Public Private Partnerships in Fiji

Transcription

1 Public Private Partnerships in Fiji Presentation to the Asia-Pacific Ministerial Conference on Public - Private Partnerships [PPPs] for Infrastructure Development Seoul, Korea, 5 th October 2007 Hon. Poseci Bune, Minister for Public Service, Public Enterprises & Public Sector Reforms Republic of Fiji Islands

2 Presentation Overview PPP Development Status Legal & Regulatory Framework Policy Framework Institution Arrangement and Capacity Building Way forward Conclusion

3 Completed: PPP Status 1. Established the legal and regulatory framework PPP Act 2006; 2. Established the policy framework ; 3. PPP Unit established under the Ministry of Public Service, Public Enterprises & Public Sector Reforms. Underway: 4. Evaluation of potential PPP candidate projects, and shortlisting of three projects to be implemented from 2008 consultancy funded by AusAid & ADB; 5. Preparing PPP Guidance Manual to: assist Government to identify and implement PPP projects; structure sound deals with private partners; and establish international benchmark for PPP Practice in Fiji.

4 Purpose of PPP Act 2006 Legal Framework i) Improve the delivery of public infrastructure and services in Fiji; ii) Assist in the aim of achieving better value for money spent by government; iii) iv) Recognize and encourage the role of the private sector in maximizing of national growth and development; Provide robust framework for the development for public private partnerships; v) Empower participation by resource owners and municipalities in public private partnerships and provide assurance for private interests in those partnerships; vi) vii) viii) Encourage competitive and efficient markets for the provision of infrastructure and services in Fiji; Enable fair competition for the right to participate in public private partnerships; and Obtain value for State and municipality contributions to public private partnerships.

5 Policy Framework Key Principles: a) Consultation with Stakeholders; b) Public Information Programme awareness; c) Virtually any development project should be considered eg. power plants, roads, ports, airports, canals, dams, water supply, irrigation, telecommunications, railroad and railway, passenger transport systems, reclamation projects, government buildings, tourism, slaughterhouses, warehouses, public markets, solid waste management, information technology networks and data base infrastructure, sewerage, drainage, dredging, farms and any other infrastructure and development projects that may be considered appropriate; d) Virtually any contractual arrangements should be allowed; e) Investors should be allowed to earn a market-based rate of return;

6 cont. Policy Framework Key Principles f) Variety of government undertakings should be allowed under carefully prescribed conditions; g) Approval process should be specified and bid process must be transparent; h) For public utilities, a franchise should be automatically issued to the selected proponent; i) Fiji ownership requirements should be imposed on the operator of public utilities; j) Unsolicited Proposals allowed on certain conditions; k) Negotiated contracts should be allowed for unsolicited proposals, and for publicly bid projects where there is only one complying private sector bidder; l) Default by Government proponent compensated for actual expenses plus a reasonable rate of return; m) Permanent inter-governmental committee to formulate and revise the implementing regulations.

7 PPP Unit Develop a fully functional PPP Unit to become the centre of excellence and a pool of expertise for Ministries involved in PPPs, with the assistance provided by Commonwealth Secretariat, AusAid, and ADB; Private Partnership Unit responsible for: Identification of a pipeline of appropriate PPP candidates Preparation of feasibility studies and comparator studies Tendering and evaluating tenders Negotiating final PPP arrangements Executing and administering PPP projects Appropriate functional capacity to be developed by: Preparing Advisory Guidelines for suitable practices to implement PPP; Seeking complementary donor funding and assistance to support training and related capacity enhancement activities.

8 Way Forward To address constraints in the enabling environment and facilitate successful implementation of affordable PPPs that represent value for money to all stakeholders; Develop capacities to reinforce the effective implementation of PPPs in the long run; Ensure strategic links with all government departments, ministries, and stakeholders; Facilitate ongoing policy review and development; Review legislation to identify constraints to successful implementation of PPP arrangements, and recommending additional reforms and refinements as required; and Promote regional cooperation for PPP development with formation of International Agencies that deal with PPPs that should meet annually to discuss and review issues.

9 cont. Way Forward Produce a PPP Guidance Manual [November 2007]; Shortlist three PPP projects for implementation, commencing January 2008.

10 Other Important Issues for Consideration Following changes proposed for the Draft Seoul Declaration on Public Private Partnerships for Infrastructure Development in Asia and the Pacific : A well structured PPP for infrastructure development should also create incentives to ensure that infrastructure is maintained, which has often been a problem within the Pacific Island nations.

11 Conclusion PPP has a crucial role in supporting continued economic and social development of our countries in the Asia-Pacific region, as well as achieving the Millennium Development Goals, and meeting the structural challenge of globalisation. The Republic of Fiji Islands fully supports the Seoul Declaration on PPPs.

12 THANK YOU