1. PPP as an effective tool for local sustainability Penka ARMENKOVA Mayor District Oborishte armenkova@abv.bg Sofia-District Oborishte,Bulgaria

2. Bulgaria at a Glance Population7,8 million Bulgaria at a Glance Population7,8 million Area110,994 sq. km LanguageBulgarian AlphabetCyrillic Predominant ReligionEastern Orthodox Capital CitySofia

3. Bulgaria Essential EU membershipEU membership Structural reformStructural reform Political stabilityPolitical stability Financial and macroeconomic stabilityFinancial and macroeconomic stability Substantial economic growthSubstantial economic growth

4. Ever growing, never ageing The City of Sofia

5. OVERVIEW Capital and largest city in BulgariaCapital and largest city in Bulgaria One of the oldest European CitiesOne of the oldest European Cities 1.2m inhabitants1.2m inhabitants Dominant position in Bulgaria’s political, economic and cultural lifeDominant position in Bulgaria’s political, economic and cultural life FAVOURABLE LOCATION ON TRADITIONAL TRADE ROUTE

6. Agenda of Paper Introduction –Introduction – PPP and its models Partners, roles and mutual interests Sectors in which PPP is most often implementedSectors in which PPP is most often implemented Typical good practices of PPP and their modelsTypical good practices of PPP and their models ResultsResults ConclusionsConclusions

7. PPP enhances urban development by mobilizing of external funding (grants and loans) or rescheduled payment ;PPP enhances urban development by mobilizing of external funding (grants and loans) or rescheduled payment ; Private companies having service contracts with the municipality invest in modernization of equipment and perform quality services on behalf of the municipality.Private companies having service contracts with the municipality invest in modernization of equipment and perform quality services on behalf of the municipality. PPP models realized between Sofia municipality and the private sector are: contracting;contracting; establishment of joint venture or shareholding companies;establishment of joint venture or shareholding companies; concession of municipal property or the rights to build and/or use infrastructure;concession of municipal property or the rights to build and/or use infrastructure; sale of municipal property under different conditions;sale of municipal property under different conditions; use of municipal property against maintenance; etc. Why PPP and its models

8. potential and - financial, technological and managerial to offer efficient and cheaper services, it improves and in certain activities, for which the local authority is responsiblemunicipal budget is lean and State subsidies are insufficient.The private sector has potential and capacity - financial, technological and managerial to offer efficient and cheaper services, it improves and assists in certain activities, for which the local authority is responsible, but municipal budget is lean and State subsidies are insufficient. Private sector’s interests - get highest and best profits from commercial activities, to get better position and image. Private sector’s interests - to cooperate and gain from municipal land or business activities, to get highest and best profits from commercial activities, to get better position and image. The municipality – has certain assets (real estate and land), which are offered under certain conditions to private sector to be fulfilled some self-government tasks, can facilitate certain procedures related to development.The municipality – has certain assets (real estate and land), which are offered under certain conditions to private sector to be fulfilled some self-government tasks, can facilitate certain procedures related to development. Municipal benefits - improved public services, new construction for public use, maintenance, external additional funding, etc.Municipal benefits - improved public services, new construction for public use, maintenance, external additional funding, etc. Partners, roles and mutual interests

9. Sectors in which PPP is most often implemented We involve the private sector to help and do better than what the municipality can do alone in its obligations in the following sectors: We involve the private sector to help and do better than what the municipality can do alone in its obligations in the following sectors: commercial developments on municipal land, which is used to be improved public services;commercial developments on municipal land, which is used to be improved public services; better maintenance of public buildings and facilities;better maintenance of public buildings and facilities; reconstruction of public buildings (cultural, recreation of sport facilities)reconstruction of public buildings (cultural, recreation of sport facilities) management, maintenance and renovation of natural resources, parks, gardens and recreation areas;management, maintenance and renovation of natural resources, parks, gardens and recreation areas; construction of infrastructure;construction of infrastructure; a variety of improved service delivery for citizens, etc.a variety of improved service delivery for citizens, etc.

10. Typical good practices of PPP and their models Natural resource management -“Adoption“ of parks and gardens by business – improvement of maintenance and renovation, supply with new facilities and provision of infrastructure (water effects, alleys, lightening) in the open green spaces.Natural resource management -“Adoption“ of parks and gardens by business – improvement of maintenance and renovation, supply with new facilities and provision of infrastructure (water effects, alleys, lightening) in the open green spaces. Concession - Sofia Water company is the first water concession project to be financed on a limited recourse basis in Central & Eastern Europe and the first major municipal infrastructure concession and water privatization in Bulgaria. It is successful project capable of attracting multilateral financing whilst delivering services at an affordable price.Concession - Sofia Water company is the first water concession project to be financed on a limited recourse basis in Central & Eastern Europe and the first major municipal infrastructure concession and water privatization in Bulgaria. It is successful project capable of attracting multilateral financing whilst delivering services at an affordable price. Concessions for improvement of public services – organization of public transport in Sofia and waste management. Both bring higher satisfaction among the citizens, getting these services.Concessions for improvement of public services – organization of public transport in Sofia and waste management. Both bring higher satisfaction among the citizens, getting these services.

11. “Adoption“ of parks and gardens by business

12. Waste management

13. Typical good practices of PPP and their models Renovation of buildings (public and housing stock) – well estimated and used potential for PPP in the renovation and use of the open space for profit binging developments, which can provide win-win situations for owners and entrepreneurs.Renovation of buildings (public and housing stock) – well estimated and used potential for PPP in the renovation and use of the open space for profit binging developments, which can provide win-win situations for owners and entrepreneurs. New construction on municipal land under certain conditions – deals for construction of new amenities and services. Parking and trade centers are built on municipal land, in result the entrepreneurs get profits, the citizens - better services.New construction on municipal land under certain conditions – deals for construction of new amenities and services. Parking and trade centers are built on municipal land, in result the entrepreneurs get profits, the citizens - better services. Lightening of public buildings, gardens, celebration of the new year and others - rich business companies have invested in public lightening, thus improving the safety and the environment. They get opportunities to make their own advertisement against the service.Lightening of public buildings, gardens, celebration of the new year and others - rich business companies have invested in public lightening, thus improving the safety and the environment. They get opportunities to make their own advertisement against the service. Partnerships with NGOs and citizens' groups - volunteers provide better maintenance and services for cleaning and supply with equipment (waste baskets, benches and children playgrounds) in open spaces among buildings.Partnerships with NGOs and citizens' groups - volunteers provide better maintenance and services for cleaning and supply with equipment (waste baskets, benches and children playgrounds) in open spaces among buildings.

14. Renovation of buildings

15. Lightening of public buildings

16. Lightening for new year

17. Lightening of a garden

18. Children playgrounds

19. Parking and trade centers

20. Partnerships with NGOs and citizens' groups - volunteers – maintenance, services, supply with equipment

21. Conclusions The municipality has a leading role in the process of partnership establishment as it knows the needs and the problems to be solved in the urban development. It can identify the partners form the private sector and motivate them accordingly to assist effectively. PPP leads to: The municipality has a leading role in the process of partnership establishment as it knows the needs and the problems to be solved in the urban development. It can identify the partners form the private sector and motivate them accordingly to assist effectively. PPP leads to: Improved local sustainability (due to innovative management tools - successful models of public private partnership)Improved local sustainability (due to innovative management tools - successful models of public private partnership) Improved public services, living environment and higher profits.Improved public services, living environment and higher profits. Trust and efficient collaboration between local authority and private sectorTrust and efficient collaboration between local authority and private sector

22. Thank you!