Click to edit Master title style An outsider view on SAI PPP training

30-11-2012
An outsider view
on SAI
PPP training needs
Click
to edit sharing
and
knowledge
Master title style
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subtitle
style
PPP SeminarClick
for Supreme
Audit
Institutions
26 and 27 November 2012
The Hague, The Netherlands
Rui Monteiro
(World Bank Institute)
Rationale for PPPs
Tradit.
D-B
PPP
PPP
PPP
PPP
design of infrastructure
core
construction of infrastructure
maintenance of infrastructure
provision of equipment
maintenance of equipment
provision intermediate services
provision services to end-users
In each case, services provided according to public sector rules
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Some concerns
effectiveness
▪
Effectiveness and efficiency
PPP contracts are long-term,
complex, incomplete contracts
a powerful tool
when aligned with
the public interest
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
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Applying the contract (enforcement)
PPP contracts are long-term,
complex, incomplete contracts
performance
should be
monitored
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
poor performance should imply
applying penalties
project performance
should be disclosed
and audited
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Partnering
PPP contracts are long-term,
complex, incomplete contracts
implementation
requires some
public action
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
public sector should cooperate
and not jeopardize efficiency
contract manager
should link with other
public stakeholders
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Change management
PPP contracts are long-term,
complex, incomplete contracts
change may
affect and disturb
public service
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
change should be managed by
contract managers
contract management
procedures should be
in place
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Private operator strategic behavior
PPP contracts are long-term,
complex, incomplete contracts
Private operators
may induce
change
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
contract manager should
prevent perverse moves
contract management
should include some
strategic reasoning
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Renegotiation
PPP contracts are long-term,
complex, incomplete contracts
PPP contracts may
need to be
renegotiated
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
PPP contract renegotiation may
jeopardize PPP efficiency
PPP contract disclosure
helps in safeguarding
PPP efficiency
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Poorly designed contracts
PPP contracts are long-term,
complex, incomplete contracts
contracts may lack
proper incentives
for efficiency
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
they should have been carefully
reviewed and adjusted
gateway processes
should guarantee the
review of PPP contracts
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Poorly selected projects
PPP contracts are long-term,
complex, incomplete contracts
projects may be
poor projects or
lack priority
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
gateway processes
should guarantee the
review of PPP projects
no proper contract
management can save them
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Unaffordable PPP programs
PPP contracts are long-term,
complex, incomplete contracts
a PPP program
may simply be
unaffordable
PPP projects are related to services
of general interest
PPP projects are subject to political,
commercial, technological change
long-term fiscal costs and risks
should be well scrutinized
gateway processes
should review PPP
program affordability
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PPPs and governance
Institutional
Framework
Parliament
.
.
Working with parliaments on PPP
efficiency and integrity
Court of Auditors
Government
Working with Courts of Auditors
on PPP efficiency and integrity
assessing costs, benefits, and
risks; selecting PPP projects
Reviewing and strengthening the
institutional framework for PPPs
procurement: preparing PPP
schemes and draft contracts;
tendering contracts
Networking and knowledge
transfer between peers
Strengthening project
assessment and project selection
managing PPP contracts:
applying the contracts,
partnering, and managing
change and fiscal risks
Media
Strengthening gov’t accounting
and fiscal sustainability
Users
Civil society
Promoting effectiveness and
transparency in contract manag’t
Promoting contract transparency
and monitoring
New institutions
Beside a good legal environment, PPPs
require public entities devoted to:
– Identifying and prioritizing projects
– Designing effective and efficient PPP schemes
– Assessing PPP fiscal risks and costs
– Procuring PPP projects efficiently
– Managing PPP contracts
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Is there an optimal
institutional design
for PPP
procurement?
No, the adequate design
depends on local conditions, e.g.
do care
for public
sector
capacity !
characteristics of government institutions for project selection
characteristics of public administration and its relation to decision-makers
characteristics of institutions for budgetary planning and control
▪
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SAI and PPP challenges
• Traditional auditing vs. PPP auditing
• Efficiency auditing and “politicization”
• Identifying pseudo-PPPs
• Using SAI as government consultants?
• Governance and fiscal sustainability
• The role of disclosure and transparency
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SAI training needs
• PPP efficiency drivers and project selection
• Paradoxes of contract design
• Formal vs. effective competition
• PPP contract management
• Dealing with renegotiation
• Monitoring and management of fiscal risks
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SAI training needs (alternative)
• How to launch poor projects using PPPs
• How to create rents by contract
• How to obey competition law without
effective competition
• How to transfer costs and risks back to govt
• How to jeopardize fiscal sustainability for
the benefit of short-term “results”
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SAI and knowledge sharing
• Learning from past and global experience
– Avoiding “learning by doing”
• Creating knowledge, identifying lessons
• Producing recommendations to gov’t
• Disclosing audit reports
• Networking and expertise-sharing
• Networking and peer-reviewing
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WBI activities
Regional PPP
networks:
knowledge
interchange
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WBI activities
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WBI activities
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WBI activities
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WBI activities
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WBI activities
South-South
knowledge
exchange:
Linking
practitioners
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WBI activities
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WBI activities
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Thank you for your attention!
Rui Sousa Monteiro
senior public-private partnerships specialist
World Bank Institute
1818 H Street, N.W.
Washington, D.C. 20433, USA
tel: +1-202-473-9450
e-mail: [email protected]
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