1. Capacity-building for Public-Private Partnerships Ljiljana Stancic Secretary, Team of Specialists on Public-Private Partnerships United Nations Economic Commission for Europe ______________________________________________________________ Sarajevo, 25 September 2009

2. WHY PPPs? WHY UN? 1.PPPs -- alternative option for low income countries to modernize infrastructure 2.Success depends on improving the performance of institution surrounding PPPs 3.UNECE engaged in regional intergovernmental process 4.Success will require serious commitment to capacity- building in public administration

3. PPP MARKET DEVELOPMENT Stage One Define policy framework Test legal viability Identify project pipeline Develop foundation concepts Apply lessons from earliest deals to other sectors Start to build marketplace Stage Two Introduce legislative reform Publish policy and practice guidelines Establish dedicated PPP units Refine PPP delivery models Continue to foster marketplace Expand project pipeline Extend to new sectors Leverage new sources of funds Stage Three Fully defined, comprehensive system Legal impediments removed PPP models refined and reproduced Sophisticated risk allocation Committed, long-term deal flow Long-term political consensus Use of full-range of funding sources Thriving infrastructure investment market involving pension funds and private- equity funds Well-trained civil service applying lessons from PPP experience

4. PPP MARKET MATURITY CURVE

5. KEY CHALLENGE: Improving governance and institutional certainty TO AVOID: Protracted negotiations Lack of transparency in partner solution Conflict of interest Cancellation of projects Burden on future taxpayers

6. UNECE GUIDELINES ON PROMOTING GOOD GOVERNANCE IN PPPS 7 PRINCIPLES A coherent PPP policy Strong enabling institutions Legal framework fewer, better, simpler Cooperative risk sharing and mutual support Transparency in partner section Putting people first Achieving sustainable development

7. Capacity-Building Train personnel for required skills for PPPs Establish PPP Unit Offer national PPP training programmes, guidelines Learn to choose right consultants to help on projects Networking for success

8. Putting People First Define the public interest Consult with people Inform: disclose information in contracts Oversee by objective third party Involve independent auditors

9. Situation today in transition economies: There are few capacity-building programmes No practical training for policy makers and project managers Numerous international conferences on PPPs but no substitute for real practical hands-on training ACHIEVING SUCCESS will require serious commitments to capacity- building in public administration…

10. UNECE WORK IN PPPs International recognition, level playing field Focus on good governance Identifying best practice Training modules Conferences and advisory missions Co-operation with other organisations

11. CONCLUSION PPPs are an instrument that continue to be of great interest to governments… But they are not a quick fix and require good governance in order to provide real value for money

12. FOR MORE INFORMATION Please visit: http://www.unece.org/ceci/ppp.html Or contact: ljiljana.stancic@unece.org THANK YOU FOR YOUR ATTENTION!