Public-Private Partnerships Workshop, Programme, Podgorica, Montenegro, 25-26 June 2014_eng

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Programme for the SIGMA workshop on PPPs being held at the Best Western Hotel Podgorica, 25-26 June 2014.

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Public-Private Partnerships Workshop, Programme, Podgorica, Montenegro, 25-26 June 2014_eng

  1. 1. 2 Rue André Pascal 75775 Paris Cedex 16 France mailto:sigmaweb@oecd.org Tel: +33 (0) 1 45 24 82 00 Fax: +33 (0) 1 45 24 13 05 www.sigmaweb.org This document has been produced with the financial assistance of the European Union. It should not be reported as representing the official views of the EU, the OECD or its member countries, or of beneficiaries participating in the SIGMA Programme. The opinions expressed and arguments employed are those of the author(s). This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Public-Private Partnerships Venue: Conference room “Cetinje” Premier Congress Center Svetog Petra Cetinjskog 147, Podgorica, 81000 Dates: Wednesday 25 and Thursday 26 June 2014
  2. 2. 2 Purpose of the workshop: The main purpose of the workshop is to examine public-private partnerships (PPPs) in the context of the draft Montenegrin law on public-private partnerships and concessions (PPPCL) and to walk through the process of carrying out a project by way of PPP from initial feasibility stage to financial close and contract management. We will look at the key risk profile, a well-structured PPP project, and examine the key issue of termination and termination payments as this is critical to attaining project finance on the capital markets. We will look at case studies in sectors of particular interest to Montenegro. Format and content of the workshop: The workshop will be interactive, based on presentations of key stages in the PPP process, with opportunities for discussion. To reach the objective of the workshop, the presentations will chart the various stages that any large PPP project must go through, outlining the core areas of expertise required. A key objective is to ensure that attendees leave the workshop with a clear understanding of project finance and how PPP is simply project finance in its simplest form. Termination payments take the place of asset security for funders and it is therefore essential that attendees understand the role of termination payments in the deal. We hope also to give a clear understanding of how the allocation of key projects risks to the public or private sector partner is key to determining whether a project is on or off the government balance sheet which is a critical issue for most countries worldwide at the moment as government deficits have never been as high and ensuring that projects do not become government debt for the purpose of the balance sheet is a key issue. Simultaneous interpretation will allow presentations and discussions to be held in both Montenegrin and English. Participants: Participation is by invitation only.
  3. 3. 3 SIGMA workshop on public-private partnerships: Agenda Day 1, Wednesday 25 June 2014: 09:00-09:30 Registration 09:30-09:45 1. Welcome and introduction Montenegrin hosts Ms Mary Dunne, SIGMA Consultant 09:45-10:50 2. The categorisation of PPP contracts under EU law and why this matters in the context of the draft Montenegrin PPPCL: There are no special laws in the EU that deal with PPPs. They are simply a form of contract that must be categorised as a concession, public works, public service or public supply contract. The rules of EU procurement law must then be followed once the category of the PPP contract is established. How does this fit into the structure of the Montenegrin PPPCL? Ms Mary Dunne, SIGMA Consultant Mr Damir Cimer, SIGMA Consultant 10:50-11:10 Tea/coffee break 11:10-12:30 3. The key stages of a PPP project and the roles of the corresponding stakeholders: 1 Project Initiation 2 Feasibility/Cost Benefit Analysis 3 Document/Technical Specification Preparation 4 Procurement Process 5 Contract and Finance negotiation 6 Financial Close 7 Contract Management PPPs are typically 25 or 30 year deals. State assets should not be entrusted to the private sector for such long periods without detailed preparation and carefully negotiated documents. Each stakeholder has an important role to play in each of the project stages. Ms Mary Dunne, SIGMA Consultant Mr Damir Cimer, SIGMA Consultant 12:30-13:30 Lunch 13:30-14:50 4. Off balance sheet treatment of PPP projects: What are the key aspects of a PPP project that dictate whether it is off balance sheet or not? How are PPP projects to be accounted for by government? What are the fiscal risks and contingent liabilities that have to be considered, and how would this be done? Mr Damir Cimer, SIGMA Consultant 14:50-15:10 Tea/coffee break 15:10-16:00 5. Case studies for discussion Ms Mary Dunne, SIGMA Consultant Mr Damir Cimer, SIGMA Consultant
  4. 4. 4 Day 2, Thursday 26 June 2014: 09:30-10:10 6. The financing of PPPs: On what basis is debt and equity lent into PPP projects? What is a typical split between debt and equity? At what point in the procurement process are the lenders chosen and how does this work? Are the lenders fully committed when the Project Agreement is signed? How do these issues affect the willingness of international lenders to participate and the conditions that they will be able to offer, in terms of the cost of financing and the absorption of risk? Ms Mary Dunne, SIGMA Consultant (UK/Europe) Mr Damir Cimer, SIGMA Consultant (Croatia) 10:10-10:50 7. If (when?!) things go wrong: The lenders do not have security over the asset being built, so how do they secure their loans? What would happen when a project goes sour? How could one ensure continuity of service in a default situation? What termination payments may have to be made, and who will pay? Ms Mary Dunne, SIGMA Consultant 10:50-11:10 Tea/coffee break 11:10-12:00 8. Risks and their allocation in a typical PPP project We will look at the typical allocation of key risks in a PPP project that is off balance sheet and also look at variations in certain sectors. Ms Mary Dunne, SIGMA Consultant 12:00-12:45 9. Case study showing allocation of risks in a Croatian PPP project Mr Damir Cimer, SIGMA Consultant 13:00 Close/lunch

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