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o   Importance of restoration in Italy
o   Partnership model of the both the
    government and industry in CH
    preservation
o   Case studies: Fendi & Fontana
    Trevi, Tod’s & the Colosseo




                 Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
What is PPP?
    Why
    PPP?
o



o




o




           Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
PPP for Cultural Heritage in Italy
     PRIVATE financing > extraordinary but necessary resource for maintenance
                          and management of CH Sites



      {2004} new Code for Landscape and Cultural Heritage > SPONSORSHIP



        Association of name, trademark or image to the initiative subject to the
        grant, in ways compatible with the artistic character of the asset to be
                     exploited, by entering into specific contracts.



                              Tax deduction equal to 1/10 of the tax



             Full tax deduction for businesses that invest in culture with the Law
             342/2000 > as a result, just in 2003 €16,933.693 devoted to culture
                                          (increase of 2mil from 2002)
Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                    Nikolic
The Case:
Colosseum & Tod’s
Timeline: Colosseum & Tod’s
        72 A.D.                   Building of Flavian Amphiteatre > Colosseo > gladiator shows and
       venatorii

       523 A.D.                   Last show

       1803                        Earthquake > first consolidation works > from ruin to national monument

       1939                        Last consolidation works > now 40 cm of difference in height

       2010 (August)             Municipality of Rome published a call > “search for sponsors for financing &
                                              execution”

       2010 (January)            Signed sponsorship agreement with Tod’s > 25 million euro > exclusive use
       of                         image for 15 years

       2011 (March)              UIL-Cultural Heritage forwards a complaint

       2011 (November)           CODACONS appeals to the TAR Lazio for annulment and suspension of
                                         sponsorship

       2011 (December)          AGCM (Market Competition Authority) comment the procedure followed for
                                 the agreement

       2012 (February)         The Authority for the Supervision of Public Contracts expresses its
       evaluations
Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                           Nikolic
Pure Patronage vs. Business

SISTINE CHAPEL:

o   1980 Nippon television

o   18 billion dollars

o   13 years

o   more than 150 hours of footage

o   13 programs of 2 hours

o   purchased by nearly 80
    countries around the world
                     Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                                                Nikolic
Pure Patronage vs. Business


       TREVI’S FOUNTAIN

o   December 14, 2012 >
    agreement Municipality of
    Rome & Fendi

o   2 million and 180 thousand
    euro

o   commitment to financially
    support the restoration of the
    Four Fountains
                   “Nothing but pure patronage sponsorship”

                    Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                                               Nikolic
Analysis of the model of partnership

  Form

  o      Public-Private Partnership {PPP}

  o      Cross Sector Partnership

  o      Complementary Partnership

  o      Quasi-Concentration Partnership




Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                           Nikolic
Analysis of the model of partnership

Actors




                                       Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                                                                  Nikolic
Analysis of the model of partnership


                                                               Growth options

                                             Upstream
                                              vertical
                                            integration




                       Diversification                    International expansion




                                           Downstream
                                              vertical
                                            integration




                                         Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
Analysis of the model of partnership




Pooled                         Project

Synergies


                         ©               $$$$


    Government                                  Private Industry
quotes
” the main element of a different model of development” and "With the restoration of the
Flavian Amphitheatre try to draw the country of the future, filled with culture as the main
                 element of a different model of development.”
                   -Lorenzo Ornaghi, Minister for Cultural Heritage

"Compared to the amount invested, the counterbalance is disproportionate in its favor,”
                          - national responsiblenfor Culture, Giulia Rodano.

„‟The decision made by Diego Della Valle goes beyond the benefits of return as a good
      example in difficult times and cuts funding to protect our heritage. Any other
   interpretation is misleading,‟’          - Vittorio Sgarbi, Italian art critic, politician,
                         cultural commentator and TV personality.

 "A challenge model, we must transform the Coliseum by splendid ruin a focal point for
Roma and for the country, the restoration will be an example for Italy that is patronage.”
                         - Gianni Alemanno, Mayor of Rome

“..there is the need to apply the new public / private partnership (it is worth recalling the
more positive example of the Michelangelo's Sistine Chapel) and return to the world one
              of the most representative and visited monuments in the world,”
 - Umberto Broccoli, television writer, radio host, television host and Italian, since 2008
                   Superintendent of Cultural Heritage of the city of Rome.
Motivations & Values
               Municipality of Rome & The
             Archaeological Superintendency of
                                                                                Fendi & Tod’s
                           Rome

                                                                 o
                     o
Motivation       o
s




             o
                                                                 o
Values




                 Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
Maintaining a successful partnersh

Characteristics of the Government Partnership
o   Significant clearly defined common goals
o   Financial investment
o   Sharing of the control of decisions
o   Sharing the significant risks and benefits
Maintaining a successful partnership

  Phases of Creating a Partnership
  & Critical Factors


  o      Alliance formation & partner selection
  o      Alliance design
  o      Post formation alliance management




Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja
                           Nikolic
Advantages
o




o

o




o




        Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
Disadvantages
o   Where are the limits of the sponsorship of cultural heritage?

o   What may or may not be granted to the public sector in
    exchange for funding?

o   Is it desirable to introduce legislation that would provide for
    the protection of the’ image’ of the site? Since cultural sites
    are cultural commons administered by the state, it is
    possible to transfer the use of the image to a sponsor, or to
    limit their use to third parts?
              Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
Thank you..

Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic

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Public Private Partnership

  • 1.
  • 2. o Importance of restoration in Italy o Partnership model of the both the government and industry in CH preservation o Case studies: Fendi & Fontana Trevi, Tod’s & the Colosseo Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 3. What is PPP? Why PPP? o o o Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 4. PPP for Cultural Heritage in Italy PRIVATE financing > extraordinary but necessary resource for maintenance and management of CH Sites {2004} new Code for Landscape and Cultural Heritage > SPONSORSHIP Association of name, trademark or image to the initiative subject to the grant, in ways compatible with the artistic character of the asset to be exploited, by entering into specific contracts. Tax deduction equal to 1/10 of the tax Full tax deduction for businesses that invest in culture with the Law 342/2000 > as a result, just in 2003 €16,933.693 devoted to culture (increase of 2mil from 2002) Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 6. Timeline: Colosseum & Tod’s 72 A.D. Building of Flavian Amphiteatre > Colosseo > gladiator shows and venatorii 523 A.D. Last show 1803 Earthquake > first consolidation works > from ruin to national monument 1939 Last consolidation works > now 40 cm of difference in height 2010 (August) Municipality of Rome published a call > “search for sponsors for financing & execution” 2010 (January) Signed sponsorship agreement with Tod’s > 25 million euro > exclusive use of image for 15 years 2011 (March) UIL-Cultural Heritage forwards a complaint 2011 (November) CODACONS appeals to the TAR Lazio for annulment and suspension of sponsorship 2011 (December) AGCM (Market Competition Authority) comment the procedure followed for the agreement 2012 (February) The Authority for the Supervision of Public Contracts expresses its evaluations Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 7. Pure Patronage vs. Business SISTINE CHAPEL: o 1980 Nippon television o 18 billion dollars o 13 years o more than 150 hours of footage o 13 programs of 2 hours o purchased by nearly 80 countries around the world Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 8. Pure Patronage vs. Business TREVI’S FOUNTAIN o December 14, 2012 > agreement Municipality of Rome & Fendi o 2 million and 180 thousand euro o commitment to financially support the restoration of the Four Fountains “Nothing but pure patronage sponsorship” Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 9. Analysis of the model of partnership Form o Public-Private Partnership {PPP} o Cross Sector Partnership o Complementary Partnership o Quasi-Concentration Partnership Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 10. Analysis of the model of partnership Actors Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 11. Analysis of the model of partnership Growth options Upstream vertical integration Diversification International expansion Downstream vertical integration Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 12. Analysis of the model of partnership Pooled Project Synergies © $$$$ Government Private Industry
  • 13. quotes ” the main element of a different model of development” and "With the restoration of the Flavian Amphitheatre try to draw the country of the future, filled with culture as the main element of a different model of development.” -Lorenzo Ornaghi, Minister for Cultural Heritage "Compared to the amount invested, the counterbalance is disproportionate in its favor,” - national responsiblenfor Culture, Giulia Rodano. „‟The decision made by Diego Della Valle goes beyond the benefits of return as a good example in difficult times and cuts funding to protect our heritage. Any other interpretation is misleading,‟’ - Vittorio Sgarbi, Italian art critic, politician, cultural commentator and TV personality. "A challenge model, we must transform the Coliseum by splendid ruin a focal point for Roma and for the country, the restoration will be an example for Italy that is patronage.” - Gianni Alemanno, Mayor of Rome “..there is the need to apply the new public / private partnership (it is worth recalling the more positive example of the Michelangelo's Sistine Chapel) and return to the world one of the most representative and visited monuments in the world,” - Umberto Broccoli, television writer, radio host, television host and Italian, since 2008 Superintendent of Cultural Heritage of the city of Rome.
  • 14. Motivations & Values Municipality of Rome & The Archaeological Superintendency of Fendi & Tod’s Rome o o Motivation o s o o Values Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 15. Maintaining a successful partnersh Characteristics of the Government Partnership o Significant clearly defined common goals o Financial investment o Sharing of the control of decisions o Sharing the significant risks and benefits
  • 16. Maintaining a successful partnership Phases of Creating a Partnership & Critical Factors o Alliance formation & partner selection o Alliance design o Post formation alliance management Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 17. Advantages o o o o Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 18. Disadvantages o Where are the limits of the sponsorship of cultural heritage? o What may or may not be granted to the public sector in exchange for funding? o Is it desirable to introduce legislation that would provide for the protection of the’ image’ of the site? Since cultural sites are cultural commons administered by the state, it is possible to transfer the use of the image to a sponsor, or to limit their use to third parts? Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic
  • 19. Thank you.. Nour Abdallah. Ekaterina Baskakova. Shao Kang Chunzi. Natasja Nikolic

Editor's Notes

  1. The history of industry-government alliances in Italy portrays numerous examples when it comes to the restoration of historic monuments or sites such as pompeii, the Colonnade of St. Peter's Square sponsored by eni, wind and enel in 2008…going to investigate the existing model of partnership between industry and government in the field of cultural heritage preservation and restoration. Given the latest controversies brought out by the Colosseum case, we will focus on the pros and cons of such a partnership
  2. Refer to restoration in italyAdd what section
  3. Disadvantages ?? ( private wanting involvement) (limit & freedom..) (right for the image)