Post on 04-Jul-2015
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Public private partnerships, legal frame & challenges
Moroccan experience
Public private partnerships, legal frame & challenges
Moroccan experience
Presented by:Fatim-Zahra Ettalbi, CJD Organization
Thoughts…“May you live in interesting times”
A chinese curse?
Deficits at all levels of government;
States often have requirement for a “Balanced Budget” and/or debt limits;
Infrastructure and service needs escalating;
Postponed maintenance and political decisions;
Cuts in services and government programs;
Thoughts…Today the past has a future!
Morocco worked on the reforms and labeled them as a need for both the king and the citizens
Moroccan revolution is based on the country’s need of development!
The government has revealed its willingness to improve infrastructure and public service provision
Thoughts…The government on its own is a bad
investor and a bad manager ! #truestory
…but it needs: Management EfficiencyNewer TechnologiesWorkplace EfficienciesCash Flow ManagementPersonnel DevelopmentShared Resources (Money?)
It has: Legal AuthorityProtection of Procurement Policiesgoals to meet public needsPersonnel – dedicated but constrained;Access to tax exempt financing
Private Sector Strenghs
Why adopt PPPs in Morocco?
- Morocco’s national objectives – prosperity and quality of life;These objectives require quality infrastructure
- Infrastructure deficit / Government investment escalating debt loads and constraints on public sector revenue - Government facing increasing demands for provision of infrastructure in a cost-effective manner
PPP is one of the best solution!
Public private partnerships
What is a PPP?A Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a private sector entity.Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.
Source: European commission
PPP in MoroccoSample of Successfully Implemented PPP
1995: Launch of PERG (Rural electrification Program);access to electricity increased from 16% to 98% today (more than 20 billion dirhams)
1997: Launch of 2056MW coal-fired power complex in Jorf Lasfar (860 Million Euros) .
2004 : Central Gas Tahaddart (280 Millions Euros)
Agriculture: Irrigation project in El Guerdane (85 millions Euros)
PPP in Morocco
Urban transport: Tram Rabat-Salé (370 Million Euros)
and Casablanca (600 millions of euros)
2004: Tanger Med port, one of the main Cargo plateform in the Mediterranian and Atlantic (One Billion dollars)
2000 MW wind park in Koudia Al baida (64 millions Euros)
Legal framePPPs were governed in Morocco by the Law No 54-05 relating to delegated Management of public services.
OVERVIEW OF THE NEW BILL OF PPP FRAMEWORK :
Provided a platform to depart from traditional concessions and focus on the improvement of various public projects or public services via PPPs;
gives full control to the competent public entity in conducting the tender process, negotiating the PPP contract and monitoring its implementation,
Allows the selection of the most economically advantagous tender based on criteria produced in the tender document…
Legal frame
Definit ion of PPP Concept
Definit ion of PPP Concept
Definit ion of PPP modelsDefinit ion of PPP models
Introduction of objective
cri teria related to the PPP
Process
Introduction of objective
cri teria related to the PPP
Process
Extension of the scope by adding new sectors
Extension of the scope by adding new sectors
Objectives• Regulate the different concepts of private sector participation to public services under one title Profitability•Simplify the legislation and eliminate differences•brings a flexibility to implement different types of the PPP models.
Objectives• Regulate the different concepts of private sector participation to public services under one title Profitability•Simplify the legislation and eliminate differences•brings a flexibility to implement different types of the PPP models.
Unif ication of the PPP
Legislation
Unif icat ion of the PPP
Legislation Introduction of the risk concept
to the PPP Projects and
definiton of the guarantees
Introduction of the r isk concept
to the PPP Projects and
definiton of the guarantees
INNOVATIONS INTRODUCED BY THE DRAFT PPP LAW
Challenges…« we don’t speak the same language »
Challenges…
Political interference with procurement process;
Lack of Mechanisms that include Moroccan companies…
Lack of accounting and auditing procedures that leads to theft, fraud and corruption;
PPP in MoroccoWhen PPP didn’t work it looked like
this…
Conclusions so far……
PPP is an answer, not THE answer
The design of PPP matters;
Strengthening governance and the efficiency of investment spending will be critical to deliver results through infrastructure investment;
The fulfillment of global Commitment on Education makes the role of PPP inevitable for Morocco;
Conclusions so far……
Corruption hurts the poor disproportionately by diverting funds intended for development,
undermining a government's ability to provide basic services, feeding inequality and injustice,
and discouraging foreign investment and aid.
…
Thank you…