The first meeting of the committee in charge of a study on Public-Private partnerships (PPP), launched by the Department of Public Enterprises and Privatisation (DEPP), in partnership with the International Finance Society (SFI), took place on March 25th ,2008. Its agenda consisted of two items: identification of the sectors for the development of Public-Private Partnerships and the methodology to be adopted by the consultants.
In fact, the project is timely since Morocco is seriously considering the strategy to adopt for the development of PPP. It is thought that such an enterprise will give a new impulse, especially after the implementation of law 54-05 related to delegated management, initiated by the MEF. Such a law is also designed to provide a general, cohesive and incentive framework for national and foreign investors and afford them to have a better visibility; it should also clarify the relationship among Public-Private Partners.
In his opening speech, Mr. Mustapha KASSI, Assistant Director of the Department of Public Enterprises and Privatisation (DEPP) highlighted Morocco`s experience in the field of PPP. According to him, this study would identify the sectors likely to be involved in a PPP project.
He also insisted that the study would be carried out in the framework of an agreement protocol signed by SFI and DEPP on May 24th ,2007 , which would ultimately review PPP opportunities in four strategic sectors: Transport (roads, Motorways, urban transport), Infrastructure (airports), Social Services (health, education), water, water treatment as well as energy. The criteria adopted in selecting these sectors should commensurate with the government?s objectives but should also indicate whether sectors can potentially attract private investment.
To carry out this study, the SFI would be assisted by two consulting firms: Naciri Loyrette Nouel firm (a legal consultant), which would attend to the analysis of the institutional and legal framework of the sector and the IDC-P?yry Consortium (a technical consultant) which would be in charge of setting up an opportunity-by-sector review for PPP. This study would lead to recommendations for the implementation of PPP in the identified sectors.
It would consist of 3 steps:
1- Identification of PPP projects in the selected sectors;
2- Preliminary analysis of the identified PPP projects. This would include a review of the existing legal, regulatory and legislative framework and a diagnosis, which would eventually identify opportunities and obstacles;
3- Presentation of the recommendations towards the implementation of the identified projects;
Mrs Isabel MARQUES DE SA, an SFI consultant, said that PPP are essentially a contractual arrangement between a member of the public sector and a private entity to provide infrastructure services or any basic public service. She added that the participation of the private sector would be needed only if there is a real drop at the level of risk presented to the state.
Mrs. MARQUES DE SA claimed that PPP would yield potential gains. These partnerships would allow access to commercial, technological and management skills; offer the possibility to adopt the best international practices, improve accountability, promote and develop personal initiative, reduce the budgetary contribution in investment, promote local financing, expand public services and finally create job opportunities.
During this opening meeting, technical consultants presented each in its respective domain (transport, energy, water and water treatment, irrigation, waste management and health), a progress report on the PPP project and the opportunities offered by the selected sectors.
At the end of this meeting, Mr. KASSI said that an action plan would be set up according to the obtained results of the study. A meeting was scheduled was then scheduled around mid-June 2008 to assess the progress of the study, and detect the potential difficulties and eventually identify the preliminary conclusions of the study.
This meeting gathered representatives of all the ministerial departments in charge of the sectors involved: the Budget department, Treasury and External Finance department, National Office of Airports, National Office of Electricity, National Rail Office, National Office of Highway, National Office of Drinking Water, National Agency of Ports and National Agency for the Development of Bouregreg Valley.