PUBLIC PRIVATE PARTNERSHIPS AND BUILD, OPERATE AND TRANSFER (BOT ...

More documents

Recommendations

Info

33. In Fiji’s case, the PPP arrangements will be formed through competitive, open, public bidding in order to achieve the stated key objectives mentioned above. Goals and Benefits of Public Private Partnerships 34. Identification of the goals of PPP and the prospective benefits from individual projects provide more certainty, in particular, for those (e.g. local communities) whom PPP projects are expected to serve. These goals and benefits include the following: (i) Speedy, efficient and cost-effective delivery of projects; (ii) Creation of added value through synergies between public sector and private sector, in particular, through the integration and cross-transfer of public and private sector skills, knowledge and expertise; (iii) Alleviation of capacity constraints and bottlenecks in the economy through higher productivity of labour and capital resources in the delivery of projects; (iv) Competition and greater construction capacity (including the participation of overseas firms – especially in joint ventures and partnering arrangements); (v) Accountability for the provision and delivery of quality public services; (vi) Innovation and diversity in the provision of public services; and (vii) Effective utilisation of state assets to the benefit of all users of public services. Statement of Principles 35. The fundamental principles determining a PPP policy have emerged from consultation with key stakeholders in the public and private sectors. 36. These key principles, summarised in the following section, are the foundation for this policy framework and are central to the achievement of the goals and objectives mentioned above including the establishment of sustainable partnerships in the development of Fiji's PPP programme. These key principles have been approved by Cabinet will be embodied in the enabling legislation for PPP. Principle 1: PPPs will be progressed within the context of national policy 37. The SDP sets out national priorities relating to the timely and cost-effective delivery of economic and social infrastructure priorities and quality public services: (i) Structural reform to promote completion and efficiency; (ii) Raising investment levels for jobs and growth; and (iii) Reforming the public sector to reduce the cost of doing business. Principle 2: Stakeholders must be consulted throughout the process 38. There must be extensive consultation and open communication with all stakeholders in respect of PPP projects. Stakeholders include employees and their trade unions, the public, the people who will use the assets and services provided, local 10
community groups and sector interest groups. In selecting, developing and implementing PPP projects, the economic, social and environmental concerns of those directly affected at local level should be taken into account along with the statutory rights and legitimate economic interests of stakeholders. 39. All parties to a PPP arrangement in Fiji should have regard to appropriate industry norms in terms of pay and conditions and of prevailing national and/or industry-wide agreements including Environmental Management Act 2004, Financial Management Act 2004, Foreign Investment Act 1999, Occupational Health and Safety Act 1996, Social Justice Act, and other statutes. Such an approach should be consistent with protections provided under the 1997 Constitution. Principle 3: Public to be kept informed 40. The success of the PPP programme requires widespread public support. A PPP communications and awareness strategy will be pursued by Government directed at key stakeholders, officials of public service procuring agencies, employees in sectors where PPPs will be developed and the general public. Principle 4: Virtually any development project will be implemented using a PPP arrangement 41. This includes power plants, roads, ports, airports, dams, water supply, irrigation, telecommunications, railroad and railway, passenger transport systems, reclamation projects, industrial estates or townships, government buildings, tourism, slaughterhouses, warehouses, public markets, solid waste management, information technology networks and data base infrastructure, sewerage, drainage, dredging, farms and any other infrastructure and development projects that may be considered appropriate by the Government. Principle 5: Two broad variants of a PPP contractual arrangement will be allowed 42. Two types of contractual arrangement will be considered: (i) Outsourcing and management contracts which is well understood and is used to introduce the private sector to the process of delivering government services. This type of PPP includes performance-based operations and maintenance contracts, design-build and turnkey contracts. (ii) Concession Contracts that is used for the provision of new rehabilitated or upgraded infrastructure. Under a concession contract the private sector is normally contracted to finance, construct, operate and maintain the project for a specified time period after which it is transferred back to the State in a near new condition. The contract is usually a concession to collect user charges that are used to reimburse the private company for the construction, operating and maintenance costs. Under a concession contract arrangement the ownership of the asset will remain with the Fiji Government over the full concession period. 11
Page 1 and 2: PACIFIC ISLANDS FORUM SECRETARIAT F
Page 3 and 4: 5. Furthermore, there are efficienc
Page 5 and 6: BOT/ BOOT Schemes 15. The build, op
Page 7 and 8: Advantages and Challenges of the BO
Page 9: � Fiji has an open and competitiv
Page 13 and 14: Principle 9: For public utilities,
Page 15 and 16: development, there is a plethora of
Page 17: Affordability 67. Prior to embarkin

PUBLIC PRIVATE PARTNERSHIPS AND BUILD, OPERATE AND TRANSFER (BOT ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?