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Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012 Instruments and Tools of Public-Private Partnerships (PPPs): Ensuring the Foundations of an Equal and Effective Access to Infrastructure. Introduction: definitions and caveats.
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Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012 Instruments and Tools of Public-Private Partnerships (PPPs): Ensuring the Foundations of an Equal and Effective Access to Infrastructure bertrand.du_marais(at]u-paris10.fr
Introduction: definitions and caveats bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes: Wide scope of services and of public agencies (central as well as local government): e.g. France • Contribution of PPP to the delivery of main local public utilities. Ref.: bureau de l’analyse des secteurs professionnels, DAEI, Min of Civil works (Dark area: PPP). bertrand.du_marais(at]u-paris10.fr
At the EU level : ref.: Les partenariats public /privé en Europe, numéro spécial, Les dossiers européens, 13, Janvier 2008, p. 14 et p. 21 bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes, as compared to divestiture • The advantages of contracts (as compared to divestiture or privatization per se) • Securing assets ownership in favor of the public agencies • flexibility, if not resilience… • Arbitration and / or Court adjudication • Decentralized yet governmental supervision and ownership bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes: The advantages of a global contract Traditional concession scheme: a multipurpose contract PFI scheme: a contractual matrix bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes: contracts within the overall framework of public law • In France, no “concession law” but • Some legislative statutes (e.g. Loi 93-122 du 29 janvier 1993 “Sapin” for bidding process; Ord. 17 jun 2004 for CP) • The century old case law of the Conseil d’Etat • In many countries: a “concession law” • Equal access, due to • the enforcement of public law and the “public service” doctrine: equality principle • Solidarity between consumers • Social tariffs, social rights bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes (as compared to direct provision of services) • PPPs as tool for a better management of public utilities: • More transparent to the extent that costs are identified • Put more pressure on the utility in terms of quality and accountability bertrand.du_marais(at]u-paris10.fr
I- Main features of Contractual PPP Schemes: Recent evolutions in the realm of contractual PPPs • Hybridizing of contractual schemes: a range of contracts as regard the nature of risks (of construction, of readiness, commercial, operational) (Ref.: IGD.org) • Innovation in tariff setting bertrand.du_marais(at]u-paris10.fr
II- Conditions of success: general • Competition award: the experience of EU and French Law • Strong public commitment and supervision : several approaches: • centralized or decentralized at the operational level, • … or for the regulatory tasks bertrand.du_marais(at]u-paris10.fr
II Conditions of success: balance between financial sustainability and social inclusion • Sharing the burden of poverty between the operator and the public agency: • “Social charter”, including “reduced social services” • “Social tariff” with compensation for the operator • Progressive tariff • Subsidies from the public agency to the consumer bertrand.du_marais(at]u-paris10.fr
Conclusion • Two specific case-studies and analyses: • Senegalaise des Eaux: in a difficult sector and a fragile country • Columbia: local decentralization with national supervision • Towards a community of practice ? bertrand.du_marais(at]u-paris10.fr