SAARC-CCI CAPACITY BUILDING WORKSHOP.
Tajo Tasha, Thimphu, Bhutan
28 th November 2013
By
Nailin Attygalle
Secretary General/CEO
Federation of Chambers of Commerce & Industry of Sri
Lanka

 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.
NalinAtty@SAARC-CCI-Thimphu

 1/4 th of the world population
 Accounts for 3% of world GDP
 Less than 3% of world exports
 Less than 2% of world FDI
NalinAtty@SAARC-CCI-Thimphu

 Fastest growing economies- Averaging over 6% for last decade.
 Biggest market place in terms of population
 Young & Young adult population- 1/4 th are in the age between 15 to 30.
 Annual income growth averaging 8%
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

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?
NalinAtty@SAARC-CCI-Thimphu

 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.
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

 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.
NalinAtty@SAARC-CCI-Thimphu

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
NalinAtty@SAARC-CCI-Thimphu

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
NalinAtty@SAARC-CCI-Thimphu

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
NalinAtty@SAARC-CCI-Thimphu

 No privatization of government ventures.
 To use as a political trump
 Survival strategy
 CAN WE CHANGE THIS ATTITUDE??
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu






 collective goods
Service provision contracts
Outsourcing/contracti ng
Outright privatization
Design and construct
(D & C)
Sale and leaseback





 maintain (O & M)
Concession
Operate maintain and manage (OM &
M)
Build transfer operate
(BTO)
Build operate transfer
(BOT)
Build lease transfer
(BLT)
NalinAtty@SAARC-CCI-Thimphu






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
NalinAtty@SAARC-CCI-Thimphu









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
NalinAtty@SAARC-CCI-Thimphu







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
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu



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
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

 Sri Lanka Telecom
 Sri Lanka Ports Authority with SAGT
 Sri Lankan Airline
 Regional Plantation Companies
 Hingurana Sugar Industries Ltd.
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

 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
NalinAtty@SAARC-CCI-Thimphu

Role of Governments & SAARC-CCI
 Governments  SAARC-CCI
 Minimize constrains
 Adopt the right policy, regulatory
 Institutional reforms
 Strong lobbing, advocacy and recommendations
NalinAtty@SAARC-CCI-Thimphu

 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.
NalinAtty@SAARC-CCI-Thimphu

NalinAtty@SAARC-CCI-Thimphu

NalinAtty@SAARC-CCI-Thimphu