PUBLIC-PRIVATE PARTNERSHIPS
IN MONGOLIA
Now and Futures Prospects
E.Enerelt, ADB
June 6, 2014
WHAT IS PPP?
ADB’s PPP Operational Plan (mid-2012) defines publicprivate partnership as:
 “… a contractual arrangement between public (national,
state, provincial, or local) and private entities through
which the skills, assets, and/or financial resources of
each of the public and private sectors are allocated in a
complementary manner, thereby sharing the risks and
rewards, to seek to provide optimal service delivery and
good value to citizens.”
Public procurement
NOT
Privatization
2
WHY CHOOSE PPP?
Risk transfer
Whole of life-costing/
maintenance
Innovation
Maximization of asset utilization
Disadvantages:
-Off-balance
financing
-Cost of capital is
expensive
-Can be complex
and difficult to
implement
Mobilization of additional resources
3
HOW TO IDENTIFY A PPP PROJECT?
4
PPP MODALITIES
5
SHARE OF PUBLIC INVESTMENT
DELIVERED THROUGH PPPS IN 2011
Country
Share
(percent)
Australia
>10 - 15
Canada
>1 - 3
Czech Republic
>0 - 1
Finland
>10 - 15
Germany
>3 - 5
Italy
>1 - 3
Korea
>5 - 10
Luxembourg
>5 - 10
Mexico
>15
New Zealand
>1 - 3
Norway
>3 - 5
South Africa
>3 - 5
Spain
>3 - 5
United
Kingdom
>15
Source: Burger and Hawkesworth (2013). OECD.
6
ADB SUPPORT FOR PPPS IN
MONGOLIA

ADB’s country partnership strategy for Mongolia,
2012–2016
- Inclusive and sustainable growth;
- Support for PPPs will bring in private financing for the infrastructure needed
to improve access to essential public services.

Current Status
- ADB has supported Mongolia’s PPP work since 2009:
1. The first technical assistance (TA) helped draft the Concessions Law
and establish a PPP Unit as a coordinating body for PPPs;
2. A follow-on TA strengthened PPP regulations, helped build the capacity
of the PPP Unit and develop a pipeline of PPP projects and more;
3. The third TA, “Developing a Conducive Environment for PPPs”, was
approved in December 2012.
- In June 2011, ADB was appointed as the mandated adviser to the PPP for
CHP5, the mandate was renewed in December 2013 (A $1.2 million TA that
will fund additional advisers);
- Other IFIs and countries such as the World Bank Group are in discussion
with the government.
7
PPP LEGAL FRAMEWORK
•
Parliamentary Ad hoc committee on PPPs - Nov 2008
•
State Policy on PPP - Oct 15, 2009
• to promote private sector participation in all sectors of
economy
•
The Law on Concession - Jan 28, 2010
• Defines the processes of PPP implementation.
•
In 2010, the Government has approved several regulations
regarding the detailed bidding process and evaluation of bid
proposals
III. LIST OF CONCESSION PROJECTS

In 2010, the Government approved the list of 121
concession projects.

The Cabinet made amendments to the list of Concession
projects (reduced to 51 projects) 2013.09.06 №317
BY SECTORS
–7
 Road and transportation – 17
 Pipeline transport – 2
 Airport – 2
 Energy -12
 Environment – 4
 Education - 2
 Health – 1
 Culture and sport - 4
 Infrastructure
BY TYPES OF PPP
BOT – 8
 BOO – 12
 BT – 19
 OTHER - 12

Contact:
Enerelt Enkhbold
eenkhbold@adb.org