2015: Public-Private Partnerships – Between the Legal Framework, Financing and Management 

On 21 April 2015, Sofia hosted the First Conference ‘Challenges to the Development of Public-Private Partnerships in South-Eastern Europe’ – a forum that brought together representatives of universities, central and local government, business, professional organisations and the expert community to discuss the opportunities and constraints facing public-private partnerships (PPPs). Detailed program follows the text.

The conference was organised by the Faculty of Law of St Cyril and St Methodius University of Veliko Tarnovo, the Faculty of Economics and Business Administration of Sofia University ‘St. Kliment Ohridski’, the Faculty of Structural Engineering of the University of Architecture, Civil Engineering and Geodesy, the European Law Society and the Civil Institute. 

The initiative’s main objective was to create a space for dialogue among public and private partners, financial institutions, investors, professional organisations, regulatory and supervisory bodies, and the academic community. The discussion centred on three interrelated dimensions of PPPs – the legal and institutional environment, financing, and project management. 

Legal and Institutional Challenges 

The first thematic panel examined PPPs in the context of the regulatory framework in force in 2015 and the interaction between public and private law. The issues raised included the complex and cross-sectoral nature of regulation, the delegation of public functions, the allocation of responsibilities between partners, procedures for selecting a private partner, and mechanisms for legal protection and redress. 

Particular attention was paid to the need to build administrative and expert capacity and to train professionals who understand the legal, financial, technical and managerial aspects of PPPs in an integrated manner. 

The conference also featured the presentation of Dr Galina Cherneva’s monograph ‘Public-Private Partnerships – Administrative Law Issues’, dedicated to the legal nature and practical application of this form of long-term contractual cooperation. 

Financing, European Funds and Risk Management 

The second major strand of the conference focused on financing public-private partnerships. Participants examined structured and project debt financing, the role of banks and other financial institutions, financial engineering, and opportunities to combine public, European and private resources. 

Of particular relevance in 2015 was the relationship between PPPs and the then-new 2014-2020 programming period, as well as the opportunities offered by the European Structural and Investment Funds and the European Fund for Strategic Investments. 

Other key topics included risk allocation, the economic balance between the public and private partners, financial management, and control over public funds. 

PPPs as an Instrument for Infrastructure and Public-Service Development 

The third panel focused on the practical management of PPP projects. Applications and opportunities were presented in road and water and wastewater infrastructure, education, energy, facility management, construction, and the management of urban spaces. 

The archived presentations clearly reflect the understanding that a successful PPP is not limited to the choice of a financing model. It requires sound preliminary preparation, financial-economic and legal analysis, professional project management, clear contractual relationships, measurable results, and effective risk management throughout the lifecycle of public infrastructure. 

International examples were also presented, together with the experience of other European countries in using PPPs to provide public services and develop infrastructure. 

The Beginning of an Expert Platform 

One of the important outcomes of the conference was the stated intention to continue the PPP discussion beyond a one-off event. During the forum, the launch of an annual study, ‘Development of Public-Private Partnerships in Bulgaria’, was announced, aimed at monitoring the environment, capacity, practices and opportunities for interaction between the public and private sectors. 

It is in this context that ppp.bg developed as a platform for collecting and sharing programmes, presentations, analyses and professional experience in the field of public-private partnerships. 

2015 expert discussion centred on questions the following questions: how the public sector should define and protect the public interest; how private capital and expertise can be attracted; how risks should be allocated; how transparency and accountability can be ensured; and how public investment can deliver better infrastructure and higher-quality services for citizens. 

 

PROGRAM, 21 April 2015
10.00 - 10.15
OFFICIAL OPENING OF THE CONFERENCE
Prof. Dr. Tsvetan Sivkov – Dean of the Faculty of Law, St. Cyril and St. Methodius University of Veliko Tarnovo
Assoc. Prof. Dr. Teodor Sedlarski – Vice-Dean of the Faculty of Economics and Business Administration, Sofia University St. Kliment Ohridski
Assoc. Prof. Dr. Fantina Rangelova – Vice-Dean of the Faculty of Structural Engineering, University of Architecture, Civil Engineering and Geodesy
Krasen Kralev – Minister of Youth and Sports
Welcome Address by Lilyana Pavlova – Minister of Regional Development and Public Works
Doncho Barbalov – Deputy Mayor of Sofia Municipality
10.15-11.30
PANEL ONE: LEGAL AND INSTITUTIONAL CHALLENGES
Moderator: Dr. Hristo Hristozov, LL.M. – Chairman of the European Law Society; Executive Director of the Civil Institute
Panellists:
Krasen Kralev – Minister of Youth and Sports “Development of Public-Private Partnerships in the Field of Sport”
Prof. Dr. Tsvetan Sivkov – Dean of the Faculty of Law, St. Cyril and S. Methodius University of Veliko Tarnovo “Public-Private Partnerships: A Challenge for Administrative Law Scholarship and Practice”
Assoc. Prof. Dr. Aneta Antonova – Vice-Dean of the Faculty of Law, Sofia University St. Kliment Ohridski “Challenges in Legal Education in the Field of Public-Private Partnerships”
Chief Assist. Prof. Dr. Galina Cherneva – Lecturer at the Faculty of Law, Sofia University St. Kliment Ohridski; Adviser to the 43rd National Assembly “Public-Private Partnership within the Meaning of the Public-Private Partnerships Act”
Chief Assist. Prof. Dr. Savina Goleminova – Lecturer at the Faculty of Law, Sofia University St. Kliment Ohridski “Challenges in the Financial Management of European Structural and Investment Funds and the Development of Public-Private Partnerships”
Assist. Prof. Kapka Milcheva – Lecturer at the Faculty of Law, Sofia University St. Kliment Ohridski “Licensing Acts Issued by the Energy and Water Regulatory Commission: A Challenge for PPPs in the Energy Sector”
11.30 - 12.20
PANELTWO:I CHALLENGES IN FINANCING PUBLIC-PRIVATE PARTNERSHIPS
Moderator: Assist. Prof. Atanas Georgiev – Lecturer at the Faculty of Economics and Business Administration, Sofia University St. Kliment Ohridski; Partner and Editor-in-Chief of PUBLICS.BG
Panelists:
Assist. Prof. Atanas Georgiev – Lecturer at the Faculty of Economics and Business Administration, Sofia University St. Kliment Ohridski; Partner and Editor-in-Chief of PUBLICS.BG “University-Business Partnerships for Knowledge Development in the Infrastructure, Energy and Utilities Sectors”
Dr. Econ. Rozalina Kozleva – Lecturer at the Faculty of Economics and Business Administration, Sofia University St. Kliment Ohridski; Managing Director of INFRAPROJECT CONSULT “Financing Challenges in the Water Supply and Sewerage Sector”
Assoc. Prof. Dr. Minko Velkov – Lecturer at the Faculty of Economics, Paisii Hilendarski University of Plovdiv “Challenges in Accounting for the Different Forms of Public-Private Partnership in Bulgaria”
Assist. Prof. Vasil Karaivanov – Lecturer at the Faculty of Economics and Business Administration, Sofia University St. Kliment Ohridski “Financing Opportunities for Public-Private Partnerships in Bulgaria”
Dr. Hristo Hristozov, LL.M. – Chairman of the European Law Society; Executive Director of the Civil Institute “Challenges in Structuring and Managing Project Debt Financing for PPP Projects”
12.30 - 13.00
PRESENTATION OF DR. GALINA CHERNEVA’S BOOK
“PUBLIC-PRIVATE PARTNERSHIPS: ADMINISTRATIVE LAW ISSUES”
13.00 - 13.50
PANEL THREE: CHALLENGES IN PUBLIC-PRIVATE PARTNERSHIP MANAGEMENT
Moderator: Assoc. Prof. Dr. Fantina Rangelova – Vice-Dean of the Faculty of Structural Engineering, University of Architecture, Civil Engineering and Geodesy
Panelists:
Assoc. Prof. Dr. Fantina Rangelova – Vice-Dean of the Faculty of Structural Engineering, University of Architecture, Civil Engineering and Geodesy “Challenges Posed by Public-Private Partnerships to University Education in Construction Project Management”
Lazarinka Stoychkova – Adviser to the Ministry of Regional Development and Public Works on road infrastructure, cadastre and e-government development “The Ministry of Regional Development and Public Works and Public-Private Partnerships”
Petar Tashev – Bulgarian Facility Management Association; Managing Partner, PUBLIC SERVICES “Facility Management and Public-Private Partnerships”
Andrey Tsekov – Deputy Chairman of the Management Board of the Bulgarian Construction Chamber “Application of Public-Private Partnerships in Bulgaria’s Educational Infrastructure”
Arch. Delcho Delchev – PhD Candidate in Architecture at the Institute of Art Studies, Bulgarian Academy of Sciences; Chairman of TRANSFORMATORI.net “Challenges for Public-Private Partnerships in the Management of Public Spaces between Prefabricated Apartment Blocks in Urban Areas”
Andriana Spasova – Bulgarian Society of Construction Law “Challenges in Construction Project Management: The Need for Standard Terms and Conditions of Contract”
Ivan Koleliev, ECP.bg “Public-Private Partnerships as a Tool for Improving the Quality of Public Services”
Assist. Prof. Eng. Albena Apostolova – Lecturer at the Faculty of Structural Engineering, University of Architecture, Civil Engineering and Geodesy “Construction Management in PPP Projects”
Andriana Spasova – Bulgarian Society of Construction Law “Challenges in Construction Project Management: The Need for Standard Terms and Conditions of Contract”
13.50 - 14.00
OFFICIAL CLOSING OF THE CONFERENCE
Daniela Dimitrova – Executive Director, Pleven Public Fund Association “SPOF – A Good Practice in Public-Private Partnership for Local Development in Bulgaria”