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Irina Zapatrina, Chairman of the Board, Doctor of economic science 1.

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Presentation on theme: "Irina Zapatrina, Chairman of the Board, Doctor of economic science 1."— Presentation transcript:

1 Irina Zapatrina, Chairman of the Board, Doctor of economic science 1

2 Determining influence on attractiveness of a territory High capital intensity of project, its long implementation and payback period High social importance and macroeconomic effect Complexity of project implementation management, high risks 2 INFRASTRUCTUREINFRASTRUCTURE INFRASTRUCTUREINFRASTRUCTURE PPPPPP PPPPPP

3 The State Weakly developed infrastructure (highways and railways, airports, heat and water supplying systems, water drain) Absence of necessary financial resources, lost experience of implementation of large systematic projects, imperfect technologies Private High-capacity market for management services, introduction of new high technologies, equipment supply Opportunity to ensure systematic development of business due to implementation of long- term capital-intensive projects at monopoly markets Society Improvement of living conditions, increasing of attractiveness of territory, increasing of employment Improvement of environment and as a result increasing of length and quality of life 3

4 Draft Law on peculiarities of rent and concession of DH, water supply and water drain object, other draft laws Initiation of PPP projects in housing and communal sector and other fields of activity (concession, rent, establishment of joint ventures …) Concept of development of state-private partnership in housing and communal sector Approved by the resolution of the Cabinet Draft Law of Ukraine «On fundamental of state-private partnership» Approved and rejected by the Parliament, sent for improvement 4

5 The state: 1. Reliability and quality 2. Social aspect 3. Minimization of state support 4. Energy efficiency Local government: 1. Reliability and quality 2. Social aspect 3. Minimization of tariffs 4. Capitalization 5. Profit (sometimes) Private: 1. Profit 2. «Eternal business» 3. Capitalization Consumers: 1. Reliability and quality 2. Minimization of tariffs Communal infrastructure 5

6 MotivationConstraints WRONG EXPECTATIONS StateNew energy efficient technologies Decreasing of budget support Loss of controllability Responsibility for reliability and quality Local govern- ment Escape from «headache» Attraction of financial resources, new technologies, management Loss of controllability of infrastructure Loss of «earnings» Impossibility to evaluate efficiency PrivateProfit, «Long business» Imperfection of regulation (tariffs, rules, strategies) Consu- mer Lack of understanding and related fears 6

7 Development of institutional environment Accounting and control Improvement of PPP methodology Dialogue with consumers, formation of correct expectations Stimulation of private investors to implementation of PPP projects 7

8 Improvement of state regulation system at the natural monopolies markets (depolitization and professionalization of tariff formation, licensing, access, standards) Independent regulating commissions 8

9 Inventory and и market evaluation of housing and communal objects– trustworthiness of information Installation of metering devises Development of plans of infrastructure development; monitoring of their implementation RESULT: Clear formulation of objectives of PPP mechanisms use Choice of adequate mechanisms and formation of adequate indicators of efficiency 9

10 Development of PPP mechanisms and their legal regulation Trainings (state servants, local government, enterprises) Development of corporate culture of business conduction 10

11 Active promotion in mass media Spreading of positive experience of PPP Organization of public discussions Result: Overcoming the resistance of population to development of PPP 11

12 Improvement of state support system of the sector ( priorities of budget financing, transition to support based on payback, co- financing of projects implemented in the framework of PPP, …) Tax benefits ( special regime of VAT, exemption from tax on profit from investments into infrastructure modernization) Providing state guaranties for project implementation 12

13 Why does Ukraine need a PPP Center??? Why does Ukraine need a PPP Center??? Negative perception of private operators participation by the population Absence of experience of attraction of credit facilities at the world markets of capital Absence of funds for modernization of infrastructure in the state and local budgets Threatening technical state of infrastructure the Center

14 Institutional potential Avoidance of political influence and populism Long period of formation and implementation of PPP projects

15 Threats and risks for PPP in Ukraine Threats and risks for PPP in Ukraine Cautious attitude to participation in PPP of serious private operators Negative attitude of the society to presence of private sector in infrastructure Imperfection of legislation, absence of proven models and mechanisms Bureaucratic difficulties in projects implementation. Corruption

16 How to overcome threats and risks??? How to overcome threats and risks??? Search for optimal variants of cooperation Deep professional elaboration of projects Creation of competitive conditions for attraction of the private sector Ensuring of transparency and publicity Trainings, clarifications, spreading of positive experience

17 Interaction and cooperation Modernization of infrastructure, ensuring of proper level of life support of the population Private operator Science, civil society State, Local government

18 PPP Center – stability in conditions of uncertainty Strategic Council Supervisory Board Executive Board Founder

19 Directions of activity of PPP Center Directions of activity of PPP Center 1 Scientific-methodological support Development of normative base 2 Trainings, increasing of qualification Public dialog 3 Formation and support of PPP projects 4 Attraction of credit resources for pool of infrastructure projects

20 Scientific-methodological support, normative base Elaboration and expertise of draft acts - SCIENCE Support of draft acts, ministries, local government, the Cabinet of Ministers of Ukraine Approval of legislative acts, state programs, budget

21 Trainings, public dialog Local level Central level Global level Learning the experience, analyses of opportunities of implementation Training of participants of PPP Training seminars Joint work on implementation of PPP project Conferences, Round tables Public discussions

22 Formation and support of PPP projects Choice of optimal mechanism of PPP Preparation of competitive conditions Conduction of competition with attraction of wide circle of participants Conclusion of agreement Support of project implementation

23 Attraction of credit resources for investment projects pool Local gover nment Develop- ment Agency PPP Center Centr al PIG Utilities IFO Utilities Develop- ment Agency Local gover nment Cabinet of Ministers of Ukraine

24 24 Expected results Expected results 1.Introduction of advanced experience and new technologies 2.Attraction of financial means (own and borrowed) 3.Overcoming of fragmentation of sectors enterprises and efficiency increasing 4.Avoidance of populism in housing and communal sector. Formation of «lobbyists» of reforms 5.Increasing of general professional level in management of enterprises of housing and communal sector due to the competition of operators 6.Quick and adequate reaction on the sectors demands, technological, social and ecological challanges

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