Download Public-Private Partnerships in Mongolia: Now and Futures Prospects...
PUBLIC-PRIVATE PARTNERSHIPS IN MONGOLIA Now and Futures Prospects
June 6, 2014
WHAT IS PPP? ADB’s PPP Operational Plan (mid-2012) defines publicprivate partnership as: “… a contractual arrangement between public (national, state, provincial, or local) and private entities through which the skills, assets, and/or financial resources of each of the public and private sectors are allocated in a complementary manner, thereby sharing the risks and rewards, to seek to provide optimal service delivery and good value to citizens.”
WHY CHOOSE PPP? Risk transfer Whole of life-costing/ maintenance Innovation Maximization of asset utilization
Disadvantages: -Off-balance financing -Cost of capital is expensive -Can be complex and difficult to implement
Mobilization of additional resources
HOW TO IDENTIFY A PPP PROJECT?
SHARE OF PUBLIC INVESTMENT DELIVERED THROUGH PPPS IN 2011 Country
Share (percent) Australia >10 - 15 Canada >1 - 3 Czech Republic >0 - 1 Finland >10 - 15 Germany >3 - 5 Italy >1 - 3 Korea >5 - 10 Luxembourg >5 - 10 Mexico >15 New Zealand >1 - 3 Norway >3 - 5 South Africa >3 - 5 Spain >3 - 5 United Kingdom >15 Source: Burger and Hawkesworth (2013). OECD.
ADB SUPPORT FOR PPPS IN MONGOLIA
ADB’s country partnership strategy for Mongolia, 2012–2016 - Inclusive and sustainable growth; - Support for PPPs will bring in private financing for the infrastructure needed to improve access to essential public services.
Current Status - ADB has supported Mongolia’s PPP work since 2009: 1. The first technical assistance (TA) helped draft the Concessions Law and establish a PPP Unit as a coordinating body for PPPs; 2. A follow-on TA strengthened PPP regulations, helped build the capacity of the PPP Unit and develop a pipeline of PPP projects and more; 3. The third TA, “Developing a Conducive Environment for PPPs”, was approved in December 2012.
- In June 2011, ADB was appointed as the mandated adviser to the PPP for
CHP5, the mandate was renewed in December 2013 (A $1.2 million TA that will fund additional advisers); - Other IFIs and countries such as the World Bank Group are in discussion with the government.
PPP LEGAL FRAMEWORK •
Parliamentary Ad hoc committee on PPPs - Nov 2008
State Policy on PPP - Oct 15, 2009 • to promote private sector participation in all sectors of economy
The Law on Concession - Jan 28, 2010 • Defines the processes of PPP implementation.
In 2010, the Government has approved several regulations regarding the detailed bidding process and evaluation of bid proposals
III. LIST OF CONCESSION PROJECTS
In 2010, the Government approved the list of 121 concession projects.
The Cabinet made amendments to the list of Concession projects (reduced to 51 projects) 2013.09.06 №317
BY SECTORS –7 Road and transportation – 17 Pipeline transport – 2 Airport – 2 Energy -12 Environment – 4 Education - 2 Health – 1 Culture and sport - 4 Infrastructure
BY TYPES OF PPP BOT – 8 BOO – 12 BT – 19 OTHER - 12
Enerelt Enkhbold [email protected]