MAIN THEME: HEALTHCARE PPPs

Transcription

Spring 2013
www.PPPMAGAZINE.com
PPP Magazine
PUBLIC-PRIVATE PARTNERSHIP | POLAND, EUROPE & WORLD
picture: derived from www.sxc.hu
: HEALTHCARE PPPs
MAIN THEME
picture: New Karolinska in Stockholm, source: Skanska
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OPENING
Editorial
PPP meetings
by: Adam Jędrzejewski, Editor in Chief, Institute for PPP, Poland
T
PPPs could be successfully applied: waste-to-energy, civic
his issue of the "PPP Magazine" is because we all
building and municipal car parks. The international taste of
want to speed up (or actually speed uppp) with intro-
the "PPP Magazine" we again owe Slovenia, where the 1st
ducing PPPs into the sphere of public investment and ser-
"Speed uppp Slovenia" took place only recently gathering
vices, which in the times of public budget constraints all over
120 participants, Ukraine, which already for the second time
the world are of genuine importance for all stakeholders. This
runs "Speed uppp Ukraine", and this time also the Czech
Spring has brought three "Speed uppp..." events, in Slovenia,
Republic through providing an insight on its local PPP market.
Ukraine and Poland, all trying to identify the main obstacles
in developing PPPs locally and even if not tackle these then
at least to show the possible solutions. Apparently it is not
only about Slovenia, Ukraine and Poland as any market that is
not yet making immense use of PPPs is most often facing
similar kind of difficulties. This allows us to continue to believe that such meetings of PPP stakeholders as the "Speed
uppp..." conferences are a good and valuable thing. Nevertheless, we did not manage to convince some of the important both public and private sector actors of the PPP market
to be here with us, therefore please support us in bringing
out the message to all parties involved: let us meet, let us talk
and let us speed uppp.
Opponents of the PPP industry meetings, one of which is also
the 1st "Speed uppp Poland", might say that this is all waste of
time and money as real results come only with real action,
which is not what conferences are about. They are perfectly
right only if there is no action then some inspiring events are
required in order to stimulate relevant stakeholders to take action - mainly government officials, those so easily declining all
possible kinds of invitations to discussion stating that they
have much more important thinks to do and that their diaries
are already full. Fortunately, there are also such government
officials who are aware of PPPs and willing to take the challenge of discussing these - those individuals you will be most
likely able to meet on one of the "Speed uppp..." events. Tra-
The main theme of this edition of the "PPP Magazine" is the
ditionally much more interested in PPPs are the representatives
healthcare sector and how the PPP approach can contribute
of local authorities and of course the private sector, which is
to this fragile area of public services, which topic will be
looking to stay in business in these tough economic times.
covered from a different angle in a series of three articles.
The "know-how" section of the magazine will meanwhile also
I wish you a fruitful reading of the "PPP Magazine's" Spring
edition, and above all - successful meetings and discussions.
touch upon some other areas of public services, in which
Partners of this publication:
PPP Magazine Spring 2013
3
TABLE OF CONTENTS
Table of Contents
MAIN THEME: Healthcare PPPs
PPPs in the healthcare sector Marcin Bejm ...........................................................................
p.5
New Karolinska Solna (NKS). PPP Success. Gary Fabbri ...................................................
p.7
PPPs in relation to Health Protection sector Michał Kania ...................................................
p.10
KNOW-HOW:
Importance of stakeholder engagement on PPP projects John Seed, Dominika Nowosińska .........
p.16
Green building in the times of crisis Marcin Iwaszkiewicz ......................................................
p.20
PPP experience in Poland Małgorzata Hejduk, Frederico Nunes, Marcin Podlecki .......................
p.22
PPP solution to waste management Jan Szczygielski ............................................................
p.25
INTRODUCTION TO PPP MARKETS: Insight: Czech Republic
Vladimir Sloup ......
p.27
Report: 1st "Speed uppp Slovenia" Nina Krese ......................................................................
p.29
Update on PPP development in Ukraine Irina Zapatrina ........................................................
p.34
SPEED UPPP: networking & development
"Speed uppp..." conferences are meetings of the PPP industry in
different countries aiming at speeding up development of PPPs.
"Speed uppp..." conferences so far:
 1st "Speed uppp Ukraine", 23-24th April 2012, Kyiv, President Hotel****
 1st "Speed uppp Slovenia", 7-8th March 2013, Bled, Grand Hotel Toplice*****
"Speed uppp..." conferences in April 2013:
 2nd "Speed uppp Ukraine", 11-12th April 2013, Kyiv, President Hotel****
 1st "Speed uppp Poland", 24-25th April 2013, Warsaw, Palace of Culture and Science
About the Issuer and this publication
Issuer: Institute for Public-Private Partnership
Remark: This publication is a conference ma-
Disclaimer: The issuer does not return unsoli-
LLC, 5 Kopernika st. Błonie 05870, Poland,
terial of the "Speed uppp..." conference se-
cited materials and reserves the right to edit
T: +48 (22) 435 95 02, F: +48 (22) 482 10 50,
ries, in particular "Speed uppp Ukraine" of 11-
and shorten them. The issuer is not responsi-
E-mail: [email protected]
12th April 2013 and "Speed uppp Poland" of 24
ble for the content of advertisements.
Editor in Chief: Adam Jędrzejewski
4
th
-25 April 2013.
Pictures: partially derived from sxc.hu
PPPs in the healthcare
sector
by: Marcin Bejm
Counsel at Clifford Chance, Warsaw
T
challenges should automatically translate into a growing
he demand for healthcare services and infrastruc-
number of PPP projects implemented in the healthcare
ture steadily grows everywhere in the world. Global
sector.
healthcare is going through a time of sudden change as the
population ages, a list of lifestyle diseases expands and
demand for high quality affordable care increases. According to PwC estimates, by 2020 the OECD and BRIC (Brazil,
Russia, India, China) nations will spend EUR 3 trillion on
healthcare infrastructure and EUR 54.5 trillion on healthcare services. These huge funding needs will not be met
unless new funding sources are found. In addition, the
As to the rule, healthcare PPP projects worldwide, related to
the construction and maintenance of the hard infrastructure
and supply of medical equipment, do not involve the provision of healthcare services by private partners (with an exception regarding Spanish healthcare PFI projects). If there
was a requirement to provide healthcare services in those
projects, this usually only concerned services with a strong
technical element.
governments in the OECD and BRIC countries will be pressured to effectively control and optimize the rate of public
However, there are strong predictions that future healthcare
spending on healthcare investments. Combination of these
PPPs will be delivering far more than hospital and clinic
5
ment was signed on 15 September 2011 by Żywiec Poviat
and InterHealth Canada Limited for 30 years. The private
partner is to be responsible not only for construction, dayto-day maintenance and management of the hospital, but
also for the provision of healthcare services after they are
taken over from the existing hospital. Żywiec Poviat is not
obliged to compensate the private partner for the availability
of the hospital. During the operational phase, the hospital
would receive remuneration not from the Żywiec Poviat but in
Project of the poviat hospital in Żywiec, source: Devereux Architects
consideration for provision of healthcare services based on a
buildings. Governments are increasingly looking to PPPs to
contract concluded with the National Health Fund (the NFZ).
solve problems relating to complex delivery of healthcare
In Poland, contracts with the NFZ for the financing of
services and inevitably, healthcare services delivery by a
healthcare services may be concluded for no longer than 3
private partner will become integral to the new generation of
years. Payment by the NFZ is by reference to the volume of
PPPs. It will add an additional layer of difficulty and com-
service provided (e.g. patients treated, procedures carried
plexity to healthcare PPP projects. Spain is now experi-
out etc.). There is no minimum guaranteed payment or ca-
menting with a new healthcare PPP scheme (a public spon-
pacity/availability payment under the contracts with NFZ.
sor, using PPP formula, commissions at the same time
There are no binding forecasts that would determine the
healthcare infrastructure and healthcare services from two
minimum scope of healthcare services that should be con-
different SPVs).
tracted by the NFZ from a given hospital in a certain period
Current global trends are also visible in Poland. By the end of
2016, all hospitals in Poland must be brought into line with EU
technical and sanitary standards. Added to the necessity of
optimizing hospital infrastructure (e.g. many hospitals in Poland currently are housed in several separate buildings), the
value of the necessary investment in the sector over the next
few years could be at least EUR 1.5 billion. In the next few
years, attempts to optimize the operating costs of hospitals
and the necessity of modernising them will be an incentivizing factor for hospitals' owners to implement PPP projects.
of time based on demographic data or historical demand.
When a contract with the NFZ expires, there is no guarantee
that another will be concluded. Therefore, the decisions of
the NFZ relating to the conclusion of subsequent contracts
with the new hospital in Żywiec and the scope of these
contracts will be completely discretionary. In addition, the
NFZ is not politically proximate to the Żywiec project (under
the existing system, the NFZ is not responsible for investments in the healthcare sector). This situation introduces
additional political, organisational and financial risks to the
project. Although the Żywiec project commercially closed in
So far, four PPP agreements have been concluded in the
2011, it has still not reached the financial close. This could
healthcare sector in Poland. They concerned a poviat hos -
result from the specific allocation of risks in the project, or
pital in Żywiec, a hospital in Jaworzno (two agreements)
could be a consequence of lenders' aversion to financing
and a welfare and healthcare centre in Kobylnica. Apart
hospital PPP projects in Poland not based on an availability
from the project concerning the poviat hospital in Żywiec
payment scheme.
(with a value of over EUR 50 million), the value of the other
three PPP projects in this sector was minor and did not exceed EUR 1 million.
Despite the Żywiec Project's problems, approximately 15
healthcare PPP projects are now being prepared in Poland.
This means that during the next 1-2 years Poland will have
The project in Żywiec concerns the design, construction and
a real potential to become a robust healthcare PPP market.
supply of equipment to a new poviat hospital. The hospital is
to have a usable area of approx.18,000 m2 and 390 beds.
The value of the investment outlay during construction is to
be approx. approx 35 million EUR. The value of hospital
equipment is to be approx. EUR 17 million. The PPP agree-
6
Marcin Bejm
Counsel at Clifford Chance, Warsaw
New Karolinska Solna (NKS)
PPP Success
by: Gary Fabbri for
N
ew Karolinska Solna (NKS) is the world’s largest
PPP hospital. It is Sweden’s first PPP building, and
has high green aspirations, targeting LEED Gold
certification.
This public-private-partnership (PPP) between the Stockholm County Council and Swedish Hospital Partners comprised of Skanska and Innisfree will finance, build, operate
and maintain the new hospital until 2040.
‘A big concern in a traditional procurement is that we don’t
really know what the final cost will be once the project is un-
picture: NKS Entrance Hall, source: Skanska
contract alone is valued at SEK 14.5 billion.
der way,’ says Stig Nyman, Commissioner, Stockholm
County Council, ‘but by choosing a PPP we know the exact
cost all the way until 2040 and that’s a strength for a public
financed project of this size.’
The predictability of cost for the client is considered to be
100 percent in a PPP project. The client does not directly buy
the building, the road or whatever the asset may be instead
they buy the service and accessibility over a long period of
NKS is Skanska’s largest project ever and the construction
time and they pay a fixed unitary charge for that.
picture: New Karolinska in Stockholm (NKS), source: Skanska
7
The process
‘Traditionally you would do the project in stages,’ says Ulf
Norehn, Managing Director, Swedish Hospital Partners. ‘You’
d go to an architect and then to an engineer and get a structural design and then you’d go to construction companies
and get bids etc. In the PPP process you, as an ultimate client, get one party to find and manage all of those partners.’
‘The project company or Special Purpose Vehicle (SPV)
takes responsibility to provide a service, in the case of NKS,
of project Finance at Skanska ID. ‘But the key elements remain the same - fixed price, fixed date for delivery and risk
capital from the private sector at stake. That gives us the
incentive to deliver and keep delivering for the duration of the
concession. Return on our capital is a real incentive. If we
don’t deliver we don’t get paid.’
‘Historically, the private sector would arrange for all of the
financing, but that has changed considerably over the last
few years as the PPP model has developed.’
it comes in the form of hospital buildings that are maintained
It’s still typical for a SPV to invest at least 10 percent risk
for 30 years to a high standard. Included in the scope is also
capital, the rest financed through bank loans or bonds but if
a wide range of soft services such as cleaning, building
a client has money or can borrow money cheaper and wants
maintenance, logistics, etc.’
to take part in the financing that’s great,’ says Thomas.
Clients rely on the project company to find the best innova-
‘When we started NKS we planned on borrowing about 20
tive solutions in terms of design and construction and to op-
billion SEK and we ended up sourcing financing for half of
timize life cycle costs.
that. The Stockholm County Council financed the other half.’
Contracts were signed and closed in record time for NKS -
‘Transparency and open books are essential in PPPs,’ says
Prequalification December 2008, Tender Release 31 March
Thomas. ‘We work together with the client to find the best
2009, Tender Submission 30 September 2009, Letter of In-
solution for the community. The end users in PPP projects
tent December 2009, Negotiations January to May 2010, Fi-
are, after all, people like you and me.’
nancial close 30 June 2010.
‘Sometimes it can move fast,’ says Thomas. ‘It’s all about
having the right partners.’
How do you recognize a PPP when you see one?
‘They all look different nowadays,’ says Thomas Rywe, Head
Payment, Cost and Value
‘The client doesn’t start to pay until a service is delivered,’
says Ulf. ‘There is an agreed unitary charge and the client
pays that sum every month. If for some reason they don’t
receive the full service, if a room is not available, or if something has not been cleaned completely deductions are made.
FACTS
 Client: The Stockholm County
Council
 Project company: Swedish Hospital
Partners (Skanska and Innisfree)
 Builder: Skanska
 Construction contract: SEK 14.5
billion (approx. EUR 1.7 billion)
 No. of people involved in construction: approx. 2,000
 Completion date: In phases 2016 –
2017
picture: NKS Academic mall, source: Skanska
8
FACTS
 Area: 320,000 sq m
 Floors: up to 12
 Rooms: approx. 10,700
 Beds, inpatient care: 550, plus a
100-bed patient hotel
 Operating rooms: 36
 Radiation therapy rooms: 8
 Out-patient clinic rooms : approx. 168
picture: NKS Heliport, source: Skanska
The list of possible deductions is extensive and weighted in
terms of importance. If an operating theatre is not available,
for instance, the deductions are quite severe. If a single toilet
is not in operation the deduction is lower.’
‘PPP projects are not more expensive to build or operate
than traditional projects. When you look at the total cost over
the life of the project they may even be lower,’ continues Ulf.
‘But communication is important. Sometimes we communicate the construction cost. Another number that is communicated is the cost over the lifespan of the building. It is essential to understand that in a PPP project the risk allocation
is different compared to traditional delivery methods. By allo-
Sustainable Green Thinking
Sustainability is central to the NKS focus on patients.
This means that everything from architectural plans to the
operation of the completed hospital will be based on patients’ privacy, safety and comfort.
The entire construction production is green, featuring environmental solutions for amenities such as transportation,
waste management and energy supply.
NKS will be one of the world’s first university hospitals to be
environmentally certified. The goal is to achieve at least the
gold level in the LEED international certification system and
gold level in the Swedish certification system “Miljöbyggnad”.
cating risks to the party best suited to manage them the
costs for the project is reduced.
Sharing knowledge
‘Life-cycle thinking is important. We have to maintain the
‘This is what we call a great One Skanska project,’ says
facilities for 30 years because we are going to hand it over at
Martine Gagnon, Portfolio Director, Skanska ID. ‘It’s the best
the end of the concession. We have to change components
of Skanska coming together. Skanska ID, Skanska Sweden,
as they get old, damaged or worn out, to do that we build up
Skanska UK and other Skanska divisions are working together
a life cycle fund. We can’t let things deteriorate because we
to make this a success. The worldwide experience, company
have a contractual obligation to look after this building and
values and synergies within Skanska help make it possible for
we guarantee that it will be ’as new’ when we hand it back at
our clients to trust us to do what we say we are going to do.’
the end of the concession period.
‘I think potential clients need to fully understand the process
Future Proof Design
and benefits when deciding on a PPP,’ concludes Ulf. ‘Find
the right advisors with PPP experience to assess the potential
‘Typically the client has great influence on the design in
terms of architectural appearance or form of the building,’
says Ulf Norehn. ‘In terms of hospitals, they are very influential and even have to take responsibility for the clinical func-
project. Remember, we are not just building an asset, we are
taking responsibility for a project over a long period of time.
It’s a long-term relationship and it’s important to find the
right partner.’
tionality, but all of the technical functionality, for instance the
dimensioning of the cooling system, the ventilation or heat-
Gary Fabbri for
ing, etc are the responsibility of the SPV.’
9
PPPs in relation to
Health Protection
by: Michał Kania1, PhD, Faculty of Law and Administration,
University of Silesia, Poland
T
sector
here are high expectations for the implementation
of the public-private partnership formula in Poland.
This conviction has already accompanied the first law concerning public-private
partnerships, passed in 2005 and,
what is more, it is still valid at present, in light of the legal
regulations that are in force and have been laid down by
the PPP Act, passed on 19th December 20082, the Act on
Concessions for Works or Services passed on 9th January
20093 and the Public Procurement Act passed on 29 January 20044. According to the legislature’s intention, the goal
of the public-private partnership institution is to fulfill a
wide range of public interest tasks through cooperation
between public-private entities. Two main aims are to be
achieved by the implementation of the public-private partnership institution into Polish law. This institution is to contribute, firstly, to savings on the part of public entities while
guaranteeing that the quality of services provided in sectors
such as transport, health and education will be high. Secondly, it should be of great help to use the knowledge and
experience of private partners, which ought to ensure that
services provided for the public interest will be more innovative. The provision of more innovative public services can
be one of the fundamental advantages of public-private
partnerships.
What else is needed than delivering proper help on time?
The aforementioned expectations also refer to the scope of
the social infrastructure5. Health protection, which constitutes a socially sensitive sector of administrative proceed-
ings, should be included in the earlier referred to scope. This
troublesome area of public activity, which encumbers the
1 PhD, Faculty of Law and Administration, University of Silesia, Poland. The author of dozens of studies devoted to public and private partnerships. He has
been conducting a series of meetings devoted to the popularization of public-private partnerships entitled PPP – Great Choice!
2 Dz. U. (Polish Journal of Laws) 2009, Issue 19, p. 100
3 Dz. U. 2009, Issue 19, p. 101
4 Dz. U. 2009, Issue 19, p. 177
5 On the topic of the implementation of PPPs in the sphere of social infrastructure, see: A. Jędzrzejewski: The presentation on the PPP market in the sphere
of social infrastructure. PPP Forum. Public Investments Magazine. 3/2012, p. 6-9
10
entities
of
public
administrations,
ernized and exploited by this entity.
evokes broad interest on the part of
This option is quite rare. Notable ex-
people responsible for their realization,
amples can be found in Spain, Portu-
potential
gal and Australia7.
private
partners
and
beneficiaries of these activities.
the
The
realization of the tasks, which pertains
NEWS:
Discussing Polish healthcare PPPs
One of the sector panels during the 1st
"Speed uppp Poland" conference will
The current state of health protection
be devoted to carrying out hospital
with the implementation of PPPs
PPP-type enterprises in Poland. It will
to the scope of health protection while
be held on the first conference day
implementing the partnership formula,
Within the scope of health protection
is accompanied by both the hope that
in Poland, there are a dozen planned
the quality of services will improve by
projects that are designed to introduce
using the experience as well as the
the formula of public-private partner-
know-how of the private partners and
ship. These projects include the mod-
the fear of consigning these tasks to
ernization and expansion of three hos -
entities different than the ones that are
pitals in Warsaw 8, the construction of
generally thought to be related to the
a new hospital for women and children
state, including self-governments. At
with floor space of about 40 thousand
present, the main and dominating con-
m2 in Poznan9, the expansion of the
viction in Poland is that the implemen-
Municipal Hospital in Gdynia, the con-
tation of public-private
partnerships
struction of an integrated hospital in
constitutes a necessity for the realiza-
Bytom, the modernization of the Ne-
"Healthcare PPPs" panel include i.a.:
tion of enterprises pertaining to the
phrology Department along with the
 Jakub Jędrzejewski, Deputy Head of
health service, also by reinforcement
dialysis unit at the Wojewódzki Szpital
by way of the positive feedback and
Zespolony in Kalisz (Provincial Poly -
experience that stem from the actions
clinical Hospital), the modernization
of other countries of the European Un-
and expansion of the historic Center
 Józef Kurek, Director of the Ja-
ion6. International experience shows
for Neuroses Moszna – the Castle in
worzno Multidisciplinary Hospital,
that a public-private
Moszna.
partnership in
Proceedings
concerning
relation to health protection may as -
public-private
sume the shape of two fundamental
health service sector have been an-
models of solutions. Firstly, by enter-
nounced
ing into a contract to build and/or
(provinces), and these are: Warmin-
modernize as well as exploit a hospital
sko-Mazurskie,
where medical services are performed
Podlaskie, Mazowieckie and Podkar-
by a public entity. This constitutes the
packie10.
typical model of partnership in the
The enterprise on the Lisickie Fields
health sector around the world. Sec-
that was undertaken in Żywiec within
ondly, by entering into a contract with
the scope of health protection consti-
a private entity to perform medical
tutes a flagship project. At the current
services which are to be provided by
stage of the enterprise, means for the
the hospital built or, if need be, mod-
financial closure of the project are
in
partnerships
s ev en
in the
voivods hips
Pomorskie,
Śląskie,
(Wednesday April 24th).
Palace of Culture and Science in Warsaw (on
the right), the venue of "Speed uppp Poland"
The list of confirmed participants of the
"Szpitale Wielkopolski" LLC,
 Paweł Pawłowski, Deputy Head of
the Warsaw's Infrastructure Office,
 Krzysztof Przyśliwski, Head of the
Łańcut Medical Center LLC,
 John Seed, Divisional Manager,
Infrastructure Finance and Investment Division at Mott MacDonald,
 Marek Tobiacelli, Director of Energy
Efficiency Solutions, Siemens Poland.
Łańcut Medical Center
Till March 18th potential private partners could submit their applications
for a PPP tender proceeding. Head
of the publicly owned company carrying out this investment confirmed
us that two companies have answered the call for tenders - Warbud,
6 See: PPP in the systems of health protection in select countries around the world. (eds.) J. Kalecińska, I. Herbst. Warsaw 2011
7 Ibidem, p. 7
8 Approx. 250 million PLN
9 Approx. 500 million PLN
10 See: The report of the Kancelaria Doradztwa Gospodarczego (Economic Counseling Law Firm) Ćieślak &
Kordasiewicz: Public and Private Partnership in the sector of health protection in Poland. Warsaw 2012, p. 4
mother company of which is the
French VINCI,
and the
Austrian
VAMED specializing in healthcare.
11
being sought. It should be pointed out that the undertaking
being realized in Żywiec has been done under the auspices
complementary tasks is underway.
Legal regulations
of the Ministry of Regional Development. In compliance with
the project, at the beginning of 2015, a modern hospital will
At this point, the legal basis for the use of public-private
be opened, the floor space of which will be 22 thousand
partnerships in the health protection sector should be indi-
m2. Outpatient clinics are also to function within the prem-
cated. It should be noted that the act passed on December
ises of this hospital. Plans for the introduction of a rescue
19th 2008 concerning the public-private partnerships does
unit equipped with a helicopter landing pad are also under-
not directly specify the public services which must be car-
way. What is more, this institution is also supposed to be
ried out within the scope of the partnership formula. In Ar-
equipped with a complex “one-stop-shop’’ care center.
ticle 2 Paragraph 4 of the act, the legislature has merely
Thanks to this care center, a large number of researches
specified and defined the notion of an enterprise. Pursuant
can done, and the condition of health and treatment will
to Article 2 Paragraph 4 of the Public-Private Partnership
also be evaluated in one location, which guarantees time-
Act, a project which can be carried out on the basis of a
saving on part of both the patient and the medical staff.
public-private partnership institution is defined as: (i) the
Furthermore, the historic part of the old hospital, where the
construction or renovation of a building, (ii) the provision of
new center of geriatric services along with clinics for the
services, (iii) the performance of a task, in particular equip-
elderly as well as the long-term care unit and a complex of
ping an asset with devices that increase its value or utility
retirement homes and spa hotels will be located, will be
or (iv) another service - combined with the maintenance or
renovated11.
management of an asset that is used to carry out a publicprivate partnership project or that is related to it.
It should also be noted that there have already been successful contracts for public-private partnerships in the
The subject of the possible cooperation initiated on the
health protection sector. These include, first and foremost,
basis of the Public-Private Partnership Act has been indi-
the undertakings realized in Jaworzno. The object of one of
cated within the doctrine and does not evoke any doubts.
the contracts, concluded by way of an act on the conces -
As indicated by A. Panasiuk, due to the nature of public
sion for construction works or services for a duration of 15
entities, the subject matter of the partnership shall be the
years
Jaworzno
provision of public services 12. However, M. Kulesza, M. Bit-
(Wielospecjalistyczny Szpital), is a nephrology clinic along
ner and A. Kozłowska suggest that from the perspective of
with a dialysis unit. The contract establishes the right to
the subject matter, the tasks that may be performed within
exploit the object, in other words, the right to conduct on
the scope of public-private partnerships may be any task
its premises a business activity that includes the provision
that is assigned to a public entity by law 13. The limits to the
of medical services within the scope of the nephrology
exploitation of public-private partnerships may constitute
clinic and dialysis unit or a different activity that pertains to
the public tasks that enter the sphere of imperious activi-
this scope. Within the framework of the contract indicated,
ties, the so-called imperium14. One should hold the view
the licensee has assumed the duty of incurring any liabili-
according to which the scope of public tasks that may be
ties connected with the exploitation of the object, including
realized in the form of public-private partnerships should be
maintenance and performing any necessary renovations,
explicitly specified to define the limits that stem directly from
incurring the costs connected with utilities, real estate taxes
the letter of law.
as well as obtaining insurance on the object. Moreover, an
partnerships in the health protection sector should thus
enterprise concerning the rebuilding of the nursing home in
arise from the normative regulations.
Kobylnica into a Health Care Center and the provision of
It is worth noting that the public tasks that pertain to health
by
the
General
Hos pital
in
Potential bans on using public-private
11 See: M. Pytlarz: PPP in the health services – case study. PPP Forum. Public Investments Magazine. 3/2012, p. 16-17
12 See: A. Panasiuk: The license for construction works and services. Public and private partnership. Commentary. Warsaw 2009, p. 295
13 See: M. Kulesza, M. Bitner, A. Kozłowska: The act on public and private partnership. Commentary. Warsaw 2006, p. 33
14 Ibidem
12
protection have been provided for in the regulations of the
the realization of the goals that are set by a given norm)16.
Constitution of Poland. In light of Article 68 Paragraph 2,
In relation to the realization of tasks within the scope of the
the citizens, irrespective of their economic situation, should
health services, it may transpire that public-private partner-
be guaranteed equal access to the services of health care
ships constitute the appropriate form to guarantee due dili-
financed by public means by the public authorities.
This
gence when it comes to the level of performance on the part
regulation is characterized by a program norm, which
of the public administration. The analysis made using the
means that a goal should be set and it should be achieved
public sector comparators – PSC – should lead to such
by the addressee of the norms; there is, however, no direct
conclusions.
indication of required behavior in this norm – a means that
should have been implemented. When discussing program
norms, one refers to norms that bind the addressees by
highlighting the sought-after goals and do not indicate any
specified stages of the realization which should have been
undertaken and that would refer us to the general and social knowledge of the addressees, based on empirical
foundations 15. The program norms are characterized by the
fact that they allow their addressees the choice of behavior
(from a collection of behaviors that constitute the means for
The de lege lata act passed on April 15th 2011 concerning
the medical services and the regulation by the Minister of
Health passed on November 10th 2006 concerning the requirements that should be met in terms of professionalism
and the requirements for sanitary premises and facilities of
the health care units have been of significant importance
for the realization of the tasks in the scope of health service. The introduction of the act on the medical services
into the Polish legal system has been deemed as spectacular. Thanks to its range, the regulation of this act encom-
15 See: P. Sarnecki: Program norms in the Constitution and their respective civil liberties (taken from) Six years of Constitution of Poland. Experiences and
inspirations. A. Szmyt, L. Garlicki (eds.) Warsaw 2003, p. 253
16 See: T. Gizbert-Studnicki, A. Grabowski: Program norms in the Constitution of Poland (taken from) Character and structure of the norms of the Constitution. (eds.) J.
Trzciński. Warsaw 1997, p. 102, M. Atienza, J. Ruiz Manero: Las Piezas del Derecho (Teoria de los enunciados juridicos). Barcelona 1996, p. 7 and et seq.
13
passes almost the entire executive sphere of health ser-
search in the area of medicine as well as foundations, as -
17
vices . This act should constitute the main pillar for a set
sociations, churches and religious associations within the
of laws that will reform the health protection sector in Po-
scope of their medical activities.
18
land . The objective of adopting a law concerning the
The regulations of the law provide for a departure from the
medical services was, first of all, to put the way in which
notion of a health care unit as the basic form of conducting
medical services are rendered in order and to unify the legal
an activity that includes the rendering of medical services.
forms. Furthermore, the main objective of that legal act was
According to the new legal regulations, the units of health
to transfer medical services to the market and to improve
care become enterprises of medical entities by the virtue of
the management of the entire health sector through the
the law while their status is regulated by the contents of
widespread use of the model of public-private partnerships.
Article 551 of the civil code. In compliance with the new act
The introduction of the act on medical activity has pro-
on medical activity, all new hospitals shall function as com-
pelled, among others, changes when it comes to the status
panies created according to the Polish commercial law or
of units rendering medical services, which within the under-
as budget entities. The transformation of units currently in
standing of Article 3 Paragraph 1 of the act consists in pro-
existence into companies will not have to entail their liqui-
viding health services. In accordance with Article 3 Para-
dation while the new entities shall assume the rights and
graph 2, it may also consist in the promotion of health or
duties of the enterprises previously in existence. The amor-
the realization of didactic and scientific tasks in connection
tization of public and legal liabilities serves to encourage
with the provision of services related to health and its pro-
these transformations. The entities that form companies will
motion, including the implementation of new medical tech-
receive a subsidy, by way of a settlement, equal to the
nologies and methods of treatment.
value of
the amortized amounts or interest in relation to
civil and legal liabilities and stemming from bank loans that
In light of Article 2 Paragraph 1 Section 5, the entities that
are due to be settled19.
execute this type of activity have been divided into two
groups. The first includes medical entities while the second
Versions of cooperation
pertains to persons who work professionally as medical
In light of Article 4 of the Public-Private Partnership Act, if
practitioners or nurses. The first group, which is of key sig-
the remuneration of the private partner is constituted by the
nificance for the realization of projects while using the for-
right to derive benefits from the subject matter of public-
mula of public-private partnerships, includes entrepreneurs
private
in all forms provided for the performance of business activ -
partnerships or, beyond that, by the same right
along with the payment of the monies, the choice of the
ity, also individual public health care units, budget entities,
private partner and the contract of public-private partner-
institutes which conduct scientific and developmental re-
17 See: M. Dercz, T. Rek: The act on medical activity. Commentary. Warsaw 2011, p. 4
18 See: The statement of reasons for the act on medical activity (Dz. U. No 112, item 654). Document no. 3489
19 See: M. Blank, J. Kozak: The system of health protection in Poland (taken from) PPP in the systems of health protection in select countries of the world.
(eds.) J. Kalecińska, I. Herbst. Warsaw 2011, p. 77
PPP CALENDAR
(Save 25% with IPPP2013 booking reference)
3rd SEE PPP
3rd CEE PPP
2nd Annual PPP
Infrastructure Forum
Infrastructure Forum
in Turkey Forum
th
12-13 June 2013,
Zagreb, Croatia.
th
9-10 October 2013,
Warsaw, Poland.
27-28th November
2013, Ankara, Turkey.
Conference & training. Focus sectors
Conference & exhibition. Country focus, i.a.
Conference & exhibition. Sector focus:
include transport, energy, environ-
Poland, Czech Rep., Slovakia, Hungary,
social infrastructure, urban projects, trans-
mental and social Infrastructure.
Romania, Ukraine, Baltic States, Belarus.
port, healthcare, environmental projects.
14
ship shall require the application of the regulations of the
law passed on January 9
th
day exploitation of the building, in providing partial or full
2009, which concerns the li-
equipment for the hospital along with medical apparatuses
cense for the construction works and services within the
and also in rendering medical services 23. The aforemen-
framework that is not regulated by this act. In compliance
tioned list is open and merely indicates how diverse pro-
with Paragraph 2, in cases other than the ones specified in
jects may be undertaken within the scope of public-private
Paragraph 1, the choice of a private partner and the con-
partnerships. The construction of a new hospital will be a
tract for a public-private partnership shall require the appli-
part of large-scale projects. The projects of equipping
th
hospitals with dialysis units and projects concerning the
2004 concerning the Public Procurement Law within the
rendering of medical services in relation to the appliances
scope that is not regulated in this act.
provided for, which are currently being realized, belong to a
cation of the regulations of the act passed on January 29
Thus, depending on the remuneration for the private partner, the act concerning the license for construction works 20
group of projects that do not require any financing24.
Conclusion
There are great expectations in Poland for the use of public-private partnerships. It is hoped that both public entities
and private partners will be very interested in the possibility
of cooperating on an institutional basis in order to carry out
numerous infrastructure and service projects.
The realization of projects connected with health protection
when implementing the formula of public-private partnership may be very beneficial for the improvement of the
standard of medical services in Poland.
It is certain that
the willingness to use the partnerships on a larger scale in
the areas indicated here will be influenced by the difficult
and services21 or the act on public procurement law 22 shall
financial situation of the units of territorial government
be applicable for the realization of the partnership in the
which are forced to seek support from private investors with
area of health services. As regards projects of partnerships
the guarantee of access to health services.
in the health service sector, the remuneration of the private
The realization of the enterprises in the health protection
partner may come from the public entity that takes part in
sector instills fears in private partners in relation to a com-
the public-private partnership projects, from payments
mitment to long-term undertakings, because of the lack of
made by patients, their insurance companies or from other
any guarantee of concluding multi-year contracts with the
sources, respectively.
National Health Fund (NFZ)25.
In practice, the projects of public-private partnerships shall
Michał Kania
consist in the building or renovation of a hospital, in providing services connected with the maintenance and day-to-
20 e.g. the enterprise that includes designing, making and equipping the SP ZOZ Polyclinical Hospital in Jaworzno with necessary installations that will enable
the creation of the dialysis unit along with the nephrology clinic
21 e.g. the enterprise connected with the provision of stationary services within the scope of diagnostic imaging using a PET-CT scanner, examination using
a magnetic resonance imaging apparatus (MRI) and computer tomography (CT) in Białystok
22 E.g. The choice of a private partner for the realization of the enterprise consisting in the construction and the exploitation of the Poviat (District) Hospital in Żywiec
23 See: M. Blank, J. Kozak: The system of health protection in Poland (taken from) PPP in the systems of health protection in select countries of the world.
(eds.) J. Kalecińska, I. Herbst. Warsaw 2011, p. 77
24 Ibidem
25 The contracts concluded between the National Health Fund (NFZ) and the service providers are currently in a competitive process for a maximum of 5
years, with an annual need for annexing the scope and the contents of the contract. The National Health Fund cannot change the terms and conditions of the
contract depending on whether the service provider is public or non-public
15
KNOW-HOW
Importance of stakeholder
engagement on PPP projects
by: John Seed1, Divisional Director, Mott MacDonald Infrastructure Finance & Investment
Dominika Nowosińska2, Senior Consultant, Mott MacDonald
O
In the first place, Feasibility Studies are performed to as ne of the most important factors that determine
sess demand for various treatment requirements for a given
the success of a PPP project is whether the pro-
population which helps to determine the hospital functional
ject has achieved value for money. However, just as ‘beauty
requirements. This is then translated into Project Specifica-
is in the eye of the beholder’, value for money is determined
tion for the hospital. These ‘output’ specifications will state
by the satisfaction of the stakeholders with the cost and
the Capital and Service requirements for the new facility.
quality of the finished project.
Many countries undertaking large PPP programmes across
different sectors have understood the importance of stakeholder engagement. If a facility or asset on completion
does not satisfy the key stakeholders (including the end
user groups and staff that must work within the facility) then
it is very difficult to justify that a project has achieved value
for money. This has led to project failure and significant
media criticism of administrations and governments re-
Capital works
Recent new build PPP hospitals have been constructed to
provide a wide range of clinical services for their target
communities. These tend to be ‘general’ hospitals rather
than specialist hospitals and many of those built are also
teaching hospitals. Consequently, new PPP hospitals tend
to be large in size and complexity. Table 1 below contains a
list of bed numbers by specialist department included in a
large PPP teaching hospital in the UK recently.
sponsible for such projects.
Yet, it is still a common mistake made by the promoters of
PPP projects to insufficiently engage the stakeholders
throughout the development of the project. Good stakeholder
110 Ambulatory Care beds
100 Critical Care beds
110 Ambulatory Care beds
engagement ensures initially that the success measures for a
project are well defined and then ensures stakeholder ‘buy-
70 Acute Assessment beds
in’ to the development of solutions that achieve those me-
40 Renal Dialysis beds
asures. In this article we will explore the issues surrounding
stakeholder engagement specifically in school and hospital
PPP projects. Years of PPP experience have demonstrated
that projects which achieve good stakeholder engagement
15 bed Burns Unit
30 Theatres
Elective Surgery Centre
generally cost less and take less time to procure and are
better received by the end users and communities.
MRI, CT, Ultrasound, Fluoroscopy & Angiography rooms
Technical hospital PPP requirements
A&E Centre
The complexity of requirements for hospital PPP deve-
Cardiac Centre
lopment can be daunting for any administration embarking
Oncology Centre
on such a procurement programme.
16
Table 1. Typical facilities required for a hospitals PPP.
KNOW-HOW
Table 2. Contract services in a typical
hospitals PPP
 Pharmacy
 Catering
 Waste management
 Cleaning
 Pest control
 Help desk
 Security
 Grounds and Gardens
 Linen
 Hospitality
Facilities Management Services
The 25-30 year operational contract
common to PPP procurement normally
includes the requirement for the private
sector partner not only to maintain the
hospital in a good functional condition so
that it is ‘available’ at all times but also
contains the requirement for the performance of ‘soft FM’ services such as
catering, cleaning and security for example. In fact, hospital PPP procurements
are renowned for containing the highest
number of FM services requirements as
demonstrated in the right hand Table 2
which details the FM services required in
a recent Australian hospital PPP project.
impossible to engage with every single
person who is or may become such a
 Switchboard/telecom
 Reception
stakeholder, it is normal following the
 Materials handling
identification and classification exerci-
 Goods receipt/distribution
se for the administration to seek out
 Portering
stakeholder
 Car park management
group
representatives.
These are key individuals who can
represent the views of large groups of
stakeholders and have been given the
 Estates maintenance
 Disaster recovery
time and authority to get involved in
 Energy & utilities
the PPP procurement from initiation
 Domestic services
and
 Equipment
concept
development
right
through to construction completion.
 Crèche
Typical schools PPP stakeholders
 Sterile services
An example of a schools PPP shows just
 Ward services
how many different stakeholder groups
 Typical schools PPP stakeholders
With these capital and operational
might require and active involvement in
requirements in mind, it is important
the development of such project (see
for any administration to consider the
figure 1 next page). Each of these gro-
broad range of people that these de-
ups will have different needs and inte-
IPPP Newsletter
tailed requirements will affect on a
rest in the project. For example:
The Institute for PPP in Poland has
day-to-day basis. This exercise is
known as stakeholder identification
and classification. It is not unusual for
stakeholder numbers on large hospi-
 Planning Authority will want to
know what is being built and how
this fits into the environment and
community needs.
tals to number in the thousands or
NEWS:
introduced a new free feature, that
is available as of the beginning of
2013 at www.PPPinstitute.com. It
is the English newsletter on the
Polish PPP market containing in-
even tens of thousands when end
 The Capital Government budget
formation on recent developments,
users and staff numbers are counted
Holder will want to know how much
valuable publications and worth to
into this mix. Consequently, as it is
the school will cost.
attend PPP events.
17
KNOW-HOW
Figure 1. Typical stakeholders on a schools PPP.
 The Council Works Department will want to know that
the facility will be built to their required standards.
 Parents will want high quality and safe facilities for their
children that will enhance their education experience.
 Communities will want a facility that serves them well but
for the minimum cost possible so there in money left for
other community needs.
What is stakeholder management then?
Having identified and categorised stakeholders and then
chosen suitable stakeholder group representatives, stakeholder management is the planning and enactment of the
decision making process. If key decisions are made without
the involvement of key stakeholders then they will feel disenfranchised and it will be difficult to re-engage with them
later in the process.
A key difficulty in this is ensuring that the stakeholder representatives:
 are given sufficient authorisation by their stakeholder groups/organisations to make quick decisions on their behalf
 have sufficient time to attend meetings and review documentation such that these decisions can be made in a timely fashion so as not to delay the procurement process
whole engagement process between the project parties and
This is why it is fundamentally important to plan the enga-
stakeholders throughout the feasibility, procurement and
gement process very carefully from the outset such that the
construction stages of the PPP process. There are many
engagement manager can advise each stakeholder repre-
different approaches to this and several good project ma-
sentative of the programme for their involvement, the deci-
nagement tools and protocols that can be used but gene-
sions they will be expected to have an involvement in and
rally the engagement planning process starts with the
how much time they will need to commit during each activi-
development of the detailed programme for each procure-
ty and at each key milestone.
ment stage. Once developed and agreed between the ad-
Guidance and Standardisation
ministration and their advisors (and the private sector partner in later stages), those activities that involve decision
PPP as a procurement model has been practiced now aro-
making of any kind should be carefully analysed to assess
und the world for more than 20 years. Consequently there is
if any or all stakeholder groups should be involved in that
a large amount of guidance and best practice available
18
KNOW-HOW
produced by governments that have developed large PPP
ble on processes and techniques that can be easily adopted
and PFI pipelines of work. Much of this contains recom-
to suit new PPP projects in Poland. But such stakeholder
mendations on stakeholder engagement and management.
processes must be adopted from the very outset of new pro-
Should bidders and stakeholders interact?
jects and so stakeholder engagement must be one of the
very first considerations of any administration embarking
The simple answer to this question is ‘yes’ but this must be
down the pash to major infrastructure investment.
carefully controlled, especially during the tendering process, in order to ensure probity. If high level output specifications are used in the tender documents, as opposed to
About the Authors
detailed designs, then bidders can only truly ensure that
1
John Seed BSc (hons) MEng MBA CEng MICE MAPM
they are meeting stakeholders needs when developing designs if they are allowed to engage directly with those sta-
Divisional Director, Mott MacDonald Infrastructure Finance
keholder groups. This has proved very successful on past
& Investment.
PPP projects especially in ensuring that the stakeholders
John heads up the Infrastructure Finance and Investment
involved are fully ‘bought-in’ to the Preferred Bidder selec-
division of Mott MacDonald which operates PPP advisory
tion and the design they are proposing. However, the admi-
teams in London, Manchester, Paris, Istanbul, Johannes -
nistration and their project management team must ensure
burg and Toronto. These teams provide technical, procure-
that stakeholders involved in this process are fully aware of
ment and transactional advisory services to governments,
the specification requirements and do not stray ‘off-line’ in
bidding consortia and lenders on many different PPP pro-
any way during the engagement process as this can lead to
jects in all sectors. Mott MacDonald was involved in 361
bidders receiving conflicting messages to what is stated in
PPP transactions in 62 different countries around the world
the tender requirements.
in 2011.
Summary and conclusions
John’s PPP experience includes hospitals, schools, univer-
Well planned and executed stakeholder engagement process
sities, housing, courts, prisons, research and leisure facili-
will help to ensure that value for money is achieved and fully
ties, waste, highways and railway infrastructure. John regu-
recognised on projects. It also helps to mitigate against poli-
larly runs training, capacity building and knowledge sharing
tical and reputational risks to which PPPs are prone due to
workshops on PPP procurement and was responsible for
their size and value as well as social importance. There is
the drafting of several UK standard PPP procedures and
much international experience of getting this wrong on big
guidelines including the 4P’s Project Directors Guide and
PPP projects and the serious consequences that subsequ-
Contract Management Guide for privately financed projects.
ently occur. However, there is also lots of recorded experience of doing this right and hence good guidance is availaFigure 2. Examples of PPP best pracice guides available in
the United Kingdom from 4ps (now Local Partnerships).
Note that Mott MacDonald assisted 4ps in the drafting of
this guidance material.
2
Dominika Nowosinska MEng CEng MICE MIAM
Senior Consultant, Mott MacDonald.
Dominika’s experience in PPP market includes lenders
technical advice during procurement and operations, advice
to grantors/ promoters, business case preparation, management of the procurement process and risk management.
Has worked on project in the UK, Thailand, Hungary and
most recently, Poland.
Dominika is an experienced project manager with over 12
years’ professional experience specialising in multidisciplinary projects, including major local authority procurement
of infrastructure projects, including highways, street lighting, transport and waste management.
19
KNOW-HOW
Green building in the
times of crisis
by: Marcin Iwaszkiewicz, Managing Partner at PIG Architekci, Poland
T
energy efficient and in some cases are even able to produce their
wo paths in the mainstream. Nowadays – in the times
own energy they usually generate financial savings over their life
of crisis, both developers and investors, have to face
cycle. While the environmental and human health benefits of green
very difficult decisions during the investment planning proce-
building have been widely recognised, many investigations show
dure. Namely, it has to be decided, whether to spend more
that the investment costs of about 2% of the overall building budget
money during the construction process, but gain money during
spend to support green design can result in savings during the build-
the operation phase (approximately next 20 years) - from lower
ings life cycle of up to 20% of total construction costs which is about
maintenance and exploitation costs or to cut the costs at the
ten times higher than the initial investment.
beginning but suffer from high bills generated by the building in
the future. Obviously, it is not only a matter of costs and financ-
Thus, is there one proper solution for investment planners to force
more environmental awareness without engagement of high costs?
ing - the ecological footprint caused by the buildings is another
big issue, but unfortunately, not always the one mostly high-
Growing environmental awareness
lighted and discussed.
According to the experience of our architectural practice, the
Green buildings generally cost more in comparison with their con-
environmental awareness of our cooperating investors is signifi-
ventional counterparts. However, because green buildings are more
cantly growing.
Satamalahti Masterplan Finland - competition entry
20
KNOW-HOW
Satamalahti Masterplan Finland - competition entry
Certification Systems
Certification systems such as the most recognized LEED
only those most prestigious but also those less spectacular, but
crucial for local citizens.
(Leadership in Energy and Environmental Design) or BREAAM
The PPP projects can become a good example of contractual
(Building Research Establishment Environmental Assessment
agreements between public entities (especially local) and private
Method) are becoming more and more present on the real es-
sector entities, where the skills and assets of each sector
tate market. However, unfortunately this principle applies only to
(public and private) are shared in delivering a facility being eco
the most prestigious mid scale projects. The every-day low
friendly. Such added value can be delivered by ie. agreement of
budget investments and high budget spectacular venues do not
both parties to rate the project and to achieve goals set by cho-
implement the modern eco-friendly design and build trend.
sen green certification systems.
Green certification methods mentioned above are not commonly
In PPP, especially the public sector as a party taking part in the invest-
used because of costs generated by a need of including spe-
ment process, should enhance the investment by introducing eco
cialists with special accreditations from above mentioned insti-
friendly and sustainable design rules to the investment process. Prop-
tutions in the investment process.
erly developed eco friendly projects can raise the value of nearby
Education
Another issue making eco friendly design less present is very
simple yet difficult to overcome, it is simply a matter of education. Not enough efforts are made to introduce the eco friendly
design trend to the society, part of which are investors.
private investments undertaken by members of the community.
Investing in green buildings is not only essential for a sustainable future, but also makes smart business sense. Green buildings can generate not only operational savings, but also stimulate the local businesses and research institutions, create new
jobs, generate less reliance on fossil fuels (energy security) and
PPP and eco friendly design
to reduce the costs of new infrastructure. While environmental
In my opinion, there is a huge potential in Public-Private Part-
pressures are compelling reasons to build responsibly, green
nership ("PPP") to introduce the eco friendly and sustainable
buildings create additional rewards that are a win-win for all.
design methods and rules to the new investment/projects, not
Marcin Iwaszkiewicz, www.pigarchitekci.pl
21
KNOW-HOW
PPP experience
in Poland
by: Małgorzata Hejduk, Junior Financial Controller, Corporate Finance, Mota-Engil Central Europe SA
Frederico Nunes, Commercial Manager, Mota-Engil Central Europe SA
Marcin Podlecki, PPP Specialist, Mota-Engil Central Europe SA
M
With regards to parking lots, Mota-Engil subsidiaries are
ota – Engil is a multinational group established
managing approximately 10.000 off-street and on-street
in 1946, currently present in Europe, Africa and
parking places in Europe. Mota-Engil group has also know-
South America, with a turnover of 2.1 bEUR in 2011. In Eu-
how in facility management, being responsible for several
rope, Mota-Engil began its activity in Poland in 1997, with
facilities, developed in PPP, such as hospitals and schools.
the award of the 1st road contract on A4 motorway. Since
then Mota-Engil had finished over 400 projects in Poland,
Czech Republic, Slovakia, Hungary and Romania. Main
scope of Company interests are: road and civil construction, environmental projects, real estate development, power construction works and Public Private Partnership (PPP)
projects.
In Poland Mota-Engil Central Europe divides its approach
towards concession projects, where it is able to take over
demand risk (car parks) and PPP projects, where demand
risk can be better managed by Public Authorities, whereas
private entity remuneration stems from availability payment
(roads and civil construction projects). Although each project has its own specific characteristics, we can state that
Profiting from several years of experience of Mota-Engil
group in development of PPP projects, Mota-Engil Central
Europe SA established a team dedicated to enlarge its activity on those projects.
our experience differs from project to project.
Currently the most significant PPP success of Mota-Engil
Central Europe in Poland is the concession signed and carried out for the underground car park for 331 places under
Mota-Engil group has a very significant experience in co-
Nowy Targ square in the City of Wroclaw. Business model
operation with Public Authorities. Our aim in Poland is to be
of this project is to design, built, finance and operate for 40
a long term partner for Polish public sector in the area of
years (DBFO). Concession contract was signed in 2010. We
PPP projects. Our focus is dedicated to social and transport
managed to achieve financial close for the project on the
infrastructure projects, such as social housing, student’s
basis of the project finance rule and currently we are finis -
dormitories, administration buildings, parking lots, roads
hing construction phase of the project.
and highways.
In our opinion Wroclaw Nowy Targ car park project can be a
It is worth to mention the Mota-Engil value added on PPP
very good example of the PPP/concession project awarded.
development, meaning the ability to combine the design &
Apart from the success factors typical for the car park seg-
build capabilities with experience on operation of such in-
ment, such as very good location, level of tariffs used in
frastructure. With regards to the PPP motorways, Mota-
other car park locations and on-street zone, close existen-
Engil group is carrying out concessions for approximately
ce of institutions generating potential users, it must be ad-
3.000 km of roads in Portugal, Spain, Brazil and Mexico.
mitted that it was possible to finalize the project thanks to
22
KNOW-HOW
the well prepared tender phase by the Public Entity, its flexi-
aning not having a clear strategy that is essential when car-
bility for the solutions proposed and determination to pursue
rying out PPP investments. In our opinion it is almost impo-
the project. Public Authority understood necessity to invest
ssible to close successfully PPP projects without investing
in the preparation of this Undertaking and development of
almost anything in the preparation phase.
the permits process.
Additionally, lack of consultants with the sufficient PPP
We would like to invite everyone to visit Nowy Targ parking
knowledge
lot commencing from the middle of this year.
understanding of private sector restrictions and financial
As
we
are
currently
involved
in
several
tenders
(negotiations) for PPP projects, we are facing also some
not so good experiences, which often lead the projects to
often
leads
to
significant
delays,
non-
institution requirements. On the other hand, balanced division of risks among parties involved in the project is required, to find the most effective solution to draw a border line
between risks to be covered by both parties of the PPP un-
unsuccessful results.
dertaking. Public authorities should have right to demand
One of the main problems observed is the failure of Public
higher expectations from the Private Partner than in case of
entity to provide enough resources for the projects, me-
the typical Public Procurement Law tenders, but we cannot
A 3-storey underground car park under the "Nowy Targ" Square in Wroclaw currently being built by Mota-Engil CE.
NEWS: six parking concession projects in procurement (Poland)
Warsaw - up to
Gdansk - up to
Bydgoszcz - one
Bielsko-Biała -
Katowice - two
Krakow - one
6 car parks,
5 car parks,
car park,
2-4 car parks,
car parks,
car park.
23
KNOW-HOW
A 3-storey underground car park under the "Nowy Targ" Square in Wroclaw currently being built by Mota-Engil CE.
forget that not all risks can by managed more efficiently by
we know, this does not mean automatic project success.
the private sector.
Polish PPP market shows already examples of several PPP
From the private company perspective it is also very important to engage financial institution on earlier stage of the
project if possible, in order to incorporate specific financial
requirements and to gain time and increase bankability for
such a specific undertaking as PPP. Taking into consideration that not all the financial institutions are willing to carry
undertakings that have failed although they had central administration support. We should ask ourselves whether right
conclusions were taken from those lessons. We fully agree
with opinions, that significant PPP projects promoted by
central government are necessary for a faster development
of PPPs in Poland.
out financing on the project finance basis, it is essential for
In next years we expect a significant development of PPP
the Public Authorities to be able to present sustainable pro-
market in Poland and Mota-Engil is prepared and has
jects, on which financial institutions will be willing to take
know-how to address those challenges. We believe that
more efforts in the phase of project development.
stakeholders involved in Polish projects can improve their
Another constraint that we are facing is a situation, where
the tender phase for the PPP project lasts at least 12 months without any guarantee that project will be awarded.
knowledge and attitude, being more efficiently organized,
flexible and better prepared for the PPPs. In our opinion
those are the main solutions for the sustainable development of PPP market and it concerns both Public Authori-
As Mota-Engil Central Europe we believe that good stan-
ties as well as Private Entities willing to play significant role
dards of carrying out PPP projects will be developed follo-
on the PPP market.
wing awards of further projects. For sure, this could progress much faster but to achieve this purpose, more engagement of central government in PPPs must take place. As
24
Małgorzata Hejduk, Frederico Nunes,
Marcin Podlecki
KNOW-HOW
PPP solution to waste
management
by: Jan Szczygielski, Energy-from-Waste Development Director, SITA Poland
T
afford costly
construction projects,
Open and fair competition between the
he public-private partnership
such as thermal waste neutralisation
public model – where services are
model, or 'PPP', has long be-
plant (ITPOK). Therefore, cooperating
rendered by the public sector – and
en practised successfully in the Euro-
with the private sector is a perfect so-
the PPP model effectively drives im-
pean Union states as part of the im-
lution for this purpose. Given clearly
provements in the quality of these se-
plementation of waste management
defined goals, to which the private
rvices and management methods. The
investments. Many facilities have been
investor commits under the PPP con-
private partner supplies the resources,
created to this formula, proving the
tract, the local authorities can effec-
either their own or from loans, that are
advantageous contribution that it can
tively satisfy the requirements of the
needed to fund the ITPOK plant, as
make to various environmental and
European Union regarding environmen-
well as the technology and the in-
local social services, such as munici-
tal protection in terms of resource re-
novative solutions. Obviously, there
pal waste incineration.
covery and recycling. Among the items
are also other positive aspects of such
that Poland has committed itself to
a partnership, and these may include
within the Accession Treaty is the re-
investment implementation rate, stic-
duction of the amount of biodegrada-
king to the schedule and staying within
ble municipal waste transported to
the planned costs. Commissioning the
landfills, thus helping to reduce green-
plant as soon as possible is also in the
house gas emissions.
best interests of the private partner.
There is no reason why Poland cannot
successfully utilise the proven solutions already developed in the EU. Due
to the lack of financial resources and
the credit limits imposed on local
government, the public sector cannot
The European experience clearly indicates that the choice of a suitable formula to build a relationship with the
private partner allows the financial
outlays to be estimated weeks ahead.
Thus, within the DBFO (Design, Build,
Finance, Operate) formula it is the
private investor who emphasises the
quality, technology, effectiveness and
economics of the chosen solutions at
every stage of implementation and running of the ITPOK plant. This can be
achieved because it will be the private
investor who is responsible for proper
A PPP waste incineration plant in Blois, France
Photo Credit: © Thierry Ardouin / © architecte Jean-Marie Schimpff
functioning of the plant over a contract
25
KNOW-HOW
that may last 30 years. This element is missing when an
Of course, the use of PPP will entail some risk as well. The
investment is made using the DB (Design & Build) formula,
partners must work together for many years, as to achieve a
as those responsible for construction and installation have
return on the investment takes around 25-30 years. The key
no self interest in the effectiveness of the operating effi-
to success for such a long cooperation is honesty and the
ciency. This part traditionally remains the problem of the
stability of the partners. When selecting an investor, the pu-
investor.
blic partner needs to ensure that the private partner can gu-
Therefore, the integrated approach of PPP in the design,
construction and financing of ITPOK allows the efficient
optimisation of investment costs right from the outset. At
the same time, the long experience of the operator in managing this kind of plant will help ensure the optimisation of the
operating efficiency.
Cooperation within PPP is based not only on the division of
tasks between the partners; an important element behind efficient project implementation is the division of investment risks
between the public and private partners. The experience of
SITA acquired in Western Europe shows that the private partner
arantee that the investment will be implemented correctly at
each and every stage, and to the highest possible standards.
The public partner must know that the local authorities will
provide them with the necessary support in terms of legal
issues and decision making throughout the investment.
Common sense tells us that the following is an essential
requirement: business owners and local governments must
have equal rights. Only this gives them the opportunities
required to create an efficient waste management system
– friendly to the environment and to the tax payer, as well
as accelerating the construction of ITPOK in Poland.
undertakes the risk of financing the investment, its operation
One project to be undertaken using the PPP model is the
and its management. The risk of the public partner includes
construction of an incineration plant in Poznan. The adop-
that of legal changes having a significant impact on plant
ted formula is "Design, Build, Finance, Manage". The finan-
operation, such as the reduction of emissions, involving high
cing will be fully covered by a private partner selected un-
costs in order for the existing plant to meet the new require-
der a tender procedure – SITA Zielona Energia. The inve-
ments. The public partner must also guarantee a stable supply
stor will design and build the incineration plant, and then
of waste directed toward the incineration plant. The amended
ensure its stable operability for the next 25 years. This
act on maintaining cleanliness and order in local communities
investment, as a pioneer project for PPP in Poland, will be
provides the conditions to guarantee waste supply by the pu-
of great importance, blazing the way for more investments
blic partner. The local communal government, or union of such
and building experience in this area. Other Polish cities are
units, by having governance over waste collection is able to
also leaning towards such solutions.
ensure a continuous supply of the material to the plant. This
significantly improves the chances of obtaining the financing
for the project, and consequently its effective implementation.
SITA Poland: selective collection of communal waste
26
Jan Szczygielski
INTRODUCTION TO PPP MARKETS
Insight:
Czech Republic
by: Vladimir Sloup, former Executive Director of the Czech PPP Association
Panorama of Prague
T
PPPs. On the central level are more unsuccessful attempts than
he Czech Republic is the true heart of Europe not only
good stories. There is still lack of experience with PPP among pu-
geographically but also historically. The modern history
blic officers. One of critical point for development of PPPs is insuf-
started in 1989 during so called Velvet Revolution as a common
state of two nations – Czechs and Slovaks – when we were
ficient support of central bodies.
Legislation
The Czechoslovak Republic. From 2003 there are two independent countries. The Czech Republic is member of EU. Country is
There are two main acts dealing with PPP in the Czech Republic.
relatively small with a little more than 10 million of inhabitants
Firstly it is Concession Act that stays relatively unchanged from its
and 78 867 km2.
origin in 2006. Secondly it is Public Procurement Act that is very
often changing and takes instability into system. But according to a
Public investments
The Czech economy is traditionally one of the most stable in the World.
But because of underinvested maintenance of infrastructure during
research among successful operators off PPP projects the legislative is not problem to start PPP.
Institutional support
communism there is lack of high quality public infrastructure. Moreover,
because of crisis, the amount of money spending on maintenance,
Two ministries are responsible for development of PPP. Ministry for
modernization and construction of modern public infrastructure is de-
Regional Development is responsible for legislation. Ministry of Fi-
creasing. One of possible tools to cover this gap is PPP.
nance is responsible for methodology (most of documents were
prepared by its organization PPP Centrum that was dissolved re-
PPPs
cently) and for fiscal supervision. Its role is more on the level of
Projects based on PPP model started in the Czech Republic in
consulting than enforcing. Other sectorial ministries have their own
90th. As a real start of PPPs is considered year 2006 when Con-
PPP specialists if they are working with PPP model. The private side
cession Act came into force. Mainly municipalities are active in
of PPPs is represented by the Czech Association for Development
27
INTRODUCTION TO PPP MARKETS
of Infrastructure (previously Czech PPP Association).
of these are good examples of potential PPP with Best Practice
from the Czech Republic.
Overview
Since 2007 more than 80 PPP contracts were signed in the Czech
Challenges
Republic. Most of these were O&M contracts for water supply. The
There is lack of political support for PPP from the highest levels.
value of these contracts is more than 54 billion of CZK. Apart from
There is possibility that current government will finish before the end
water infrastructure were as PPP realized three senior houses, par-
of its electoral period. New regional council presidents are just
king houses, bus stops, waste management in part of Prague, fo-
appointed after recent regional elections. New programming period
otball stadium, photovoltaic power station, supplying of city with
for EU funds is just behind the door. It’s high time to support me-
heat and warm water etc. On the central level there are two projects
aningful solutions of insufficient public infrastructure, to support
of electronic registers – so called ‘Central Address’ where all the
effective ways of satisfying public services.
important public bids are presented and ‘Electronic Market Place’
About us
where public bidders buy defined goods and services.
The Czech PPP Association was founded in 2004, in 2012 it broaOutlook
dened its scope of interest and renamed on Czech Association for
Very interesting project of Depot of Public Transport was signed
Development of Infrastructure. It’s the only NGO specialized in
between city Pilsen and Škoda Transportation recently. The Ministry
PPP. Its roles in PPPs are to teach PPP, to help public to start PPP,
of Transport is preparing project of PPP to build and operate part of
to support private interest in PPP, to give feedback to projects,
highway D3. Also other highway projects are mentioned as potential
methodology, laws etc. Members are private companies from va-
projects for PPPs in the next years. The most interesting project that
rious sectors – advisors, lawyers, banks, constructional compa-
is sometime mentioned on the municipal level as potentially suitable
nies, operators and universities as honourable members. Currently
for PPP is Metro D in Prague. The municipalities need to solve pro-
it’s the only association able to give comprehensive feedback to
blem with senior houses, parking, waste management etc. and all
various ministries on their plans in PPP.
28
SPEED UPPP...
st
Report: the1 "Speed uppp...
Slovenia"
by: Nina Krese, Researcher at the Institute for Public-Private Partnership, Slovenia
A
All pictures included in the article below are by Katja Kodba
the field of energy efficiency, to deliver the meslongside the beautiful lake Bled with a
sage that PPP projects can be co-financed by
small island, surrounded by forests and
the EU Funds and that such practices are desir-
Julian Alps covered with snow, exactly 120 participants from 11 different countries gathered to
attend the first international conference on publicprivate partnerships in Slovenia “Speed uppp Slovenia”, which took place on 7th and 8th of March
2013 at the Grand Hotel Toplice in Bled, Slovenia.
able and much promoted by the EU.
The guest of honor and keynote speaker was
Verica Trstenjak, professor at the University of Viennam and former advocate general at the Court
of Justice of the European Union (ECJ), who
listed a few PPP projects that have changed the
The Conference Speed uppp Slovenia was or-
world: Eurotunnel, Vasco da Gama Bridge and
ganized by the Institute for Public-Private Part-
Galileo satellite. Further, she presented relevant
nership, Slovenia in cooperation with the Polish
PPP legislation and proposals for amendments to
Institute for Public-Private Partnership and Irish
the EU law, and highlighted a few relevant cases
DAX Partnership. Its aim was to encourage the
regarding PPPs of the settled case law of the
use of public– private partnership (PPP) at the
ECJ, such as Stadt Halle, Azienda sanitaria Lo-
local and state level using the presentations of
cale and Acoset, which had a great impact to the
different examples of good practice, mostly in
further development of law of PPP and public
procurement. Verica Trstenjak highlighted that the
key ingredients for success are trust, use of the
existing legal framework, and appropriate control.
1st "Speed uppp Slovenia" held in Bled on 7-8th March 2013
29
SPEED UPPP...
SPEAKERS:
Closing the speech, she notably
funding for investments under
Some of the conference speakers:
quoted Seneca: “It is not be-
the EU’s 2014-2020 budget ,
Verica Trstenjak
cause things are difficult that we
Former Advocate
General at the
do not dare; it is because we do
Court of Justice
not dare that things are difficult."
of the EU
Jan Van
The
conference
programme
Schoohoven
was divided into 6 panels and
Executive Program
Leader UNECE PPP
two round tables that were
Centre of Excellence
Boštjan Ferk
Founder and MD at
the Institute for
Public-Private
moderated by skilled moderators Boštjan Ferk and Branko
Kašnik, both founders of the
Partnership Slovenia
Slovenian Institute for PPP. The
Rajko Pirnat
first round table, presented by
Professor at the
Faculty of Law of
the University of
Ljubljana, Slovenia
Regional Cooperation Council,
Sarajevo, Bosnia
PPP
Expertise
Centre
(EPEC, EIB), Combining EU funds
and PPPs – Preparing for 2014+,
Nena Dokuzov, Head of management of cohesion policy programs at Slovenian Ministry of
economic
development
and
technology, Integration of private
-source funding for the implementation of EU cohesion policy,
ties, dealt with practical experi-
ties in the management of PPP,
whereas the second round ta-
Dejan Podhraški, Institute for
Public-Priv at e
Part nership,
Slovenia, Evaluation of state
incentives for projects of PPP.
and Herzegovina
ble discussed the first steps
Regarding the first panel, the
Nina Schenk
Slovenia should take on the
speech of Nina Schenk, Advisor at
Advisor at the
European PPP
Expertise Centre
state level in drawing on EU
the European PPP Expertise Cen-
funds with integration of private
tre, should be highlighted. Her
sources of funding.
lecture was one of the main em-
(EPEC, EIB)
Monika Kirbiš Rojs
State Secretary at
the Ministry of Economic Development
and Technology
To give a proper picture of the
conference, here is a complete
summary of the programme,
Dominik Zunt
European Commission, Directorate
General Economic
including speakers and their
lectures.
Panel 1. PPP and EU funds
Petra Ferk
Institute for
Public-Private
Partnership,
Slovenia
Yuriy Husyev
Director of National Projects Department at the State Agency for
Investment and National Projects
of Ukraine
phases of the conference. In a
professional, but an understandable way, she introduced the
benefits of PPPs, such as professional project management and
implementation, improved asset
and Financial Affairs
30
pean
representatives of municipali-
ences of Slovenian municipaliSanjin Arifagić
Nina Schenk, Advisor at the Euro-
hand in hand.
and service quality, innovations in
asset and service delivery and
Dominik Zunt, Project manager
other. According to the current
at European Commission for
financial situation she has high-
financing of infrastructure and
lighted that EU funds can support
climate chance policies (DG
the marketability of PPPs. She
ECFIN), New approaches to
concluded her lecture by present-
SPEED UPPP...
ing what else the EU funds can bring to PPPs. In addition, a very valuable presentation was that of
Dominik Zunt on the New approaches to funding for
investments under the EU’s 2014-2020 budget.
Panel 2: Reforming public services through PPP
Jan Van Schoonhoven, Executive program leader
at UNECE PPP Center of Excellence in Geneva,
International Centre of Excellence on PPP, The
fast track to successful PPP implementation,
The Organizing Committee of the 1st "Speed uppp Slovenia"
Sanjin Arifagić, Head of Economic and Social De-
Tina Žejn and Andreja Mežnar Bole, Project and
velopment Unit at Regional Cooperation Council
Structured Finance specialists at UniCredit Banka
(RCC), Sarajevo, The potential for regional pro-
Slovenija d.d., Department of Corporate and Pro-
jects In South-East Europe,
ject Finance, Challenges of PPP project financing
Łukasz Różanski, Legal officer in the Unit for public
in the field of public infrastructure and energy re-
procurement legislation I at the European Commission
habilitation of buildings (The bank’s perspective),
in Brussels (DG Market), PPPs in the EU: concessions
Robert Ostrelič, Head of marketing by Eltec Petrol
and public procurement; latest developments.
d.d., Good practice for the provision of energy
An opening speech of the second panel was made by
efficiency.
an excellent speaker, Mr Jan Van Schoonhoven, Execu-
The third panel focused on presentations of case
tive program leader at UNECE PPP Center of Excellence
studies, giving examples of the practical experi-
in Geneva. He started his speech by an optimistic state-
ence, financing possibilities in the field of energy
ment, that this it is the right time and the right environment
saving contracts, and renewable energy projects
for PPPs. Additionally, he said, the United Nations are
as PPP models.
offering assistance and help to anyone, and we should
make use of that help. During his presentation on the
work, organization and the role of International Center of
Excellence on PPP as main topic of his lecture, Mr
Schoonhoven disclosed his extensive practical experiences and by doing so, inspired all participants.
Opening speech of the second day was made by
Nina Schenk, Advisor at the European PPP Expertise
Centre (EPEC, EIB). She presented the work of the
European PPP Expertise Centre as an institution,
whose goal is to strengthen the ability of the public
sector to engage in PPPs by helping Members to
Panel 3. Energy savings Contracts,
share experience and expertise, analysis and good
Renewable energy and PPP.
practice. She introduced the potential obstacles at
Marko Vetrih, Director of company E3, d.o.o.,
the national level, such as organizational bottle-
Case study of the PPP project for the provision of
necks, national legislations that sometimes disable
energy efficiency,
certain combinations of EU funds and PPPs, and
political priorities that often prevent effective blendPPP Magazine Spring 2013
31
SPEED UPPP...
ing of PPPs and EU funds, and identified possible
contracts in order to regulate the challenges, which
ways of how to overcome these obstacles. In the
occurred after the signature of the original contract.
second part of her lecture, Nina Schenk presented
She concluded that this particular project is suc-
challenges in combining EU grand blending and
cessful and without any major problems. Another
PPPs at the project level, and introduced the draft
speaker stated the opposite: their experience was
EU legal framework, which helps answering the
not such a success at all. Namely, they had had
question of how these issues could be tackled in the
many problems with execution of the contract, but
next EU financial framework 2014-2020.
not a single annex had been added to the basic
Panel 4: Concessions in the field of construction,
renovation or operation of treatment plants
contract − only with great difficulty they had managed to negotiate two annexes to the original contract in order to avoid the project to fail. These were
Mila Sullivan, Executive director at Irish DAX Partnership, Redesigning waste policy and waste
sector: The Irish experience.,
very illustrative examples of what mostly all of the
speakers constantly repeated: the communication
between the public and the private partner is one of
Anja Kocjančič, Head of the Unit for environmental
the basic demands for a successful partnership. We
services at Petrol d.d. (leading Slovenian energy
have to share both, the good and the bad experi-
company), Why is it so difficult to obtain a PPP
ences, in order to learn and move forward.
project in Slovenia? Causes, fears, dilemmas,
Leon Lozar, General manager at Aquasystems
d.o.o., Experience in foreign direct Greenfield in-
vestments of project B.O.T. by Central treatment
plant Maribor and the project’s contribution to the
Panel 5: Energy rehabilitation of public
infrastructure through PPP projects
Jure Boček, Director
of
Technical
division,
Adesco d.o.o., Energy rehabilitation of public
infrastructure through PPP projects,
city’s sustainable development.
Dejan Ferlin, General manager, Adesco d.o.o., IT
Panel 4 was dedicated to concessions in the field
support in PPP energy projects,
of construction, renovation or operation of treatment plants. Speakers − all representatives of the
private sector − presented their successful PPP
Vlasta Krmelj, Director of the Energy Agency of
Podravje, the Institute for sustainable energy use
experiences in this field. All of the speakers agreed
that Slovenia should implement more PPP projects,
starting with smaller and medium size undertakings.
During this panel, an interesting debate was
launched, which continued throughout the next
panel. One of the speakers disclosed how many
PPP contracts they had entered, mostly in the form
of concessions, and admitted how many annexes
to the contract had to be added to one of such
32
Day 1. Evening concert of Manca and Benjamin Izmajlov.
SPEED UPPP...
in Municipality of Maribor, Practical experience in
is, as Mila Sullivan noted in her lecture, that the
managing PPP in the field of energy industry in
Irish are known for “not being rich, but know how
Municipality of Maribor.
to get money”. The conference was concluded
Panel 5 dealt with energy rehabilitation of public
infrastructure within the energy saving contracts,
where energy rehabilitation of public infrastructure
through PPP projects was presented. Additionally,
IT support in PPP energy project was introduced
as a way of how to use the methodology for cal-
by Yuriy Husyev, director of national project department at the State agency for investment and
national project of Ukraine, with the presentation
of the national projects of Ukraine, such as Clean
City project, Warm Housing project, Tehnopolis
project, Kyiv City Ring Road and others.
culating savings. The methodology was developed
Regarding responses of the participants, the
by Adesco d.o.o. and is used in many municipali-
conference was a great success and a “treasury
ties to give an automatic analysis of the impact of
of knowledge”. Many practical examples were in-
the energy rehabilitated building projects. In this
troduced, not just foreign but also of Slovenian
panel, some practical experiences of managing
experience, and many ideas on how to take a
PPP projects in the field of energy efficiency in the
step to the next level, and increase a number of
Municipality of Maribor were also presented.
PPPs. One of such ideas to be highlighted is cer-
Panel 6: Management of PPPs in Eastern Europe
tainly the encouraging opinion given by Mr
Schoonhoven to answer the repeated statement
Adam Jędrzejewski, International Business Director at Institute for PPP in Poland, Combining PPP
with EU funds – The Polish experience ,
that the money is the main obstacle in Slovenia.
Jan Van Schoonhoven notably remarked, that the
“money” or the poor record of the disbursement
Yuriy Husyev, Director of National Projects Department
of EU funds in Slovenia cannot be a problem to
at the State Agency for Investment and National Pro-
the introduction of PPP projects in Slovenia, since
jects of Ukraine, National projects of Ukraine: PPP
the EU budget holds enough money to help Slo-
opportunities and investment destination.
venia out. Additionally, there are institutions that
The last panel addressed the management of
can help Slovenia prepare its strategy and pro-
PPPs in Eastern Europe. Mr Adam Jedrzejewski,
grammes. The money is obviously there. We just
the international business director at the Polish
need to make the next step and the conference
Institute for PPP, presented the Polish experi-
Speed uppp Slovenia was certainly one of such
ences in the field of combining PPP with EU
small yet successful steps on the way to the next
funds. Comparatively, he remarked that most of
level in PPP development.
PPP projects in Poland were conducted on the
Nina Krese, LL.B.
municipal level and not at the state level − which
Researcher at the
is similar to Slovenia and other countries in the
Region. Most of the contracts were of low value
− quite opposite to Ireland. Perhaps the reason
Institute for Public-Private Partnership, Slovenia
www.pppforum.si
33
SPEED UPPP...
Update on PPP development
in Ukraine
by: Irina Zapatrina, Chairman of the Ukrainian PPP Development Support Center
S
be enough not only to develop the transportation network
evere winter 2012-2013 in Ukraine has facilitated
but even to cover the renovation of the substantial part of
the interest to public-private partnership. Transport
the existing motorways. It is clear that in such conditions it
and housing-communal infrastructure are deemed the most
is necessary to attract the private business. It is important
critical sectors for using these mechanisms.
not only to receive additional financial resources but also to
As of today the most part of the road cover in Ukraine is
unsatisfactory. According to the governmental estimations
500 billion of hryvna is needed for the priority measures. At
the same time the revenue of the State Budget in 2013 are
ensure the high quality of roads. Lack of responsibility for
exploitation of the constructed roads in Ukraine causes low
quality of road cover. Such roads do not operate for a long
time and constantly require budget funds for repairs.
estimated as 361,5 billion of hryvna. This year it will be at-
The situation with housing and communal infrastructure in
tracted about 3 billion hryvna of credits from IBRD, EBRD
Ukraine, in particular with district heating, water supply and
and EIB for construction of roads. (see Table 1 below). As
sanitation systems, is not better. Despite the growth of tar-
we see, the potential budget resources and loans will not
iffs for the services provided in this field, the coverage of
Table 1. List of credits (loans) received by the state to the special fund of the State Budget of Ukraine in 2013 from foreign states,
banks and international financial organizations for implementation of investment programs (projects) on motorways development.
Name of creditor and investment program (project) implemented using credit (loan)
Credit (loan)
currency
Total amount of
credit (loan)
Amount of credit (loan)
attracted in 2013
(thousand hryvna)
Creditor: International Bank for Reconstruction and Development
Project on motorways and traffic safety improvement
USD
400 000
362 525,4
The 2nd project on motorways and traffic safety improvement
USD
450 000
1 374 864,8
Project “Improvement of transport-exploitation state of
motorways approaching Kiev” (pan European corridors)"
EUR
450 000
706 352,1
The third project "Repair of motorway Kiev-Chop"
EUR
200 000
50 000,0
EUR
450 000
656 352,1
TOTAL:
3 150 094,4
Creditor: European Bank for Reconstruction and Development
Creditor: European Investment Bank
European roads of Ukraine ІІ (project on improvement of
transport-exploitation state of motorways approaching Kiev)
Source: the Law on the State Budget of Ukraine for 2013
34
SPEED UPPP...
cost by the tariff decreases. (Fig. 13). As a result the debt of communal
Fig. 3 Dynamics of tariff growth and coverage of cost by the tariff in field of sanitation
enterprises is rapidly growing.
markets that are traditionally related to
housing and communal sector. Contradictions in legal regulation, uncertainties in legislative norms decrease
Such situation is caused by the con-
the private business’s interest to the
stant growth of exploitation expenses
housing and communal sector. The
related to fast worsening of technical
members of the hearings (peoples’
state of heat, water and sewage net-
deputies of Ukraine, science) have
works. Having the tariff growth, the
admitted that the most urgent task in
reliability of the life support systems
PPP development
and the quality of the provided ser-
in housing
and
communal sphere is system work on
vices decreases. As we see, attraction
improvement of legislation. This task
of private investment is also critical for
was specified as a priority task for the
housing and communal sphere.
activity of the profile committee of
Fig. 1. Dynamics of tariff growth and coverage of cost by the tariff in field of heat supply.
Despite the declared high interest to
Verkhovna Rada of Ukraine. It gives us
PPP, there are no positive examples of
a hope that in the nearest future the
using it in Ukraine.
expression of interest to PPP will
Regarding the transport infrastructure,
such situation is mainly caused by non
transfer into the real projects in field of
housing and communal services.
-readiness to build paid roads. Imperfect legislation and delays in reforms
in this sector also slow the PPP development regarding housing and communal
infrastructure.
Understanding
these problems, the profile committee
of Verkhovna Rada of Ukraine has conducted special hearings on issues related to improvement of Law on peculiFig. 2. Dynamics of tariff growth and coverage of cost by the tariff in field of water supply
arities of rent and concession of objects of district heating, water supply
and sanitation. The
hearings
took
place on March 20, 2013.
The conclusion on the result of the
hearings is the following: the current
Law is not perfect and requires improvement and it cannot facilitate the
private sector participation in housing
and communal infrastructure modernization. The problem is deeper. Lack of
interest of strategically oriented private
business to participate in renovation of
housing and communal infrastructure
KEY
Tariff
Coverage of cost
is caused by imperfection of legisla-
Independence Square in Kyiv, next to
tion that regulates relations at the
the famous Kreschatik street
www.PPPinstitute.com
www.pppforum.si
www.ukrppp.com
www.PPPMAGAZINE.com

MAIN THEME: HEALTHCARE PPPs

Transcription

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