While private-public partnerships (PPPs) can also be implemented at the national level, their impact for Local and Regional Governments (LRGs) is substantial. For instance, financing for circular economy initiatives and the sustainable use of natural resources often relies on PPPs. The UN and others, namely the World Association of PPPs, help develop and disseminate evidence-based international policy practices and convene experts from national, regional and local governments, businesses, academia, and civil society to formulate guidelines and evaluation frameworks, like the UNECE PPP and Infrastructure Evaluation and Rating System (PIERS).
Join our panelists for a deep dive into strategies to optimize locally aligned PPP projects for critical infrastructure financing. With an estimated $15 trillion financing gap by 2040 and a growing urban population, it is essential to ensure a successful transition towards climate resilience while addressing financing challenges, including rising debt levels, currency fluctuations, and political considerations.
Opening remarks
Graham Alabaster, Chief of Geneva Office, UN-Habitat
Kamelia Kemileva, Co-Director, Global Cities Hub
Speakers
Cedric Dupont, Professor, Geneva Graduate Institute
Helene Bakoula, Vice-Chair Bureau of the Working Party on PPPs, Legal Counsel Athens Urban Transport Organization, OASA S.A.
Jim Mugunga, Executive Director, PPP Unit of Uganda
Rodolphe Barbaroux, SDG Advisor, City of Evian, France
François Bergère, Executive Director, Long Term Infrastructure Investors Association
Heela Omarkhail & Charlotte Boutboul, World Economic Forum Global Partnership for Local Investment initiative
Moderated by Jean-Christophe Barth-Coullaré, Executive Director, WAPPP, Geneva
So welcome to the webinar on um using local public private Partnerships to create more reliable and resilient infrastructure uh thank you Camelia for these introductory words without further Ado let’s jump right into the subject matter today we want to look at the local po public private partnership Dimension and we’ve we’ve got the
Privilege of having some very uh interesting speakers with us here but just uh to maybe manage Logistics a bit if you have questions please use the chat um for for logistical questions if you have subject matter questions please use the uh Q&A box that would make uh it
More easy to also include your questions uh once we finish with the um presentations there will also be live interpretation uh to change that you just need to change the channel at the bottom of uh the navigation panel um and uh the recording will also be provided after the webinar um simp yes
So thank you very much so this is the original channel here we will speak uh English and French and if you don’t speak one of the languages the moment the language change you have to change your channel in the uh bottom of your uh
Of your screen so as I said my name is Kamia Kila co-director of the global City Hub and my colleague Andra sh also a senior advisor of global cities Hub we’re kind of Hosting physically for those who managed to come small but interesting group also here um on my
Right is gram Alabaster which I will uh introduce in a moment and on my left side uh the main hero of the today webinar who put all this in place mainly is Jean Christo B Kar uh who is uh running uh by Passion uh and by professionalism this uh World
Association of private Public Partnerships uh you have a very impressive uh pedigree which I will not be able to to read entirely but just to say a couple of words is that um you set up this NG in Geneva quite recently 2018 uh and before funding the organization you were the contract
Manager and senior legal adviser in the high-tech industry and worked on large infrastructure projects namely with Bombardier and SE SBB cff this is the Swiss Railways basically impossible acronyms but uh important Swiss uh private public partnership Enterprise so you trained as you were trained as a banker in Germany you studied in
Strasburg sbren Lozan and tubingen that’s why you speak all the languages in Europe uh and that’s your now uh as executive MBI uh in EK and Manheim business school and so you also became a commercial mediator 11 years ago and dedicated to helping prevent conflict and resolve disputes through interested basis
Negotiations member of the board of federation the mediation so mediation is is is your uh your uh file and also a jury member for the Swiss mediation prize for companies and institution as well as the initiator of the Swiss B2B mediation practice Community um that’s
Part of the uh of your pedigree and uh I met you in this uh UNC private public partnership Group which will will mention but we don’t have representative almost us if you are the representative and with this with no further Ado you’re the main uh moderator of this event so
Giving you back the floor okay I can introduce also grah who is uh dear friends so grah is engineer water engineer and also engineer of a long practice uh over the five continents of the earth uh but today he is the representative and the head of the United uh Nation UNH habitat program
And fund here in Geneva uh he’s head of the office in Geneva and also uh as I said dear friends we do a lot of things but mainly uh for us for today we initiated three years ago this uh Geneva urban debate um which without further Ado I will give
You the floor to to to introduce and also uh complete introducting yourself thank you very much chamia hello everyone it’s an absolute Delight to be here in this series of urban debates which are as you know picked by uh the global cities Hub and habitat to
As a as a as an a sort of impartial Forum to discuss critical uh issues in Urban Development so today of course uh is a topic that’s high up the agenda um but just by way of background just in one or two minutes I mean uh we’re
Seeing now uh we we all un habitat and many of you know about the rates of urbanization around the world but of course now it’s become much more complicated because of the climate emergencies because of unfortunately because of the conflicts going on and the migration of people there’s a lot
More pressure on infrastructure services and housing and as a result of that the inequities uh globally even in the more developed regions are getting uh more and more pronounced also as urban areas expand uh this is happening in an unplanned and H Hazard Manner and uh you
Know uh one statistic that I quite like to quote is that 60% of the urban space that would exist in 2050 has yet to be built of course that varies dep where you are in the world so that means and why does that have relevance to what
We’re talking about today if we are to match uh the provision of infrastructure and housing and services with that explosive urbanization there has to be different ways of looking at how these uh these These Things Are financed because as you know the inequities have caused uh huge resource constraints for
Many local authorities at the local level so they’re looking for new uh ways to fund and support projects and this is one of the ways where public private Partnerships can uh be so important and of course many of you of course are familiar with these ideas they’ve not
Been uh they’ve been around for quite some time but currently there’s whole new loads of opportunities opening up to extend what we see as traditional public part Partnerships to include other stakeholders and really for me uh this is one of the only ways that we’re going
To meet this uh unmet uh this challenge of of providing uh Services particularly infrastructure but also things like health facilities and the like uh by using uh innovation in in ppps to do that so of course this is a subject which is right at the heart of your inh
Habitats uh core workk and um we’re delighted uh Jean Kristoff you and your colleagues have brought together this really impressive group of speakers so I’m going to stop there um I do have to leave early unfortunately but um I very much appreciate the organization of this meeting and habitat’s very proud that it
Can be on the urban debate agenda so I’ll stop there and thank you very much and thank you very much gram as the point of the co-organizer of the of the of this um Geneva Urban debates um I represent the global cities Hub which is an initiative or a platform um to inform
But also to act with the local and uh Regional governments on various issues which we find in Geneva uh but we also uh find globally uh as uh huge and important topics one of them being the private Public Partnerships um trying to to have more action at the United
Nations in the regulations uh with um uh agencies like un habitat and others uh but very importantly also with actors which are not related to the United Nations such as the world Association of ppps and uh the world economic Forum to name a few some of our partners and uh
And dear friends are um are here with us um such as um Rudolph which uh who you will introduce in in due time coming from the city of Avan and this I always uh when I think I’m always impressed that this is the oldest private public partnership in in France I I’ve learned
Um but also other cities uh like uh cities in Uganda Kenya and others uh who are joining us so in order to conclude very happy to have this Geneva urban debate on ppps first but I hope not last because I will invite you to the Forum
Of Mayors which this year will be held um in the not in the shadow but in the afterwards of the summit of the future of the United Nations um so we will also discuss different topic with more than um probably this year we hope 100 Mayors okay I’m a little bit exaggerating but
We had 60 to 70 Mayors from all over the world last year for this forum of Mayors um and uh yeah continue the the discussions with you after this first webinar thank you very much giving you back the floor for the rest of the webinar thank you
Camia so as the executive director of the world Association of PPP units and professionals the global home for ppps uh it’s a pleasure to co-host The Joint event with the global cities Hub uh and un habitat in international Geneva at WAP we’ve built a Global Network of 450 public private Partnerships
Professionals of which we have 61 local Regional and Country government PPP units and around 40 Global Partnerships over the five the last five years our mission is to harness the power of a Global Network and share the best practices in the field of what we call Next Level ppps meaning those that are
Aligned with the sustainable development agenda the 2030 agenda of the United Nations but also to uh Foster climate resent climate resilient infrastructure and we believe that is so crucial because aligning with the sustainable development goals actually helps to drisk these long-term public private partnership arrangements and in in infrastructure public private
Partnerships are an important tool as we’ve just heard from uh Graham uh to bridge the fiscal limitations many local governments encounter to provide essential infrastructure for their constituents uh and the current poly crisis will living and experiences is exacerbating the need to find appropriate solutions to deal with the
Strong growth in urban population and a massive infrastructure financing Gap I’m not going to throw out numbers here I think this would not be very productive but just know it’s in the trillions um and for today’s debate we will consider as public private Partnerships the delegation of a public service to a
Private entity that finances operates and maintains the social or physical infrastructure for defined duration also known as the concession period on behalf of the state so generally one distinguishes the government paid and the user paid model those are two big families around 5% of public infrastructure is financed in form of a
Public private partnership and unfortunately a very high amount of projects are aborted for all kinds of reasons unattractive for private sector lck of lack of bankability political instability it may be an imbalance also in the risk allocation or unrealistic expectations by one of the project Partners insufficient knowledge and experience in
Public administration unclear governance roles and responsibilities just to put out a couple of reasons why doing a PPP can be challenging but at the same time around the world there are thousands of Municipal public private Partnerships that rely on the private sector for the delivery of public service for example
Water Sanitation waste to energy projects social housing or affordable housing projects Mobility we we’ll hear about an example uh on Transportation in a large municipality sport facilities cultural projects just to name a few uh and some of them we will actually cover today at w um what we believe is that we
Need to support a new generation of public private Partnerships one that actually delivers value for society and not just the classical value for money approach but we need to go beyond we need to deliver value for future generations and that is something we mean we’re a growing movement and uh
We’re seeing some impact happening in the in in in this space uh last year for example we all arranged ranged a meeting on disaster risk reduction through ppps on the occasion of India’s G20 presidency and Deli and that blends in with the work of the WAP sustainability
And resilience chapter we had the CEO of fidic which is the Consulting Engineers umbrella organization if you want uh that defines model contracts on execution of large projects but also on dispute resolution techniques um and he spoke at our general assembly in Athens we’ve contributed also to the standards
On ppps and Concession legal Frameworks in support of the sdg and the accompanying guide published by the United Nation economic commission for Europe based here in Geneva uh and that was approved by the member states of unce last December uh and this year our dominating topic for 2024 will be smallscale ppps
Because we believe there is True Value in having that discussion on subnational Regional local Municipal public private Partnerships if we want to even be close to being able to be back closer on track and achieve the 2030 agenda for sustainable development and and this is why I believe that this meeting together with
Um the global cities Hub of uh Geneva is very important and really fits nicely into our yearly program now let me come to our important the most important people here the protagonists of today uh which are the speakers that’s Professor Cedric dun elen Bakula Jim Monga rodolph Barbaro FR
Berer and last but not least Charlotte bbul and hila odar KY to cover the important aspects of resilience and reliability in local public private part ownerships in this Geneva urban debate I will introduce them in a moment um the duration of our debate will be around an
Hour and a half we hope to wrap up the discussion around 4:15 and um uh should you have questions don’t hesitate to drop them in the Q&A box we’ll try to respond if we’re not able to I will do my best to follow up in writing afterwards uh so please guide
The discussion uh so so we we we can have an interesting um conversation here uh the plan is to present the panelists each panelist will have uh to answer a couple of questions that I have prepared the round table will will then last around 60 minutes
And after that there will be time time for a lively exchange with the audience and um I just ask everybody to be short and crisp in the questions so that we don’t and we have actual question questions and not statements um without further Ado let me introduce our first panelist Cedric
Dupon is a professor of political science at the Geneva Graduate Institute and specializes in international cooperation negotiation and economic factors on global and Regional levels thank you and I may actually just switch use English as I almost never lecture in French sorry about that so thank you for the invitation Jean
Kristoff and camia as I told you I I’m I’m surely not an expert on the very specific ppps at the local level but I always study it from the governance perspective and where I come close to ppps and my work on investment arbitration uh if you think a aranas in
Buen oares and with with vendi was one of the most famous case of investment arbitration and that’s where I came the closest to the very detail in local thing so I was asked um to to intervene on three things and I’ll try to say to remain short as Professor normally don’t
Do so um three points the first thing is that and I think you already touch upon itan Kristoff is um you know the critical importance of of having um you know of resiliency in the current context of course a lots of studies now the World Bank oecd focus on the
Covid-19 experience but I think you could also since then unfortunately see a lot of other um aspects of resiliency even linked to natural disaster which I think un is really focused on but also political and economic issues uh of course Wars uh geopolitical tensions between us and China what do we mean in
Private public private partnership um and also you know financial crisis and or Greeks in the room online you know understand why some critical infrastructure in Greece were actually um saved or sold whatever you want to it by by private Capital um so I don’t think I need to really say more but the
Only thing I would say as a poit political scientist that of course natural resiliency to Natural event is key but as we’ have seen since to 2020 resiliency to other type of major event is key um I was speaking Argentina with the new president there we don’t know
How much the pezo will be devalued but that of course is really critical for if you are a private investor particularly you come from abroad and want to see the financial basically sust ability of the project so that’s my more my angle but of course I know in the room there are
People that are more focused on on on natural disaster the second aspect was should say so why why would we think that PPP are particularly well design for being resilient when we speak of uh infrastructure and critical infrastructure um three things that comes of course a little and I’m sure
Most of you already heard that before is that they have I want to structure out about the three types of capabilities that needs to be collected Associated for ppps to work uh one is of course the resource capabilities and I think John Kristof mentioned is you know financing
Is of course there it’s the elephant in the room you need to have the resource capabilities aligned um second I’ll come back to that second is what it’s called the process capabilities is how you particularly if you think of Service delivery versus a lot of you know how
You processed you know the you know reaction feedback of you react to a shock of of different nature and then finally has already capability in terms of knowledge and people expertise right so I think if you think of um PPP why we would think they are really good at that
Is because of course they they’re supposed to collect you know all the possible good thing from both the private and the public but of course when you do that you may also collect both the bad thing of both sides right so that’s really a bit the challenge is
How much you could really combine these two things I like to say that it’s combining the Invisible Hand and freedom um but the problem is that often in the PPP the Invisible Hand may be too visible and you think this it’s going to basically strangle you uh and you have
To combine these to so it’s a very nice basically combination because you put additional money if you think of the state in if you have a disaster your ability your financial ability is almost immediately affected so you hope that you know the private sector would help
You as they would do it even back then in Florence was Venice and in the Middle Ages we would expect the rich people to come to the rescue of the state in case of difficulty um the process capabilities you would have here both the legitimacy brought by the state uh
So the social license to operate so to speak and of course the expertise of the private sector in managing Finance in often a much more let’s say responsible way than the states I say often but not always I guess we we’re in Switzerland and I know that Finance is a big thing
In the federal government and they’re very keen not to overspend or to badly spent um and then the people and knowledge capabilities it’s the Innovation part I think Jean Kristof mentioned that is is of course the the private sector this is where Innovation is is at the Forefront so this is why
PPP on paper is a bit the Silver Bullet the Magic Bullet that we will have to see but of course as Jean Kristoff mentioned you know it’s not been working right down and so the question the last question I was asked by Jean Kristoff is
So what are you know what needs to be done to cook this PP P so to speak rightly and then um again this is you know you probably know all this report by the B bank and oecd and so what are I think the world Banks say rightly done
PPP that’s their formula if I’m correct um and so there basically they to summarize really just to be very quick uh two things first is that you have to as they say mainstream the life cycle approach so you really have to take this this this long-term perspective to get
Into something which is long-term and you have to manage this long term process in terms of Imagining the future trying to really think about possible events and and then try to of course take the value for money but I think you know the sense in quality of service
That would be permanent um along along the road along the um the the time sorry for that and then um of course the the second I think that they say it should be really it should really this is what the World Bank wants to emphasize a lot I
Think J off you emphas it’s a quality you know service quality so you really want at the same time to combine this value for money for the investor but you really want this service quality for public that’s where the public Dimension goes into that’s what’s supposed to be
Rightly done PPP and but of course again that’s really nicely said um much more difficult uh to do but that would be of course what this report uh come out with different example uh Jean Kristof you mentioned India India is a long you know a large EXP experience with of course
PPP in many many different parts and they also came up with their own recipe um given that time is short I was like and and um and for I should have apologized as I told the two organizer I it’s I have a busy day so I could Escape
My basically uh uh research retreat with my large group of research for about half an hour so I’ll have to be something very impolite is tell what I think I want to say and then leave which means you know it’s not really what should be done in the round table but
But this they accepted that so I think um you know the blame is on them if you want to blame um the last thing I want to do is a few notes based on my personal approach to that from this angle of governance and specials of international relation and Corporation I would say
Three notes I don’t know the caveat the first one is is that I this this life cycle planning so to so to speak um I’ve seen that word you know coming popping up a bit bit more in the report you know needs some foresight activity so if if you’re planning over
20 30 40 year you know you can’t use just simple extension you have to imagine possible futures um and so I think I’ve seen it particular in the World Bank recommendation that to do for Sight imagine a few possible words and how you would basically address them
Either if we if you know you plan you think you’re going to one of let’s say four or five different worlds and you deviate how do you do and how you manage this foresight which normally is done for 10 to 15 years not more if you have
A project that you have to plan for 40 years you have to do a sequence of foresight um and and I think it’s um it it is interesting I’m not sure you know many people know how to do foresight it is practice but I think it would be
Interesting for so the typ of scenario planning and I personally if would have a state Round Table would have to wish to hear people really specifically implied if they do that I’m sure some have done but of course at the the municipal level it may requires um
Expertise that is is missing the second point is is you know this notion of of we need private so public private and what is private I would say you know this the H of discussion now let’s say between China and the Western world is that okay
Is is there any Chinese money that is private or any Chinese money is public and so do you really want Chinese money in the port of P in Greece or in Hamburg or in the Telecom or the communication infrastructure let’s say in the UK or in Canada and so that’s interesting because
Is we are in a world in which geopolitics is back and so the Invisible Hand is surely no longer invisible and so this is you know in investment it’s really investment screening how does investment screening get into the Assembly of ppps at the world where you know mistrust is is regaining between
Powerful countries um and so that’s quite interesting this is lost in in investment call it the policy space you know and so to which extent you could really get the private SE private money or do you when you comes to Country like China or you know Middle East country most many you know
Saudi Saudi Arabia other is it really money private or is it really kind of semi- private and I think that’s interesting thing you may be coupling with and the the last thing and this linked to that that’s the whole discussion of the social license to operate um so I think to which stand
Because of this time of populism and nationalism you would not suspect so so would you make a difference between national public money or International foreign public money and of course in many countries if you restrict yourself to National own uh basically uh private money you’re not fixing it so you’ll
Need so it’s not only you have an international Dimension to public private partnership bit different that in France if they do water distribution or if they do the you know the infrastructure for you know uh freeways you have a lots most of the money is actually local local you know so in that
Sense you don’t have in addition to the suspicion of private ownership you don’t have this suspicion toward the Foreigner and so it would be interesting I think it’s an additional challenge for some countries more than some others that of course is complicating the task because have this feeling of oh it’s you know
It’s colon you know colonization in a new form so I think a few notes but of course as a international relation Specialist of course for me is is very you know I’m very sensitive to but I’ll stop here thank you very much uh Cedric that was very interesting and a couple of
Nice perspectives I’m tempted to ask fris if he would like to maybe you know rebut that from a financial long-term investors perspective uh would maybe you have also something to say on on this uh fren Shoring approach that Cedric was describing in terms of can we really call Chinese money
Private yes thank you uh Jean Kristoff indeed just a few quick observations or comments uh indeed the issue of uh public acceptance or S of private license to operate uh is a key one when it comes to ppps even in countries with a long tradition of uh incorporating the
Private sector in the delivery of Public Services or uh sort of um General services for for for Collective interest uh like France um the the the boundary between public and private always remain sensitive uh in that respect uh uh you you you probably need effectively to
Have a a a a good idea of what you mean or expect by public and and what is to be expected by private sector uh just an example uh a number of state owned Enterprises have uh engaged on the private sector side uh in long-term delivery of Public Services for a
Procuring Authority on the public side in this case do we still speak about public private Partnerships or isn’t it rather some kind of Public Public Partnerships uh they may adhere to the same set of rules but it it fundamentally Alters the uh the whole balance and maybe somehow even defeats
The whole point of allocating risk between public and private If eventually everything have links back to the public sector so definitely a a a delicate issue in particular in Emerging Markets which may not have the kind of a big private player needed to engage finance and operate significant uh
Infrastructure projects now now just maybe a quick u a quick comment on the U uh alignment between ppps and sustainable development so uh Cedric mentioned and it’s indeed a key Dimension life cycle costing uh I would say there’s more than that uh of course
Life cycle cost is a a a a a critical Dimension it forces the uh public procurement Authority decision makers to take a a Long View a longer view than they would maybe usually do in view of their own uh sort of public mandates or electoral calendar um
But there’s also the issue of trying to systematically assess uh potential risks uh in the the long-term Horizon and again again this is not a culturally ingrained in the public sector uh Behavior Uh public sector tends to consider they are their own self-insurer that they don’t need to uh try and
Project themselves in the future and identify consider way any potential risk and by engaging in ppps they they would have to do so and have a much more systemic approach of everything that can go wrong and try to address it beforehand um the final aspect in my
View which uh effectively makes PPP on the paper and if well implemented a a fair well aligned tool for sustainable development is the ring fencing of uh maintenance and again we know that maintenance is usually a an adjustment variable for Budget officials uh on the
Public sector side if uh for a number of reasons and there’s no shortage of them usually they are a bit tight uh to balance their budget the first thing to be cut because it’s discretionary is the U uh maintenance uh expenses on a particular infrastructure public services with the added bonus that
Usually it won’t start to show in the quality of the service before a few years by which time they may have already been reelected um so ring fencing it through a contractualization of performance omm is again in my view a a big plus for uh ppps to to effectively contribute to uh
Sustainable quality delivery of Public Services over a long-term Horizon how up here thank you very much um for for these new ances to the very interesting points that Cedric has made just before we now have the pleasure to meet Eleni Bakula she is the United Nation economic
Commission for Europe Vice chair of the Bureau of the working party on public private Partnerships and she’s also a legal counsel at the Athens Urban transport organization oaza she possesses extensive practicing experience in public procurement and public PR Partnerships and she’s managing a vast portfolio of public
Procurement in oasa and two major PPP projects currently Eleni has been a lecturer at Manchester University a qualified solicitor in the UK and a practicing lawyer before The Supreme Court in Athens so my question to elen is can you explain to us the importance of public private Partnerships in the
Field of public transportation and a vast and complex municipality like Athens what are the challenges in public tenders and are renegotiations frequent and maybe then as a vice chair of the Bureau of unc’s working party on ppps can you tell us briefly about the Pierce methodology and its ambition for public
Administrations and should Government Contracting Authority manage PPP contracts to enhance reliability and resilience thank you uh thank you Zan kristo uh hello to everyone uh I’m really happy and delighted to be invited uh this conference uh so I would start by uh I would start by
Giving you a case study in regards to as Sisto said uh I’m the legal counseling the relevant ER transport National transportational Authority which is oasa in Athens and Greece uh this asai is the relevant Authority that designs and implements the operational Transportation plan and provides Transport Services through its subsidiary
Companies uh we currently have a vast portfolio of public contracts as we have to manage the entire public transportation buses trums Metro train and also the urban planning and infrastructure for the region of fatica which is more than 5 million population so I can uh give you as an example one
Of our ppps projects uh we have the we have a telematics project which is which involves the design financing and setting in operation maintenance and facility management of a telematic system which include installation of telematic equipment to 2,000 bus and 1,000 SMART bus stations that shall provide information
To the users of the public transfer means by your sat telematic application to Andro Android and iOS and Windows phones and this shall manage their Fleet of vehicles uh more specifically the project includes the installation of of equipment in almost 2,000 buses and two 200 50 trolley buses in order to monitor
The transportation system in real time and provide to commuters with travel information through 1,000 smart smart stops all over Athens uh so how can we see that in regards to sustainability this project is a part of the Strategic Target of aens serban Transport organization and this aims to
To solve a great number of problems arising from the existing system by upgrading the quality of the urban transport the working condition and the staff involved and the services provided to the user of the buses H one of the roles of OA is to plan control and provide sustainable heran Mobility policy including
Efficient public transport systems and good Transit Transit connectivity so by promoting public transportation and transport initiative H support initiatives to make our city H accessible for all residents and commuters including persons with disabilities and older PE and older persons so we improve the quality of life in
Cities now uh at the the same time uh we can see that there are some challenges uh to sustainable sustainable infrastructure in cities so as uh as Mr alabas said uh the prolonging expansion of the public transport Network in natica aiming to ABRA the quality of life of the citizens and the
Sustainable Urban and functioning faces of course financial and operational challenges so in regards to this project the expansion of the telematic system was on on one of the challenges in both technical financial and legal aspects so this new infrastructure project concerns Supply installation operation of the new smart buses which will be
Connected to the existing telematic system so we are trying to connect the old PPP with the new PPP so we are now working on the feasibility of the project as new study has to be conducted in order to exploit and research technicalities regarding to connectivity with existing
System at the same time we are trying to apply for funding as Finance is the first factor to be considered in public spending so uh overall our challenge to sustainable infrastructure cities I think is uh to construct and manage ppps in accordance with a broader set of set
Of objectives that create value for people and value for Planet so 15 minutes series is the result is not the target the target is to preserve the planet the humans and the animals and the communities so we can have a sustainable and decent life now in regards to public
Tenders and uh in regards to public tenders and public procurement so uh there is a there is a new uh legislation there’s EU legislation in in regards to both H public procur and uh ppps so we have the directives 24 2014 and 2524 and we have also the directive about concession 23
2014 and we have also in greas our ppp’s national laws which is a integrating the EU law at the same time as a Public Authority we have to use the EU public tender platform and at the same time we have to abide with EU competition law so I would
Like to say by experience both experience and theory that we have uh to keep a constant balance between the public the public good and private competition so public authorities generally cannot negotiate in the way a private sector can do that uh we have to set our technical
Standards uh for the public good but the same time as I said we have to justify all the specifications that we said because they may create prits on competition law so every specification we set on the public tender has to be specified why we has to be justified why we specify in that
Area H so we can keep in balance with competition law ER at the same time we have also to abide by the council directive um on requirements for budgetary Frameworks on of the mber states and the court of Auditors so this means that all the member states uh they have to justify
All the uh Financial uh and budgetary Frameworks H now there’s a question that we used always to discuss on Academia is it always to go for a pppp there is a balance and it depends on the circum standing uh if uh if it is better to go for a PPP or if
It is better to go for a just public procurement or if it is better to keep it in house in house so it depends on the matter and the issue and the specificity of the project ER it depends also on the expertise and the budget of the Public
Authority and uh then there is a balance what is the you know the best way to go now um in regards to un and public private Partnerships and infrastructure evaluation and rating system the so-called peer system this is an evaluation methodology for the sustainable development goals so
I don’t want to be too much technical I will try to give you just an idea um as you all may know the sustainable development goals go for different forms of Partnerships including ppps as a tool uh to close the infrastructure Gap but the complexity in the design and management of these
Long-term public private Arrangements also present some limitations and challenges so these challenges and limitations of pp are important to bear in mind when we analyze the potential of pvps in order to promote sustainable development so in order to realize their social value beyond their econom their economic
Value as some colleagues said uh ppps need to be fit for purpose so that means that PPP is moving from being a mer financing tool to becoming an instrument that also provides value for people and value for the planet as I previously said so this requires a new approach
Consistent with the s sdgs in this context the United Nations economic commission for Europe unes has developed the ppps for the STDs approach and the 10 guiding principles on ppps in support of the sdgs in order to provide a model that will for access to essential public services for
All sustainable development as its objective and putting people at the core so launching this news approach requires new tools to evaluate the impact of ppps that can measure impact and score projects including both infrastructure projects and ppps for the stgs and fully Implement The Guiding principles so
Uh the whole per purpose of Pierce is to implement the guiding principles in their entirety using Pierce in order to forcer improvements in the project themselves so the following is a description of of PE for scoring and evaluating pvp’s project to Aspire and those consist of these three elements
Criteria and indicators that demonstrate achievement in each each of the five bvps for the sdgs a waiting of these outcomes along with other issues pertinent to scoring and a scoring system that can provide various stakeholders with their valuation needed to revise and adjust their projects so they can make them more compliant with
The ppps for the SGS outcomes so this criteria uh can be namely access and Equity economic Effectiveness and fiscal sustainability environmental sustainability and resilience replicability and stakeholder engagement so uh I think I have covered all but if there’s any more question I’m thank you very much elen there’s one
Question that is relating exactly to the telematic system which is uh if I may site may I clarify what PPP model does the Athens telematic system adopt could it be bmot thank you so uh the telematic system uh uh this is a PPP that uh um the design financing setting in operation M
Maintenance and facility management is all uh uh to the to the private sector uh and uh there has been an equation of what Public Authority has to pay every month but essentially Public Authority is not paying but uh the the private uh company deduct that from the from all the ticketing so
Every month there is a uh there is a calculation of the amount that has to be paid but at the same time we have detections so the deductions concern the maintenance uh or the the response to the maintenance or the response to the problems and the damages that may occur
And they respond to the damages so there is a very complicated equation as to the H limitations of the payment so if the payment let’s say is € 100 for example per month uh we have to detect uh all the limitations and damages or the private company has to
Detect their wrongdoing of a Public Authority so every month there is a payment due uh if I answer your question yes thank you very much and before we get too dizzy with all these numbers I suggest if you have more questions specifically on that topic right to
Contact at wap.org and we’ll be in touch with elen to answer your more specific questions thank you very much uh we now come to Jim muganga from Cala Uganda uh Jim uh mug Monga is the executive director of the PPP unit of the Republic of Uganda he has extensive experience
Undertaking public and private Partnerships through the use of various modes including divestitures concessions and joint ventures and Acquisitions among others prior to taking the lead of the PPP unit Jim was part of the Uganda team that was responsible for the country’s privatization process and delivered into Partnerships over 300 the
Two public sector entities my question to our dear panelist Jim can you share with us how African subnational PPP units prepare PPP projects what tools does the central PPP unit provide as a conduit and what are the key risk allocation arrangements and contractual Provisions in reliable and resilient PPP transactions
Still muted I yeah sorry sorry I was muted thank you very much Jesse and colleagues on the panel and those who are participating allow me to just to just start slightly beh before that on the comment that was made about um whether it’s Chinese money or or any
Other state money um into I think this discussion is as old as we’ve discussed both ppps and any other Acquisitions and Ventures and and personally I believe when you look at countries like ours where we we don’t have really fir you know welldeveloped private sector private sector that is
Willing to that has the depth of resources to engage in um major major activities you potentially are bound to see a lot of some of these happening which reminded me of what used to happen even in Europe you remember the Acquisitions on the buyouts and buyings
Of Airlines and telecoms you saw a lot of national entities from other countries um getting into these these concessions and and um I think the needs and the size tend to speak to this uh personally I’m not really so worried about what would happen it’s how you then structure uh and ensure that
Um we’ve learned over the years JC we’ve learned um how to to to to identify the risks that would come with these kind of resources and we’ve learned you know how to put those walls in place so that we are not as exposed but it’s a very interesting discussion and uh on the
African continent is a discussion that we’ve had since the days of privatization we continue to have now and going forward we’ll have the same because major infrastructure projects eventually end up with a either sud sudo state-owned Enterprises or companies or companies or people who are funding that are related to State
Actors so having said that allow me to go to the question how do we on the African coate prepare ppps at subnational level um I I think I’ll start by clarifying that Africa is again as I normally say is not a homogeneous political and administrative setup it’s
Not one bu country is multiple countries and I believe all the the people attending this we are aware of that but the uniqueness of Africa we have various impacts they range from Colonial to political to constitutional to legislative that have impacted the way we are set up at administrative level
And because of that that tends to impact our economic trajectory the way we prepare and plan for economic development and that makes us adapt certain approaches uh that inform that now uh in countries where you have subnationals and you have a federal system of government you then realize
Semi detached kind of approach to undertaking ppps but in most countries you still retain what I normally refer to as a numri code kind of arrangement you still have a relationship with the center as you prepare so um our our subnationals um often into smaller uh units things like districts cities
Municipalities and others of the kind and these units um have in some instances in some countries decentralized power which means you can exercise mandate to do certain things up to a certain level but in other places they do not actually have that in other countries in Africa but in some places
And what comes to my mind is South Africa and and Kenya Nigeria actually Nigeria you will have you’ll have Federal kind of arrangement and there you have almost semi- autonomy mandate to structure to to initiate to conclude uh PPP Arrangement uh but often with a bit of
Clearance at milestones in the cases of a country like Uganda where we don’t have a federal system and in Kenya you have this Central PPP agency uh where you you you you have control over both subnational and um and and and National PPP activities what we tend to do is to
Release the subnationals to undertake the activities that they have to undertake at that level level conceptualizing planning and and and structuring and um making sure that they have ownership of the project and delivering it but we request that at those four Milestones that are crucial
We Have Eyes On and and a mandate to Avail approvals so it’s important for us as a areas in countries where some of these activities are still developing it’s important for us to make sure that um we we keep eyes on this because eventually and ultimately there is a
Charge on the finances of the country at National level and because of the risk levels that are perceived in these parts of the world there’s always a request that um uh we have national uh sign off for these projects so that’s U part of the interventions that uh that we do uh
Those interventions will take all sorts of forms from policy to regulatory because the subnationals are developing in nature they are still um the the challenges that in at Country level they are the same challenges that you find at subnational level uh things like capacities you know Clarity with the
Legis Frameworks where they exist they took on a national approach they’re not um at the level where they can be cascaded down so you tend to have to intervene most of the times to help out uh to make sure that the processes are run in accordance with what you’re doing
In the case of Uganda we go to under across Africa training capacity building you know handholding on feasibility studies handholding on technical support and advisory Services um in Africa you still find challenges of a PPP that’s so viable that’s so potentially good that may not necessarily have the resources
In the budget for transaction advisory activity to be undertaken so most PPP agencies across the continent will end up doing the initial early works on on ensuring that the project is generally conceptualized in a way to Preity study and and and therefore can then engage for for the next level of delivery so
This happens on the continent whether it’s National or subnational is an issue and we still struggle to to deal with it but we’ve also been able to collaborate one we tapping into the resources that are W and agencies of of this kind um are making available to us we’re also
Tapping into our own panafrican capacities there’s a lot of work that has been done in South Africa there’s a lot of the work that has been done in Nigeria in the other countries so what we’re trying to do is to try and tap into this make sure that um where you we
Are able to develop capacities synergies or capacities that are similar across projects we able to tap into them gu in Point if you’re dealing with a housing project it’s a housing project it’s going to be situated in a different place from country a to Country B that’s a housing project it’s
A Hydro power Dum is so we beginning to tap into existing tools existing uh templates and we sharing this information we sharing experiences and we believe that this will get us to where I want to to be going forward um um lastly I would want to just comment
On the needs and how we trying to deal with them just if you don’t mind yeah what we’re trying to do is to identify and work with agencies like youa to try and mitigate is the United Nation economic commission for Africa for those who are not familiar with that
Abbreviation yes so what we’ve done is that um we we’ve started on a process that has moved around Africa to try and identify the specific needs of both country at Country level at PPP unit level but also as subnational level through PPP Unity level we able to look
Further down into subnationals and we’re saying to ourselves what are those interventions that we can undertake to make sure that we now touch and get felt at the lower level in and that that process has started uh with the help of un and we believe you’re going to expand
It we’ve identified weid ified six countries those six countries have been put together theyve diagostic Studies have been undertaken and the solutions to those issues that were found have been identified and going forward there are interventions that are planned using platform like like these ones and
Others to step into the space where we have had challenges things like um um undertaking projects or or technical studies or capacity building phib studies these are often The Challenge on the continent you may have very good projects but you do not have the capacity to to to structure them on
The FP side you have huge challenges like um a smaller private sector that can actually not necessarily step into this space and take on on projects you don’t even have a pro sector in some instances which can undertake subnational projects so you have to step
In and and and deal so we sharing a lot of information we are C creating this capacity and going forward we believe that these interventions that we thinking about should be able to help to St scale up uh the ppps at subnational level in the case of Uganda finally what
We’ve done is gone all out and developed reducted uh uh national uh uh laws and guidelines and regulations to make sure that we address the subnationals so what what we did recently is to launch a guidelines for subnationals now the reason for that we realized that the national guidelines
And regulations were quite detached they were heavy they were focusing on the bigger projects and yet at subnational level people want to feel that the part of this for PPP momentum so what we’ve done is we’ve deducted the regulations we’ve made them simpler they yes in in
In in keeping with the law but also making them easier to implement that way we get the Nationals on board at J I’ll leave it at this for the time being very much Jim very interesting to see how the intricity intricacies are in the field it’s not that easy but uh WAP
Is happy to continue to support through tools like the global Council of PPP unit heads and capacity building with our Africa chapter uh we it’s now a pleasure to welcome here in person in Geneva ATO rodolf barbu who is the SG advisor of the city of Ian who doesn’t know Ian the
Water brand right but it actually comes from the place on Lake Geneva called La Deon um so the mayor Jian Le wishes to stimulate and deploy all public policies through um seven to the 17 sdgs and um if already collaborates with the French state government for the 2030 agenda and
Uh I’m happy to now hand over the word uh to to rodolf and in light of the short amount of time I’m not not going to answer the chat questions right now I I’ll try to bundle them after we have gone through all the presentations because we still have three speakers to
Go so let’s make progress thank you kristo hello everyone switching to French um Comm OB For Col for R for for for For For Um For Fr Cheng For Comp Is the executive director dor of LTI LTI is the long-term infrastructure investors Association and he’s also the CEO of fast infr group uh that promotes sustainable development and infrastructure through public private initiatives he has a long and diverse experience in public management project and infrastructure Finance previously
Franois served as the program manager at PF which is a multi-donor program uh at the World Bank group and as the head of the French PPP oniv and the Ministry of Finance which he set up and managed he was also a senior auditor at France National Audit office and managed infrastructure
Investment funds in Asia and Europe and for holds a degree from business school and University of Paris orbon and had authored various Publications on ppps my question questions to fris are what makes subnational ppps interesting or challenging for long-term investors and what are the challenges from a long-term perspective perspective can you also
Explain to us how this new sustainable infra um labeling system comes into play thank you very much FR thank you Jean Christoff and let me begin with what makes uh subnational ppps uh both interesting and challenging so uh let’s start with uh reminding that uh local ppps by definition involve as a
Public partner a subnational entity can be in most cases it would be a municipality but it can be any level of subnational government could even be a a state own Enterprise actually according to uh the literature on ppps uh that’s a a a a sort of first definition uh the
Second of defining feature of uh local or subnational ppps is that they’re usually smaller in size compared to national uh PPP projects and that sort of stands to reason I mean you the scope covered by subnational governments typically deal more with social infrastructure administrative buildings you mentioned some of them Jean kristo
Earlier on sport facilities cultural facilities uh water sanitation Urban mobility of course Street lighting and everything that goes with it from traffic lights to festive lighting Street Paving and parking and and and to some degree social housing as well so uh mostly social infrastructure uh unit size is smaller
Than big economic infrastructure whether talking about uh motorways uh uh Port airport or or or big Power stations uh and hence this small s has a a sort of direct consequences first one is linked with the inherent complexity uh of ppps uh ppps require a an extensive skill set
From the public sector partner because they basically uh incorporate every Dimension from design to operation and maintenance over a long period of time you have to consider and vision address uh contractually technically all of these Dimensions it requires a skill set both technical financial management uh a lot of different sectoral expertise it’s
A relatively long process I mean typically from from the start of the procurement to a financial close um it can last um around two years or more and then you add another three or four years depending on the nature of the project for the construction all of which typically goes beyond the typical
Mandate of a local uh elected official in many countries uh this typical mandate duration would be about around four five years so there there’s a first sort of a mismatch here there’s the issue of insufficient skill set at the level of a relatively small uh well public uh
Entity and there’s the issue of the high transaction cost which cannot be easily advertized on a relatively small project with small capex small Investments uh small payments so all this challenges that uh May uh effectively render more difficult uh the um well structuring and finance in of
Subnational ppps on the other hand uh they do provide a an opportunity to better uh make bigger room for local smmes uh and this has been traditionally a a a an argument against ppps from its opponents the fact that ppps are more or less the exclusive remit of big corporations multinational U operators
Contractors uh well not so by definition with with local ppps that can effectively uh facilitate or or uh give a premium to to to to those um private partners that have local roots and a a small or medium size uh being locally grounded so that could be more of a an
Advantage If Only from a public opinion issue um there’s a final uh Dimension that we need to take into account uh and that’s the issue of the credit worthiness of the local Authority in other words its capacity to effectively pay uh and honor its financial and budgetary commitments over a long period
Of time at least for government pay uh ppps uh the availability payment ppps which Prevail for social infrastructure um any private investor would rightly be concerned about the capacity to pay of a local government that doesn’t have sort of a self um how should I say sufficiency uh
In terms of resources in other words uh subnational governments that depend for most of their resources from fiscal transfers from the central government um would probably be seen as a bit risky uh from an investor point of view and if anything that can be done to Foster the credit worthiness reinforce the capacity
To effectively raise its own Resources by the concerned level of uh subnational Authority uh goes a long way uh being uh to to to to make those ppps more uh Envision more investable by uh private investors this is already the case in in developed countries uh all the more in
Emerging Markets where typically uh a such types of ppps uh would only be considered by private investors if they are supported by some kind of national Sovereign uh guarantee uh underpinning the uh the the the payment uh over a long period of time so uh uh this
Basically to to try and address the uh uh the the the challenges and some of the interest of uh of of um local or subnational ppps maybe one last Advantage is that or or feature is that um uh concerns linked with the uh on balance sheet or off balance sheet uh
With regard to national accounts uh which have been a driver historically for many ppps at least in Europe uh with regard to the master uh criteria are not so prevalent for local ppps uh which by definition uh do not have this type of concern to to manage on the uh balance
Sheet so uh might might be uh might be easier for them uh to effectively enter into this type of arrangement uh uh for for for uh sort of budgetary reasons um now um just a few more words about this issue of size one way to uh address uh
This issue of critical size which may make them uh too small to consider for many investors you just mentioned J that I was also in charge of a an International Association of investors in infrastructure just to give you an example most of our members dedicated infrastructure fund specialized infrastructure funds would not even
Consider or identify on their r SC ppps or projects with less than 20 million dollar or Euro uh setad of minimum size as for the investment ticket and as you uh would imagine many probably most of the subnational uh ppps do not qualify to to reach that threshold so how can we
Address that well the simple way is to bundle uh a a ppps that are um well similar uh somehow in their nature their scope their duration and let me take the example of schools uh in most countries uh primary or secondary schooling is the responsibility of subnational governments uh higher education the
Universities being more uh the res uh the U the the remit of national governments um in many countries and France is a good example um so cities would be in charge of primary schools depart reg of middle or high schools and at this level you can have a first um a
A a first level to to to allowing to bundle uh similar projects and and have a a a a sort of a critical mass serious effect uh by uh spreading the cost of uh procurement over a a bigger population of uh similar projects um another type another way to do so is by
Standardizing uh a number of those projects and in particular those projects that are not too complex let me take the example of Street lighting uh Street lighting is a pretty straightforward type of Public Service one that can easily be uh of delivered through ppps uh in fact in France the
Very first uh public payment ppps were done for this type of project Street lighting and um it’s um not very difficult to U uh think of a a a template contract is sort of more standardized contract that would then also help uh decrease or spread cost
Transaction cost to a more uh a a more palatable level um and and maybe just a final aspect I’d like to mention again from the investor side I mentioned creditworthiness or of uh local governments a a a type of similar issue is that um many of those subnational governments are not rated so
You don’t have any sort of third- party independent assessment of their capacity to effectively be uh fiscally or financially resilient Over the Horizon of the PPP uh so that’s another issue to to keep in mind uh which makes sometimes uh entering those local ppps more challenging from investors standpoint
And finally very quickly I’d like to revisit the the theme of the um uh sustainability in alignment so CED dup already touched upon it I briefly commended uh I am myself pretty convinced that there is fundamentally a a good fit between the PPP approach and the sustainable development uh sustainable
Infrastructure uh approach um mainstreaming life cycle approach to an infrastructure project management is key uh to uh ensure uh value for money life long affordability uh and and this is intrinsic inherent I would say to the the the PPP borrow so we discussed life cycle costing we discussed the necessity
Uh as when you enter a PPP project to effectively identify and allocate as uh comprehensively as possible the various risks that may affect that project over the uh contractual term uh and this is becoming a a more challenging exercise as we cannot just longer extrapolate past Trends certainly not in terms of
Climate change for example since we now entering an era of disruption but it proves to be a very useful exercise to effectively identify and try and address as much as possible uh issues linked with sustainability in a different set of conditions I mentioned rein fencing
Of U uh uh of Maintenance um uh clear contractually bound key performance indicators highlighting areas uh that can and should be directly linked with uh sustainability and fundamentally again I think the tool itself lends itself pretty well to um incentivizing adaptation mitigation resilience in Project design and delivery over time
Now of course and as for everything uh the issue is about delivery control and the implementation year after year thank you f for this interesting insights and the investors perspective which is always the as we like to say um now let me uh go to our last tandem in
Intervention here from Charlotte bubul and hila otar Charlotte has over 15 years of experience working in Urban Development and resilience in over 20 countries she’s been providing technical assistance in the field of infrastructure housing Mobility Heritage disaster preparedness and Recovery a shot has been working closely with a
Wide range of stakeholders engaged in urban transformation including private sector and public authorities International NOS International organizations and international finance institutions within the world economic forums Center for Urban transform transformation charot is leading engagement with over 100 cities worldwide and she has also suggested that we have hila otmar KY with us who’s
The Vice president today on social impact and the at the Daniels Corporation one of Canada’s foremost developers and Builders and heila will present a case study to us her role is focused on Daniel’s mission to build inclusive communities by leveraging real estate development as a platform for positive social outcomes and city
Building and since 2009 heila has been working on the revitalization of Regent Park a 69 acre community in Toronto’s downtown East which is being looked at around the world as a model for urban transformation my questions to our wonderful panelists are Charlotte and hila can you share with us what the
Geneva based World economic forum is doing to fuel local investment you may know that has launched a philanthropy and ppps chapter led by maxv abord which has produced a mapping of the philanthropy Partnerships in the public private infrastructure ecosystem and the giving to amplify Earth action GAA initiative is part of
This effort can you explain to us what the global partnership for local in investment is about and what’s its objective are a little voice told me that there is a PPP award out there and if you can reveal a bit more to us today that would be wonderful thank
You hi everyone thank you very much for uh having us with you on this webinar I’m just going to uh quick start quickly our uh presentation just to frame that you know public private partnership and public private cooperation can take so many different faces and at the world
Economic Forum we are the International Organization for public private collaboration and we strongly believe that it’s crucial to bring all the stakeholders on the table business Civil Society academias youth media and to really look at uh issue as an ecosystem and that’s something we have done at the for since it’s beginning in
1971 when we start convening the communities and with time uh we grow different communities worldwide on different topics and we also launched different Center based on the biggest Global challenges that we are facing nowadays in the world so I’m part of the Center for Urban transformation so Center for Urban transformation is one
Of the 10 center of the Forum and what do we do there we already looking at the global challenges that you can uh face uh worldwide around like Health around affordability around cust of living crisis around infrastructure uh and how can you address them in cities every big
Challenges always land on land somewhere and generally in in cities and so our cities are at at the Forefront of uh of addressing this Challenge and and being able to respond to them so in the C for urban transformation we have different pillars one is around growing local
Economy the other one is looking at how we advance The Net Zero carbon goals but also achieving nature positive cities so how do we recalibrate the relationship with between cities and uh and nature and finally how do we improve our quality of of life and that’s where also
Where that’s where you can find like how do we recalibrate also Urban Services how do we ensure that we have uh um service and infrastructures that are responding to the needs of the communities that are long-term uh that integrate also sustainability at their core and so the global partnership for
Local investment that we are going to speak about uh today is one of this one of this initiative hosted Under the Umbrella of our Center for Urban transformation it’s a partnership with the world economic forum and un habitat and it aims to unlock critical investments in in local communities
Through public private collaboration so what do we do with this Global partnership for local investment first we mobilize International communities so we are bringing together public and private leaders together in order to identify what are like the best practices what has been successful and how can we scale some very uh impactful
Public private Partnerships uh uh at the global level second one is U SC in and and and and TR tested models so like we are going to take from these best practices like what are like ense the quit sense of this of these best practices and how can we translate them
Into strategies and and guiding like model policies or white papers that will be able to uh to share this knowledge and to be able to scale this to a to a global uh platform and finally how can we help to focus on certain cities and directly work with them in order to ACH
Uh to achieve uh this Urban transformation through this Innovative public private partnership so uh Eli is here today because she’s a wory with Daniel Corporation and the Toronto Community uh for housing um authority of uh of this award that we have launched in partnership with un habitat and that showcase a very interesting
Uh case study of PPP that brought a lot of social value and that’s something that’s very crucial in our Center so thank you for being with us and uh presenting your case study thanks so much Charlotte and thank you everyone it’s a pleasure to to be
Here uh as is common in in Canada now uh I’d like to acknowledge uh the land in Toronto which I’m joining from which is the traditional territory of many indigenous Nations uh I’m actually on the treaty territory uh of an indigenous group called The mogas of the Credit
First Nation so I want to just acknowledge that uh as I get started uh and then actually uh share some slides to guide me uh in this discussion uh about Regent Park um which has been underway for 18 years now as a public private partnership um with the
City of Toronto’s independent uh arms length housing agency and I’ll just share my screen here if folks can see that uh and I’ll put myself in presentation mode so you can see the full screen uh here we go uh so just quickly a bit about uh Daniels we are a
Fully private uh Le owned company uh we’ve been around for uh just over 40 years uh we’ve built um 35,000 homes in a range of tenures highrise low rise rental uh private Market Condominiums uh and senior students um the whole sort of uh spectrum of housing
Uh we have just over 400 employees and we have uh about 20 developments underway at any given time so we’re quite large in that respect uh our partner in this project uh was the housing agency of the city of Toronto uh in North America they are the second largest housing agency after uh
The New York Housing Authority they operate almost 60,000 units uh in 350 uh communities their uh housing portfolio is valued at a staggering billion doar um but uh given that it’s social housing it serves uh some of the communities uh that are most challenged in the city uh with low incomes
Uh in their portfolio the average household income is $115,000 which is quite below the the national average which is close to $50,000 uh and Toronto Community Housing provides uh what in um Toronto and in Canada is called rent gear to income housing so uh 30% of a households uh
Income cannot uh households income uh goes towards housing and not uh any more than that uh the community we’re talking about uh Regent Park is 69 Acres uh to give you a sense it’s about uh the size of four city blocks um right East of the downtown uh core in Toronto
It was originally constructed in the 1940s and 50s as post for war housing there was uh 283 units all of which were government housing um that house around uh 7,500 residents uh to give you a sense an incredibly diverse uh neighborhood very reflective uh of the Canadian landscape today uh just in this
Community alone at the time of the revitalization in the early 2000s there were 47 uh languages uh spoken I believe today there are 72 languages so remarkably diverse uh and what was really unique about it is all the housing those um 283 units were government owned um including some of the through streets
Because of the design of the neighborhood and you’ll see a snapshot here that’s uh Regent Park in the the 70s uh and it was early in the N uh in the 2000s that Toronto Community Housing the H the public sector actually initiated the revitalization um they had a close to2
Billion repair backlog because of the Aging stock of housing um this neighborhood in particular um had a very um challenging uh history of being disconnected from the rest of the City by virtue of Urban Design it was based on a planning rationale called The Garden City that actually took out uh
The streets did inward-facing buildings um which will’ll see in this image here uh all government housing passed down from the federal government to our provincial government and eventually the municipalities so the housing was in a very um deep state of disrepair at the same time the physical isolation led to
Social inclus uh exclusion and the lack of opportunities so very quickly uh guns gangs and violence uh started to be synonymous with this neighborhood uh and really created a stigma um of the perception of this neighborhood to the rest of the city what was incredible however um was
Resident advocacy that as early as the 1970s uh called for change even though that change didn’t come until you know 30 years later in the early 2000s uh and that change really came about out um through a series of consultations with community so those Community Voices That resident advocacy
Is really at the center of this public private partnership in fact you know we very much talk talk about it as a public private Community Partnership because of the very strong role that the communities played uh the community developed actual principles very early on for the revitalization that said
Things like put back in the streets so this plan became this plan with Community input uh the community also um came up with a list of 12 guiding principles and this happened in a very unique consultation format uh led by the public sector agency Toronto Community Housing where they actually trained residents in
The community to speak to their neighbors in their own languages to Garner feedback around what they wanted to see uh in this revitalization the city recognizing that in order to refresh and renew this neighborhood uh they had to unlock some of that land and that uh density to create Market Market
Housing and use that uh to channel the funds into redeveloping this uh government housing and really addressing some of the social issues and so through that consult consultation a uh six-phase plan was developed and and you’ll see the timelines here uh that were quite ambitious uh that haven’t been met so
That’s definitely one of the the lessons we have in public private Partnerships and and these Urban Transformations is they do take a lot longer than projected and uh a very key set of principles uh the overarching one being a right to return so the resident said
You know we lived in this community if it’s going to be redeveloped you know demolished reconstructed then we need the right to return this is not a gentrification where the existing community and the government housing gets uh pushed out the concept has been founded on the uh mixed use and mixed
Income neighborhood so actually introducing commercial into the neighborhood for the first time and Retail and storefronts uh that hadn’t been there previously um and and side by side having government housing with private market value housing you know some very basic principles like reintroducing the street grid creating a safe and accessible
Neighborhood involving the community in the process and leveraging this Redevelopment as a platform for local capacity building uh and then you’ll see here A A financially responsible plan uh and that’s because that you know based on the previous conversation we heard that these types of Partnerships need a
Massive amount of capital in fact um in the 18 years that the Regent Park revitalization has been underway um the transactions related to the revitalization um have totaled over 1.5 billion dollar uh the foundation of the the public private partnership i’ I’ve really simplified uh here for illustrative purposes um what the public
Sector uh brought to this partnership uh primarily was the land and uh they recognized that uh to unlock the value of this land uh and to generate the capital needed uh to renew the community um to demolish and rebuild the government housing building they needed to partner with the private sector and
That’s where our company came in we had the Development and Construction expertise um to actually lead this development hand inand with the the public sector um what we also had was the alignment and that alignment was that both parties set out to create a vibrant and inclusive mixed uh use
Community uh and that was evident very early on based on the principles that the community developed in fact not only did Regent Park have a zoning bylaw which we all know is important we need to know where the uh infra the physical infrastructure is going to go the sewers
And the streets uh how tall the buildings are going to be but the community also developed a uh Social Development plan that talked about how you create inclusion social cohesion and uh really enhance the quality of life uh the plan that was ultimately developed was Consolidated from six
Phases to five phases uh there will be you know we went from 2,000 units to 7500 unit UNS uh the population more than double from 7,000 to 17,000 um based on the rate of return principal all of those 283 rent geared to income units uh are being replaced with the addition of
5500 uh market value units uh what’s also critical is the addition of new community facilities uh and physical infrastructure that really underpins a strong social infrastructure uh and you’ll uh see these numbers here so to dat we’ve constructed over 3,000 of the market value homes um primarily in condominium ownership format but also
In um purpose-built rentals as well uh 12 over 1,200 of the rent gear to income homes have been completed there’s been seniors rentals affordable rentals um and over 200,000 square feet of commercial uh office and retail space which didn’t exist in the community um prior to the revitalization uh this map is
Particularly important because you’ll see uh that the quality of life hasn’t been about uh building buildings uh you know we’ve been in business for for 40 years we know how to do that I’m very confident uh that there’s many private and public sector organizations uh around the world who
Know how to do that the the challenge has been how do we make sure that this neighborhood is beyond the bricks and mortar and that has uh the infrastructure based on community feedback to be successful uh and that you know very early on were things like
A bank a grocery store a coffee shop very basic amenities that this community was lacking uh you’ll see on these on this chart that there’s you know four different daycares uh in neighborhood uh that have been created there’s a youth center there are new athletic grounds community centers public parks aquatic
Centers uh restaurants Arts and Cultural spaces um work live Studios for artists all uh in an effort uh to really prioritize um a strong social infrastructure uh that will underpin uh an inclusive and successful Community uh some of the Hallmarks of this revitalization are the socioeconomic uh diversity uh that we
Have introduced so we’ve gone from you know folks uh living in social housing to um those individuals living side by side in buildings um with um Market uh value uh residents who own or rent their homes uh at Market rates and if you look at this photo you shouldn’t be able to
Tell what government housing and what is market housing um I’ve pointed out the mix of activities and uses you’ll also see the mix of building types we’ve got Town Homes we’ve got high-rise buildings we’ve got mid-rise buildings uh so we’ve really looked to uh do a mix that adds
To the Vitality uh of the city very seamlessly uh and then mixing tenur having uh Condominiums uh side by side with government housing uh We’ve also prioritized social uh and economic value creation for local residents and that’s been really important uh the revitalization has really provided a platform uh to spend
Money often that we’re going to spend anyway uh with maximized intentionality uh and be really purposeful about how we build our buildings who builds our buildings who designs them and so uh in that respect uh We’ve created over um 250 jobs just in the retail sector so as we’ve built
Banks and grocery stores and coffee shops uh that’s created jobs we’ve created Studios for artists uh the private sector alone our company Daniels has contributed three and a half million dollars to community initiatives and programs uh like the festival you see here uh celebrating uh an indigenous um Festival in uh Toronto
Uh We’ve also really leveraged our networks uh of construction contractors and Architects and engineers and law firms and Banks uh to bring another $7 million uh to the community uh to invest in programs um we contributed $4 million to the creation of the Arts and Cultural
Center uh which is now the heart of the community uh and becomes a place where the diversity of the community can be celebrated and showcased it also provides affordable space to Arts organization in construction alone we’ve created uh 545 jobs uh and uh close to $7 million uh for residents of Toronto
Community Housing so these are uh residents living in government housing uh we really focus on young people as well and how we provide them with career Pathways our moving towards opportunity program has invested close to half a million dollars um in employing Youth and training them so that they have successful Futures ahead
Of them and we’ve done the same thing in the construction uh sector with $350,000 in local employment uh We’ve also focused on hiring internationally educated uh professionals um through this process and what’s been critical in Regent Park is um you know we’ve created an example of how to use a public private
Partnership not just to build buildings but really build communities uh that uh respond to sdg11 on creating inclusive resilient and sustainable communities so I’m really happy to be able to share this as an example today thank you for time thank you so much he it’s very interesting uh to see how the
Socioeconomic benefits can be factored into a public private partnership that’s really impressive uh thanks very much for that um I’m aware that we’ve been a bit carried away with the interesting presentations nevertheless I’ve agreed um that um we will take another couple of minutes just to look at the questions
In the chat so we have a chance to give you quick answers or at least show you where to find more information and maybe we can then you know consolidate that in a solution paper and make that available later on um one of the things uh that I REM
That I remember was a question how uh does WAP um as an active organization of the multilateral system um on board members so we have different type of members we have individual members who are PPP Professionals of all walks of life young PPP professionals below 35 only pay half
Of the membership due and that is currently 100 euro a year which is really uh as inclusive as we can be because we have no external funding um we also have uh corporate members uh that can join WAP for example Daniel’s Corporation maybe we can involve you in
Our real estate and Urban Development um um chapter but we also have which is interesting for government PPP units from Municipal from Regional or from national uh level uh the possibility of joining WAP as a government member and we have already 61 of these and we encourage municipalities to also uh join
W uh so that you can also discuss in a in a casual setting what are your priorities what are your challenges uh specifically in the field of public private Partnerships um you can join us as a member at the general assembly this was what I remember in the question exactly
Uh for that you need to to have membership rights you need to be a member obviously so PPP unit membership is free for government uh entities and um I hope this answers your question then how can you get certified as a PPP practitioner there is a initiative by the multilateral
Development Banks called the CP 3p which is a public private partnership self-study program there are several accredited training organizations that are also members with WAP and through a WAP individual membership you can get a discounted um access to the um exam there’s an a price for the exam that is
Taken by um the organization apml that actually runs these um these certification schemes um so for that just contact us once you’ve become a member and we’re happy to build the bridge uh for a CP 3p exam uh discount other than that WAP has developed a peer recognition program for
PPP practitioners who not only bring the theoretical knowledge but also the experience uh and for that all the requirements are also listed on our website we’re happy to further inform you on this community that is growing in this field uh and apparently encounters growing interest what else so what is the scope
Of our definition on local and smallscale PPP so just at the beginning of this Initiative for 2024 uh the first discussion took place last Friday and we’re currently writing the um summary of that that first discussion you find the program uh on the w website wap.org or in the chat uh which is
Displayed on your screen uh so you can simply click on it uh we have a program that goes that runs through the entire year 2024 the objective is to have bi-weekly discussion groups you can look at the topics that we will cover uh that meant to not be academic but something
For practitioners where we can discuss different perspectives and the idea is that this would lead to a joint report that would be then submitted to the working party on public private Partnerships at uh United Nation economic commission for Europe by November what else do we have as a
Question I think I hope I’m answering most of the question questions uh should there be anything that is still on your heart uh don’t hesitate to write to contact at wap.org 3p because it’s public private Partnerships and with this I hand over to our dear host Andres who’s across the
Table from me for the final words thank you very much and uh uh I will be very brief um I thank uh all all the participants uh all the speakers uh and especially the uh main organizer of this event uh for us at the global
Cities Hub uh it was a real uh pleasure to uh broaden our scope of cooperation because usually we work with cities local governments and international organizations uh but this Panorama was broader and we were happy to have uh Global overview uh and concrete PPP
Projects uh uh in the in the same uh day uh we saw uh different aspects from the national and the local governments perspective from Uganda from Avan from Toronto um and also the investors Viewpoint with some examples from from France uh and we were really happy to uh
To have uh with us uh uh the world economic Forum uh from the other side of the lake in Geneva uh uh with whom uh we are working closely um and having these two organizations the vev and the uh web with free pce uh was really a pleasure
For us thank you for the audience uh for the questions and for your interest and we will keep in touch for the future thank you again have a good Evening