Model diagram to consider infrastructure projects in Serbia

1
Model diagram to consider infrastructure projects
in Serbia

• Aleksandar Kovacevic

2
Five distinctive roles of the Government

• Legislation
• Jurisprudence
• Regulatory authority
• Executive governance
• Government as a private owner of commercial
  assets

3
Primary project classification

• Commercial investment intended to generate profit
  and perform commercial services
• or
• Investments intended to enhance public goods
  (enhance competition, security of supply,
  environmental protection and good governance or
  complement market performance)

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Government Commercial Investments

• Does it diverts investment resources away from
  private investors by offering higher interest
  and/or lower risk?
• Does it involve any state guarantee, state aid,
  priority market access or use of public goods?
• Does it create any monopoly power, transit rent
  or natural resource rent for the Government? If
  yes, is there mechanism in place to control
  effects to the quality of governance?
• Does it add to competition and / or other public
  goods? If yes, which public goods?

5
Investments into enhancements of public goods

• Property rights and rule of law
• Multilateral and bilateral international
  agreements of general nature
• Environmental public goods
• Competition, security of supply, etc.
• Narrow definition of General Economic Interest
• Require public participation in formulation and
  decision making
• Multilateral and bilateral agreements related
  with implementation and projects
• Attention to crossover derogation and
  interrelations

6
Link to State Aid regulations

• Special case under State Aid regulation
• Services of General Economic Interest
• Universal Service Obligation
• No offset rule
• Firms could provide service with net loose
• Covers externalities and public goods
• Should not lead to undue market distortions
• Benefits / costs analyzes

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Strategic processHide seek game between
information and the real life
Strategy (Re) creation A range of materialized decisions that compose the strategy Strategy formulation Formulation that enables evaluation, learning, (re) creation and better implementation
Strategy evaluation Analyzes of environment, impacts, capacities and many other circumstances that facilitate a new strategy process Strategy implementation Range of decisions based on imperfect knowledge and applied in uncertain environment
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Structure of strategic decision
 
Goal
Main objectives
KFS
        Originated objectives
        Sector strategies
        Projects
 
SDF
SDF
  Secondary objectives
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Aarhus Convention

• The subject of the Aarhus Convention goes to the
  heart of the relationship between people and
  governments. The Convention is not only an
  environmental agreement, it is also a Convention
  about government accountability, transparency,
  and responsiveness.
• The Aarhus Convention grants the public rights
  and imposes on Parties and public authorities
  obligations regarding access to information and
  public participation.
• The Convention recognizes that people have the
  right to take part in basic decisions affecting
  their lives. It also recognizes that the quality
  of these decisions can be improved through the
  active involvement of the public concerned.
  Public participation in decision-making pulls
  together many of the threads of the Convention
  into concrete results, and thus is one of its
  most important subjects. Article 6 is to be
  enforced by article 9, paragraphs 2 and 3.

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Aarhus Convention samples
Article 6, paragraph 1 Requires Parties to guarantee public participation in decision-making with a potentially significant environmental impact List of activities (annex) Non-listed activities National defence exemption
Article 6, paragraph 2 Sets requirements for notifying the public concerned about the decision making Early in the process Adequate, timely and effective Minimum contents
Article 6, paragraph 4 Requires that public participation take place early inde cision-making Options are open Public participation may not be pro forma
Article 9 paragraph 2 Provides review procedures relating to public participationun der article 6 and other relevant provisions of the Convention. Judicial or other independent and impartial review Possibility for preliminary administrative review procedure Standing requirements
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Case Energy Community Treaty

• Article 14The Parties recognize the importance
  of the rules set out in Council Directive
  96/61/EC of 24 September 1996 concerning
  integrated pollution prevention and control. Each
  Contracting Party shall endeavor to implement
  that Directive.
• Article 16The acquis communautaire on
  environment, for the purpose of this Treaty,
  shall mean (i) Council Directive 85/337/EEC of 27
  June 1985 on the assessment of the effects of
  certain public and private projects on the
  environment, as amended by Council Directive
  97/11/EC of 3 March 1997 and Directive 2003/35/EC
  of the European Parliament and of the Council of
  26 May 2003, (ii) Council Directive 1999/32/EC of
  26 April 1999 relating to a reduction in the
  sulphur content of certain liquid fuels and
  amending Directive 93/12/EEC, (iii) Directive
  2001/80/EC of the European Parliament and of the
  Council of 23 October 2001 on the limitation of
  emissions of certain pollutants into the air from
  large combustion plants, and (iv) Article 4(2) of
  Directive 79/409/EEC of the Council of 2 April
  1979 on the conservation of wild birds.

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Case Energy Community Treaty

• Annex II
• 1. Each Contracting Party shall implement
  Council Directive 85/337/EEC of 27 June 1985 on
  the assessment of the effects of certain public
  and private projects on the environment, as
  amended by Council Directives 97/11/EC of 3 March
  1997 and Directive 2003/35/EC of the European
  Parliament and of the Council of 26 May 2003, on
  the entry into force of this Treaty.

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Recommendations

• Develop flow diagram of decision making process
  for projects aimed to enhance public goods
• Develop decision making matrix to prioritize
  projects
• Identify loopholes in the legal framework and
  harmonize basic definitions and principles with
  the EU acquis
• Make the procedure and the matrix legally binding
  
• Empower public participation through targeted
  assistance and training where needed.
• Set up appropriate check list prior to appraisal
  and prioritization of projects