23.06.2017

The National Agency of Investment and Privatization hosted the training course on ‘Practical aspects of PPP projects  preparation and implementation’ organized by the PPP Center of the National Agency of Investment and Privatization in the framework of instruments of international technical assistance of the European Union TAIEX.

 Specialists of the central agency of the Project Management of Lithuania shared their experience in public-private partnership with Belarusian colleagues.

The experts emphasized that one of the main factors that should be paid close attention when structuring PPP projects is the correct and balanced allocation of risks between public and private partners. Also the main groups of risks that arise when implementing PPP projects were discussed, as well as the methods for their identification, determining the degree of influence on the project, allocation between the parties on the specific practical examples.

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In particular, the participants of the seminar discussed the consequences of an incorrect interpretation and transfer of risk to the project as an example of the construction of a public swimming pool in Lithuania. The infrastructure facility proved to be unsuitable for use due to lack of minimum required conditions as the swimming pool and changing rooms were located on different floors and in different parts of the building. Also, the design flaw affected inconvenient location of diving towers and so on. These circumstances significantly reduced the projected level of demand for the swimming pool and questioned the need for the existence of the object.

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A separate topic for the debate was the tender on selection the private partner. The Belarusian side in the discussion was represented by members of law enforcement and regulatory authorities. Lithuanian experts shared experiences in preparation of tender documentation and presented to all the participants standard forms of tender documents. In addition, the main criteria for prequalification of participants, which need to pay close attention to, also were presented.

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Experts stressed that the control system in Lithuania is clear and understandable. Authorized bodies, between which the functions are distributed, involved in the work from the beginning of the preparation of the project and are working in parallel. As for today, the main principle in controlling activity from the state side are openness and transparency of all plans and results of operations, cooperation and goodwill, benefit to the state and controlled entities, consistency in all actions.

Today in Lithuania 44 projects are being implemented, 3 of which are according to the PPP Agreement, 41 are under the concession agreement.

For reference: In the EU there is a clear distinction between the reasons for the choice of the form of the project. In case when more than 50% of the project cost will be offset to the private partner by charging of the users, it is a concession, if by the state it is PPP. In Belarus there is no such distinction as of today.

TAIEX instrument aims to support the partner countries in the questions of harmonization of national legislation, regulations and quality standards with those of the European Union in the framework of the signed agreement with the EU on associate membership or collaboration.