Croatian Example: PPP as a Frame for Cooperation TAIEX Workshop, Milan, Italy October 24-26, 2011 Kamilo Vrana, B.Sc.E.E. Managing Director

2 CROATIA

Directive 2004/18/EZ (award procedures of public procurement contracts (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 debt EC interpretative communication 2008/C 91/02 on the application of the Community law on public procurement and concessions to institutionalised PPPs 3

a.Public procurement (contract award procedures) Public Procurement Act (OG 110/07 and 125/08) Regulation establishing the Central Procurement Office of the Government of the Republic of Croatia (OG 138/09) 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 (OG 21/10) 4

Administrative Court Legal protection (2. level) Legal protection (1. level) State Commission for Supervision of Public Procurement Procedure Public Procurement (policy, supervision & education) Public Private Partnership (approvals, PPP register, follow-up, education) Concessions (policy, concession register, budget & fiscal isssues incl. PPP) MELE, Direction for PP System PPP Agency Ministry of Finance Public Procurement (award of contracts for central bodies) PP Central Governmental Office Concessions (award of contracts within authority) Conession Providers ROLE OF THE POLICY, LEGAL & INSTITUTIONAL FRAME 5

1. STEP: PPP Project Proposal PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL 6

2. STEP: Tendering Documentation PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL 7

3. STEP: Contract Final Draft PPP LEGAL FRAME - PROJECTS EVALUATION & APPROVAL 8

NATIONAL CENTER OF KNOWLEDGE – AGENCY FOR PPP: Leading national authority for the implementation of the PPP in the Republic of Croatia in charge for: Evaluation and approval of PPP project proposals, related tendering documentations and final contract drafts Establishment and running of the Register of PPP contracts Follow-up and analysis of projects/contracts execution Cooperation with national PPP units in other countries and with PPP centres of knowledge in international organisations Provision of programs and organisation of education and trainings for PPP practitioners EDUCATION AND TRAINING = THE KEY SUCESS FACTOR!!! CRUCIAL ROLE OF THE MINISTRY OF FINANCE CONCERNING FISCAL RISKS AND BUDGET PLANNING! 9

RESEARCH & DEVELOPMENT INSTITUTIONS BICRO -Business Innovation Center of Croatia HAMAG – Croatian Agency for SME’s HBOR – Croatian Bank for Reconstruction and Development 10

Agency for PPP and BICRO - structuring models for Scientific and Technological Parks, Techno polis, etc. Agency for PPP and HBOR - preparation of funding in making preparatory studies COOPERATION IN PRACTICE 11

Procedures Budget Risks Contract award procedures (Public procurement Act & Concessions Act) Selection of supplier (private partner) Public service market PPP Project Selection National/regional priorities (regulation on PPP / concessions) Vision Strategies Plans FROM PROJECTS TO PROJECT PIPELINES 12

 Supporting policies  Adopted strategies  Adjusted legal frame  Project generating infrastructure  Reliable input data (data bases)  Centre of knowledge & coordination  Standardized guides & procedures  System of education & trainings What is Needed? 13

Microsoft Technology Centers Microsoft Innovation Centers Varaždin, CROATIA Founded in November 2005 Foundation model  Public-Private Partnership  Project initiated by USAID and Microsoft with support from the Prime Minister of Croatia  Investment totals $2 million over a 2,5 year period (30 months) Partners  Hewlett Packard, Cisco, T-Croatian Telecom, City of Varaždin 14

Mission  To provide the infrastructure and resources to help ISV’s, small and medium sized enterprises to: Create innovative new products and services, Bring these products and services to market, Build well-managed competitive businesses around these innovative products and services. 15

Center in figures  Number of attendees:1200  Number of seminars:99  Countries:8  Average grade given to trainers*:4,83  Average grade given to environment*:4,53  Average grade given to equipment*:4,56 *Average grades based on scale

SEEPN – Southeast European PPP Network OECD/SIGMA EPEC TWL project with Hellenic Special Secretariat for PPP as the twinning partner - exchange of experiences - standardized guides and procedures REGIONAL COOPERATION 17

STANDARDIZED GUIDES & PROCEDURES Standardized guides as tool to: structure complexity of the matter support and accelerate project preparation ensure transparent treatment facilitate project assessment save costs 18

Standardized procedures to: provide harmonization with international best practice ensure transparency to public stakeholders strengthen competition and get best VfM ensure equal treatment get confidence of private partners enable proper investment planning 19

Key role of exchange of knowledge and experience versus “learning by doing” Benefits of regional cooperation: - wider scope of experience generates best practice - joint initiatives encourage regional projects - biger market is more atractive for investors LESSON LEARNED 20

Kamilo Vrana, B.Sc.E.E. Managing Director THANK YOU FOR YOUR ATTENTION! Phone: Fax: © COPY RIGHT,AGENCY FOR PPP OF THE REPUBLIC OF CROATIA,