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August 4, 2005
Presentation of the Public-Private
Partnerships Bill
The Greek Minister of Economy and Finance
George Alogoskoufis and the Deputy
Minister Christos Folias, have
presented the main points of the new
Public-Private Partnerships (PPPs)
Bill that was forwarded today to the
Parliament. The Minister said that
PPPs constitute the third pillar of
the new economic model applied by
this administration in order to
support entrepreneurship and make
the Greek economy more
internationally oriented and more
competitive. PPPs will have a key
role in the creation of new
infrastructure and the provision of
better services to the citizens of
Greece.
The 12 main points of the Bill are:
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The Bill specifies the various
public authorities (ministries,
local authorities, state
agencies) that can agree
partnerships with private
companies through the
establishment of Special Purpose
Vehicles for every particular
partnership.
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The objective of such
partnerships is the creation of
infrastructure and the provision
of services that fall under the
jurisdiction of the
abovementioned public
authorities.
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It is provided that private
agencies undertake a substantial
part of the risks associated
with the financing, the
availability and the completion
of infrastructure projects or
the provision of the services
for a fee, which is either paid
upfront or gradually by the
public authorities or the end
users of the services.
-
Additionally, the financing in
whole or in part of the
completion of the infrastructure
projects will be accomplished
with funds raised by the private
agencies.
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The maximum budget for a project
cannot exceed a total of 200
million euros.
-
The introduction of PPPs
constitutes a strategic choice
of the government in order to
achieve the maximum possible
benefit for the public, through
the efficient provision of high
quality services. Through PPPs
the public sector can benefit
from both the innovative nature
and the expertise of the private
sector.
-
The Government cannot concede
main functions that are reserved
by the Constitution exclusively
for the State (e.g. law
enforcement, national defense
and the penal system).
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An interministerial Committee
for PPPs is established in order
to formulate the strategy of the
government regarding the
creation of infrastructure and
the provision of services with
the participation of private
firms.
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A Special Secretariat for PPPs
within the Ministry of Economy
and Finance will be established
in order to:
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Determine the projects that
can be completed through the
PPPs according to the Law,
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Promote the implementation
of PPPs,
-
Facilitate and support the
various public authorities
in the selection process of
the private agencies that
will undertake the
projects.
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The Law specifies the
particular obligations of the
public agencies involved.
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The Law specifies the minimum
contents of the Partnerships’
Agreements, where the rights and
the obligations of all the
parties involved are clearly
described. The following issues
are defined:
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the financing and the
participation of public
authorities,
-
the procedures for
collecting the agreed fees,
-
the issuance of permits,
-
the protection of the
environment,
-
the protection of
archeological treasures and
sites,
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expropriation issues,
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the involvement of public
authorities and State owned
enterprises and entities (DEKO).
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The Law specifically defines
the legal matters associated
with PPPs, such as the transfer
of claims, the validity of
guarantees, the transformation
of corporate entities, the
various tax issues and the
arbitration procedure.
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