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THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS" DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS"

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THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS" Empty THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS"

Post by claud39 on Wed Feb 26, 2020 8:59 am

THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS"




2020-02-26



THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF THE "POLICY BRIEF" SERIES ON "PARTNERSHIP FRAMEWORKS BETWEEN THE PUBLIC AND PRIVATE SECTORS" Logo-ar






The Arab Monetary Fund

The tenth issue of the "Policy Brief" series is published on

“Public-Private Partnership Frameworks 

 

The importance of Arab governments entering into successful partnerships with the private sector to finance development projects and infrastructure that can provide a rewarding return for the private sector

Narrowing fiscal space has contributed to strengthening the trend towards public-private partnership over the past years

The partnership frameworks between the public and private sectors in the Arab countries extend to include various stages, from project design, financing, and construction, to operation and maintenance.

The importance of clarity of the legislative framework for partnership with the private sector, and the adoption of mechanisms for governance and accountability to ensure the quality of services and the efficiency of projects

Partnership projects in the Arab countries are implemented for a time horizon that extends between 30 to 35 years, some of which end in ownership, and the other is the return of ownership to the state.

In the context of its keenness to develop its research activities, the Arab Monetary Fund launched a research series entitled "Policy Brief", aimed at supporting decision-making in the Arab countries by providing summary research publications that address the most prominent priorities and topics of concern for Arab member states accompanied by recommendations for policymakers.

The tenth edition of this series touched on the topic of "public-private partnership frameworks", where the summary indicated that the concept of public-private partnership has received a lot of interest since the beginning of the last century, especially from the side of countries and international institutions, as the United Nations has defined it as : "Cooperation and joint activities between the public and private sectors for the purpose of implementing major projects, so that the resources and capabilities of both sectors are used together, in a manner that leads to the sharing of responsibilities and risks between the two sectors in a rational way, to achieve the optimum balance. ". The United Nations also referred to a framework of proposed policies aimed at encouraging private sector participation in financing sustainable development projects that includes a set of interventions aimed at adopting a new generation of strategies and incentives to encourage investment in development projects, and strengthening regional investment agreements to support the capabilities of the national government to implement such projects, In addition to encouraging innovative financing mechanisms.

At the level of Arab countries, financing development projects in general, and those linked to achieving the sustainable development goals in particular, acquire great importance in light of the large financing needs associated with these projects, and the need to develop infrastructure to support the pace of economic growth and provide more job opportunities. Also, a number of Arab countries face limited financial space for expansion in capital spending, which includes relying heavily on directing private savings towards investment in some development projects, especially with regard to physical and digital infrastructure .

Narrowing fiscal space has contributed to strengthening the trend towards benefiting from public-private partnership projects. The general budget of the Arab countries has witnessed pressures in recent years, as the budget deficit increased from 2.7% in 2014 to 10.1% in 2015. Despite the trend of deficits to decrease in recent years to 4.3% in 2018, the Arab budgets are still There are major challenges, whether with regard to financing capital spending or raising its levels of efficiency, all of which are factors that stimulate more implementation of public-private partnership projects to meet financing needs and implement projects more efficiently.

The summary touched on some of the successful Arab experiences in the Arab countries in the field of partnerships between the public and private sectors, and he pointed out, for example, that the partnership between the public and private sectors in the Emirates aims to change the government's activity from operating infrastructure and public services to focusing on developing policies and strategies For the infrastructure sector and monitoring service providers in order to improve them. It also aims to take advantage of the administrative, technical and financing capabilities of the private sector, and involve it in taking risks . Public-private partnership is based on contractual arrangements between one or more government agencies and a private sector company in specific projects, whereby the private partner provides the government with assets and services, traditionally provided by the public sector, directly.

In Egypt , participation with the private sector is mainly aimed at providing public services through the government contracting with private sector companies to build, finance, and operate infrastructure projects, services, and public utilities, provided that the project assets at the end of the contract period are transferred to state ownership, which leads to Increasing the size of state assets. The partnership with the private sector also aims to improve the quality of services provided to the citizen and reduce the burden on the state budget without affecting the state’s ability to intervene to provide these services at fair social prices, provide new job opportunities and encourage investment and consumption.

For Kuwait , according to the law regulating the partnership between the public and private sectors, a body has been established for public-private partnership projects, so that it is the government body responsible for launching the development and strategic country projects as investment opportunities in accordance with the public-private partnership system. The authority works to take advantage of the skills and expertise of the private sector to achieve greater benefit and quality of service in order to complete the future plan for the State of Kuwait in 2035, the state document to reform the local economy, and raise the financial burden on the state.

In Lebanon , the Partnership Law was passed to meet the needs of infrastructure development within a legal and regulatory framework that stimulates private sector investors, and gives them recognized guarantees to help form a vision of partnership rules and reduce project risks. The issuance of the Partnership Law was necessary in order for Lebanon to be more competitive and attract foreign direct investment, introduce expertise into the country, create thousands of job opportunities, increase revenues and stimulate economic growth.

In Tunisia , the Public Authority for Public-Private Partnership in particular is responsible for assisting the government in preparing and concluding partnership contracts concluded, ensuring the application of good governance rules and finally monitoring and following up on the implementation of partnership contracts between the public sector and the private sector. Partnership contracts enable the state to entrust the private sector to develop projects of installations, equipment or infrastructure to provide a public facility. The partnership between the public and the private sector does not, in any case, regardless of the private partner, lead to the privatization of resources and infrastructure, or to the state ceding ownership of the updated facilities. On the contrary, the private partner in the framework of partnership contracts finances and creates new infrastructures or changes of existing infrastructures and this is followed by the transfer of ownership to the state according to the contract requirements.

With regard to the repercussions at the policy level, the report stressed the importance of clarity of the legislative and legal framework for partnership with the private sector in the Arab countries, and the need for the authorities in Arab countries to determine the appropriate formula for contracting with private sector partners in a manner that guarantees legal and financial rights for all contracting parties and preserves the rights of the state in this The matter. In addition to the importance of the authorities in the Arab countries applying the appropriate methods of accounting, governance and oversight, which works to maintain the provision of the service in a timely manner, at the appropriate cost and to adhere to the terms agreed in the contract. Arab governments should also define activities and areas in which the private sector can participate, within the framework of future development plans for Arab countries, according to incentive and supportive frameworks for partnership with the private sector and an attractive investment environment from various aspects that constitute it.

 

The full version of the issue is available at this  link








claud39
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