VI Latin American and Caribbean Regional Meeting on International Trade Single Windows. Port of Spain, Trinidad and Tobago 30 and 31 October 2014

Transcription

1 VI Latin American and Caribbean Regional Meeting on International Trade Single Windows Port of Spain, Trinidad and Tobago 30 and 31 October 2014

2 VI Latin American and Caribbean Regional Meeting on International Trade Single Windows SINGLE WINDOWS AND THEIR INTEGRATION WITH DIFFERENT LINKS OF THE INTERNATIONAL SUPPLYCHAIN PUBLIC PRIVATE PARTNERSHIP IN SINGLE WINDOWS Paloma Bernal Turnes Rey Juan Carlos University Georgetown University Port of Spain, Trinidad and Tobago 30 and 31 October 2014

3 1 INTRODUCTION FOUR MAIN GOALS: SIMPLIFICATION, STANDARIZATION HARMONIZATION, AND TRANSPARENCY. PPP INTEGRATED IN THE WHOLE SUPPLY MANAGEMENT

4 1 INTRODUCTION

5 1 INTRODUCTION TOP 10 COUNTRIES BY INVESTMENT ( )

6 1 INTRODUCTION PPP SOME KEY ACTORS UNECE UNECE PPP ICoE (International PPP Centre of Excellence) UNCITRAL Model Law on Public Procurement nt_infrastructure/2011model.html International Colloquium on PPP 2 3 May, Vienna blic private partnerships 2013.html WTO Government Procurement

7 1 INTRODUCTION PPP IN TRADE FACILITATION : BASIC PRINCIPLES Advantages of PPP in TF: 1)Improve the project selection 2)Accelerate the infrastructure provision. 3)PPPs address the life cycle cost optimization and maximize the revenue opportunities

8 2 ENABLING ENVIRONMENT FOR PPPS 1 REGULATORY FRAMEWORK 2 INSTITUTIONAL FRAMEWORK 3 SOCIETY S ENGAGEMENT 4 INVESTMENT CLIMATE

9 2 ENABLING ENVIRONMENT FOR PPPs 1 REGULATORY REGULATORY FRAMEWORK 3 4

10 2 ENABLING ENVIRONMENT FOR PPPs LEGAL FRAMEWORK FOR SCPPPs There is no international consensus in defining the term SCPPPs. Variables: contract value and duration New types of PPPs Many countries still do not have a PPP law No clear definition of the boundaries and scope of application of the legal framework (e.g. definition of "PPP", sectors concerned, competent authorities, eligible private party) Lack of mandatory application of a fair and transparent tender selection process. Cross country PPP agreements need a Model Law

11 2 ENABLING ENVIRONMENT FOR PPPs Public Private Partnerships (PPPs) in TF aim at financing, designing, implementing and operating public sector facilities and services through the simplification, standardisation and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment. They refer to innovative methods used by the public sector to contract with the private sector, who bring their capital and their ability to deliver projects on time and to budget, while the public sector retains the responsibility to provide these services to the public in a way that benefits the public and delivers economic development and an improvement in the quality of life.

12 Types of PPP Agreements BT (Build Transfer) BLT (Build Lease Transfer) BOT (Build Operate Transfer) BOO (Build Own Operate) BOOT (Build Own Operate Transfer) BTO (Build Transfer Operate) CAO (Contract Add Operate) DOT (Develop Operate Transfer) ROT (Rehabilitate Operate Transfer) ROO (Rehabilitate Own Operate) MC (Management Contract) SC (Service Contract) 12

13 PPP in Trade Facilitation BASIC PRINCIPLES PPP Build Operate Transfer (BOTs) Procurement? CHANGES PPP in Trade Facilitation Source: UNICITRAL PPP sit Project finance market MIGA (The World Bank): 60% of New Investments in Developing Countries are PPPs*

14 2 ENABLING ENVIRONMENT FOR PPPs LEGAL FRAMEWORK FOR PPPs SAMPLE USED Albania European Union Madagascar Angola France Mexico Argentina Ghana Morocco Australia Greece Mozambique Brazil Guatemala Perú Bulgary Honduras Portugal Cameroon India Philippine Chile Indonesia Romania Colombia Ireland Senegal Albania Northern Ireland Slovenia Angola Italy Singapore Argentina Fiji South Africa Australia Kosovo Uruguay Croatia Kenya Czech Republique Kuwait Egypt Macedonia

15 2 ENABLING ENVIRONMENT FOR PPPs LEGAL FRAMEWORK FOR PPPs Albania European Union Madagascar Angola France Mexico Argentina Ghana Morocco Australia Greece Mozambique Brazil Guatemala Perú Bulgary Honduras Portugal Cameroon India Philippine Chile Indonesia Romania Colombia Ireland Senegal Albania Northern Ireland Slovenia Angola Italy Singapore Argentina Fiji South Africa Australia Kosovo Uruguay Croatia Kenya Czech Republique Kuwait Egypt Macedonia

16 2 ENABLING ENVIRONMENT FOR PPPs LEGAL FRAMEWORK FOR PPPS SAMPLE USED

17 2 ENABLING ENVIRONMENT FOR SCPPPS LEGAL FRAMEWORK FOR SCPPPS SAMPLE USED

18 2 ENABLING ENVIRONMENT FOR PPPs How the governments can protect investors? 1)Risk of legal changes 2)Risk of contracts 3)Risk of expropriation Management Conflicts versus Legal Disputes *Source: Privately Financed Infrastructure Projects, 3 4 October 2013, Georgetown Univ., Washington DC, USA.

19 CONCERNS 30% 40%*70% PPPs Conflits based on: Legal Contract Treaties (BIT) Projects *Source: MIGA, Privately Financed Infrastructure Projects, 3 4 October 2013, Georgetown Univ., Washington DC, USA.

20 2 ENABLING ENVIRONMENT FOR PPPs CHALLENGES Provide structure required to catch the conflict so early to avoid disputes MIGA ( ): 1.- Create a Legal Agency (reforms of IA, PPPs). 2.- Investor Agreements Tracking System ($ problem). 3.- Establishing an Information Sharing Agency. 4.- Creating a Management Problem Agency. *Source: MIGA Privately Financed Infrastructure Projects, 3 4 October 2013, Georgetown Univ., Washington DC, USA.

21 2 ENABLING ENVIRONMENT FOR PPPs UNCITRAL: CHALLENGES Building a Model Convention for PPP (MCPPP). Launching the International Court of Justice for Public and Private Partnerships (ICJPPP s), with a specific budget (UNCITRAL). *Source: MIGA Privately Financed Infrastructure Projects, 3 4 October 2013, Georgetown Univ., Washington DC, USA.

22 2 ENABLING ENVIRONMENT FOR PPPS 1 REGULATORY FRAMEWORK 2 INSTITUTIONAL FRAMEWORK 3 SOCIETY S ENGAGEMENT 4 INVESTMENT CLIMATE

23 2 ENABLING ENVIRONMENT FOR PPPS 1 2 INSTITUTIONAL FRAMEWORK 3 4

24 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS

25 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS SCPPPs or local PPPs

26 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS international PPPs SCPPPs or local PPPs

27 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS SCPPPs or local PPPs

28 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPs Strategy Ensure viability Finance Treasure Provide advice to contract authorities PPP Commit tee

29 2 ENABLING ENVIRONMENT FOR PPPS 1 PPP UNITS ROLES 2 3 Source: European 4 PPP Expertise Centre (2014). Establishing and Reforming PPP Units.

30 2 ENABLING ENVIRONMENT FOR PPPS 1 MAIN PPP UNITS ROLES 2 3 4

31 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS INNOVATION PEOPLE TRANSPARENCY GOOD GOVERNANCE

32 2 ENABLING ENVIRONMENT FOR PPPS INSTITUTIONAL FRAMEWORK FOR SCPPPS INNOVATION MAITENANCE MOBILIZING PEOPLE PRIVATE SECTOR SOURCES TRANSPARENCY MOBILIZING PRIVATE SECTOR SOURCES GOOD PROJECT GOVERNANCE SELECTION ON TIME & ON BUDGET

33 IT IS TIME NOW TO PUSH SCPPPs

34 IT IS TIME NOW TO PUSH SCPPPs

35 2 ENABLING ENVIRONMENT FOR PPPS REASONS TO PROMOTE SCPPP UNITS To provide specific expertise to support SCPPP policy development. To be involved in project identification and feasibility studies To standardize policies and procedures developed locally, adding transparency To promote PPP projects and to share best practices To offer coordination among different players To support contract negotiations, bid evaluations and the overseeing of projects.

36 2 ENABLING ENVIRONMENT FOR PPPS SOCIETY S ENGAGEMENT 4

37 Accountability Participation Transparency

38 TRANSPARENCY DEFINITION OF TRANSPARENCY Transparency is described as commonly shared knowledge about the economy, its performance, and the way policy influences it (Tibana 2003). MAIN FINDINGS IN THE MACROECONOMY LACK OF TRANSPARENCY FINANCIAL CRISIS TRANSPARENCY PERFORMANCE IN FINANCIAL MARKETS POOR GOOD GOVERNANCE CORRUPTION 38

39 TRANSPARENCY DIFFICULTIES TO GET THE METRICS MULTIPLE ACTORS TRANSPARENCY 39

40 TRANSPARENCY SCENARIO IN TRADE FACILITATION 1. Predictability Procedures Quota or certificate Tariff rate applied; Rule, regulation, taxes or laws. Article X of the General Agreement on Tariffs and Trade (GATT) 2. Simplification Number of documents required to trade; Speed and flexibility of getting import permissions; Requirements for compliance to trade abroad; Harmonizing procedures along the trade chain from producers to end clients. The Revised Kyoto Convention (RKC) of Accountability. The capacity to execute the right to make the different entities responsible; the capacity to agree warranties in contracts. Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OEDE) 40

41 TRANSPARENCY: RISKS ASSESSMENT Risks allocation and management are critical in order to provide responsibility Value of risks = Outcome ((Consequence of risk* probability of risk event) + contingency) Elements of risks: The quality of service standards agreed. The variability of the demand The appearance of competitors. Unbalanced stream of payments and costs of the project., etc.

42 TRANSPARENCY: RISKS ASSESSMENT The range of services included in the contract. The level of execution/performance of the project in regular basis. The revenues, benefits and performance levels agreed and achieved. The use of other financial support. The stream of payments and costs of the project. Any changes made since the contract was originally signed and side agreements. Mechanisms to reduce corruption, or inefficiencies (IT solutions, supervision agency, verification systems, ). Future stream of payments and government commitments under PPP contracts. Risks allocation and accountability system to protect the aim of the project against individual interests. 42

43 3 ENABLING ENVIRONMENT FOR PPPS INVESTMENT CLIMATE

44 TRANSPARENCY AND CORRUPTION THE TRANSPARENT SCENARIOS IN INTERNATIONAL BUSINESS. 44

45 GOOD GOVERNANCE GOOD GOVERNANCE IN PPPs Contracts and related documents Evaluation of delivery mode: value-formoney assessments in PPP projects. Government support to projects Developing performance indicators Gathering information from surveys to clients, contract management reports and audits Creating financial penalties or rewards related to performance; and Increasing the flows of sensitive information related to the project. * Implementing an auditable system to share the benefits of the project among the partners. 45

46 AFFORDABILITY Affordability of the project is about to think here how the project is going to be funded and will sufficient funds be available to the government throughout the whole life of the deal. Afordability is measured by the term Valuefor Money (VFM) is the balance of revenues and costs of any PPP project.

47 SOME TAKEAWAYS Plan your PPPs as an strategy that brings development in an holistic way. Include the civil society in the PPP. Create the metrics to measure the value added for each partner and each process of the project and include those metrics in the contract. Be transparent.

48 THANKS FOR YOUR ATTENTION!!!!! Paloma Bernal Turnes, Georgetown University 48