CBSS Public-Private Partnership Cooperation Network (P3CN)

Background

The CBSS Secretariat has proposed a two-year network project on regional cooperation in the field of Public-Private Partnerships (P3) as a practical tool to strengthen global competitiveness, as well as regional sustainability of the Baltic Sea Region (BSR). In order to facilitate the process of establishing such a network,
contact person(s) for each interested country in the region, at the level of a senior civil servant with responsibilities including P3 issues, have been identified. On 12 December 2011, the International Coordination Group represented by Germany (current Presidency), Estonia, Finland, Lithuania, and Russia gathered in Stockholm to discuss the objectives and work plan of the network. Representatives of Norway, Poland and Sweden, as well as stakeholders in Latvia conveyed assurances of their interest in the project and will take part in the future work.

Chairmanship would follow the usual CBSS rotational pattern. The German Federal Ministry of Finance (Partnerschaften Deutschland Projekt Transfer) and the Russian Ministry of Economic Development would act as focal points during the German and Russian CBSS presidencies. Admin support will be provided through the CBSS Secretariat.

Russia declared its readiness to carry on with the planned activities under its Presidency 2012-2013. The Russian Ministry of Economic Development is well-positioned for this function acting as the official P3 coordinator between municipal, regional and federal authorities of the Russian Federation, as well as between state and non-state agencies.

Scope of cooperation and objectives

1. Participants of the meeting agreed that countries of the Baltic Sea Region are facing common challenges both within societies and within administrations – joining our forces and applying a smart division of labour across the regions is a natural way forward.
2. P3 today is being used in the entire BSR to a varying degree and at different administrative levels: in some countries P3 is widely used on the national level, in others it is only known on the municipal level. Country representatives agreed that the concept has far from exhausted its potential. There would thus seem to be a case for comparing experience on how P3 is employed, and to spread knowledge on this investment tool, not least to the level of local and regional authorities. As to central authorities, one might contemplate agreeing on general principles for a “common public-private partnership space” for the BSR lifting up some of the problematic issues identified by participating countries and during the P3CN meetings.


3. Following topics/discussion points have been preliminary identified:

  • What is the right environment for P3 projects – both in general economic terms and concerning specific legislation? What are the economic and legislative prerequisites?
  • Does the legislation need to be further developed on the national and/or municipal levels?
  • What kinds of projects are suitable for P3? What is the added value of using this model?
  • What is the procedure of doing P3? What are the potential risks and pitfalls? Is there a need for a common risk assessment procedure?
  • Is it possible and desirable to describe “typical” projects within certain industries, primarily to the municipalities?
  • How to account for P3 projects? What are the best practices? What are the EU requirements and what does the experience of working within the EU framework tell us?


4. Country representatives identified a number of industries where P3 projects are implemented or where such an investment model is under consideration. Those are street lighting, highways, public transport, public leisure facilities (skiing), social infrastructure (kindergartens, schools, hospitals), sewage systems.

5. Participants of the meeting agreed that the network would benefit from the input from various kinds of actors, such as civil society, NGOs, (transnational) SMEs, IFIs, development organisations, local and regional authorities. All such actors should be given an opportunity to contribute to the P3CN meetings, inform about successful projects as well as tell about their needs.

6. Furthermore, special attention might be given to the issue of using P3 to achieve sustainability in the region, not least on the local level. Consultations with the CBSS Expert Group on Sustainable Development – Baltic 21 will be an efficient way to place sustainability on the agenda.

7. Involving local authorities, promoting regional cooperation and furthering modernisation are essential characteristics of another newly launched CBSS project – South East Baltic Area modernisation project (SEBA). Coordination between P3CN and SEBA will be mutually beneficial.

CBSS Public Private Partnership Cooperation Network - P3CN

Kick-off meeting on 24 April 2012

The Baltic Sea Days, which took place in Berlin on 23-27 April under Germany’s 2011/2012 presidency of the CBSS, encompassed a wide range of political, business, academic and cultural events. As the current president of the CBSS, Germany’s Foreign Minister Guido Westerwelle opened the Business Forum on the Baltic Sea Region in Berlin on 24 April. One of the events held within this framework was the kick-off meeting of the CBSS PPP cooperation network P3CN, which was entitled PPP as an alternative means of infrastructure procurement.

Technological advances and the growing need for infrastructure investment call for new financing and procurement models that transcend national frontiers. As a form of long-term, contractually agreed cooperation between the public and private sectors, public private partnerships (PPP) encompassing design, building, financing and operating processes can provide a more cost-efficient alternative to conventional procurement.

Public and private sector representatives gave presentations on their experiences with PPP and their views on its future prospects, and discussed ways of working together to intensify and enhance regional cooperation on PPP. The powerpoint presentations have been converted to PDF and are available to download by clicking on the below links embedded in the table.



1st Conference of the Public Private Partnership Cooperation
Network/P3CN for the Baltic Sea Region, April, Berlin

Speakers for session part 1 “PPP in transport infrastructure”:

Mr. Kari Ruohonen, Finnish Transport Agency
Mr. Marcin Woronowicz, EPEC - European PPP Expertise Centre
Prof.Torsten Böger, VIFG - Transport Infrastructure Financing Agency
Mr. Johann Schmieder, VBI - German Association of Consulting Engineers
Mr. Dirk Söhngen, Bilfinger Berger - Multi Service Group


Speakers for session part 2
“PPP sectors, models and efficiency”:

Mr. Kirill Malyutin, Vnesheconombank, Centre for PPP, Russia
Dr. Goetz von Thadden, EPEC - European PPP Expertise Centre
Prof. Dr. Lars D. Wellejus, University of Applied Sciences, Frankfurt am Main
Mr. Bernward Kulle, ÖPP Deutschland AG


Speakers for Workshop on Cooperation between the Federal Foreign Office and P3CN:

“Energy networks in the Baltic Sea region” workshop: Mr. Pieter Wasmuth, Vattenfall
Europe
“Business Ethics and Compliance” workshop: Dr. Martin Schellenberg, Federal Association
for PPP

“Cooperation on urban structures” workshop: Prof. Dr. Dieter Jacob, TU Bergakademie Freiberg

 
 
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