Bulgaria at a GlanceBulgaria at a Glance

PopulationPopulation 7,5 million7,5 million

AreaArea 110,994 sq. km110,994 sq. kmLanguageLanguage BulgarianBulgarianAlphabetAlphabet CyrillicCyrillicPredominant ReligionPredominant ReligionEastern OrthodoxEastern OrthodoxCapital CityCapital City SofiaSofia

Bulgaria Bulgaria EssentialEssential

• EU membershipEU membership

• Structural reformStructural reform

• Political stabilityPolitical stability

• Financial and macroeconomic stabilityFinancial and macroeconomic stability

• Substantial economic growthSubstantial economic growth

Ever growing, never ageing

The City of Sofia

OVERVIEWOVERVIEW• Capital and largest city in BulgariaCapital and largest city in Bulgaria

• One of the oldest European CitiesOne of the oldest European Cities

• 1.2m inhabitants1.2m inhabitants

• Dominant position in Bulgaria’s political, economic and cultural lifeDominant position in Bulgaria’s political, economic and cultural life

FAVOURABLE LOCATION ON TRADITIONAL TRADE ROUTE

Agenda of PaperAgenda of Paper

• IntroductionIntroduction – – PPP and its models• Partners, roles and mutual interests• Sectors in which PPP is most often Sectors in which PPP is most often

implemented implemented • Typical good practices of PPP and their Typical good practices of PPP and their

models models • ResultsResults• ConclusionsConclusions

•PPP enhances urban development by mobilizing of external PPP enhances urban development by mobilizing of external funding (grants and loans) or rescheduled payment ;funding (grants and loans) or rescheduled payment ;•Private companies having service contracts with the Private companies having service contracts with the municipality invest in modernization of equipment and municipality invest in modernization of equipment and perform quality services on behalf of the municipality.perform quality services on behalf of the municipality.

PPP models realized between Sofia PPP models realized between Sofia municipality and the private sector are:municipality and the private sector are: •contracting; establishment of joint venture or shareholding contracting; establishment of joint venture or shareholding companies; companies; •concession of municipal property or the rights to build and/or concession of municipal property or the rights to build and/or use; sale of municipal property under different conditions; use; sale of municipal property under different conditions; •concession of building rights and infrastructure; concession of building rights and infrastructure; •use of municipal property against maintenance; etc.use of municipal property against maintenance; etc.

PPP and its models

•The private sector ‘s potential - financial, technological and potential - financial, technological and managerial capabilities to offer cheaper services of better quality, it managerial capabilities to offer cheaper services of better quality, it contributes to the improvement of certain activities, for which the to the improvement of certain activities, for which the local authority is responsiblelocal authority is responsible, assists, has good capacity, •PPrivate sectorrivate sector’s’s interests interests - - to cooperate and gain from municipal business activities, to get highest and best profits from commercial get highest and best profits from commercial activitiesactivities, better position and image, better position and image•The municipalityThe municipality – – has certain assets has certain assets (real estate and land) (real estate and land) which are offered under certain conditions to private sector to be which are offered under certain conditions to private sector to be fulfilled some self-government tasks in a situation, when municipal fulfilled some self-government tasks in a situation, when municipal budget is lean and State subsidies are insufficient. budget is lean and State subsidies are insufficient. •Municipal benefits - Municipal benefits - improved public services, improved public services, construction, construction, maintenancemaintenance, , external additional funding (grants and loans)external additional funding (grants and loans), , rescheduled paymentrescheduled payment

Partners, roles and mutual interests

Sectors in which PPP is most often Sectors in which PPP is most often implementedimplemented

We involve the private sector to help and do better than what We involve the private sector to help and do better than what the municipality can do alone in its obligations in the following the municipality can do alone in its obligations in the following sectors:sectors:

• commercial developments on municipal land, which is used to commercial developments on municipal land, which is used to be improved public services; be improved public services;

• better maintenance of public buildings and facilities;better maintenance of public buildings and facilities;• reconstruction of public buildings (cultural, recreation of sport reconstruction of public buildings (cultural, recreation of sport

facilities) and rehabilitation of housing buildings by private facilities) and rehabilitation of housing buildings by private sector; sector;

• management, maintenance and renovation of natural resources, management, maintenance and renovation of natural resources, parks, gardens and recreation areas; construction of parks, gardens and recreation areas; construction of infrastructure; infrastructure;

• historic sites redevelopment; historic sites redevelopment; • a variety of improved service delivery for citizens, etc. a variety of improved service delivery for citizens, etc.

Typical good practices of PPP and their Typical good practices of PPP and their modelsmodels

• Natural resource management -“Adoption“ of parks and gardens by Natural resource management -“Adoption“ of parks and gardens by business – improvement of maintenance and renovation, supply with business – improvement of maintenance and renovation, supply with new facilities and provision of infrastructure (water effects, alleys, new facilities and provision of infrastructure (water effects, alleys, lightening) in the open green spaces. lightening) in the open green spaces.

• Concession - Sofia Water company is the first water concession Concession - Sofia Water company is the first water concession project to be financed on a limited recourse basis in Central & project to be financed on a limited recourse basis in Central & Eastern Europe and the first major municipal infrastructure Eastern Europe and the first major municipal infrastructure concession and water privatization in Bulgaria. It represents a concession and water privatization in Bulgaria. It represents a precedent for other water deals worldwide for the successful letting of precedent for other water deals worldwide for the successful letting of a bankable water project-financed project capable of attracting a bankable water project-financed project capable of attracting multilateral financing whilst delivering services at an affordable price.multilateral financing whilst delivering services at an affordable price.

• Concessions for improvement of public services – organization of Concessions for improvement of public services – organization of public transport in Sofia and waste management. Both bring higher public transport in Sofia and waste management. Both bring higher satisfaction among the citizens, getting these services.satisfaction among the citizens, getting these services.

““Adoption“ of parks and gardens by Adoption“ of parks and gardens by businessbusiness

Waste managementWaste management

Typical good practices of PPP and their Typical good practices of PPP and their modelsmodels

• Renovation of buildings (public and housing stock) – estimated and Renovation of buildings (public and housing stock) – estimated and well used potential for PPP approaches in the renovation activities well used potential for PPP approaches in the renovation activities and use of the open space for new profit binging developments, and use of the open space for new profit binging developments, which can provide good deals for both - owners and entrepreneurs. which can provide good deals for both - owners and entrepreneurs.

• New construction on municipal land under certain conditions – the New construction on municipal land under certain conditions – the private realizes deals for construction of new amenities, provides private realizes deals for construction of new amenities, provides services. Parking and trade centers are built on municipal land, thus services. Parking and trade centers are built on municipal land, thus making profit for the entrepreneurs and are provided better and making profit for the entrepreneurs and are provided better and necessary services for the citizens.necessary services for the citizens.

• Lightening of public buildings, gardens, celebration of the new year Lightening of public buildings, gardens, celebration of the new year and others - rich business companies have invested in public and others - rich business companies have invested in public lightening, thus improving the safety and the environment. They get lightening, thus improving the safety and the environment. They get opportunities to make their own advertisement, doing the services.opportunities to make their own advertisement, doing the services.

• Partnerships with NGOs and citizens' groups - volunteers provide Partnerships with NGOs and citizens' groups - volunteers provide better maintenance and services for cleaning and supply with better maintenance and services for cleaning and supply with equipment (waste baskets, benches and children playgrounds) in equipment (waste baskets, benches and children playgrounds) in open spaces among buildings.open spaces among buildings.

Renovation of buildingsRenovation of buildings

Lightening of public Lightening of public buildingsbuildings

Lightening for new yearLightening for new year

Lightening of a gardenLightening of a garden

Children playgroundsChildren playgrounds

Parking and trade centersParking and trade centers

Partnerships with NGOs and citizens' groups - Partnerships with NGOs and citizens' groups - volunteers – maintenance, services, supply with volunteers – maintenance, services, supply with

equipmentequipment

RESULTSRESULTS

• Improved local sustainability by introduction of Improved local sustainability by introduction of innovative management tools - successful innovative management tools - successful models of public private partnership models of public private partnership

• Improved services, environment and Improved services, environment and sustainability in the city. sustainability in the city.

• Trust and efficient collaboration between local Trust and efficient collaboration between local authority and private sectorauthority and private sector

ConclusionsConclusions

-PPP is an efficient alternative solution for the Bulgarian PPP is an efficient alternative solution for the Bulgarian conditions, as it can result quickly in dynamic and conditions, as it can result quickly in dynamic and efficient changes for improvement of the environment. efficient changes for improvement of the environment. - The private sector’s potentials assist a lot as they - The private sector’s potentials assist a lot as they provide financial, technological and managerial provide financial, technological and managerial capabilities to offer cheaper services of better quality.capabilities to offer cheaper services of better quality.- The municipality has a leading role in the process of - The municipality has a leading role in the process of partnership establishment as it knows the needs and partnership establishment as it knows the needs and the problems to be solved in the urban development. It the problems to be solved in the urban development. It can identify the partners form the private sector and can identify the partners form the private sector and motivate them accordingly to assist effectively. motivate them accordingly to assist effectively.

-General objectives of the PPP are improvement of General objectives of the PPP are improvement of sustainability and quality of life in the city by enhanced sustainability and quality of life in the city by enhanced business involvement in successful models of public business involvement in successful models of public private partnerships.private partnerships.

Thank you!Thank you!