1 University of Economics of Prague Western Bohemian University, Pilsen Actual challenges of implementation of PPP projects in Czech republic Zuzana Khendriche Trhlínová Jaroslava Kadeřábková

2 Presentation overview Framework of the process of development of the partnership between public and private sector Different approaches to the PPP projects on national and on local and regional level Barriers limiting increase of PPP projects in CR Actual challenges to make work PPP projects in CR

3 Introduction Data based on results of the common research of University of Economics of Prague and Law Faculty of University of Pilsen Territorial researches in different regions in Czech republic Management of regional and local development (legal framework, finance, tools, institutions, partnership, communication etc.) Secondary analysis

4 Emergence of PPP projects Need to ensure public services of high quality by territorial self-government unites Pressure to minimize the price of public goods and services Acceptance of European standards and norms Realization of development projects (Structural funds, National funds) Local, regional level X National level Institutional background: Ministry of Finance, PPP centre, Ministry of Local Development, Ministry of Transport, PPP association & Local and Regional actors

5 PPP Projects experiences: local level Rural areas x urban areas Water treatment, waste collection, parking areas, brownfields regeneration, public lighting, sport and cultural infrastructure, congress centre, social infrastructure, senior houses etc. Prospective organization of the Olympic summer games, potential centre access payment for individual transport Territorially diversified approach: development of local actors initiatives (local administration, private sector, NGO, local initiative groups), partnership networks, intensity of communication Help to realize development projects, larger community involvement, public control x territorially limited impact, local administration professional experience

6 PPP projects experiences: regional level Relatively recent administrative structures (2000) Preparation phases of PPP projects Regeneration of regional hospitals Transport infrastructure

7 PPP projects experiences: national level Preparation phases of projects Transport infrastructure -motorway enlargement -railway modernization Accommodation infrastructure - prisons Accommodation infrastructure - justice areas State as a powerful partner x risk of political change, lack of trust and political support Inclusion of the experiences in future PPP concepts

8 Major limits of PPP projects Legislative framework (concession law, clearing of competences of territorial unities) Legal environment (longstanding legal proceedings, exactable of law…) Lack of experience and knowledge (public & private sector) Technical and management capacity (contracts, investment management…) Financial limits of local administration No existence of strategic and long-term vision in some regions and sectors Long-term Responsibility Lack of internal communication Lack of long-term cooperation between public administration and private sector in some regions/municipalities Lack of external communication (public sector-private sector-NGO- citizens) Risk of corruption, local pressure groups, lobbying Distrust of population

9 Steps to be made to increase the potential using of PPP projects Increasing of the expertness of the management in public sector on national, regional and local level Application of new methods of the quality management in public administration Promotion of the quality of strategic plans of municipalities and regions (better investment planning and defining the priorities hierarchy) Development of the functional partnership and networking More intensive communication between different actors Strengthening the civic control Wide political support – political and economic discussion Reducing of corruption – PPP can be a motivation factor for its diminution

10 Conclusion Pressure to quality and amount of public services&goods x financial limits of public sector – growing need of PPP projects Change of the attitude of whole society Promotion of transparency

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