CAPACITY BUILDING CONFERENCE ON PUBLIC PRIVATE PARTNERSHIP (PPPs)

The Regent Esplanade Hotel Mihanovieva 1 Zagreb, Croatia 7 - 8 February 2011

AGENDA

DAY 1 Monday, 7 February

8.30 - 9.00 Registration Opening: Words of welcome Mr. Kamilo Vrana, Managing Director Agency for Public Private Partnership, Republic of Croatia Mr. Geoffrey Hamilton, Chief UNECE - Economic Cooperation and Integration Division (CECI), Cooperation and Partnership Section 9.00 9.30 Mr. Hido Bievi, Secretary General Regional Cooperation Council (RCC) Mr. Petar obankovi, Deputy Prime Minister and Minister of Agriculture, Fisheries and Rural Development, the President of the Administrative Council of the Agency for Public Private Partnership Keynote address on behalf of Government of Republic of Croatia and Opening of the Conference

9,30 10,00

Information session with journalists

I. Impacts of Financial Crisis on PPPs and Blending as Possible Solution

Moderator: dr. Vojislav Kandi, Consultant IFC Advisory Services in PPP, Europe and Central Asia

Since 2008 financial crisis, markets changed significantly, with an overall negative impact on PPPs, due to higher interest rates, reduced available amounts and shortened requested periods of return. Yet, aside of EU instruments and funds, private investments through PPPs are the only available supplement to public financing. As the gap is growing between public needs and financing capabilities, particularly in SEE countries under pressure to match EU criteria, there is a strong need to introduce encouraging measures for PPP implementation. Lowering risks becomes a key demand. In this session, panelists will highlight key impacts of the financial crisis and possible answers concerning PPP structuring, particularly in relation with EU instruments of preaccession assistance (IPA) and a perspective of participation in other EU measures to be taken to improve both: effectiveness in using EU funds and in blending EU funds and 10.00 11.30 instruments with PPPs. Panelists: Ms. Zsuzsanna Hargitai, Director EBRD Croatia Office Mr. Nikolaos Mantzoufas, State Secretary Special Secretariat for Public Private Partnership of the Hellenic Ministry of Regional Development and Competitiveness, Republic of Greece Mr. Marko Makek, MA, Member of the Board Nexus Private Equity Partners d.o.o., Republic of Croatia Q&A session (15-30 min) 11.30 11.45 Coffee Break

II. Project Cycle and

How to Manage It (part I)

Moderator: Mr. Kamilo Vrana, Managing Director Agency for Public Private Partnership

In this session, panelists will highlight a different perspectives of all project cycle phases. The first part is dealing with steps covering programming, project development and contracting, such as: i. Adoption of Policies and Strategies: What are criteria to choose sectors where PPPs could be efficiently applied and why it is important to get a broad consensus about related priorities? To what extent are governments ready to go forward in PPPs (for example, has it appointed a PPP Unit responsible for preparation of PPP programs, as the base for delivery of actual projects)? Preparation of PPP Programs: Are the PPP programs and projects based on adopted policies and development strategies, or mostly on other criteria, and by stakeholders others than line ministries? Why PPP programs are obligatory base for rational use of knowledge resources, as well as for successful PPP market generation through standardization and optimization of PPP structures? Activities towards establishment of stabile and attractive PPP market as one of the key role of national centers of knowledge, as well as SEEPN concerning cross-border projects in the SEE region. Tendering and Contracting: Important aspects (legal, financial, technical, organizational) for successful preparation and execution of tendering procedure. Significance of structured studies (feasibility, environment, energy efficiency) and risk allocation. Harmonization and transparent tendering procedures in line with EU principles, as the key elements of successful contracting, providing the best value for money for the public sector.

ii.

11.45 13.15

iii.

Panelists: Mr. Arthur Leslie Smith, Vice-Chair UNECE, Economic Cooperation and Integration Division (CECI) - Team of Specialists on PPP Mr. Mario Turkovi, Director Agency for PPP, Sector for Assessment and Approval of PPP Projects, Republic of Croatia Mr. Milomir Amovi, Deputy President Commission for Concessions, Republic of Bosnia and Herzegovina Mr. Trker Yndem, Lawyer YaltiYndem Law Firm, Republic of Turkey Q&A session (15-30 min)

13.15 14.30

Lunch

III. Project Cycle and How to Manage It (part II)

Moderator: Prof. dr. Vladimir Skendrovi, PPP Consultant PPP Center, Croatia

In this session, panelists will highlight a different perspectives of all project cycle phases. The second part is dealing with steps covering project execution, such as: iv. Construction Phase: What are principal risks (permissions, property rights, investment capacities, unexpected events such as archeological findings, project management) and how to minimize them? Operational Phase: The main goal of PPP project is a higher level of the public service delivered with optimal whole life solutions, or availability of the advanced public structure. Execution of contracts has to ensure all that, as well as to repay the investment and generate some profit for private partner. How to ensure these issues? Importance of a project management and definition of key related issues (service or availability standards, payment mechanism and deduction scheme, organization and procedures of auditing, dispute settlement). Contract Termination: How and why contract may be terminated (an early termination, contract fulfillment)? Related roles and obligations of parties involved (public partner, private partner, banks). Either returns of equity, or having it into initial state?

v.

14.30 16.00

vi.

Panelists: Mr. Izet Bajrambai, Assistant Minister Ministry of Communication and Transport, Republic of Bosnia and Herzegovina Prof. dr. Saa Marenjak, General Manager PPP Center, Republic of Croatia Mr. Anthony Smith, Member of the Business Advisory Board UNECE, Economic Cooperation and Integration Division (CECI) - Team of Specialists on PPP Prof. dr. Branko Vukmir, PPP Consultant PPP Center, Republic of Croatia Q&A session (15-30 min)

16.00 16.15

Coffee Break

IV. EU Joint Perspective as the Framework for Harmonization of the Public Procurement and PPP Legislation in the Region
Moderator: Mr. Ljerka Golubi Bregant, Director Agency for public-private partnership, Sector for Education, Republic of Croatia

The effectiveness of legal frameworks concerns the quality of legislation and the assurance that it is actually implemented. The joint perspective of the EU membership shared within SEE region is an inspiring force in harmonization of legal frames with the EU acqui communautaire and within a region itself as well. It widens investment horizons and boost investment potentials. In this session, panelists will, based on legal heritage and practices within the SEE region, address the key challenges of the alignment of legal frameworks for public procurement and PPPs with the related EU regulations, as the common focal point. 16.15 17.45 Panelists: Ms. Paulina Stanoeva, Attach - Public Finance and Public Administration Delegation of the European Union to the Republic of Croatia Mr. Olivier Moreau Senior Advisor, Public Procurement OECD/SIGMA Ms. Katerina Kitsili, Partner Sagias & Partners Law Firm, Greece Mr. Anthony Smith, Member of the Business Advisory Board UNECE, Economic Cooperation and Integration Division (CECI) - Team of Specialists on PPP Q&A session (15-30 min)

End of the Day 1

DAY 2 Tuesday, 8 February

V. UNECE/CECI Team of Specialists on PPP Activities and PPP Toolkit
UNECE1/CECI2 Team of Specialists on PPPs (TOS PPP) was established in 2008 with a clear mandate to build the capacity of governments to undertake successful PPPs. Since two years, the TOS PPP has made substantial progress in building a network of practitioners, working with member states on capacity building events, and in elaborating its toolkit of materials. In this session panelists will present more in detail TOS PPP mandate and activities, particularly concerning capacity building, inter alia, the UNECE Toolkit on how to do PPP and the UNECE International Centre of Excellence. Panelists:
10.00 11.30

Mr. Geoffrey Hamilton, Chief UNECE, Economic Cooperation and Integration Division, Cooperation and Partnership Section UNECE Team of Specialists on PPP Background and Mandate UNECE Team of Specialists on PPP Toolkit of Training Materials Mr. Tony Bonnici, Economic Affairs Officer UNECE, Economic Cooperation and Integration Division UNECE Team of Specialists on PPP Capacity Building Activities and Progress in Creation of UNECE Centers of Excellence Mr. Jaap M. Veenenbos, MSc, Regional Director AON Global Risk Consulting Q&A session (15-30 min)

11.30 11.45

Coffee Break

UNECE United Nations Economic Commission for Europe CECI Economic Cooperation and Integration Division of UNECE 7

VI. Regional Supporting Frameworks and Activities

Having a potential to blend public and private investment sources, PPP may have a particularly important role in bridging a gap between urgent developments needs and available public funds. But to apply PPP successfully, related policies and strategies have to be developed, as well as dedicated legal and institutional frameworks. It requests a strong political support. Furthermore, sufficient number of practitioners must be well educated and trained. To achieve that a regional network and centers of knowledge may be essential supporting platform for efficient share of know-how and delivering of specialized publications, learning programs and tools. In this session panelists will present a key role of RCC in shaping joint regional development policies and initiatives with the support of EU institutions, SEEPN as an essential SEE practitioners backing platform and EPEC as the key EU centre of PPP knowledge and policy initiatives. Panelists: 11.45 13.15 Mr. Sanjin Arifagi, Head of Economic and Social Development Unit Regional Cooperation Council (RCC) - Regional Infrastructure Development Accents in RCC Program for 2011-2012 Mr. Kamilo Vrana, Managing Director Agency for PPP of the Republic of Croatia - SEEPN Supporting Platform and Foreseen Priorities in 2011
Dr. Goetz von Thadden, Principal Adviser European PPP Expertise Center (EPEC)

- Role of EPEC in Promotion of EU PPP Policy and Programs, Institution Building and Share of Experience and Knowledge Q&A session (15-30 min) 13.15 14.30 Lunch

VII. National Presentations (Part I)

Enrichment of national experience and development of PPP capacities of each and every country in the SEE region is of mutual interest, enabling regional development, which then may boost national development even more. Harmonization of frameworks and national PPP capacities leverage by sharing of experience is however essential for joint successful preparation and execution of demanding cross-border projects, in order to efficiently inter-connect and fully utilize national networks like roads, rails, inland water transportation routes, energy transmission lines etc. Purpose of this session is to get an in-depth view of recent national PPP developments within SEE region, including legal and institutional frameworks, projects under preparation or already launched and further short-term prospects and expectations. Also, suggestions concerning the most needed support as well as proposals of corresponding future SEEPN activities are highly welcome, with due respect if also taking in account present financing restraints, or even include proposal how to extend them. Panelists: 14.30 16.00
Mr. Erion Mata, Director of Identification and Promotion of Concessions Directory

Concession Treatment Agency of the Republic of Albania (ATRACO) - Presentation of PPP Development Stage in the Republic of Albania Mr. Hamed Meanovi, President Commission for Concessions of the Republic of Bosnia and Herzegovina - Presentation of PPP Development Stage in the Republic of Bosnia and Herzegovina Mr. Donat Alay, Technical Advisor Ministry of Economy and Finance, Partnerships Kosovo - Presentation of PPP Development Stage in the UN Mission in Kosovo Ms. Katerina Kosteska, State Secretaryt Ministry of Economy of FYR of Macedonia - Presentation of PPP Development Stage in the FYR of Macedonia Q&A session (15-30 min)

16.00 16.15

Coffee Break

VIII. National Presentations (Part II)

Enrichment of national experience and development of PPP capacities of each and every country in the SEE region is of mutual interest, enabling regional development, which then may boost national development even more. Harmonization of frameworks and national PPP capacities leverage by sharing of experience is however essential for joint successful preparation and execution of demanding cross-border projects, in order to efficiently inter-connect and fully utilize national networks like roads, rails, inland water transportation routes, energy transmission lines etc. Purpose of this session is to get an in-depth view of recent national PPP developments within SEE region, including legal and institutional frameworks, projects under preparation or already launched and further short-term prospects and expectations. Also, suggestions concerning the most needed support as well as proposals of corresponding future SEEPN activities are highly welcome, with due respect if also taking in account present financing restraints, or even include proposal how to extend them. Panelists: Mr. Ion Potlog, Head of PPP Unit Ministry of Economy of the Republic of Moldova, Public Property Agency - Presentation of PPP Development Stage in the Republic of Moldova Mr. Slobodan Perovi, President of Commission Commission of Concessions of the Government of Montenegro - Presentation of PPP Development Stage in the Republic of Montenegro Mr. ore Belenzada, Advisor Public Procurement Office of the Republic of Serbia - Presentation of PPP Development Stage in the Republic of Serbia Ms. Nurhan Uyduranolu Karaca, Department Head Republic of Turkey Prime Ministry, Undersecretariat of Treasury - Presentation of PPP Development Stage in the Republic of Turkey Mr. Kamilo Vrana, Managing Director Agency for Public Private Partnership, Republic of Croatia - Presentation of PPP Development Stage in the Republic of Croatia Q&A session (15-30 min)

16.15 17.45

17.45 18.00

Closing Statements in the Name of Organizers End of Conference

10