Presentation - Federation of Chambers of Commerce and

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SAARC-CCI CAPACITY BUILDING WORKSHOP.
Tajo Tasha, Thimphu, Bhutan
28th November 2013
By
Nailin Attygalle
Secretary General/CEO
Federation of Chambers of Commerce & Industry of Sri
Lanka
Content
 Regional context
 Action to be taken
 NTB’s in right perspective
 How to overcome & strengthen the unity
 PPP approach
 Sri Lankan perspective
 Types & benefits of PPP
 Future of the region through strengthening the
partnerships.
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Regional Context
 1/4th of the world population
 Accounts for 3% of world GDP
 Less than 3% of world exports
 Less than 2% of world FDI
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Regional Context- 2
 Fastest growing economies- Averaging over 6% for last
decade.
 Biggest market place in terms of population
 Young & Young adult population- 1/4th are in the age
between 15 to 30.
 Annual income growth averaging 8%
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Regional Context- Need Action?
 Are we using our strengths?
 Statistics, research studies, recommendation and
meetings all over.
 Sleeping giant is going to miss the bus?
 Need consensus for remedial action
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Regional Context- Need Action 2
 Negative list/sensitive list
 Trade agreements and MOU’s
 Entities such as SAARC- In existence and action
oriented activities?- outcome to date?
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Definition of ‘Nontariff Barrier’
 A form of restrictive trade where barriers to trade are
set up and take a form other than a tariff. Nontariff
barriers include quotas, levies, embargoes, sanctions
and other restrictions, and are frequently used by large
and developed economies.
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NTB Further Explanation
 Nontariff barriers are another way for an economy to
control the amount of trade that it conducts with
another economy, either for selfish or altruistic
purposes.
 Any barrier to trade will create an economic loss, as it
does not allow markets to function properly.
 The lost revenues resulting from the barrier to trade
can be called an economic loss
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NTB’s
 The Agreement on SAARC has a commitment for reducing tariffs, but
has nothing specific to offer with regard to the other complements to
facilitating trade. These Barriers are relating to:
 Testing requirements;
 Standards;
 Customs valuation,
 Labeling requirement;
 Limitation of land port facilities;
 Goods delivery/storage.
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Inter Regional Strategy to
Overcome NTB’s
 Respective country policies
 Political cultures
 Too little to offer and rest comes as NTB
 Regional players unity and understanding
 Consolidation within the country
 Build strong partnerships with regional players
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How to strengthen the
Partnerships
 PPP model
 It is a paradigm shift
 Whole world believes it but the implementation
issues.
 It is a challenge for the region
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Definitions of PPP
An agreement between
private and public sector
agents to undertake a
particular project in line with
at least one of the two
principles below;
Joint decision making
Joint risk financing
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Regional Governments Attitude
 No privatization of government ventures.
 To use as a political trump
 Survival strategy
 CAN WE CHANGE THIS ATTITUDE??
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Sri Lankan Example/Perspective
 Current Government through its long term policy
frame work has clearly stated that the
Government does not believe “Privatization”
further more and instead private sector is a vital
part of economic development and thus it is
encouraged to partner the Public
entrepreneurial ventures
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Sri Lanka vs Region
 All believes no privatization
 All believes private sector is the engine of the
economic growth
 ONLY WAY FORWARD to OVERCOME NTB’s are
PARTNERING LOCALLY & REGIONALLY
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Types of PPP’s
 Public provision of
 Operate and







collective goods
Service provision
contracts
Outsourcing/contracti
ng
Outright privatization
Design and construct
(D & C)
Sale and leaseback



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maintain (O & M)
Concession
Operate maintain
and manage (OM &
M)
Build transfer operate
(BTO)
Build operate transfer
(BOT)
Build lease transfer
(BLT)
Types of PPP’s 2
 Build lease transfer
maintain (BLTM)
 Build own operate
remove (BOOR)
 Build own operate
transfer (BOOT)
 Lease renovate
operate transfer
(LROT)
 Design build finance
operate (DBFO)
 Build own operate
(BOO)
 Design build finance
operate manage
(DBFOM)
 Franchise
 Joint venture (JV)
 Regeneration
partnership
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Benefits of PPP








Accelerated infrastructure development
Faster implementation
Reduced whole-life costs
Better risk-allocation
Better incentives to perform
Improved quality of service
Generation of additional revenue
Enhanced public management
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Reasons for Implement PPP’s






Government’s funding Gap
Capacity constraints
Benchmarking public sector to the
private sector
PPP also ensures that cost and time
over runs are not born by the
government
Off Balance Sheet
Risk of Cost and time over runs passed to
private Company
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Governments Strategy to Shift
 The governments should move away from
the notion that state should play the leading
role in infrastructure development
 Instead governments should seek greater
involvement of the private sector in the
development of the country
 More private public partnerships are
encouraged in this regards
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Governments Responsibility
 Prepare master plans and enable policy formulation
 Legislative and institutional reforms
 Providing common infrastructure
 Administrative capacity building
Identification of thrust areas/zones/ projects
Risk assessment and mitigation
Facilitate efficient project clearance
Ensure transparency and welfare
 Country promotions and research
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Private Sector Responsibility
 Investing into new business opportunities
 Efficient management of the resources
 Corporate and social responsibility
 Ecological sustainability
 Man power building and training of high quality
staff
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Sri Lanka- Success Stories
 Sri Lanka Telecom
 Sri Lanka Ports Authority with SAGT
 Sri Lankan Airline
 Regional Plantation Companies
 Hingurana Sugar Industries Ltd.
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Why Re-invent the Wheel
 Region as one team
 SAARC-CCI as the catalyst- Co-Committee
 Information portal at SAARC-CCI
 Dynamic & Vibrant entity
 SAARC-CCI communiqué to respective governments
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Derived Outcome
 Strengthening co-operation
 Acceleration of infrastructure developments
 Showcasing the regional power
 Consolidating the respective economies
 More employment creation
 More disposable income to the people
 Improvement of macro economic indicators
 Better future for younger generation
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Role of Governments & SAARC-CCI
 Governments
 SAARC-CCI
 Minimize constrains
 Strong lobbing,
 Adopt the right policy,
regulatory
 Institutional reforms
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advocacy and
recommendations
Accept the Challenge or Perish
 We are a strong entity- sleeping-giant
 Intellectual studies, researches already done
 We know, ‘where are we today’
 We know, ‘where do we want to be’
 Challenge is, ‘how do we get their’
 POSITIVE APPROACH & ATTITUDE and ALL
REGIONAL PLAYERS HAS TO WORK AS CHANGE
AGENTS.
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THANK YOU.
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