1 / 7

EFFECTIVE LEGAL FRAMEWORK FOR PPPs

EFFECTIVE LEGAL FRAMEWORK FOR PPPs. By Peter Stein Presented at OECD-seminar on PPPs For Infrastructure Financing Istanbul 2006-11-08. GUIDELINES TO ACHIEVE SUCCESS WITH PPPs . Do not view PPP as simply a method to raise private capital

dewitt
Download Presentation

EFFECTIVE LEGAL FRAMEWORK FOR PPPs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EFFECTIVE LEGAL FRAMEWORK FOR PPPs By Peter Stein Presented at OECD-seminar on PPPs For Infrastructure Financing Istanbul 2006-11-08

  2. GUIDELINES TO ACHIEVE SUCCESS WITH PPPs • Do not view PPP as simply a method to raise private capital • Main argument for PPPs is that they make use of private sector skills • Strong political commitment and good governance • Key decision-makers should be viewed as influential • Clearly stated principles when to use PPP and why • PPPs result in efficiency gains when the quality of services is contractible, there is adequate risk sharing and incentive-based legislation

  3. KEY COMPONENTS – NATIONAL LEVEL • Appropriate legal framework-overhaul of legislation • Usually traditional laws on public work do not have sufficient flexibility to design PPPs • Need for well defined accounting rules and clear channels of responsibility and accountability • Earmarking revenues for future PPP-payments • Competitive procurement with fair treatment of all bidders • Optimal risk-sharing

  4. KEY COMPONENTS – PROJECT LEVEL • Output-based contracts • Payments to provider linked to performance over the contract life • Project manager independence and authority • Effective mechanisms for conflict resolutions and benchmarking • Establish policy how to divide benefits resulting from refinancing

  5. ON COMPETITIVE PROCUREMENT • Maximise competitive tension until last minute • Choose provider based on price and quality • Model prospective shadow price bid • Keep option of unconditional bidders

  6. EXAMPLE HOW TO SHARE RISKS

  7. PETER STEIN • CEO Stein Brothers AB • pstein@comhem.se • Kommendörsgatan 14 • SE-114 48 Stockholm • Tel: +46 8 662 69 80 • Fax: + 46 8 663 33 05 • GSM: +46 70 424 09 68

More Related