PPP as an effective tool for local sustainability Penka ARMENKOVA Mayor District Oborishte armenkova

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PPP as an effective tool for local sustainability
Penka ARMENKOVA Mayor District Oborishte
armenkova_at_abv.bg Sofia-District
Oborishte,Bulgaria
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• Bulgaria at a Glance Population 7,8
  million
• Area 110,994 sq. km
• Language Bulgarian
• Alphabet Cyrillic
• Predominant Religion Eastern Orthodox
• Capital City Sofia

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Bulgaria Essential

• EU membership
• Structural reform
• Political stability
• Financial and macroeconomic stability
• Substantial economic growth

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The City of Sofia
Ever growing, never ageing
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OVERVIEW

• Capital and largest city in Bulgaria
• One of the oldest European Cities
• 1.2m inhabitants
• Dominant position in Bulgarias political,
  economic and cultural life

FAVOURABLE LOCATION ON TRADITIONAL TRADE ROUTE
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Agenda of Paper

• Introduction PPP and its models
• Partners, roles and mutual interests
• Sectors in which PPP is most often implemented
• Typical good practices of PPP and their models
• Results
• Conclusions

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Why PPP and its models

• PPP enhances urban development by mobilizing of
  external funding (grants and loans) or
  rescheduled payment
• Private companies having service contracts with
  the municipality invest in modernization of
  equipment and perform quality services on behalf
  of the municipality.
• PPP models realized between Sofia municipality
  and the private sector are
• contracting
• establishment of joint venture or shareholding
  companies
• concession of municipal property or the rights to
  build and/or use infrastructure
• sale of municipal property under different
  conditions
• use of municipal property against maintenance
  etc.

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Partners, roles and mutual interests

• The private sector has potential and capacity -
  financial, technological and managerial to offer
  efficient and cheaper services, it improves and
  assists in certain activities, for which the
  local authority is responsible, but municipal
  budget is lean and State subsidies are
  insufficient.
• Private sectors interests - to cooperate and
  gain from municipal land or business activities,
  to get highest and best profits from commercial
  activities, to get better position and image.
• The municipality has certain assets (real
  estate and land), which are offered under certain
  conditions to private sector to be fulfilled some
  self-government tasks, can facilitate certain
  procedures related to development.
• Municipal benefits - improved public services,
  new construction for public use, maintenance,
  external additional funding, etc.

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Sectors in which PPP is most often implemented

• We involve the private sector to help and do
  better than what the municipality can do alone in
  its obligations in the following sectors
• commercial developments on municipal land, which
  is used to be improved public services
• better maintenance of public buildings and
  facilities
• reconstruction of public buildings (cultural,
  recreation of sport facilities)
• management, maintenance and renovation of natural
  resources, parks, gardens and recreation areas
• construction of infrastructure
• a variety of improved service delivery for
  citizens, etc.

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Typical good practices of PPP and their models

• Natural resource management -Adoption of parks
  and gardens by business improvement of
  maintenance and renovation, supply with new
  facilities and provision of infrastructure (water
  effects, alleys, lightening) in the open green
  spaces.
• Concession - Sofia Water company is the first
  water concession project to be financed on a
  limited recourse basis in Central Eastern
  Europe and the first major municipal
  infrastructure concession and water privatization
  in Bulgaria. It is successful project capable of
  attracting multilateral financing whilst
  delivering services at an affordable price.
• Concessions for improvement of public services
  organization of public transport in Sofia and
  waste management. Both bring higher satisfaction
  among the citizens, getting these services.

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Adoption of parks and gardens by business
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Waste management
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Typical good practices of PPP and their models

• Renovation of buildings (public and housing
  stock) well estimated and used potential for
  PPP in the renovation and use of the open space
  for profit binging developments, which can
  provide win-win situations for owners and
  entrepreneurs.
• New construction on municipal land under certain
  conditions deals for construction of new
  amenities and services. Parking and trade
  centers are built on municipal land , in result
  the entrepreneurs get profits, the citizens -
  better services.
• Lightening of public buildings, gardens,
  celebration of the new year and others - rich
  business companies have invested in public
  lightening, thus improving the safety and the
  environment. They get opportunities to make
  their own advertisement against the service.
• Partnerships with NGOs and citizens' groups -
  volunteers provide better maintenance and
  services for cleaning and supply with equipment
  (waste baskets, benches and children playgrounds)
  in open spaces among buildings.

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Renovation of buildings
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Lightening of public buildings
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Lightening for new year
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Lightening of a garden
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Children playgrounds
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Parking and trade centers
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Partnerships with NGOs and citizens' groups -
volunteers maintenance, services, supply with
equipment
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Conclusions

• The municipality has a leading role in the
  process of partnership establishment as it knows
  the needs and the problems to be solved in the
  urban development. It can identify the partners
  form the private sector and motivate them
  accordingly to assist effectively. PPP leads to
• Improved local sustainability (due to innovative
  management tools - successful models of public
  private partnership)
• Improved public services, living environment and
  higher profits.
• Trust and efficient collaboration between local
  authority and private sector

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Thank you!