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Public-Private Partnerships in Infrastructure Policy Dialogue Session in Kazahstan

     

Astana, Kazakhstan  
February 12-16, 2007

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 Course Description

This five day country-specific course is designed, developed and delivered by the World Bank Institute in cooperation with the Ministry of Economy and Budget Planning of Kazakhstan. It aims to reflect the importance put by the Government of Kazakhstan on infrastructure development via Public-Private Partnership (PPP) schemes. Today, the government has already put in place an ambitious PPP program on energy and transportation in which central as well as local governments are expected to play an important role on the design and implementation. Thus, it is important for public officials to improve their understanding about PPPs in infrastructure before the initiation of the program. The different level of knowledge between the central and local governmental officials has led to the design of a two-tier capacity building activity.

 

The first session will last two days and be attended by local governments’ (oblasts) officials as well as from representatives of Astana and Almaty municipalities. The objective will be to provide to participants a first introduction of the PPP concept. The content of the agenda will focus on the basic concepts of PPPs, the most frequently used structures, advantages and disadvantages, and lessons learnt from international experience. It will also review key aspects of PPP literature such as the main drivers leading governments to adopt PPPs, risk allocation between the private and the public parties, legal, institutional and regulatory frameworks as well as fiscal risk management. This part will be completed with a presentation of a international PPP case study during which the audience will have the opportunity to acquire a well rounded idea on how a PPP project is designed, financed and implemented.    

 

The second session will be attended by policy makers from the Ministry of Economy and Budget Planning, the Prime Minister’s Office as well as from the line ministries. Officials from Kazyna, are also encouraged to participate. The objective of this session will be to provide information about the most critical practical issues of designing and implementing a PPP project. Presentations and discussions will be centered around selection and prioritization of PPP projects through the right structuring of pre-feasibility and feasibility studies and the use of Public Sector Comparator (PSC), risk allocation between the private and the public sector, developments of financial models, structuring of bidding documents and contract as well as implementation issues including financial closure and contracts’ monitoring. At the end of the first day a case study on Public Sector Comparator will be presented to the participants by an international expert. The purpose of the presentation will be to familiarize the audience with the concept and walk them through the various steps of calculating the PRC.  At the end of the second day, a case study on BOOT of electricity transmission line will be given to the participants in order to structure the risk allocation between the private and public sector. At the final day they will be asked to present and discuss their findings.

 

The event is co-sponsored by the Japanese Government and the Korean Export Import Bank.

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