1. Preparing PPP programs David Duarte Arancibia – dda@dipres.cl Head of Contingent Liabilities and PPPs Ministry of Finance - Chile

2. Issues to cover Legal framework Project selection Fiscal support Financial regulations Others

3. Legal framework Flexible Open to competition Private initiatives Contract modifications Possibility to terminate the concession Dispute resolution system Financial guarantees

4. Institutional Design PPP unit outside of MoF Permanent involvement of the MoF in the projects and programs CBA and VfM approval independent of MoF and PPP unit Check and Balance Framework

5. Project Selection Cost Benefits Analysis Value for Money Risk allocation Efficiency criteria, not other as accounting issues Rational fiscal commitments Contingent liabilities Fiscal payments

6. Fiscal Support Correctly designed Specific objective Efficient Aggregate economic efficiency Sustainable Government has to be able to afford the commitments Program has to be congruent with fiscal planning Stocks and cash flows has to be estimated Avoid fiscal surprises

7. Financial regulations Taxation framework Banks investment regulation Pension found investments Specialized financial institutions supervision

8. Others Issues State of law Culture of payments Toll roads Land acquisition framework Political support PPP seems a privatization

9. Recommendations Correct project selection (CBA, VfM) Realistic times Good base studies Specialized advisory Permanent supervision Transparency (contracts, agreements, fiscal commitments, etc) Disseminate information Contingent liabilities management Assess risk transfer Make sound economic decisions

10. Preparing PPP programs David Duarte Arancibia – dda@dipres.cl Head of Contingent Liabilities and PPPs Ministry of Finance - Chile