European PPP Center

Issue 11

The new program “Development of the Transportation System of Russia (2010-2015)” approved
25 March 2008

According to the Russian Federation Government Meeting Press Release (March 20, 2008), the Government approved the proposed Action Plan. Further to this the federal target program’s “Updating of Transportation System of Russia (2002-2010)” duration was extended to 2015 and its title was amended to “Development of the Transportation System of Russia (2010-2015).”

“The Government allocated huge financial resources for its realization. According to the Head of Federal Road Agency Oleg Belozerov, 9.9 trillion rubles were invested. Thus 5.3 trillion rubles will be allocated from the federal budget, 1.7 trillion — from the RF Investment fund, other investment will be made by the RF subjects and other sources, thus federal budget money should become the catalyst for growth of the private investments volume into — private business is interested in it.” states an article by RZD Partner from 11 March 2008. This means that by the realization of the program the federal highways network will increase by 10.9 thousand km. Priority is given to building modern high-speed motorway to improve the transportation and enhance economic growth.

Sources: RZD Partner, Official Press Release of the Russian Federation Government Meeting

The Role of the Slovak PPP Association
31 March 2008

About forty private companies joined forces last year and established the Slovak PPP Association in order to support public-private partnership projects in Slovakia. The members are financial, consulting, construction, technological or law companies, many of which have international PPP know-how. The Association aims to participate in the creation of favourable conditions for the development and implementation of PPP projects in Slovakia, stir discussion on the various forms and potential areas of PPP schemes application and act as a partner for the public sector in all matters regarding PPP.

Despite being a late-comer with respect to public-private partnerships (PPPs) compared to neighbouring countries such as the Czech Republic or Hungary, two major PPP infrastructure projects – the D1 Motorway and the R1 Expressway - are currently under tenders in Slovakia and more PPP projects seem likely to emerge in the near future in various areas, such as sports, culture, waste treatment or healthcare. The Ministry of Education is currently considering a major PPP project – a multifunctional ice-hockey stadium, which should be built in Bratislava latest by the end of 2010. Smaller PPP projects are under discussion in a number of Slovak regions and cities.

The Slovak government officially declared support for PPP projects in its Program Declaration in 2006 and created a PPP Department at the Ministry of Finance, which is providing the public sector with advice as well as partial funding of the preparatory and advisory costs from the EU Structural Funds.

Because of the relatively little experience with PPPs in Slovakia, the success of the first pilot PPP projects will be crucial in increasing trust and popularity of PPPs. The Slovak PPP Association intends to contribute to the creation of such conditions for PPPs in Slovakia, which will enable both value-for-money as well as high quality services for citizens.

Irma Chmelová
Executive Director
Slovak PPP Association

Call for Investments in Watermanagement Africa
27 March 2008

The African Development Bank (AfDB), the New Partnership for Africa's Development (NEPAD), and the World Bank 2008-03-27 called for an increase in funding and a renewed focus on agricultural water management in Africa, including irrigation, drainage and rainwater harvesting.

Representatives of AfDB, NEPAD and the World Bank issued the call after a special session on agriculture water use in Africa held in Tunis at the First African Water Week. The meeting discussed challenges facing agriculture water development in Africa and a proposal for a new Initiative aimed at scaling up investments and ensuring a more reliable, broad-based and sustained flow of funds for agricultural water, as well promoting analytical work and supporting sectoral strategies in the field of agricultural water.

The Initiative would promote knowledge sharing, dissemination and capacity strengthening. It would launch innovative business lines in support of agricultural water management and sustainable development. It will also foster regional integration, coordination and partnerships, and empowerment of national and regional stakeholders.

According to the World Bank's latest World Development Report, growth in the agricultural sector in Africa is vital to poverty reduction and to the achievement of the Millennium Development Goals (MDGs).

"Strategic public and related private investment in water management will be essential for the intensification of agricultural production and for meeting targets for poverty alleviation, food production and economic recovery by 2015," said Richard Mkandawire, NEPAD's Agriculture Advisor. "Reliance on irregular and unreliable rainfall for agricultural production is a major constraint on crop productivity in the region," Mkandawire added.

The Tunis meeting discussed the agricultural water strategy: Investment in agricultural water for poverty reduction and economic growth in sub-Saharan Africa, which was jointly prepared by the World Bank, AfDB, Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD) and International Water Management Institute (IWMI), in response to NEPAD's desire to implement land and water management (Pillar I) of the Comprehensive Africa Agriculture Development Program (CAADP). The CAADP encompasses among other objectives an increase in the area under sustainable water management in Africa to 20 million hectares; up from less than 7 million hectares at present.

"The initiative is timely in view of the rising food prices across the globe and the World Bank is committed to investing up to US$1 billion in sustainable agricultural water projects over the next 5 years", said John Stein, Acting Director of the Sustainable Development Department, Africa Region, World Bank.

Source: International Water Management Institute


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