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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
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