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PARTNERSHIP BETWEEN CHAMBER OF INDUSTRIES, MORANG AND PPPUE
The Chamber of Industry, Morang (CIM) has signed a Memorandum of Agreement with UNDP assisted, Ministry of Local Development executed Public-Private Partnerships for Urban Environment (PPPUE) NEP/01/007, NEP/01/G58 on 8th July 2002 for mutual collaboration, support for PPP policy guidelines, implementation and sustenance of PPPUE programme activities under the partnership arrangement. The CIM desires to work together with PPPUE under financial support of UNDP to undertake Public-Private Partnership development initiatives and activities in accordance with the PPPUE Project Document and other terms and conditions.
The CIM by joining PPP Sub-Committee of the Biratnagar Sub-metropolitan City, as part of its regular functions, are supposed to conduct following activities:
Provide its focal point for PPP and at least one staff to conduct day-to-day works related to PPP arrangements.
Propagate among its members the benefits of PPP as a modality for urban services delivery,
In collaboration with the municipality and civil society, conduct awareness raising programmes among urban residents to increase public acceptability of PPP, establish and maintain a local information/reference base on PPP,
Provide members with information on a regular basis about PPP projects, planned and on-going,
Directly give advice on specific PPP projects or procedures, or recommend from the FNCCI roster experts who can provide the required advice, and
Maintain regular dialogues with respective municipalities on issues of joint interest pertaining to PPP.
THE ACTIVITIES OF CHAMBER OF INDUSTRIES, MORANG IN PARTNERSHIP WITH PPPUE AND BIRATNAGAR SUB-METROPOLITAN CITY
2. Public Relation, Leadership and Negotiation Training
3. Observation Visit to Chennai
4. Identification of PPP cases
6. Orientation on Pro poor TOOLKIT and Legal Provision
Local Stakeholders' Workshop or Team Building Workshop on Public-Private Partnerships is one of the programme activities to establish effective coordination mechanism between stakeholder institutions at the national level and in selected partner municipalities and also to improve capacity to representing from CIM, Morang Merchants' Association (MMA), municipality and civil society. The workshop was chaired by Mr. Ram Chandra Paudel, the outgoing mayor of Biratnagar Sub-metropolitan City. Mr. Toran Bahadur Karki, the Vice Chancellor, Purbanchal University was the chief guest of the workshop. Mr. Ashok Koirala was also present during the inaugural session as a special guest. The Team Building Workshop has clarified on various aspects of PPPUE including
The development objective of PPPUE
Strategy of PPPUE
Different phases of the programme
Programme activities
Formation of PPP sub-committee
Roles and responsibilities/functions of PPP Sub-committee
The PPP case studies of Pokhara Vegetable Market (Shree Complex) and Dhulikhel Drinking Water project were also presented during the workshop.
The PPP Sub-committee was formed during the Team Building Workshop with members and representation as follows:
President of Chamber of Industries, Morang
President of Morang Merchants' Association
Secretary of Biratnagar Sub-metropolis
Representative of TLOs
Focal person of Biratnagar Sub-metropolis
Focal person of Chamber of Industries, Morang
Focal person of Morang Merchants' Association
The concerned stakeholders agreed the form of PPP Sub-committee. The roles and functions of PPP Sub-committee are:
Promote, plan and engage in various PPP activities
Assist in developing PPP policy guidelines
PPP Sub-committee will be a common platform for PPP initiatives in local level
Assist in reviewing existing (and proposed) local/legal policies for the facilitation of PPP
Assist in identifying potential PPP project areas
Suggest on pricing of PPP
Conduct awareness raising programme among urban residents to increase public acceptability of PPP
Provide policy and legal related feedback and lobbying to the government in relation to PPP
Participants of Team Building Workshop Group working in Team Building Workshop
There are various suggestions collected from the workshop participants on various topics regarding Benefits from PPP Arrangement to Urban Poor, Reasons for Private Sector to Participate in PPP Arrangement, Role of Civil Society in PPP, Importance and Role of Municipality in PPP, Role of Municipality. The suggestions are as follows.
Benefits from PPP Arrangement to Urban Poor
Identification of Poor
Mobilization of Poor
Achieves public services at minimum cost
Manage income generating and specific skill training
Awareness increases
Improves health condition
Reasons for Private Sector to Participate in PPP Arrangement
Economic and financially viable projects can be executed
It uses, develops and adopts new technology with respect to time
It motivates to gain public trust by producing qualitative goods
PPP arrangement changes the thinking and attitude of people on private sector
It provides extra energy/support to co-work with government and foreign agencies
Role of Civil Society in PPP
Solution of their problems with their own consultation and participation
For mutual trust and help to solve the public problems
Help public sector to create opportunity to private sector
Increase common feeling for development
Help the partnerships to give right direction
For sustainable development
Utilization of strong and positive features of both parties by minimizing weak features
Maximum utilization and mobilization of economic resources
Develop trust for PPP by developing positive thinking and feeling
For effective operation, supervision and evaluation
Importance and Role of Municipality in PPP
Search new investment for development and construction work
To provide standard and sustainable services
For new technology and strategy
Increase new resources
To overcome unmanaged and corruption problem
Pinpoint the responsibility of civil society and private sector.
To involve civil society and public sector directly in development works
Create good and efficient environment to provide basic urban services
Provide help to control industrial pollution
Maximum utilization of means and resources of municipality
Medium to mobilize organizational capacity of municipality at different sector
Role of Municipality
Role of controller
Role of facilitator
Role of backstopping and guardianship
Monitoring and evaluation
2. Public Relation, Leadership and Negotiation Training
Institutional strengthening and capacity building of the stakeholders at local level are one of the major activities and components of PPPUE. The key step in strengthening stakeholders' capacities would be to develop human resources about the behavioral skill. In this context, PPPUE together with Development Management Institute (DMI) provided Public Relation, Leadership and Negotiation training to the key municipal staffs, Morang Chamber of Industry and Morang Merchant's Association executives and staffs, focal persons of the municipality/CIM/MMA and Tole Lane Organizations (TLOs) on PPP.
PPPUE conducted a three-day training programme was conducted from April 4-6, 2003, at Biratnagar Sub-metropolitan City with the participation of the representatives from Biratnagar Sub-metropolitan City, Chamber of Industry, Morang, Morang Merchant's Association and the TLOs. This training is a follow-up of activities identified by capacity needs assessment held at Biratnagar Sub-metropolitan City. The main objective of the training was to enhance the skills of CCI executives and staffs, key municipal staffs, TLO representatives and focal persons of PPPUE in the areas of leadership, negotiation and public relation. The main topics covered in the training programme were:
Leadership and its style
Assessment of leadership style
Effective leadership – Group work and presentation
Conflict management and key areas
Conflict management – Group work and presentation
Negotiation and its strategy
Negotiation – Group work and presentation
Effective public relation
Public relation – Group work and presentation
Time management – Tools/exercise
Personal action plan
The training sessions were conducted in a participatory way. The participants were encouraged and supported by facilitators to speak, discuss and share their views and experiences. Attention was given to encourage women and shy participants to take part in the discussion. Since the participants from the municipality, CIM, MMA and TLOs differed in their level of understanding, the methodology of the training was made flexible in order to adjust level of understanding of these participants.
Photographs of Public Relation, Leadership and Negotiation Training3. Observation Visit To Chennai
As part of activities under human resources development and capacity building of partner stakeholders, the field exposure visit to Chennai was organized by PPPUE desk, Kathmandu to orient partner stakeholders on various aspects of PPP initiatives which have been carried out as best practices. The trip was supported and co-ordinated by Chennai Metropolitan Development Authority (CMDA), India. The groups for the study tour was selected from among different stakeholders of PPPUE such as government at both central and local levels, private sector at central and local levels and community.
Chennai Mofussil Bus Park,
Chennai Koyambedu Vegetable Market, Chennai
Mr. Kishore Pradhan, the President of CIM and Chairperson of PPPUE Sub Committee in Biratnagar, Mr. Shankar Lal Agrawal, President of MMA, Krishna P. Ojha, executive secretary of Biratnagar Sub-metropolitan City represented the visiting group. A five day observation visit to Chennai has been very useful to the stakeholders and visit members. It can be listed below the outcomes of the visit as;
The roles of various sectors (public, private, community) have become comparatively clear for the visit members as they have actually seen what the different sectors have performed their tasks effectively in their respective projects.
The interaction and discussions have shown that local stakeholders including both public and private sectors have been convinced with the concepts and various modalities of PPPs.
By observing the actual cases and its operation, their level of confidence have increased which means that they have now become able to select pilot PPP cases for their respective cities in Nepal.
The visit was also fruitful in a way that both the visit groups had representatives from public, private sectors and civil society who spent five days together and they interacted with each other informally to share ideas on various potential PPP cases in their respective municipalities that would benefit all stakeholders.
Interaction in CMDA,
Chennai Exposure Visit Alandur Sewerage Treatment Plant, Chennai
4. Identification of PPP cases
The PPP sub-committee of Hetauda has identified a list of PPP pilot cases as to be undertaken as follows.
1. Improvement and Management of Existing Bus Park on BOT basis
2. Construction and Management of Budhahaat Market (Vegetable Market)
3. Construction and Management of Gudri Shopping Complex
5. Studies for PPP Cases
In order to technically support Biratnagar Sub-metropolitan City, local private sectors and civil society in their PPP ventures, the PPPUE has initiated the study on feasibility of Biratnagar Bus Park Improvement, Operation and Management on BOT basis. The consultants have been provided with the TOR and their proposals (technical and financial) have been awaited.
6. Orientation on Pro-poor PPP TOOLKIT and Legal Provisions
The PPPUE programme has prepared a Pro-Poor toolkit, as a PPP procedural handbook, which covers a number of topics ranging from creating, formulating, implementing, running, monitoring a PPP scheme. Hence, the programme felt a need of disseminating knowledge on Pro-Poor PPP Toolkit and existing legal provisions on PPP in Nepal. In this regard, the programme conducted an orientation on Pro-Poor PPP toolkit and legal provisions on PPP to the stakeholders at local level. The orientation programme basically highlighted the academic and practical aspects of PPP citing PPP cases and briefed that existing legal provisions have rooms for PPP at present.
The main objective of the two-day orientation programme on Pro-Poor PPP Toolkit and legal provisions on PPP was to provide knowledge on Pro-Poor PPP toolkit and the prevailing legal provisions on PPP at the national and local level to the executive officers/legal officers of municipalities and presidents/legal advisors of Chamber of Commerce and Industries (CCIs). The orientation is also believed to seek feedbacks and suggestions on the said topics both at the policy level and for the toolkit respectively.
Participants of Orientation Programme
Mr. Khem Raj Nepal Inaugurating the Programme
The orientation programme was inaugurated by Mr. Khem Raj Nepal, The Secretary of Ministry of Local Development. In the Inaugural session, the UNDP Programme Officer, Mr. Jacob Huagaard, the National Programme Director of PPPUE, Mr. Surya Pd. Silwal were also present and gave their remarks. The main orientation was conducted in four sessions, presentations, interactions, presentation of local case studies and discussions. The programme oriented the participants in details the followings on the legal provisions:
Contract Act - Privatization Act - BOT Policy
Company Act / Private Firm Registration Act and Partnership Act
Arbitration Act
Slaughter House and Meat Inspection Act
Electricity Act 2049
Water Resources Act 2049
Environmental Protection Act and Regulation (IEE & EIA)
Labor Act/ Rules 1991
Trade Union Act 1992
Similarly, the participants were also oriented on the use of Pro-poor Toolkit and its contents covering concepts and forms of PPP, current PPP environment, procedures of creating PPPs, procedures of formulating PPPs, procedures of implementing PPPs, and procedures of monitoring, regulating, adjusting PPPs.
The Executive Officer, Mr. Tilak Ram Sharma, and Legal Officer, Mr. Binod Koirala of Biratnagar Sub-metropolitan City and the President of Morang Chamber of Industries, Mr. Kishore Pradhan participated in the two day orientation. The participants at the end of the programme have made several suggestions for forging PPPs at local contexts. They are:
Separate acts and rules on PPP should be made.
Incorporate PPPUE Unit in organizational structure of municipality
Contract period should be mentioned in the regulations with respect to nature of PPP project.
Rules on PPP should be included in local self-governance regulation in separate heads. Flexibility should be there for negotiation to undertake PPP rather than through competitive bidding only.
Approval from HMG while doing contract should be amended. (Section 134)
BOT and BOOT should be clearly addressed and mentioned in financial regulations.
Provision should be made flexible such that PPP can be done in Public land (Aeilani)
PPP contract (agreement) should be registered and this provision should be made
Reserved fund should be mobilized and PPP projects should be given priority for it.
PPP cases to be observed and promoted by a common cell comprising of Ministry, FNCCI and MuAN, which also functions as a solution of problem.
The local self-governance act and regulations should be amended in such a manner that new board incorporates CCI representative/president as a member.
Sector/area of PPPUE to be identified from extensive discussion with the stakeholders.
HMG should make provision of matching funds through municipalities for PPP projects.
While bringing PPP acts and regulations, the other overlapping acts for PPP should be removed.
The proposal brought by private sector for PPP should be confidential till disqualification.
PPPUE should focus on result oriented rather than procedure.
MLD should make guidelines (process) on PPP, which should be provided in coming fiscal year.
Checklist to be made by incorporating important points of toolkit.
Guidelines to be provided mentioning the duration of contract, which should be based on the nature of the project.
The road of municipality should be build in PPP modality and develop BOT concept
Sample contract for PPP arrangements to be provided.
The coming budget should make provision of providing incentive package for urban infrastructure development under PPP arrangement and promote the PPP concept.
New process or best practices should be incorporated in the website of PPPUE.
The concern ministry should commit for developing policy document/directives in this coming fiscal year budget for the projects under PPP concept.
Government should develop enabling environment for public sector and private sector for better implementation of PPP projects.
Provision of minimizing political risk (Investment safeguard)
Government should give priority to private investors for loan facilities under PPP projects through financial institutions. The loan should be 'priority loan' and the interest rate should be fixed in that manner.
Capacity of local bodies should be enhanced to develop a feasibility report.
PPP related policy level decisions should be incorporated in annual programme
PPPUE should create social awareness in an extensive manner
PPP focal persons of CCI and municipality should be equipped by knowledge through study visit of PPP cases
Conduct study of existing PPP cases and organize meeting to share experiences.
The investment safeguards of private sectors under PPP should be made clear in legal provisions.
One pilot project in each municipality should be started from this fiscal year (060/61 B.S).
Interaction with political leaders for the usefulness of PPP should be done.
Video exhibition of best PPP experiences of neighboring countries to be done.
Seminars to be conducted time to time for mind set
PPPUE should make policy/strategy of such programmes which improves management of municipality
Investment scenarios/attitude of private sector should be changed
LSGA has given the right to make by laws/guidelines for municipalities so model by laws/guidelines based on LSGA should be developed which will focus on PPP and its procedure.
Tools or measuring rods for private sector to examine the potential investor's capacity, ability and experiences to qualify private sector should be developed. Some mechanism is needed to know the good investors.
Each municipality needs to prepare a model under the guidance of PPP toolkit for upcoming PPP activities and review in the workshop
The meaning of leasing public assets should not reflect the meaning of selling the public assets.
Need to fix criteria consisting procedures and legal formalities while doing agreement/contract.
Need to discuss on the possibilities of resource mobilization (tax, revenue collection) of municipality can be exercised under PPP.
Legal provisions needed so that the proposals submitted by private sector can be decided in time.
Public sector should have provision to monitor and give direction for tax and revenue contract for public welfare.
Municipality collects tax from public and provides services from it. It may be double for users because fees are collected for PPP again.
Municipality needs to publish a list of fixed assets for government and public notice.
Resource Person Presenting Legal Provisions
