Role of Cambodia Government for Creating Enabling Environment for PPPs

Transcription

1 Role of Cambodia Government for Creating Enabling Environment for PPPs OM MACTHEARITH PRIVATE SECTOR DEVELOPMENT COORDINATION OFFICE DEPARTMENT OF INVESTMENT GENERAL DEPARTMENT OF BUDGET MINISTRY OF ECONOMY AND FINANCE 1

2 PPP Enabling Environment The Government recognizes that PPP is essential to filling in the gap in the financing needs for infrastructure development and has embarked on creating an enabling environment for PPPs through: 1-Policy Support 2-Legal Reform 3-Institutional Arrangement 4-Procedures 5-Financial Support 6-Project Pipelines 7-Capacity Development 2

3 1-Policy Support -Establish a clear national vision, commitment and leadership regarding PPPs, and effective communication between the government and the market -The Rectangular Strategy Phase III clearly sets the policy objective- Further encouraging participation of the private sector in the development of transportation infrastructure by strengthening and improving the Public-Private Partnership mechanism (P. 46 para. 7) -Draft Policy Paper on the Implementation of PPP mechanism and its roadmap which is ongoing 3

4 2-Legal Reform -Currently the existing public procurement and investment laws are not developed to specifically accommodate the typical institutional structures and processes for PPPs. -The existing Law on Concessions (LoC) in Cambodia is the prevailing law most related to PPPs, but this has a number of limitations. -For example: the LoC contemplates only one type of PPP, which is revenue-based concession only. (Article 27) -The RGC may consider a review of this law and propose amendments as deemed necessary. 4

5 3-Institutional Arrangement -The government intends that Line/Sector Ministries (as the Government Contracting Authority-GCA) will play the lead role in developing, procuring and managing PPP projects but with appropriate support and oversight mechanisms in place -Proposes to set up PPP Unit and Risk Management Unit located at MEF which will give support to GCA. -The two units will make use of the existing function of Private Sector Development Coordination Office and Public Debt Management Office. 5

6 4-Procedures -The government will lay out clear PPP procedural guidelines most likely as regulations under the amended Law on Concessions. -The procedures to be adopted will make GCAs principally responsible for identifying, assessing, structuring, procuring and managing PPP projects with the necessary oversight for procurement -The GCAs will be supported and overseen by the specialized institutions. Need for establishing clear and transparent rules for carrying out procurement of PPPs. 6

7 5-Financial Support -The Government recognizes the structuring and procurement of PPP projects will require support, as will some projects to achieve commercial viability and make them bankable for private partners. -The Government may consider to establish a Project Development Facility. -The PDF may make available grants to GCAs for the appointment of transaction advisors to assist them with structuring and procuring PPP projects. -The PDF will be designed to revolve by including the amount of the grant provided to the GCA for a transaction as a project cost for that project payable by the successful bidder. GCAs will be required to reimburse the PDF if they decide to use the funds for a purpose not covered by the terms of the PDF funding, unless there is prior approval from the Government. 7

8 6-Project Pipelines -The Government and line ministries in particular will identify a selection of the most-suitable projects for procurement as PPPs to serve as pilot and demonstration PPP projects. -The PPP Unit will in future maintain a list of the PPP Projects in the government pipeline and will communicate these to the market. -The procedures to be established for unsolicited bids will further allow for the initiation of PPP projects by the private sector. 8

9 7-Capacity Development -The government will mobilize external support to undertake a broadbased PPP capacity building program. -This program will include key units and persons within the MEF, CDC and the GCAs to be trained by PPP experts to develop core expertise within government and to undertake pilot PPP projects. 9

10 Thank You!!! 10