p ublic -p rivate p artnerships in m ongolia now and futures prospects e.enerelt, adb june 6, 2014
TRANSCRIPT
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PUBLIC-PRIVATE PARTNERSHIPS IN MONGOLIANow and Futures Prospects
E.Enerelt, ADB
June 6, 2014
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WHAT IS PPP?
ADB’s PPP Operational Plan (mid-2012) defines public-private partnership as: “… a contractual arrangement between public
(national, state, provincial, or local) and private entities through which the skills, assets, and/or financial resources of each of the public and private sectors are allocated in a complementary manner, thereby sharing the risks and rewards, to seek to provide optimal service delivery and good value to citizens.”
Public procurement PrivatizationNOT
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WHY CHOOSE PPP?
Risk transfer
Whole of life-costing/ maintenance
Innovation
Maximization of asset utilization
Mobilization of additional resources
Disadvantages:
- Off-balance financing
-Cost of capital is expensive
-Can be complex and difficult to
implement
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HOW TO IDENTIFY A PPP PROJECT?
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PPP MODALITIES
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SHARE OF PUBLIC INVESTMENT DELIVERED THROUGH PPPS IN 2011
Country Share (percent)
Australia >10 - 15Canada >1 - 3Czech Republic >0 - 1 Finland >10 - 15Germany >3 - 5Italy >1 - 3Korea >5 - 10Luxembourg >5 - 10Mexico >15New Zealand >1 - 3Norway >3 - 5South Africa >3 - 5Spain >3 - 5United Kingdom >15Source: Burger and Hawkesworth (2013). OECD.
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ADB SUPPORT FOR PPPS IN MONGOLIA
ADB’s country partnership strategy for Mongolia,
2012–2016 - Inclusive and sustainable growth; - Support for PPPs will bring in private financing for the infrastructure
needed to improve access to essential public services.
Current Status - ADB has supported Mongolia’s PPP work since 2009:
1. The first technical assistance (TA) helped draft the Concessions Law and establish a PPP Unit as a coordinating body for PPPs;
2. A follow-on TA strengthened PPP regulations, helped build the capacity of the PPP Unit and develop a pipeline of PPP projects and more;
3. The third TA, “Developing a Conducive Environment for PPPs”, was approved in December 2012.
- In June 2011, ADB was appointed as the mandated adviser to the PPP for CHP5, the mandate was renewed in December 2013 (A $1.2 million TA that will fund additional advisers);- Other IFIs and countries such as the World Bank Group are in discussion with the government.
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PPP LEGAL FRAMEWORK
• Parliamentary Ad hoc committee on PPPs - Nov 2008
• State Policy on PPP - Oct 15, 2009• to promote private sector participation in all sectors of
economy
• The Law on Concession - Jan 28, 2010• Defines the processes of PPP implementation.
• In 2010, the Government has approved several regulations regarding the detailed bidding process and evaluation of bid proposals
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In 2010, the Government approved the list of 121 concession projects.
The Cabinet made amendments to the list of Concession projects (reduced to 51 projects) 2013.09.06 №317
III. LIST OF CONCESSION PROJECTS
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BY SECTORS Infrastructure – 7 Road and transportation – 17 Pipeline transport – 2 Airport – 2 Energy -12 Environment – 4 Education - 2 Health – 1 Culture and sport - 4
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BY TYPES OF PPP
BOT – 8 BOO – 12 BT – 19 OTHER - 12