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MOLDOVA WORKSHOP ON PPP DEVELOPMENT “UNECE NATIONAL PPP READINESS ASSESSMENT IN MOLDOVA”

MOLDOVA WORKSHOP ON PPP DEVELOPMENT “UNECE NATIONAL PPP READINESS ASSESSMENT IN MOLDOVA” Leo McKenna Chair, UNECE TOS PPP International Centre of Excellence and Specialist Centres CHISINAU 09 – 10 OCTOBER, 2012. THIS PRESENTATION;. OVERVIEW OF PPP NATIONAL READINESS ASSESSMENT (RA)

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MOLDOVA WORKSHOP ON PPP DEVELOPMENT “UNECE NATIONAL PPP READINESS ASSESSMENT IN MOLDOVA”

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  1. MOLDOVA WORKSHOP ON PPP DEVELOPMENT “UNECE NATIONAL PPP READINESS ASSESSMENT IN MOLDOVA” Leo McKenna Chair, UNECE TOS PPP International Centre of Excellence and Specialist Centres CHISINAU 09 – 10 OCTOBER, 2012

  2. THIS PRESENTATION; • OVERVIEW OF PPP NATIONAL READINESS ASSESSMENT (RA) • METHODOLOGY • APPROACH TO RA IN MOLDOVA • FINDINGS • DRAFT RECOMMENDATIONS

  3. WHAT IS THE PPP NATIONAL READINESS ASSESSMENT TOOL? • Forms part of the UNECE PPP Toolkit • New policy advisory service by TOS PPP to countries with Transition Economies • Helps identify strengths and potential challenges facing Transition Economies • in attracting private capital for public infrastructure development • Strategically analyses national infrastructure needs

  4. WHAT IS THE PPP NATIONAL READINESS ASSESSMENT TOOL? • Strategically analyses the national enabling environment • Considers areas for feasible pathfinder projects • Develops a Strategic Action Plan for infrastructure investment & development • N.B. Jointly developed by UNECE Secretariat / TOS PPP and host country

  5. COUNTRY COUNTRY Requests support UNECE PPP secretariat select and appoint UNECE PPP Readiness UNECE PPP secretariat select and appoint UNECE PPP Readiness UNECE PPP Secretariat UNECE PPP Secretariat Taskforce Team Taskforce Team Stage One - UNECE Six Step Country PPP Readiness Assessment Process Stage One - UNECE Six Step Country PPP Readiness Assessment Process Fact Fact Finding Finding Preliminary Preliminary Mission Mission Consultation Report Consultation Report & Peer & Peer Working Working Review Review Level Process for Level Process for Workshop Workshop Improvement & Improvement & Strategic Strategic Final Report Final Report Action Action Plan Plan UNECE UNECE International PPP International PPP Centre of Centre of UNECE PPP Toolkit: UNECE PPP Toolkit: Excellence Excellence Country Implements Country Implements How To Manual • How To Manual • Strategic Action Plan, Strategic Action Plans, • Teams of Specialists • Teams of Specialists Best Practice Guides • Best Practice Guides • Early Works Projects, and Early Works Projects, and • PPP Specialist • PPP Specialist Train - the - Trainer • Train - the - Trainer • Centres Pilot Projects Pilot Projects Centres Modules Modules • PPP Regional Training • PPP Regional Training Centres Centres UNECE PPP 6 STEP NATIONAL READINESS ASSESSMENT TOOL

  6. STEP 1 - FACT FINDING MISSION • Understanding the enabling environment • Carried out by UNECE Secretariat, TOS PPP and host country • Comprehensive Pre-Visit Questionnaire; 372 questions; public and private • Extensive programme of meetings with stakeholders

  7. READINESS ASSESSMENT PRE-VISIT QUESTIONNAIRE Part 1 – National Overview 1.0 Economic & Social Need – Drivers for Change (18) 1.1 Macroeconomic Climate (29) 1.2 Business Climate (36) 1.3 Financial Climate (24) 1.4 Legal & Governance Environment (33)

  8. READINESS ASSESSMENT PRE-VISIT QUESTIONNAIRE Part 2 – PPP Focus 2.0 General PPP Matters (35) 2.1 PPP Legal & Regulatory provision, including Financial Risks (63) 2.2 PPP Policy Framework (21) 2.3 PPP Capacity – Public & Private (51) 2.4 Project Identification, Selection and Procurement (44) 2.5 Post Award; Delivery, Operations and Performance Management (18)

  9. MOLDOVA FACT FINDING MISSION: 24-28 OCTOBER, 2011 MISSION TEAM • MINISTRY OF ECONOMY • PUBLIC PROPERTY AGENCY • UNECE

  10. MOLDOVA FACT FINDING MISSION STAKEHOLDER MEETINGS • GOVERNMENT MINISTRIES & AGENCIES • MUNICIPALITIES • PARLIAMENT REPRESENTATIVES • NATIONAL BANK • PRIVATE SECTOR PARTIES • COMMERCIAL BANKS • CONSTRUCTION SECTOR • ENTERPRISE DEVELOPMENT • INTERNATIONAL ORGANISATIONS

  11. MOLDOVA FACT FINDING MISSION OUTPUTS • PRELIMINARY RA FOR MOLDOVA – JANUARY 2012 • SYNOPSIS RA REPORT – AUGUST 2012 • CURRENT WORKSHOP, step 4/6 – OCTOBER 2012 • STEADY PROGRESS

  12. RA PRELIMINARY FINDINGS • Need for ministries and municipalities to develop costed infra plans • Need for rigorous and transparent project appraisal processes • Need to develop a National Infrastructure Plan (NIP) • Need to improve infrastructure investment climate • Potential areas for PPP activity exist

  13. RA PRELIMINARY FINDINGS • Interest in PPPs exists in both public & private sectors in Moldova • Need to develop an inter-ministerial infra / PPP Network • Need for a national PPP training and educational capacity building programme • Public and private sectors and in wider community • Need to develop public skills capacity specifically to attract private capital

  14. RA DRAFT RECOMMENDATIONS DEVELOPING INSTITUTIONS AND PROCEDURES INFRASTRUCTURE PLANS PPP IMPLEMENTATION DRIVERS POTENTIAL SECTORS FOR PPP DEVELOPMENT

  15. RA DRAFT RECOMMENDATIONS DEVELOPING INSTITUTIONS AND PROCEDURES 1. Education, Training & Capacity Building; Overarching Role of the State in the PPP process Need to create space for the private sector to thrive in the modernisation of Moldova’s infrastructure 2. Inter-Ministerial Infra Board; Share knowledge, promote good practice, standardisation, attract private capital 3. Establish National PPP Unit for Moldova; Harness / Develop commercial and private sector skills in public sector Ensure common approach across government 4. PPP Law; Should correspond to international best practice Establish the National PPP Unit in the Law Enhanced lenders’ rights

  16. RA DRAFT RECOMMENDATIONS INFRASTRUCTURE PLANS 1. National Infrastructure Plan; 10 year, cross-sectoral infrastructure investment plan based on NEED Efficient combination of public and private sector resources New investment in critical infra modernisation 2. Develop Public Sector Strategic Service Models (SSM) e.g. Healthcare and Transportation 3. Develop Fully-Costed Infra Plans

  17. RA DRAFT RECOMMENDATIONS PPP IMPLEMENTATION DRIVERS • PPP Enabling Environment; • Macroeconomic climate; Business climate; Financial Climate; • Governance – IFRS, transparent investment decision processes 2. Transparent Project Identification, Appraisal, Selection & Procurement 3. Moldova Infra Association – Public/Private; Improve Investment Climate Inter-ministerial Board, Local Authorities, Private Companies, Unions 4. Outsourcing Government (MoF) to develop a strategic performance and efficiency plan Outsource non-core public services (e.g. FM) to private sector Performance based contracts; increase quality and reduce cost of services 5. Potential for greater autonomy and tax raising powers to municipalities and Local Authorities for accelerated infra development at local level e.g. waste PPP

  18. RA DRAFT RECOMMENDATIONS POTENTIAL PPP AREAS OF ACTIVITY IN MOLDOVA Economic Infrastructure Transportation, incl Ports Water & Waste Water Waste Energy – W2E, EfW, Renewables Public Fleet Management Industrial Park Development (LABV) Social Infrastructure Healthcare Education Government Offices Social Housing Defence Prisons Student Accommodation

  19. COUNTRY COUNTRY Requests support UNECE PPP secretariat select and appoint UNECE PPP Readiness UNECE PPP secretariat select and appoint UNECE PPP Readiness UNECE PPP Secretariat UNECE PPP Secretariat Taskforce Team Taskforce Team Stage One - UNECE Six Step Country PPP Readiness Assessment Process Stage One - UNECE Six Step Country PPP Readiness Assessment Process Fact Fact Finding Finding Preliminary Preliminary Mission Mission Consultation Report Consultation Report & Peer & Peer Working Working Review Review Level Process for Level Process for Workshop Workshop Improvement & Improvement & Strategic Strategic Final Report Final Report Action Action Plan Plan UNECE UNECE International PPP International PPP Centre of Centre of UNECE PPP Toolkit: UNECE PPP Toolkit: Excellence Excellence Country Implements Country Implements How To Manual • How To Manual • Strategic Action Plan, Strategic Action Plans, • Teams of Specialists • Teams of Specialists Best Practice Guides • Best Practice Guides • Early Works Projects, and Early Works Projects, and • PPP Specialist • PPP Specialist Train - the - Trainer • Train - the - Trainer • Centres Pilot Projects Pilot Projects Centres Modules Modules • PPP Regional Training • PPP Regional Training Centres Centres NEXT STEPS UNECE PPP 6 STEP NATIONAL READINESS ASSESSMENT TOOL FEEDBACK

  20. THANK YOU FOR LISTENING Leo McKenna Chair, UNECE TOS PPP International Centre of Excellence and Specialist Centres

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