PPP in Belarus
The Public-Private Partnership Center (PPP Center)
PPP is an institutional and organizational alliance of state and business with a view to implementing socially significant projects in the priority sectors of the economy of the Republic of Belarus.
The essence of PPP is to involve private resources, including knowledge, technology, expertise and money in the development of infrastructure assets traditionally related to the competence of the state. At the same time, one of the distinctive features of PPP is a clear division of responsibilities and risks between public and private partners.
Public-Private Partnership Center
The Public-Private Partnership Center (PPP Center) was established on April 1, 2014 on the site of the Research Economic Institute of the Ministry of Economy. On September 1, 2016 the PPP Center was moved to the structure of the National Agency of Investment and Privatization in order to increase the Center's potential and effectiveness of its interaction with state authorities in attracting investments to the Republic of Belarus.
The main functions of the PPP Center are:
- evaluation of proposals for the implementation of PPP projects, including PPP concept in accordance with the requirements of legislation;
- information, organizational and technical support of Interdepartmental Infrastructure Coordination Council;
- development and maintenance jointly with the state administrative bodies of the National infrastructure strategy of the Republic of Belarus;
- advice to government bodies and the private sector regarding PPP and strategic investment for infrastructure development;
- development of teaching and methodological manuals on infrastructure planning, preparation and implementation of PPP projects;
- participation in the normative legal base improvement in the sphere of PPP;
- distribution of relevant and reliable information about the development of PPP in the Republic of Belarus among stakeholders;
- professional development of government body representatives, organizations and other interested in PPP projects implementation;
- formation of the PPP projects market in the Republic of Belarus;
- ensuring the international exchange of experience in PPP development, including participation in expert working groups on PPP.
Interagency Infrastructure Coordination Council (IICC)
IICC is a permanent collegial body established in accordance with Resolution No. 508 of the Council of Ministers of the Republic of Belarus as of May 27, 2014, for coordination of long-term development of infrastructure facilities, including on the PPP principles.
The main tasks of IICC:
- elaboration (updating) of the main directions of long-term development of infrastructural assets;
- definition of approaches and methodology of the Strategy development;
- approval of the Strategy and annual reports on its implementation;
- assistance in the development and implementation of public policy with regard to attracting investment for the design, construction and (or) reconstruction, restoration, repair, modernization of the infrastructure through public-private partnership;
- organization of inter-agency cooperation on the development of infrastructure, including attraction of investments for implementation of projects on infrastructure development in the framework of public-private partnership.
List of projects considered for implementation on the PPP principles of the Republic of Belarus
|Name of project||The initiator of the project||Preliminary cost of capital expenditures||Implementation term||Project description||The current stage of preparation|
|Reconstruction of the M-10 highway: the border of the Russian Federation (Selishche) - Gomel - Kobrin, km 109.9 - km 195.15||The Ministry of Transport and Communications||$ 200 million||Сontest|
|Design and construction of a fitness center with a swimming pool in the city of Gantsevichi on the street. Parkova||
Gantsevichi district executive committee
$ 4.8 million
||10 years||The project involves the construction of a modern and technically equipped building of sports complex in the city including baths for children, a 4-lane swimming pool, a sports hall for playing sports, a gym, an open volleyball and soccer field, and a seasonal ice skating rink under a canopy for 8 500 people of Gantsevichi and neighboring areas. The complex will provide additional fitness and health services.||Searching for a resources to prepare Feasibility study|
|Construction of an inclusive school in Baranavichy||Baranavichy City Executive Committee||$ 10 million||15 years||The project involves ensuring the availability of education, creating conditions for education for children with special needs in psycho-physical development, the comprehensive development of students, set by the state standard of preschool education in full in accordance with age and individual capabilities, improving the quality of educational services provided to the population of Baranovichi.||
Searching for a resources to prepare Feasibility study
Construction of a 41.35 km long highway in Gomel, taking into account the construction of a bridge across the Sozh River and five overpasses
Gomel Regional Executive Committee
||$ 190 million||54 years||The project involves the construction of 5 sections of the bypass road around Gomel with a length of 41.35 km, the construction of five overpasses and one bridge over the Sozh River, the functional and maintenance of the facility after completion of construction in order to accelerate, increase and redirect transit traffic through the city of Gomel.||
Searching for a resources to prepare Feasibility study
Construction of kindergartens in Minsk Region
Minsk Regional Executive Committee
$ 17 million
The project involves the construction , maintenance and operation of 4 kindergartens in several areas of the Minsk region.
Updating proposal documents and preparation of the tender documentation
Construction of Nursing Home for Elderly People
Krupsky District Executive Committee
||$ 4 million||15 years||
The main goal of the project is to provide quality paid medical and social services to needy citizens and members of their families on an ongoing or temporary basis; creation of comfortable conditions for the health of senior citizens and disabled people the provision of medical diagnostic services.
Search for a private partner
The legal basis of PPP in the Republic of Belarus
The Law of the Republic of Belarus No. 345-З as of December 30, 2015 "On Public Private Partnership" (Law on PPP) is aimed at attracting investments to the economy of the Republic of Belarus. The PPP Law defines the legal conditions for PPPs, regulates the public relations that develop in the process of concluding, executing and terminating PPP agreements. The Law on PPPs includes: goals, objectives, principles and spheres of PPP implementation; competence of state bodies in the sphere of PPP; mandatory conditions to be contained in the PPP agreement; stages of the PPP project, guarantees of the rights of the public, private partners and creditors of the private partner, as well as the procedure for resolving disputes.
Resolution of the Council of Ministers of the Republic of Belarus as of July 06, 2016 No. 532 "On Measures for the Implementation of the Law of the Republic of Belarus as of December 30, 2015" On Public-Private Partnership" defines the procedure for preparing, reviewing and evaluating proposals for the implementation of PPP projects; the procedure for organizing and holding a tender for choosing a private partner to conclude an agreement on PPPs; the procedure for maintaining the State Register of PPP Agreements.
Decree of the Ministry of Economy of the Republic of Belarus as of July 27, 2016 No. 49 "On measures to implement the Law of the Republic of Belarus dated December 30, 2015" On Public-Private Partnership" approves the form of the PPP project concept, including requirements for the PPP project concept; contains requirements for the feasibility study of proposals for the implementation of PPP projects and competitive documentation; determines the methodology for evaluating proposals for the implementation of PPP projects.
PPP in the worldHistory of PPP development
Governments have used such a mix of public and private endeavors throughout history. Muhammad Ali of Egypt utilized "concessions" in the early 1800s to obtain public works for minimal cost while the concessionaires' companies made most of the profits from projects such as railroads and dams. Much of the early infrastructure of the United States was built by what can be considered public-private partnerships, including the nation's first railroad, chartered in New Jersey in 1815 and most of the modern electric grid. However, a clear trend toward governments across the globe making greater use of various PPP arrangements was seen in 20-21 centuries.
At the moment centers for PPP development are present in the majority of countries, including in the EAEU (Armenia, Kazakhstan, Kyrgyzstan, Russia). The United Kingdom and Australia are the most advanced countries in PPP where this mechanism has been in active use since 1990s.
PPP world market data, 2019
Source: Inframation news
Useful linksPPP resources of international organizations:
- World Bank
- United Nations Economic Commission for Europe (UNECE)
- Economic and Social Commission for Asia and the Pacific (ESCAP)
- European PPP Expertise Centre (EPEC)
- PPP Knowledge Lab