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Confederation of International Contractors’ Associations

Confederation of International Contractors’ Associations ______________________________________________________________________________________________________________________________________________ The Representative of the global Construction Industry. Delivering Successful PPPs

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Confederation of International Contractors’ Associations

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  1. Confederation of International Contractors’ Associations ______________________________________________________________________________________________________________________________________________ The Representative of the global Construction Industry

  2. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010) Delivering Successful PPPs Roger Fiszelson CICA Special Advisor CICA PPP DAYS 2010 (Manila, March 24, 2010) ADB/WBI/CICA/IPFA

  3. Delivering Successful PPPs • The main lessons of the crisis • Bad PPPs did not resist. • Only those who deliver efficiency and socio-economic optimum will succeed. • Can be undertaken only in a well designed institutional, legal and contractual framework. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  4. Delivering Successful PPPs • The PPPs (concessions or PFIs) require a much more elaborated framework than the current general public procurement. • Are not reducible to a single project financing of industrial type: they deliver a service to users which : • cannot stop; • will continuously record multiple changes ; • will meet at once : • the financial balance of the contract ; • the socio-economic optimum to the users as well as the public entity. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  5. Delivering Successful PPPs • Absolute necessity: • of a well designed institutional, legal and contractual framework ; • Easy to implement ; • Have clear and simple procedures ; • To properly train officials : government department (central and local), agencies, etc • The challenge : • Reduce time to deliver the faster the socio-economic benefits ; • Reduce transaction costs ; • Lower financing costs ; • Increased the legal and financial certainty of the project. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  6. Delivering Successful PPPs • Presence of a coordinated chain of Institutions dedicated to PPP: • Affirming the prima of the service to user and public authority •  Relying on ad hoc agencies : • PPP task force, mission support, etc. supported with Capacity Building actions • Controlled procedures. •  Competing in: • The dissemination of law ; • The training of procuring entities ; • The dissemination of good practices ; • The integration of lessons learned. •  Ensuring control of the person and public users. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  7. Delivering Successful PPPs • A legal framework (I) • Reflecting the different fields covered by the PPPs: • Construction / rehabilitation of all types of infrastructure; •  Routine and heavy maintenance / Service ; • Services delivered by intangible and assimilated assets. • Covering different forms of PPP •  Concessions, in which the payment comes from the user; • The PFI contracts, in which the payment comes from the public entity; • The affermage ; • Different types of stage management. • Facilitating amendments to the contract by retaining the principles of : • Mutability ; • Keeping the economic balance of the contract; • On foresight. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  8. Delivering Successful PPPs • A legal framework (II) • Establishing clear procedures for payment of the private partner • Allowing • the identification of costs : - Investment ; - Functioning ; - Funding. • Their inclusion in the public accounts: • Principle of transparency ; • Control by users and the public authority. • For creating the entity an obligation to pre-programming • To highlight the problematic of the project; • Question the appropriateness of using the PPP: the prior assessment process; • Conduct a feasibility study : - To illuminate the choice ; - Check the Value for Money of the project. PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

  9. Delivering Successful PPPs • The Procurement: general principles • Adopt differentiated rules of Procurement •  Open tender; •  Restricted tender ; • Negotiated procedure ; •   Competitive dialogue for complex projects, offering real guarantees of security and confidentiality. •  Justify the choice of the retained procedure • Establish clear, legible and complied with : • In conducting the tender ; • In awarding ; • Establishing thresholds • Compensate some of the best unsuccessful bids • Consider an original way: cooperation rather than competition PPP DAYS 2010 (ADB, Manila, March 22-24, 2010)

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