1. Scaling up Development
Learning Innovations and the Open Learning Campus

2. Money has no boundaries; seduce it!
How a small country market (foreign) investment in PPP projects

3. Jan van Schoonhoven
Senior Advisor on Innovative Finance and PPP of the Netherland Government –
Project Manager/Director / MSc Guided Missiles and Electronics / Project Finance
Advise governments in strategic policy on developing and implementing PPP
Strategic Finance strategy and provide Capacity Building
NL Diplomat in Geneva at United Nations, Staff member UN , executive director PPP Centre
NL Rep at OECD and World Economic Forum on Infra and PPP
Independent director PPP Centre Kazakhstan, Consultant for the World Bank,
Senior Fellow at IISD, Think Tank Infrastructure Strategy Institute and IP3
Director PPP Unit, 20 PPP projects, around 20 billion Euro’s
Naval officer

4. Three lessons learned from Netherland Experience
Outline
Challenge :
When the interest in your PPP program is lacking from the private sector (investors and construction companies) what do you do?
Act like a government, think like the private sector
Three lessons learned from Netherland Experience
Disclaimer
If a country thinks is has everything in place for PPP projects and it doesn't take of. There are many reasons on different levels for success or failure of PPP. This webinar addresses the lack of interest and how to overcome this. Lack of interest from investors, the government and the private (construction) sector.

5. How to attract international interest for PPP?
Hello Holland (Netherlands)!
When nobody is interested!
When nobody wants it!
How to seduce them?
To the next level?
Some lessons learned
Questions

6. Hello Holland Billiton Euro’s INFRASTRUCTURE FUND NL ANNUAL BUDGET
Roads, Rail and Water Infrastructure National Level

7. Could NL suggestions help?
Since introduction PPP (2006) form place 13 to 4 in Infrastructure

8. When nobody is interested…....
No interest in investing in NL PPP projects
The Netherlands pension funds where not interested
The 6th and 9th largest pension funds in the world
Total of 7,120,000 million in infrastructure assists
The Netherlands investors were not interested
The International investors where not interested
UK for PFI projects
France for concessions projects

9. When nobody really wants it!
Politician seem to be in favour but:
Department is hesitating:
Sell out own organization – what's in it for me?
Hard to understand – expensive capacity building?
Private sector is hesitating:
Are you serious or not? – much investment!
Small companies are left out! – not true!

10. challenge: Past - FutureNO
2 projects, 1 Billion EUR/$
HSL – seen as an UK ‘project’
N33 – One Bank - BNG

11. How to seduce them? Towards the Private Sector:
Become MORE attractive then your neighbours!
Internally: Public sector:
It’s MORE than just money!
For the PPP Unit(s):
Build trust and understand the business !
Switch from bureaucracy toward
an entrepreneurial attitude
without loosing identity

12. Private Sector Create and attractive market on international scale!
NEW APPROACH
TRADITIONAL
Project Pipeline
Number :12 projects
Assets; roads, water, govt buildings, barracks, museum
Your neighbours are competitors
PPP Type:
all DBFMO
Standard contract
Same conditions
PPP program with consistent projects
New: Project pipeline environment
Individual projects
Number:12 projects
Assets: Roads, water, government buildings, barracks, museum
No clue what your neighbours are doing
PPP types:
BOT,
DBFMO,
Joint venture, O&M etc
Independent projects
Actually: that's NO pipeline

13. Public Sector Win-Win situation for all!
TRADITIONAL
NEW APPROACH
Ministry of Finance
Enabling environment
Ministry of Infra:
Reduction of costs overall
Improvement of quality
In charge
New:
Financial solution with in infrastructure policy and ambition
Support of all ministries
Ministry of Finance
Easy money
Ministry of Infra
Consequences?
Risks?
Hostile take over!
Old:
Financial solution, challenges and risk at the infra department
Discussion between ministries

14. PPP Unit BE and FEEL responsible, Understand the business!
TRADITIONAL
NEW APPROACH
Ministry of Finance & Infra
PPP Unit Min. Fin: Policy
PPP Unit Infra: projects
In practice:
Highly trained and motivated staff
Real project experience
In charge
New:
Professional staff
Realisable face for private sector
Ministry of Finance
PPP Unit
In practice
No project experience!
Only class room training
No consistency in staff
Old:
Hollow shell, no additional value
No face
Q?: DO YOU KNOW YOUR PPP UNIT AND HOW DO YOU RATE THEM?

15. Wrap-up attractive - win/win - professional
NEW OLD

16. OUTCOME Over 60 Project in PPP Preferred procurement principle
Time from tendering to financial close: 6-9 months
Reduction of costs at private sector: 30%
Competitive dialogue fast system for procurement
In all sectors
Standard contract for all assets in at central government
Light standard contract for all assets in sub national level
More interest from banks than needed at the moment

17. SUGGESTIONS ALL/WB Capacity building (public and private) Essential,
but more then ‘PPP certificate’
Project + Capacity Building simultaneously
NL Gov’t, WB and IP3 cooperation
Innovation on training
Simulation and on the job learning
Coaching in projects and PPP units (skip seagull management)
Tender and project knowledge within Gov’t
Only when staff will remain at least 3 years
Not only a financial tool; define Value for Money broader

18. QUESTIONS
THANK YOU