PPP should include an analysis of the interests of all stakeholders

The President of the Bulgarian Chamber of Commerce and Industry Tsvetan Simeonov participated in the international discussion “Public Private Partnership with the Municipalities”. The event was held under the auspices of the Vice President of the Republic of Bulgaria Mrs. Margarita Popova, organized by the National Association of Municipal Clerks in Bulgaria and the Hanns Seidel Foundation.

According to the President of BCCI the fact that the discussion of public private partnership was initiated on behalf of the local authorities by the municipal clerks is extremely encouraging. Municipal authorities are looking for additional information about the possible steps to be taken, despite society’s doubts and accusations that public private partnership is not conducted correctly.

We will successfully implement PPP not by learning from our mistakes, but by holding meetings like this, Tsvetan Simeonov said to the participants in the discussion. For BCCI this is an important element in the country’s normal development. That is why the Chamber fully supports the development of PPP in all economic sectors and encourages NGOs and the wide network of chambers of commerce across the country. BCCI participates actively in the preparation of the draft-bill for public private partnership. We believe that PPP will help society receive high-quality services faster, because only when the private sector is included, including with its finances, it becomes evident that it may use those finances effectively. There is a cure for the worries of municipalities that they might be accused of “secret agreements” or “tolerating people” that are close to them – more transparency – preliminary information on the concession conditions, including what the benefits for both parties – the state and private companies - will be, because this is always an agreement.

Sometimes companies object to the idea of announcing publicly data and details about the contractual terms of the orders they have won and execute. There should be a clear dividing line in society – there is difference between trade activity and public private partnership, the President said. When it comes to spending public finances, the interests of the general public are affected and from legal standpoint, transparency is needed. Therefore, business secrets must make way to transparency. Society has the right to know what is happening to the funds invested in PPP. Undoubtedly, this will be cheaper for society and must become a long-term tendency. Moreover, all developed projects must contain information on how to continue the partnership after the state financing is over. An analysis of the interests of all stakeholders is necessary – the state and private companies.

The President of BCCI gave several practical examples in support of his ideas. One of them is the registration of trade representation offices, provided by the Bulgarian Chamber of Commerce and Industry. It is fast, and saves time and resources in comparison to the similar services provided by the state register. The efficiency of BCCI’s Trade Register is mostly due to the fact that the Chamber in its capacity of public organization falls directly under the public control of its members, and despite their various interests manages to find a balance between the interests of society and companies which participate in PPP. Another example for successful PPP is arbitration. The state allows companies with the help of NGOs to organize dispute settlement. Unlike the court, there are no detentions in the hearing of cases or additional finances spend by the Arbitration court at BCCI or other arbitration courts.

The experience of NGOs and the existing data base kept by the chambers of commerce and industry united in the unified system of BCCI, can be used by municipalities to prepare business directories by regions. Such a directory has already been published for the Region of Plovdiv. Municipalities and the opportunities they provide for businesses need to be more visible. A classic example of PPP is the construction of the so-called industrial zones in the towns and their vicinities, which provide all necessary conditions to attract foreign investors to Bulgaria.

The future law for public private partnership must provide the framework which will simplify and facilitate things in order to achieve better results.