PPP Research Center

 Romanian Public-Private Partnership Law Review

No. 3 / 2012

TABLE OF CONTENTS: 

The decision made by a public partner to implement a project as a PPP
by Monica Amalia Ratiu PhD, Lecturer Faculty of Law, University of Bucharest

Considerations on the qualification and classification of public-private partnership contracts 
by Simona Gherghina, PhD, Lecturer, Faculty of Law, University of Bucharest

International experiences to stimulate PPPs
by Ion Ghizdeanu, Professor, PhD, President of National Commission for Prognosis, Researcher, NIER, Romanian Academy

Fiscal aspects regarding how to implement a public-private partnership project
by Daniel Anghel, Tax Partner, PricewaterhouseCoopers Romania

CPPPCU’s general duties
by Mihai Prisacariu, General Manager of the Central Public-Private Partnership Coordination Unit, 
General Secretariat of the Government

   
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The decision made by a public partner to implement a project as a PPP

Monica Amalia Ratiu
Lecturer, PhD
Faculty of Law
University of Bucharest

Abstract:

For a public authority, the decision to implement a project under a PPP should follow a rigorous analysis process, managed with competence and responsibility. This conclusion should always run like a red line connecting all of the reports and good practice documents prepared by European bodies with competences to handle PPP’s and which are primarily published to support the governments that are less experienced in this particular area. The Romanian PPP Law and the related enforcement guidelines provide additional details about the documents that should be prepared and about the procedural phases that public authorities need to go through in order to correctly adopt such a decision in Romania. 

Keywords: public-private partnership; the decision to implement a project as a PPP; the assessment of a PPP project; pre-feasibility study; substantiation study; affordability; risk allocation; debt and deficit treatment; bankability; value for money.

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Considerations on the qualification and classification of public-private partnership contracts 

Simona Gherghina
Lecturer, PhD
Faculty of Law
University of Bucharest

Abstract:

The referrences in the Law on public-private partnership to the qualification of a public-private partnership contract by opposition with concession contracts as well as the import from the public procurement regulations of the tripartite classification of contracts alongside the related criteria have a limited relevance, restricted only to the procedural aspects pertaining to the identification of the relevant selection procedure. The qualification of the contract and its classification into one of the three types determined by its object shall have no influence as concerns the legal nature of such contract or its effects. Also, considering the classification criteria imported by the Law on public-private partnership from EGO no. 34/2006, the legal nature of the contract plays no role in such classification. Consequently, the qualification and classification of public-private partnership contracts, as currently regulated, are based on extrinsic criteria and have a purely procedural scope. 

Keywords: public-private partnership, public procurement, public services, public works, concession, subsequent contract.

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International experiences to stimulate PPPs

Ion Ghizdeanu, PhD
Professor 
President of National Commission for Prognosis
Researcher, NIER, Romanian Academy

 

Abstract:

Although public-private partnership, including its institutional form, presents clear advantages for attracting and channeling private investment funds to the overall objectives of infrastructure development, there is a certain reluctance of engagement from the public entities, because of the risks of implementation. Also, public-private partnership due to an apparent divergence of interests (socio-economic interests of governments faced the profitability interests of private partnership) is difficult to set up if there is not sufficient willingness to “compromise”. In other words, if risks are not covered in a balanced way by partners, the projects can fail.

For these reasons, and because of the concrete difficulties encountered in some investment projects, governments have been actively involved in promoting PPPs alongside the international or banking institutions. International experience, which will be presented in this article show that where PPPs were stimulated significant results have emerged on the contribution of PPP development.

Keywords: Public-Private Partnership, PPPs in National Accounts, PPPs’ contribution to economic growth, Loan Guarantee Instrument.

 

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Fiscal aspects regarding how to implement a public-private partnership project

Daniel Anghel
Tax Partner
PricewaterhouseCoopers Romania

Abstract:

The article below aims to analyze the problems involved in public-private partnership projects ("PPP"), and, certainly, the main aspects related to the fiscal dimension of such projects and to the impact of uncontrolled fiscal costs on their financial efficiency. Although the fiscal evaluation cannot be standardised, as there is a multitude of aspects to be analysed under the circumstances specific to each particular case, there are certain aspects that can be examined within each stage of a public-private partnership project. 

A very important component of the fiscal analysis is constituted by the VAT treatment applicable to transactions carried out in a public-private partnership, whether or not they are taxable in terms of VAT (starting with the contribution to the share capital of the project company, continuing with the transactions carried out by the project company and finishing with distribution of assets between partners when the project ends). 

An effective planning should also take into account the fiscal implications in terms of corporate income tax within each stage of the public-private partnership project, from feasibility study until the liquidation of the project (e.g. deductibility regime of the main types of expenses, the impact related to the financing method of the project company and so on).

Keywords: public-private partnership, fiscal analysis, VAT, corporate income tax, transfer of a business, carrying out the public-private partnership project.

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CPPPCU’s general duties

Mihai Prisacariu
General Manager of the Central Public-Private Partnership Coordination Unit
 General Secretariat of the Government

The Central Unit for the Coordination of the Public-Private Partnership (CPPPCU) plays the role of central institution in the field of public-private partnership projects, its main duty being to guide and monitor public partners and private investors interested in the organization and execution of a public-private partnership project, according to the law. 

The centralized coordination and monitoring of the execution of public-private partnership projects is performed by the Central Unit for the Coordination of the Public-Private Partnership.

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