Alexei Zverev Senior Counsel, EBRD Vilnius , 22-23 November 2006 Overview of Concessions Legislation in Countries of Central and Eastern Europe Alexei Zverev Senior Counsel, EBRD Vilnius , 22-23 November 2006
Issues to be discussed EBRD’s Legal Transition Programme (LTP) PPP policy Legal framework Results of EBRD evaluations Legislative trends and challenges
LTP activities in the area of PPP EBRD: Participates in and contributes to international standard-setting initiatives Monitors and analyses the status of legal transition in its countries of operations and developments measurement tools to assess legal risk for EBRD investments Develops and implements technical assistance projects in its countries of operations Advances legal reform through various outreach activities, including publication of its legal journal, Law in transition Go back to previous slide to talk about POLICY
PPP policy Why policy issues are important Legal framework Institutional infrastructure Awareness and professional development
Legal framework Clear Stable Predictable Fair Flexible www.ebrd.com/law
Measuring compliance of concessions legislation against international standards
Countries with a concession law – 2005 update of EBRD Concessions Law Assessment
Levels of compliance in core areas of concessions legislation – Estonia, Latvia, Lithuania - 2005
Measuring the effectiveness of concessions legal frameworks – 2006 Legal Indicator Survey
Common impediments to PPP Absence of a clear PPP policy Inadequacy of concession laws relative to international legal best standards Lack of institutional support and capacity / lack of skilled public sector officials Security/assignment restrictions Lack of variety of capital market instruments Budgetary constraints This slide will discuss chiefly LEGAL impediments The public sector project sponsor has to ensure that it has sufficient trained staff to administer the contract or concession for the next 10 to 30 years, depending on the length of the contract. Current Budget Code only allows for short term commitments and approved annually. Investors seek long term provisions.
Alexei Zverev Senior Counsel, EBRD zverevA@ebrd.com www.ebrd.com/law Alexei Zverev Senior Counsel, EBRD zverevA@ebrd.com