About Us

The growing need to build new public infrastructure, invest into projects of general interest, and provide services of public interest in Serbia has required the creation of a legal and institutional framework for attracting private investment.

The long-awaited Law on Public-Private Partnership and Concessions was enacted in November 2011. This piece of legislation is particularly important as it has become less easy for Serbia to get affordable finance from international donor organisations: this means that private capital will have to be raised to build roads, schools, waterworks, landfills, and any other projects not able to attract traditional funding from the budget. The private sector should be involved primarily to reduce fiscal pressures on local budgets, accelerate investment into infrastructure, and improve services while reducing their costs.
This Law introduces the concept of public-private partnership into the Serbian legal system for the first time. National and local authorities will also for the first time be able to fulfil their needs for infrastructure and delivery of public services under this model and with clearly set rules of conduct.
The Law makes it possible for the Government and sub-national and local authorities to make decisions, within their respective remits, to undertake PPP projects and co-operate with private partners. These must be preceded by a cost-benefit analysis, whereby the public sector must prove that the needs in question are better served by entering into partnership with the private sector, and that the resulting project is feasible (i.e. that it yields greater value for money).

In a global perspective, and particularly at a time of economic crisis, governments have realised they are unable to satisfy ever-growing demand for public services on their own, and have thus been compelled to seek assistance from other sectors. In times of slower growth, government revenues are often insufficient to meet all demands, which requires painful budget cuts to reduce spending, or popular (or otherwise) tax hikes. Partnerships can ensure the continued delivery or improvement of services at lower cost.

Public-private partnerships are one of the most future-proof forms of such co-operation. They are based on the recognition that both the private and the public sector stand to benefit from the pooling of their financial (and administrative) resources, knowledge, and expertise in improving the delivery of services to all members of the public.

As provided for under the Law on Public-Private Partnership and Concessions (Official Gazette of the Republic of Serbia, No. 88/11), the Public-Private Partnership Commission is an inter-departmental, operationally-independent public body that provides expert assistance in the implementation of public-private partnership projects and concessions.

The Commission was established under the Decision on the Establishment of the Public-Private Partnership Commission (Official Gazette of the Republic of Serbia, No. 13/12). The chairperson and nine members of this body were nominated by the Prime Minister and appointed by the ministries in charge of economy and regional development; finance; infrastructure; mining; utilities; and environmental protection; the Vojvodina authorities; and the City of Belgrade. The representative of the Ministry of Economy and Regional Development serves as the chairperson of the Commission, while the representative of the Ministry of Finance acts as the deputy chairperson.
The Commission’s statutory remit entails:

  • Assisting in the drafting of PPP proposals to facilitate the development of public private partnerships and public contracts;
  • Providing information and consulting on both concession and non-concession PPP issues;
  • Providing its formal opinions regarding the approval of concession and non-concession PPP projects and the submission of these projects to appropriate bodies for approval;
  • Identifying and facilitating the implementation of best foreign practices in Serbia with respect to concession and non-concession PPPs;
  • Drafting PPP methodologies, including value-for-money methodologies;
  • Co-operating with other government bodies and NGOs active in the field of PPP;
  • Providing its recommendations regarding projects as required by public bodies or concessionaires;
  • Reporting to the Government of Serbia on an annual basis, as stipulated by law;
  • Co-operating, in the exercise of its authorities, with budget inspection bodies, the State Audit Institution, sub-national or local budget inspection bodies, and other national and international bodies, organisations and institutions;
  • Posting government-approved annual reports on realised PPP projects on its web site, as well as making available other data and information it believes to be of importance for the implementation of the Law, and
  • Undertaking other tasks as stipulated under the Law.

The Ministry of Finance and Economy provides the Commission with office space and operational assistance in the form of analytics and administrative and technical support. In doing so the Ministry receives and processes project applications; keeps records of PPP and concession projects; drafts annual reports submitted to the Government by the Commission; and assists the Commission in other ways as and when required.

GOVERNMENTUSAID

● The Commission for Public Private Partnerships ●

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