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“Kamchia land “ project
BG2004/016-711.11.04/ESC/G/PPP/A-023
Tourism in Avren Municipality represents an important source of revenue
for the local population. The project is designed in such way as to
maximize involvement of local residents and provide significant benefits
for the local communities.
The municipality of Avren will benefit from the implementation of the
project as the community will be presented with an opportunity to
improve technical and management capacities in the course of project
implementation. There are several basic directions in which Avren will
benefit from the project implementation:
Gain thorough knowledge regarding the importance of sustainable tourism
development, and in development of tourism infrastructure and
attractions;
Experience and knowledge in management, implementation, monitoring and
control of projects financed by EU institutions;
Improve knowledge and experience in the area of marketing and promotion
activities in the sector of tourism through different modern means and
strategies.
Another advantage to the applicant will be the opportunity to develop
the base on which the private initiative in the tourism sector can be
developed in the future.
The sustainable development of the project and the region’s potential to
attract visitors will result in development of new PPP which will
multiply the effect of the project.
Currently, PPP models applicable represent adopted best-practice stories
developed in countries such as the UK for instance. The application of
these models is not a hindrance yet they need to be critically analysed
and appropriately modified within the context of the country specifics.
The successful realisation of the project will further accumulation of
experience and knowledge for the benefit of 5 municipalities in the
region and the team in charge of the project implementation, which can
be utilized in other similar projects for sustainable regional
development. The municipality of Avren will share the experience gained
with other institutions interested in similar activities.
This is the most important objective in establishing viable use of the
PPP approach. Value for money is provided by a number of factors –
improved service quality, performance measurement, better allocation of
risk, reduced costs over the life cycle of the concession and the
potential to generate additional revenue are the most important features
thereto. Within this framework, each partner should be adequately
compensated for the service provided as preliminary defined, quantified,
monitored and regulated.
There is also a huge potential for private sector involvement in the
municipal activities due to capacity constraints of the municipalities
and the fact that the service delivery backlogs in the country are
greatest at municipal level.
Maintaining close cooperation in the private sector is an opportunity
for development of public infrastructure as an alternative to the
limited sources allocated by the state and municipal budgets. It would
be otherwise impossible to meet the challenges in this domain unless the
resources and the competence of the private sector are integrated in
the course of development. Adherent to the requirements of the EU
accession and necessary maintenance of competitive infrastructure
conditions for Bulgarian economy, the lack of investments in public
infrastructure must be overcome in shortest terms possible.
Priority projects implementation must be facilitated whereas higher
investment yields must be guaranteed. It is necessary to define and
adopt new and effective alternatives for project implementation
differing from the conventional methods for public infrastructure
development applied. The experience of the European countries and
especially of Great Britain and Germany indicates that PPP projects are
an effective solution in providing public services.
There are various interpretations of the public-private partnership
notion. PPP is broadly defined as the process of covering the whole
scale of cooperation between the public sector and the private partners
which in many occasions result in establishment of combined enterprises.
Based on a more precise definition PPP should be envisaged as a
public-private cooperation aiming at joint elaboration and
implementation of various projects. Such project-oriented cooperation
may result in establishment of combined enterprises.
The EU Guidelines regarding successful PPP define this notion as
“partnership between the public sector and the private sector for the
purpose of implementing a project or a service, whereas such are usually
provided by the private sector”. Private partnership on a PPP project
may carry various functions and to actually be the leading partner in
certain stages of the project implementation, based on a long-term
contract with the public sector representatives. Such leading role may
be assigned with activities regarding design and planning of project
activities, continue in the course of construction activities
implementation and result even in eventual management of and maintenance
of the project site. Private-sector representatives may be engaged in
providing financing and even utilize the assets in the end of the
exploitation period. Various combinations present vast opportunities and
types of cooperation within PPP thus allowing a considerable
flexibility in the course of collaboration between the public and the
private sector through large number of infrastructure segments whereas
better efficiency is sought (transport, hospitals, schools, water/waste
water treatment).
In most of the cases where the private sector covers several stages of
the project realization there is an optimization of expense achieved not
only through focusing on investments but on operation expense as well
which often considerably exceed the initial investment expenses
allocated for the period of the project implementation.
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