax: +385 1 5550 – 695Fax: +385 1 5550 – 695

info@ajpp.hrinfo@ajpp.hrwww.ajpp.hr www.ajpp.hr