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How the Government sees PPPs: We have adopted the law, now the private sector should come up with the money!

Autor: Iulian Anghel

11.05.2011, 23:39 108

Public-Private Partnerships (PPP) do not mean that theGovernment comes with the plot and then sits around waiting forinvestors to bring the money, do the project and then share thebenefits with the state, although quite a few government officialsbelieve this is how things are.

"It is an error of perception. In very few real-lifesituations the state makes the plot available and then sits aroundwaiting. If this is the approach, it's a mistaken one. PPP entailsgovernment funding, government guarantees and indirect funding. PPPmeans more than putting an idea into practice, it means sharingrisks. In order for the investor to take on the full risk, onewould need to have an extremely tempting project, but such projectsare not very often to come by," says Florian Niţu, managing partnerof Popovici Niţu & Asociaţii law firm, who specializes inpublic-private partnerships.

The Government has recently approved a list of 17 major projects(highways, dams, bridges) that it wants to build throughpublic-private partnerships, following the modification of the PPPlaw through an emergency ordinance last month. How is theGovernment planning to attract investors into these projects worthtens of billions of euros?

Marin Anton, secretary of state in the Environment Ministry,explained the Government's philosophy yesterday at the seminartitled "The week of responsibility - Companies' socialresponsibility": "The Government has done its job. Now the privatesector is expected to come with projects to the Government. Youhave to use the legal framework that the country and the Governmenthas made available for you. We want the state to be involved aslittle as possible. The legislative and the conceptual parts areready. It is companies' duty to develop their business because thisis what they make money from."

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