MOLDOVA WORKSHOP ON PPP DEVELOPMENT
UNECE
Public-Private
Partnerships (PPP)
Initiative
“UNECE NATIONAL PPP READINESS ASSESSMENT
IN MOLDOVA”
Leo McKenna
Chair, UNECE TOS PPP
International Centre of Excellence and Specialist Centres
CHISINAU
09 – 10 OCTOBER, 2012
THIS PRESENTATION;
• OVERVIEW OF PPP NATIONAL READINESS ASSESSMENT (RA)
• METHODOLOGY
• APPROACH TO RA IN MOLDOVA
• FINDINGS
• DRAFT RECOMMENDATIONS
UNECE
Public-Private
Partnerships (PPP)
Initiative
WHAT IS THE PPP NATIONAL READINESS ASSESSMENT TOOL?
UNECE
Public-Private
Partnerships (PPP)
Initiative
• Forms part of the UNECE PPP Toolkit
• New policy advisory service by TOS PPP to countries with Transition Economies
• Helps identify strengths and potential challenges facing Transition Economies
in attracting private capital for public infrastructure development
• Strategically analyses national infrastructure needs
WHAT IS THE PPP NATIONAL READINESS ASSESSMENT TOOL?
UNECE
Public-Private
Partnerships (PPP)
Initiative
• Strategically analyses the national enabling environment
• Considers areas for feasible pathfinder projects
• Develops a Strategic Action Plan for infrastructure investment & development
• N.B. Jointly developed by UNECE Secretariat / TOS PPP and host country
UNECE PPP 6 STEP NATIONAL READINESS ASSESSMENT TOOL
COUNTRY
Requests support
UNECE PPP secretariat select and appoint UNECE PPP Readiness
Taskforce Team
UNECE PPP Secretariat
Stage One
Fact
Finding
Mission
Preliminary
Report
UNECE
International PPP
Centre of
Excellence
• Teams of Specialists
• PPP Specialist
Centres
• PPP Regional Training
Centres
- UNECE
Six Step Country PPP Readiness Assessment Process
Consultation
& Peer
Review
Working
Level
Workshop
UNECE PPP Toolkit:
• How To Manual
• Best Practice Guides
• Train -the -Trainer
Modules
Process for
Improvement &
Final Report
Strategic
Action
Plan
Country Implements
Strategic Action Plan,
Plans,
Early Works Projects, and
Pilot Projects
UNECE
Public-Private
Partnerships (PPP)
Initiative
STEP 1 - FACT FINDING MISSION
UNECE
Public-Private
Partnerships (PPP)
Initiative
• Understanding the enabling environment
• Carried out by UNECE Secretariat, TOS PPP and host country
• Comprehensive Pre-Visit Questionnaire; 372 questions; public and private
• Extensive programme of meetings with stakeholders
READINESS ASSESSMENT PRE-VISIT QUESTIONNAIRE
Part 1 – National Overview
1.0 Economic & Social Need – Drivers for Change (18)
1.1 Macroeconomic Climate (29)
1.2 Business Climate (36)
1.3 Financial Climate (24)
1.4 Legal & Governance Environment (33)
UNECE
Public-Private
Partnerships (PPP)
Initiative
READINESS ASSESSMENT PRE-VISIT QUESTIONNAIRE
UNECE
Public-Private
Partnerships (PPP)
Initiative
Part 2 – PPP Focus
2.0 General PPP Matters (35)
2.1 PPP Legal & Regulatory provision, including Financial Risks (63)
2.2 PPP Policy Framework (21)
2.3 PPP Capacity – Public & Private (51)
2.4 Project Identification, Selection and Procurement (44)
2.5 Post Award; Delivery, Operations and Performance Management (18)
MOLDOVA FACT FINDING MISSION: 24-28 OCTOBER, 2011
MISSION TEAM
• MINISTRY OF ECONOMY
• PUBLIC PROPERTY AGENCY
• UNECE
UNECE
Public-Private
Partnerships (PPP)
Initiative
MOLDOVA FACT FINDING MISSION
STAKEHOLDER MEETINGS
• GOVERNMENT MINISTRIES & AGENCIES
• MUNICIPALITIES
• PARLIAMENT REPRESENTATIVES
• NATIONAL BANK
• PRIVATE SECTOR PARTIES
• COMMERCIAL BANKS
• CONSTRUCTION SECTOR
• ENTERPRISE DEVELOPMENT
• INTERNATIONAL ORGANISATIONS
UNECE
Public-Private
Partnerships (PPP)
Initiative
MOLDOVA FACT FINDING MISSION
OUTPUTS
• PRELIMINARY RA FOR MOLDOVA – JANUARY 2012
• SYNOPSIS RA REPORT – AUGUST 2012
• CURRENT WORKSHOP, step 4/6 – OCTOBER 2012
• STEADY PROGRESS
UNECE
Public-Private
Partnerships (PPP)
Initiative
RA PRELIMINARY FINDINGS
• Need for ministries and municipalities to develop costed infra plans
• Need for rigorous and transparent project appraisal processes
• Need to develop a National Infrastructure Plan (NIP)
• Need to improve infrastructure investment climate
• Potential areas for PPP activity exist
UNECE
Public-Private
Partnerships (PPP)
Initiative
RA PRELIMINARY FINDINGS
UNECE
Public-Private
Partnerships (PPP)
Initiative
• Interest in PPPs exists in both public & private sectors in Moldova
• Need to develop an inter-ministerial infra / PPP Network
• Need for a national PPP training and educational capacity building programme
• Public and private sectors and in wider community
• Need to develop public skills capacity specifically to attract private capital
RA DRAFT RECOMMENDATIONS
1. DEVELOPING INSTITUTIONS AND PROCEDURES
2. INFRASTRUCTURE PLANS
3. PPP IMPLEMENTATION DRIVERS
4. POTENTIAL SECTORS FOR PPP DEVELOPMENT
UNECE
Public-Private
Partnerships (PPP)
Initiative
RA DRAFT RECOMMENDATIONS
DEVELOPING INSTITUTIONS AND PROCEDURES
UNECE
Public-Private
Partnerships (PPP)
Initiative
1. Education, Training & Capacity Building;
Overarching Role of the State in the PPP process
Need to create space for the private sector to thrive in the modernisation of
Moldova’s infrastructure
2. Inter-Ministerial Infra Board;
Share knowledge, promote good practice, standardisation, attract private capital
3. Establish National PPP Unit for Moldova;
Harness / Develop commercial and private sector skills in public sector
Ensure common approach across government
4. PPP Law;
Should correspond to international best practice
Establish the National PPP Unit in the Law
Enhanced lenders’ rights
RA DRAFT RECOMMENDATIONS
INFRASTRUCTURE PLANS
1. National Infrastructure Plan;
10 year, cross-sectoral infrastructure investment plan based on NEED
Efficient combination of public and private sector resources
New investment in critical infra modernisation
2. Develop Public Sector Strategic Service Models (SSM)
e.g. Healthcare and Transportation
3. Develop Fully-Costed Infra Plans
UNECE
Public-Private
Partnerships (PPP)
Initiative
RA DRAFT RECOMMENDATIONS
UNECE
Public-Private
Partnerships (PPP)
Initiative
PPP IMPLEMENTATION DRIVERS
1. PPP Enabling Environment;
Macroeconomic climate; Business climate; Financial Climate;
Governance – IFRS, transparent investment decision processes
2. Transparent Project Identification, Appraisal, Selection & Procurement
3. Moldova Infra Association – Public/Private; Improve Investment Climate
Inter-ministerial Board, Local Authorities, Private Companies, Unions
4. Outsourcing
Government (MoF) to develop a strategic performance and efficiency plan
Outsource non-core public services (e.g. FM) to private sector
Performance based contracts; increase quality and reduce cost of services
5. Potential for greater autonomy and tax raising powers to municipalities and
Local Authorities for accelerated infra development at local level e.g. waste PPP
UNECE
Public-Private
Partnerships (PPP)
Initiative
RA DRAFT RECOMMENDATIONS
POTENTIAL PPP AREAS OF ACTIVITY IN MOLDOVA
Economic Infrastructure
Social Infrastructure
Transportation, incl Ports
Healthcare
Water & Waste Water
Education
Waste
Government Offices
Energy – W2E, EfW, Renewables
Social Housing
Public Fleet Management
Defence
Industrial Park Development (LABV)
Prisons
Student Accommodation
NEXT STEPS
UNECE PPP 6 STEP NATIONAL READINESS ASSESSMENT TOOL
COUNTRY
Requests support
UNECE PPP secretariat select and appoint UNECE PPP Readiness
Taskforce Team
UNECE PPP Secretariat
Stage One
Fact
Finding
Mission
Preliminary
Report
UNECE
International PPP
Centre of
Excellence
• Teams of Specialists
• PPP Specialist
Centres
• PPP Regional Training
Centres
- UNECE
Six Step Country PPP Readiness Assessment Process
Consultation
& Peer
Review
FEEDBACK
Working
Level
Workshop
UNECE PPP Toolkit:
• How To Manual
• Best Practice Guides
• Train -the -Trainer
Modules
Process for
Improvement &
Final Report
Strategic
Action
Plan
Country Implements
Strategic Action Plans,
Plan,
Early Works Projects, and
Pilot Projects
UNECE
Public-Private
Partnerships (PPP)
Initiative
UNECE
Public-Private
Partnerships (PPP)
Initiative
THANK YOU FOR LISTENING
Leo McKenna
Chair, UNECE TOS PPP
International Centre of Excellence and Specialist Centres