PPP Development Stage in Republic of Moldova

Presented by: Ion PotlogHead of PPP Division

CAPACITY BUILDING WORKSHOP ON PUBLIC PRIVATE PARTNERSHIPS (PPPs)

IN SOUTH EAST EUROPE 7-8 February, 2011

Regent Esplanade, Zagreb, Croatia

Steps in Moldavian PPP Development

2007 Agreement between MoE of Republic of Moldova and

UNDP Moldova on development and promotion of Public-private Partnership2007 till 2010Elaboration of legal and institutional framework, legislation harmonization and initiation of pilot projects for testing the job done.2010Creating PPP Direction at Public Property Agency under the MoE.

Primary PPP legal framework Basic Law no. 121-XVI of 04.05.2007 on the administration

and privatization of public property Law no. 534-XIII of 13.07.2005 on the concession Law no. 179-XVI of 10.07.2008 on Public Private Partnership 2010 - has been submitted for approval by the Moldovan

Parliament a new bill provides for amendments to nine laws and includes 40 amendments in order to harmonize the relationship between private and public partners.

PPP’s principles in Republic of Moldova

Equal treatment and choice of partners, impartiality and non-discrimination

Transparency Balance Grant compensation Cooperation Contractual freedom

Structure of institutional framework Government Ministry of Economy Public Property Agency Ministry of Finance Local authorities National Council of public-private partnership (CNPPP) The functional structure of general jurisdiction, without legal

personality, formed under the Government to assess the state policy on public-private partnership to define priorities and strategies for implementation of PPP in the Republic of Moldova

PPP Direction

1 Head of Direction 1 Deputy 2 Consultant 1 Specialist in Communication

MoE responsible

for PPP policies

PPP Direction within Public

Property Agency

responsible for PPP

implementation

Target indicators we aim to achieve, short term prospects and expectation

• Initiation of TWINNING project with the propose of Strengthening of the Administrative Capacity of the Public Property Agency in relation to Implementation of Public-Private Partnership policy.

• Initiate the process of cooperation and preparation for accession to the EPEC platform

• To provide more technical assistance to public authorities • To support the promotion and implementation of PPP policy by state public

institutions• To increase the efficiency of public investments in the infrastructure and the

operation and management of public services as part of the Republic of Moldova economical reform

• Development of financial instruments for mobilization of financial resources and directing them to PPP projects

PPP priorities by Sectors Energy infrastructure

Alternative energy resources and energy efficiency

Transport and road infrastructure

Logistics development

Organic agri-business and food processing

Creation of industrial parks

Quality infrastructure

Outsourcing services

Projects under construction, preparation for selecting the private partner

Project of multi-level parking concession, Chisinau International Airport

• Capacity up to 800 parking stands next to the terminal

• Concession of 20 years

• Operating income (the principle BOT - Build-Operate-Transfer)

“MOLDOVA HEALTH PPP PROJECT ” prepared by (IFC) International Finance Corporation and provides:

- The construction, financing, equipping and operation of a new radiotherapy center (“Radiotherapy Center”)

- the equipping and operation of a diagnostic imaging center (“Diagnostic Imaging Center”) in Republican Hospital

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PPP – Family Center

(Leisure and recreation center for families)

Public Partner- Chişinău City Hall

Private partner- Moldovan-American Athletic Association

Contract Terms– 10 yearsInvestments – over 200

thousands Euro

Projects in operation phase

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PPP – public transport Goal: Increase comfort and quality of public transport passengers Public Partner - Chişinău City Hall Private Partner - Trading Company „Ruta-Prim” JCK

Contract Terms – 1 year, with the possibility to resign the contract

Investments – over 500 thousands Euro

The Government of the Republic of Moldova is open for effective

collaboration

www.mec.gov.mdwww.app.gov.md