Georgia - Development of Modern Concessions and Public Private Partnership (PPP) Legal and Policy Framework
Growing demand for new public infrastructure in Georgia has contributed to raising pressure for private sector participation including private funding. In addition, insufficient public financing and limited capacity of the state authorities to develop and modernise various transport and communal infrastructure have strengthened the political determination to put in place the necessary legal and economic mechanisms to attract private participation and investment.
Against this background, in 2015, LTT set to work to help prepare a clearer, more transparent and predictable law in order to match investment needs, modernise and improve economy, in particular, the infrastructure and public utilities sector, and thus facilitate and foster economic growth. In May 2018, the Parliament adopted the PPP law and corresponding amendments to other primary laws enabling practical application while the PPP secondary legislation prepared by the ADB with EBRD’s extensive comments were issued in summer 2018.
The new PPP Law provides clear guidance on the rules related to definition, project identification, initiation and preparation, as well as detailed procedures for the selection of private partners as well as the stages of project implementation and post-implementation relations and thereby incorporates all the elements needed for a comprehensive and effective legal framework that will promote investment in Georgia’s infrastructure and better public services.
Regional - CIS Model PPP Documentation and Enabling Tools
In 2018, the Inter-Parliamentary Assembly of Member Nations of the Commonwealth of Independent States (“CIS IPA”), created on 27 March 1992, approved the first 9 Model PPP Enabling Tools modules that will help develop and provide comments on drafts of a number of Enabling Tools that facilitate the implementation of the CIS Model Law.
With the assistance of the EBRD, the CIS Model Law was developed based on best internationally accepted standards of PPP legal frameworks and was thereupon approved by the CIS IPA in November 2014 and recommended for incorporation into national legislation of the CIS Member States. While adoption of the Model Law is a significant step towards developing comprehensive and harmonised model PPP legislation for the CIS countries, the effectiveness of PPP implementation depends a lot on the relevant enabling tools in place.
All 9 Model PPP Enabling Tools modules were first presented at the CIS Inter-Parliamentary Assembly session in November 2017 and received final approval on 29 November 2018. The 9 model tools together with the Model Law assist the CIS IPA in its efforts to strengthen and harmonise the PPP project implementation practices in the CIS member states by providing the necessary guidance for effective application of the CIS Model Law.
Serbia - Technical Assistance to Improve PPP/Concessions Legal Framework
In 2017, LTT launched a technical assistance project in Serbia in order to support the Government with the review of its PPP/Concessions legal and institutional regime and provide advice on the legislative amendments required in order to harmonise it with the EU acquis in the sector.
In coordination with the Ministry of Trade, Tourism and Telecommunications, the Ministry of Economy and the PPP Commission, LTT conducted a comprehensive legal review of the PPP legal framework and subsequently prepared draft amendments to the PPP Law that are expected to be presented to the Parliament in spring 2019.
In addition, LTT assisted the PPP Commission through the provision of institutional support and capacity enhancement in PPP including the drafting of guidelines and delivery of training to support the PPP legislative, institutional and enabling frameworks in Serbia and conducted four training events: in Novy Sad, Belgrade, Kraguevac and Nis in May and June 2018.
Uzbekistan – Development of Modern Policy, Legal and Institutional Frameworks for Public-Private Partnership (PPP) Projects
In 2018, LTT engaged in policy dialogue with the Government of Uzbekistan in order to design a technical assistance project aimed at assisting the country in building a modern policy, legal and institutional framework for PPP projects in the country and to increase private sector participation to address inefficiencies in state dominated sectors including in municipal infrastructure and energy generation. The project which launched in March 2018, consists of four stages and includes a workshop on international standards and best practice for PPP frameworks, providing support with drafting of a PPP policy and legal framework and finally institutional capacity building and enabling tools.
Despite an increasingly challenging environment, LTT successfully delivered the international workshop on “Public – Private Partnerships: Promoting International standards and best practices in Uzbekistan” in March 16, 2018 in Tashkent and finalised the draft PPP Policy and Draft PPP Law.
The third phase of the project was launched in early 2019 and will focus on the drafting of the draft secondary legislation that is expected to be finalised by autumn 2019.