Institutional and legal framework for PPP in Croatia

1. Institutional and legal frameworkfor PPP in Croatia Damir Juricic, Ph.D. PPP Agency, Managing Director damir.juricic@ajpp.hr

2. Content • Institutional framework • Legal framework • PPP process in Croatia

3. Content • Institutional framework • Legal framework • PPP process in Croatia

4. Institutions in Croatian PPP market • Ministry of finance (MoF) • Centre for Investment (CEI) • State Commission for Supervision of Public • Procurement Procedure (SCSPPP) • 4. Agency for Public-Private Partnership (APPP)

5. Ministry of Finance • Participate in process of appraisal and approval; • Approves ability of underwriting long term • obligations born by PPP contract; • Gives the opinion about project impact on • fiscal risks; • Gives the prior-approval to PPP Agency • PPP Agency can’t issue project approval without • MoF prior-approval.

6. Centre for Investment • Prepare the project proposals for all state • ministry (obligatory); • Prepare the project proposal for other public • bodies (voluntary basis); • Conduct procurement process for public bodies; • Implement projects.

7. Expose Public Sector to the Risks Control the Public Sector Risk Exposure CEI Public bodies APPP MoF IMPLEMENTING REGULATING 7

8. State Commission for Supervision of Public Procurement Procedure (SCSPPP) Solving the complaints in procurement process.

9. PPP Agency • Propose the PPP Act; • Collect knowledge and experience from other • countries; • Organise education and dissemination of best • practice by conferences, work shops and manuals; • Propose new solution rise from new theory and • practice; • Maintain the register of PPP projects; • Supervises of PPP project in implementation; • Other.

10. Content • Institutional framework • Legal framework • PPP process in Croatia

11. BASIC: Public-Private Partnership Act (OG 78/2012) Regulation on implementation of public-private partnership projects (OG 88/12) OTHER: Public Procurement Act (OG 143/13) Concession Act (OG 143/12)

12. Public-Private Partnership Act • Define a Public-Private Partnership; • Duration limits of the PPP contract; • Procedure of selecting consultant; • Procedure of selecting private partner; • Content of project proposal (PSC and PPP contract); • Procedure of preparation and approval of project proposal; • Ministry of Finance pre-approval; • Amendment of PPP contract; • Procedure of supervising of the project; • Other.

13. Regulation on implementation of public-private Partnership Projects • Define the content of PSC; • Criterion for selecting private partner; • Application of discount rate; • Criterion for approval of contract amendments; • Content of project status report in implementation phase; • Other.

14. Manual 1: Discounting and discount rate Manual 2: Financial model Manual 3: Public Sector Comparator Manual 4: The structure of PPP contract Manual 5: Determining the long term payment ability of LPU Manual 6: Value for Money Manual 7: Selecting the private partner - procurement Manual 8: Risk identification and allocation Manual 9: Preparation and implementation of public investment Manual 10: Legal and institutional framework for PPP in Croatia Manual 11: Combining EU funds and PPP www.ajpp.hr

15. Content • Institutional framework • Legal framework • PPP process in Croatia

16. MoF (fiscal risks) 4 3 1 6 APPP (VfM, Contract) 5 2 Selecting Private Partner Project information Projectproposal Publicprocurement 8 Transfer of building 7 ........... Project implementation

17. Thanks for your attention www.ajpp.hr damir.juricic@ajpp.hr