1. PPP: Sectoral experiences PPP in the Czech Republic and the Pardubice region´s PPP plans Jiří Turek Lawyer of President´s Office Department Pardubice Region (jiri.turek@pardubickykraj.cz)jiri.turek@pardubickykraj.cz www.pardubickykraj.cz

2. Content Present experience with PPP in the Czech Republic New PPP legislation Institutional background Pilot projects Pardubice region´s PPP plans – the Regional Hospital Pardubice Resume

3. Present experience with PPP in the Czech Republic recent big projects – higway D7, Internet for schools – unsuccessful many minor projects with features of PPP PPP – one of government priorities – approval of PPP policy preparation of necessary legislation institutional and methodical support

4. New PPP legislation new PPP Act – in legal force from 07/2006 main areas: legal definition of PPP for the purposes of the Act, tendering process related to PPP, PPP contracts – obligatory content and conditions of their conclusion and approval, projects preparation including feasibility study - obligatory content and conditions of its approval, budgetary supervision of the Ministry of Finance etc.

5. Institutional background Ministry of Regional Development (www.mmr.cz) – responsible for relevant legislation preparation (e.g. PPP Act, Public Procurement Act)www.mmr.cz Ministry of Finance (www.mfcr.cz) – responsible for budgetary supervision related to PPPs, participates in relevant legislation preparationwww.mfcr.cz PPP centrum (www.pppcentrum.cz) – organisation established by the Ministry of Finance, responsible for methodical supportwww.pppcentrum.cz Office for the Protection of Competition (www.compet.cz) – responsible for supervision of public procurement processwww.compet.cz PPP Association (www.asociaceppp.cz) – association of private subjects, potential private partners, its declared purpose is the development of PPP background in the Czech Republicwww.asociaceppp.cz

6. Pilot projects the first major PPP projects in the Czech Republic assumed to be realized in near future, approved by Government typical, model cases and valuable resource of practical information and knowledges for future projects University campus in Ústí nad Labem Sport center Ponava in Brno Hospital Na Homolce in Prague Higway D3 Aircon – railway modernisation Central Military Hospital in Prague Prison in Moravia Halls of Justice in the North Czech

7. Pardubice region´s PPP plans – the Regional Hospital Pardubice Assumed basic features of the project: main objectives – more efficient providing of medical care, utilization of private sector´s innovative and managerial capabilities, separation of service activities from medical care and their concentration into SPV, transfer of risk which can be better managed by the private partner, complex modernisation – reconstruction + construction of some new buildings, development and innovation of medical technology and infrastructure,

8. investment of about 2 bilion Czech Crowns, character of the project – DBFO – private partner should design the project, ensure the construction, reconstruction and financing, ensure the subsequent operation and maintence of the infrastructure and providing of subsidiary sevices, long term contract (25-30 years), SPV constitution, possible utilization of EU funds,

9. Allocation of risks RiskPrivate sector Shared risk Public sector Medical care demand * Ensuring of medical care quality * Service availability * Project risk * Construction risk * Operational risk * Maintenance, renovation and development * Services demand * Inflation * Political and legislative risk *

10. Resume Establishment of background for PPP implementation in the Czech Republic – legislation, institutions, methodics etc. Preparation of first PPP projects – pilot projects Opportunity for regions