SAARC-CCI CAPACITY BUILDING WORKSHOP.Tajo Tasha, Thimphu, Bhutan
28th November 2013By
Nailin AttygalleSecretary General/CEO
Federation of Chambers of Commerce & Industry of Sri Lanka
ContentRegional contextAction to be takenNTB’s in right perspective How to overcome & strengthen the unity PPP approachSri Lankan perspectiveTypes & benefits of PPPFuture of the region through strengthening
the partnerships.
NalinAtty@SAARC-CCI-Thimphu
Regional Context1/4th of the world population
Accounts for 3% of world GDP
Less than 3% of world exports
Less than 2% of world FDI
NalinAtty@SAARC-CCI-Thimphu
Regional Context- 2Fastest growing economies- Averaging over
6% for last decade.
Biggest market place in terms of population
Young & Young adult population- 1/4th are in the age between 15 to 30.
Annual income growth averaging 8%
NalinAtty@SAARC-CCI-Thimphu
Regional Context- Need Action?Are we using our strengths?
Statistics, research studies, recommendation and meetings all over.
Sleeping giant is going to miss the bus?
Need consensus for remedial action
NalinAtty@SAARC-CCI-Thimphu
Regional Context- Need Action 2Negative list/sensitive list
Trade agreements and MOU’s
Entities such as SAARC- In existence and action oriented activities?- outcome to date?
NalinAtty@SAARC-CCI-Thimphu
Definition of ‘Nontariff Barrier’
A form of restrictive trade where barriers to trade are set up and take a form other than a tariff. Nontariff barriers include quotas, levies, embargoes, sanctions and other restrictions, and are frequently used by large and developed economies.
NalinAtty@SAARC-CCI-Thimphu
NTB Further ExplanationNontariff barriers are another way for an
economy to control the amount of trade that it conducts with another economy, either for selfish or altruistic purposes.
Any barrier to trade will create an economic loss, as it does not allow markets to function properly.
The lost revenues resulting from the barrier to trade can be called an economic loss
NalinAtty@SAARC-CCI-Thimphu
NTB’sThe Agreement on SAARC has a commitment for reducing
tariffs, but has nothing specific to offer with regard to the other complements to facilitating trade. These Barriers are relating to:
Testing requirements; Standards; Customs valuation, Labeling requirement; Limitation of land port facilities; Goods delivery/storage.
NalinAtty@SAARC-CCI-Thimphu
Inter Regional Strategy to Overcome NTB’sRespective country policiesPolitical culturesToo little to offer and rest comes as NTB
Regional players unity and understanding Consolidation within the countryBuild strong partnerships with regional
players
NalinAtty@SAARC-CCI-Thimphu
How to strengthen the PartnershipsPPP model
It is a paradigm shift
Whole world believes it but the implementation issues.
It is a challenge for the region
NalinAtty@SAARC-CCI-Thimphu
Definitions of PPPDefinitions of PPP
An agreement between private and public sector agents to undertake a particular project in line with at least one of the two principles below;
Joint decision making Joint risk financingNalinAtty@SAARC-CCI-Thimphu
Regional Governments AttitudeNo privatization of government ventures.
To use as a political trump
Survival strategy
CAN WE CHANGE THIS ATTITUDE??
NalinAtty@SAARC-CCI-Thimphu
Sri Lankan Example/PerspectiveCurrent Government through its long term
policy frame work has clearly stated that the Government does not believe “Privatization” further more and instead private sector is a vital part of economic development and thus it is encouraged to partner the Public entrepreneurial ventures
NalinAtty@SAARC-CCI-Thimphu
Sri Lanka vs Region All believes no privatization
All believes private sector is the engine of the economic growth
ONLY WAY FORWARD to OVERCOME NTB’s are PARTNERING LOCALLY & REGIONALLY
NalinAtty@SAARC-CCI-Thimphu
Types of PPP’sPublic provision of
collective goodsService provision
contractsOutsourcing/
contracting
Outright privatization
Design and construct (D & C)
Sale and leaseback
Operate and maintain (O & M)
ConcessionOperate maintain
and manage (OM & M)
Build transfer operate (BTO)
Build operate transfer (BOT)
Build lease transfer (BLT)
NalinAtty@SAARC-CCI-Thimphu
Types of PPP’s 2Build lease transfer
maintain (BLTM)
Build own operate remove (BOOR)
Build own operate transfer (BOOT)
Lease renovate operate transfer (LROT)
Design build finance operate (DBFO)
Build own operate (BOO)
Design build finance operate manage (DBFOM)
Franchise Joint venture (JV)Regeneration
partnership
NalinAtty@SAARC-CCI-Thimphu
Benefits of PPPAccelerated infrastructure developmentFaster implementationReduced whole-life costsBetter risk-allocationBetter incentives to performImproved quality of serviceGeneration of additional revenueEnhanced public management
NalinAtty@SAARC-CCI-Thimphu
Reasons for Implement PPP’sGovernment’s funding Gap Capacity constraints Benchmarking public sector to the
private sector PPP also ensures that cost and time
over runs are not born by the government
Off Balance Sheet Risk of Cost and time over runs passed
to private Company
NalinAtty@SAARC-CCI-Thimphu
Governments Strategy to ShiftThe governments should move away from
the notion that state should play the leading role in infrastructure development
Instead governments should seek greater involvement of the private sector in the development of the country
More private public partnerships are encouraged in this regards
NalinAtty@SAARC-CCI-Thimphu
Governments ResponsibilityPrepare master plans and enable policy
formulationLegislative and institutional reformsProviding common infrastructureAdministrative capacity buildingIdentification of thrust areas/zones/ projectsRisk assessment and mitigationFacilitate efficient project clearanceEnsure transparency and welfareCountry promotions and research
NalinAtty@SAARC-CCI-Thimphu
Private Sector ResponsibilityInvesting into new business opportunities
Efficient management of the resources
Corporate and social responsibility
Ecological sustainability
Man power building and training of high quality staff
NalinAtty@SAARC-CCI-Thimphu
Sri Lanka- Success StoriesSri Lanka Telecom
Sri Lanka Ports Authority with SAGT
Sri Lankan Airline
Regional Plantation Companies
Hingurana Sugar Industries Ltd.
NalinAtty@SAARC-CCI-Thimphu
Why Re-invent the WheelRegion as one team
SAARC-CCI as the catalyst- Co-Committee
Information portal at SAARC-CCI
Dynamic & Vibrant entity
SAARC-CCI communiqué to respective governments
NalinAtty@SAARC-CCI-Thimphu
Derived OutcomeStrengthening co-operationAcceleration of infrastructure developmentsShowcasing the regional powerConsolidating the respective economiesMore employment creationMore disposable income to the peopleImprovement of macro economic indicatorsBetter future for younger generation
NalinAtty@SAARC-CCI-Thimphu
Role of Governments & SAARC-CCIGovernments
Minimize constrains
Adopt the right policy, regulatory
Institutional reforms
SAARC-CCI
Strong lobbing, advocacy and recommendations
NalinAtty@SAARC-CCI-Thimphu
Accept the Challenge or PerishWe are a strong entity- sleeping-giantIntellectual studies, researches already done
We know, ‘where are we today’We know, ‘where do we want to be’Challenge is, ‘how do we get their’
POSITIVE APPROACH & ATTITUDE and ALL REGIONAL PLAYERS HAS TO WORK AS CHANGE AGENTS.
NalinAtty@SAARC-CCI-Thimphu
THANK YOU.
NalinAtty@SAARC-CCI-Thimphu
NalinAtty@SAARC-CCI-Thimphu