CICA President Emre Aykar spoke at the OECD training course on PPPs organized in collaboration with the IMF-Middle East Center for Economics and Finance, Kuwait City, 1-3 September, 2015. This training course on Public-Private Partnerships (PPPs) aimed at offering the participants an overview of PPPs in terms of rationale, decision making tools, process and institutional issues. It was conducted by OECD in cooperation with IMF, and used both theory and case studies based on the experiences of the OECD and its members. The main focus of the training was to introduce and put emphasis on the respective roles and specific strategies of the 3 categories of stakeholders which represent the driving forces of a PPP project: the Public contracting authority, the private sector, and the financiers.
The main idea of CICA President Emre Aykar’s presentation was the following: How to transform a desirable project on a government wish list to an attractive investment opportunity for potential private sector partner.
Emre Aykar spoke about the Turkish PPP Experience with reference to major ongoing PPP Projects and such as the Istanbul Strait Road Tube Crossing (The Eurasia Tunnel) Project.
In his final remarks Emre Aykar’s underlined in a global outlook:
- Until 2030, a total financing of 57 trillion USD will be needed for various infrastructure investments around the world. The total world GDP is around 77 trillion USD whereas the total sovereign infrastructure investments are only appr. % 4 of this amount (around 3 trillion USD)
- With such huge infrastructure investment needs and insufficient sovereign funds, the Private Sector has to increase its participation in the global infrastructure investments.
- Private Sector’s involvement has also a huge relieving effect on the already debt-heavy sovereign balance sheets; there is always a substantial private equity investment and some PPPs are even structured «user focused / fair» so that the investments are paid by the real «end-users» as opposed to sovereign borrowing where all tax-payers have to contribute for such an investment.
- Currently there is a global understanding that, the heavily debted public finances have triggered a worldwide influx of Private Capital Investments. The Private Investment Capital that has been steadily accumulating over the years, is now ready to invest in feasible projects for long-term, low-risk, inflation-protected returns that are better insulated against economic cycles.
- Institutions like International PPP Center of Excellence under UNECE’s leadership are perfect knowledge and training centers to identify and manage all aspects of well-prepared infrastructure projects and they also ensure succesful implementation of Global Developmental Goals through PPP projects.