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Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012

Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012 Instruments and Tools of Public-Private Partnerships (PPPs): Ensuring the Foundations of an Equal and Effective Access to Infrastructure. Introduction: definitions and caveats.

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Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012

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  1. Global Forum on Law, Justice and Development TWG “Law and the Economy” Dec. 13th, 2012 Instruments and Tools of Public-Private Partnerships (PPPs): Ensuring the Foundations of an Equal and Effective Access to Infrastructure bertrand.du_marais(at]u-paris10.fr

  2. Introduction: definitions and caveats bertrand.du_marais(at]u-paris10.fr

  3. I- Main features of Contractual PPP Schemes: Wide scope of services and of public agencies (central as well as local government): e.g. France • Contribution of PPP to the delivery of main local public utilities. Ref.: bureau de l’analyse des secteurs professionnels, DAEI, Min of Civil works (Dark area: PPP). bertrand.du_marais(at]u-paris10.fr

  4. At the EU level : ref.: Les partenariats public /privé en Europe, numéro spécial, Les dossiers européens, 13, Janvier 2008, p. 14 et p. 21 bertrand.du_marais(at]u-paris10.fr

  5. I- Main features of Contractual PPP Schemes, as compared to divestiture • The advantages of contracts (as compared to divestiture or privatization per se) • Securing assets ownership in favor of the public agencies • flexibility, if not resilience… • Arbitration and / or Court adjudication • Decentralized yet governmental supervision and ownership bertrand.du_marais(at]u-paris10.fr

  6. I- Main features of Contractual PPP Schemes: The advantages of a global contract Traditional concession scheme: a multipurpose contract PFI scheme: a contractual matrix bertrand.du_marais(at]u-paris10.fr

  7. I- Main features of Contractual PPP Schemes: contracts within the overall framework of public law • In France, no “concession law” but • Some legislative statutes (e.g. Loi 93-122 du 29 janvier 1993 “Sapin” for bidding process; Ord. 17 jun 2004 for CP) • The century old case law of the Conseil d’Etat • In many countries: a “concession law” • Equal access, due to • the enforcement of public law and the “public service” doctrine: equality principle • Solidarity between consumers • Social tariffs, social rights bertrand.du_marais(at]u-paris10.fr

  8. I- Main features of Contractual PPP Schemes (as compared to direct provision of services) • PPPs as tool for a better management of public utilities: • More transparent to the extent that costs are identified • Put more pressure on the utility in terms of quality and accountability bertrand.du_marais(at]u-paris10.fr

  9. I- Main features of Contractual PPP Schemes: Recent evolutions in the realm of contractual PPPs • Hybridizing of contractual schemes: a range of contracts as regard the nature of risks (of construction, of readiness, commercial, operational) (Ref.: IGD.org) • Innovation in tariff setting bertrand.du_marais(at]u-paris10.fr

  10. II- Conditions of success: general • Competition award: the experience of EU and French Law • Strong public commitment and supervision : several approaches: • centralized or decentralized at the operational level, • … or for the regulatory tasks bertrand.du_marais(at]u-paris10.fr

  11. II Conditions of success: balance between financial sustainability and social inclusion • Sharing the burden of poverty between the operator and the public agency: • “Social charter”, including “reduced social services” • “Social tariff” with compensation for the operator • Progressive tariff • Subsidies from the public agency to the consumer bertrand.du_marais(at]u-paris10.fr

  12. Conclusion • Two specific case-studies and analyses: • Senegalaise des Eaux: in a difficult sector and a fragile country • Columbia: local decentralization with national supervision • Towards a community of practice ? bertrand.du_marais(at]u-paris10.fr

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