This presentation highlights the need for improving the PPP Governance Framework in Romania, it highlights the importance of QII principles 2 and 5 by presenting the case of an infrastructure project for a motorway – Comarnic - Brasov. The project has changed, for several years, its awarding procedure and the presentations shows the reasons why this happened despite the many benefits a PPP project brings.
It concludes that the QII principles could be applied to the PPP project preparation and implementation in order to achieve GRID vision.
It is addressed to all interested parties involved in a PPP (public sector, private sector as well as the general public).
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2. History shows that in Romania there hasn’t been much
progress made in using the public private - partnership (PPP) as
infrastructure delivery method, except for a push from the
Government every couple of years for this method to be used
as catalyst for strategic infrastructure investment
3. The PPP legal framework
has been modified over
the years and has
reached an applicable
stage in 2018
But still, except for A PPP
concession on water and
sanitation system there is
no record of successful
PPPs in Romania
PPP Governance framework
4. Benefits of a PPP
it considers the life cycle of
the asset as the private
partner is incentivized to
deliver the infrastructure at a
higher quality due to the fact
that he will be the one
operating it and maintaining
and that he will receive the
payments as long as he
delivers the infrastructure at
a certain standard
it can ease the fiscal burden
of states budgets as it can
be recorded off Government
balance sheet
it brings in technical
innovation
higher quality level of the
provided services
it increases efficiency in
project development
These benefits
highlights the
QII principles 2
and 5 for
achieving GRID
vision
5. Comarnic - Brasov motorway
The Bucharest Brasov motorway,
respectively the Comarnic - Brasov
section had as main objective the
decongestion of the traffic on national
road 1, as well as the closing of the IV
Pan European corridor
The history of this contract dates
from 2004 when the first contract was
signed with a French consortium
6. In 2004 the contract has been awarded without a public
procurement procedure. Between that moment and
2020 when the contract has been transferred to the
Ministry of Transportation it has passed through several
stages:
from PPP to being given up on it
to having its feasibility study remade and using the
concession method
being passed to the World Bank and then had this idea
dropped out
In 2018 the project was again initiated as PPP,
afterwards being cancelled again
History of Comarnic - Brasov motorway
7. Constraints of the Comarnic - Brasov project
The times the
awarding
procedures were
cancelled/changed
coincided with
political changes
The contract has
been poorly
prepared and has
been declared “on
Government
balance sheet”,
thus leading to
impact on budget
deficit and public
debt
The winning
bidder didn’t
manage to get the
involvement of the
financial
institutions for
financing the
project
Ministry of Public
Finance refused to
issue a letter for
supporting the
costs of the
project in the case
the project would
be classified “on
Government
The release of the
project to the
general public
caused a negative
reaction, especially
related to costs
8. Conclusions
• value for money
• accessibility
assessment
• long-term budgeting
for PPP
Methodologies, guidelines and tools
that reflect the principles in practice to
help the public sector better
understand the field and method of
implementing the public-private
partnership
9. Conclusions
There is a clear need for a coordinating unit on PPPs in Romania,
that will harness the political will for such projects as well as
support the public authorities that would like to implement PPP
projects by drafting tools/guidelines and methodologies for the
assessment and preparation of PPP projects. The QII principles to
achieve GRID vision could be transposed in the PPPs framework
when preparing and implementing infrastructure projects, not
only the principle that concerns infrastructure governance or life
cycle cost and which is much needed now in this domain in
Romania, but as well as all other QII principles as projects could
be planned using the GRID lens.
