Download The role of the Center in development of public

The role of the Center in the development of
public-private partnership in Ukraine: the first
results of activities and tasks for the future
I.V. Zapatrina,
The Center’s Chairman of the Board
The most widespread
definitions of PPP
 Innovative, contractual agreement between the public and private
sectors in the provision of public services and rebuilding the
infrastructure, which melds within itself all the best from both
sectors; resources of the private sector, its qualified opportunities,
technologies and potential of the public sector with respect to
economic regulation and the protection of public interest.
(Economic Committee of the UN in Europe (UNECE)
 Attracting private businesses (competitions, capital) for more
effective execution of tasks, which are the responsibility of the
state, with conditions to allocate risks and rewards for the achieved
results;
 Instrument of long-term, successive politics of development, in
accordance with which, investors receive a certain security;
The development of public-private
partnership in the World
PPP 1997
PPP 2007
Info of the Polish PPP Center
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Water supply and sanitation
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Sport
Education
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Roads
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Ports
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Health
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Railway
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Prisons
Germany
Poland
Romania
Slovakia
Scotland
Hungary
Great Britain
Italy
Housing sector
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Defense
Austria
France
Spain
Netherlands
Ireland
Northern Ireland
Airports
Administrative services
Countries/sectors
Informational technologies
Public-Private Partnership in Europe
in sectors, 2009
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Conclusions from the results of PPP’s
analysis of Latin-American countries
1. Positive features
(activated development of infrastructure, increases quality and efficiency
of services providing, including public services, attracts financial
resources, increases employment, promotes economic growth)
2. Problem issues:

Over- expectations of the public authority

High level of renegotiated contracts (in all -30%, water supply and
sanitation – 74,4%) and a short period of time till renegotiation of the
contracts (in all – 2.2 yrs., water supply and sanitation – 1.6 yrs.)

The annulment of several signed contracts, which leads to society’s
non-acceptance of PPP’s ideology in general.
Main reasons why the effective application of
PPP mechanisms is hindered
 Imperfect
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regulatory
politics
(taxation,
prices,
authorization/licensing system, organ of control, non-transparency,
et al.
Excessive regulation of the PPP projects from the public
government sphere.
The lack of corresponding institutional infrastructure (preparation,
controlled selection, monitoring PPP)
Insufficient professionalism of the public government (government
support system, selection criteria for projects, evaluation of
suggestions, non-developed mechanisms and basis for agreements)
Political instability, lack of succession
Negative attitude of the public authority and the population toward
the private sector and its participation in infrastructure projects
Portion of government sector in GDP, %
40
35
30
25
20
15
10
5
0
Ukraine
Canada,
England,
Italy
USA
Poland
Info of the institute of economy and forecasting of NAS of Ukraine
Some characteristics of Ukraine’s
regulatory system
 Simplicity of carrying a business – 142nd place out
of 183 countries of the world;
 Efficiency of the tax system – 181st place out of
183 countries of the world;
 Fiscal load on businesses – level of GDP
redistribution through the budget for 2009 –
42.4%
Відповідно до Програми економічних реформ
Management of public/communal
property
1.State enterprises
- 500 out of 4000 of Ukraine’s enterprises, where
50% or more belongs to the state, are currently in
bankruptcy status
2. Communal enterprises
- receivables in sector of housing and communal
services (heat supply, water supply, sanitation, city
electric transport) has reached 12 million UAH
- technical condition of the branch (part of the
networks of the water/heat supply system, and
sanitation, which are in distressing conditions, is
more than 30%)
According to the Program of economic reforms
Low quality of public services
Public Services – services offered by the state authority, local governments,
enterprises, institutions, organizations managed by them.
State services – services offered by the state authority (mainly the executive
branch) and by state enterprises, institutions, organizations, as well as, by local
authorities in accordance with the powers delegated by the state, at the
expense of the state budget.
Municipal services – services offered by local authorities, as well as members
of executive power and institutions, enterprises, and organizations, in
accordance with the powers delegated by the local government, at the expense
of the local budget.
Clarifications of the Ministry of Justice dated 18.12.2009
No.967-0-2-09-22
Services provided by the public sector, as well as the private
sector, with the public power responsible for it and at the
expense of the public funds.
Potential spheres of using PPP in
Ukraine
• Construction and modernization of infrastructure
objects
• Organization of state support of scientific and
innovation activity
• Integration of national cultural heritage in public life
and socially-economic development of territories
• Provision of public services
Weak Points in the development of PPP in Ukraine:
 The lack of partner relations on the axis: “government – local self-
government - private business”
 The population’s distrust of the ‘private partner’
 Weakly developed legislative regulation system in the PPP sphere, lack of
methodology and knowledge of preparation and realization of such
projects;
 Non-sufficient qualification and knowledge of public and business
representative in the PPP sphere;
 The lack of standards for service production and a developed system of
monitoring quality;
TASKS:
CREATION OF INSTITUTIONS – CENTERS OF COMPETITION IN PPP’S SPHERE
DEVELOPMENT OF SCIENTIFIC, INSTITUTIONAL, METHODOLOGICAL SUPPORT
OF PPP
IMPLEMENTATION OF PILOT PROJECTS
DEVELOPMENT OF INSTITUTIONAL CAPACITY OF THE PUBLIC AUTHORITY
The role of science in the development
of PPP in Ukraine
 Forms ideology and methodology of development of
public-private partnership
 Qualified expert on issues of public-private
partnership (financial economic, ecological,
technical, and legal expertise)
 Participant of PPP projects, which have innovative
direction and are implemented in the form of PPP.
Why a non-government PPP Center?
Institutional potential
Avoidance of political
influence and populism
Long period of formation and
implementation of PPP
projects
PPP Center – Stability in uncertain
conditions
Strategic Council
Supervisory
Board
Executive
Board
Founder
Direction of activity of the PPP Center
1
• Scientific-methodological support
• Development of normative base
2
• Trainings, increasing of qualification
• Public dialog
3
4
• Formation and support of PPP projects
• Attraction of credit resources for pool of
infrastructure projects
Achievements
PARTNERS:
•Regional government administration of Donetsk,
•City Council of Mykolayiv,
•School of senior civil service of Ukraine
•Government service on issues of cultural heritage of Ukraine
•Kazakhstanian Center of government-private partnership
•Polish Center of public-private partnership
•Kiev regional representation of the cities of Ukraine association
•Scientific institutions, consulting companies, and Ukraine’s public
organization
PRACTICAL ACTIVITY:
Support of the activity of an interdepartmental work group on issues of
development of a state partnership in Ukraineunder the Ukrainian
Ministry of Economy (2 conferences)
Achievements
1. International round table “Public-Private Partnership in Ukraine:
possibilities and risks” Kiev, May 2010
2. Participation in international conferences: “Prospects of development
of the water branch until 2000" Moscow, June 2010; "Conference of
DPP Centers of the world", Astana, July 2010; Rishel'yevskiye academic
hearings, September 2010
3. Training on issues of the public-private partnership in the school of
senior civil service of Ukraine, October 4-5, 2010.
4. Launch of the Center’s website: www.ukrppp.com
Tasks for year 2010-2011
1. Active participation of the Center in the development of the normativelegal environment of PPP (review of the framing laws and improvement
of particular legislation in this sphere, development of basis for
agreements, systems of analysis of efficiency of PPP, state support in
the sphere of PPP)
2. Conducting a few scientific researches on problematic issues of
development of PPP in Ukraine with participation of institutions of the
National Academy of Science of Ukraine. Widespread dissemination of
the results.
3. Developing the mechanisms of introducing PPP into the scientifictechnical community.
4. Development and scientific-methodological support of pilot projects in
form of PPP (on the basis of Donetsk and Mykolayiv)
5. Development of international collaboration, analysis, generalization,
and dissemination of experiences. Holding seminars, conferences, and
round tables.
6. Organizing the education of the local government powers and the
private sector in the sphere of PPP (training, including online)
Thank you for you
attention
www.ukrppp.com