a focus on ppps in italy - gabriele pasquini & marco tranquilli, italy
TRANSCRIPT
A Focus on PPPs in Italy Legislative and Institutional Framework
Fiscal Incentives for infrastructural projects
Gabriele Pasquini – Head of Secretariat Of Public Utilities and Infrastructure Regulation Unit
Marco Tranquilli – Senior Expert of Public Utilities and Infrastructure Regulation Unit
Working Group on PPPs
Presidency of the Council of Ministers
Department for Planning and Coordination of Economic Policy (DIPE)
8th Annual Meeting of Senior PPP Officials
23-24 March 2015, OECD Conference centre, Paris
1998 • «Merloni ter» Law encourages use of PPPs
1999 • Establishment of UTFP within the Ministry of Economy and Finance
2002 • Amendments to the «Merloni-ter» Law allows «authority pay» PPPs
2006 • Introduction of the Public Contracts Code (which deals with PPPs)
2008
• Consolidation of the legislative framework into the Public Contracts Code enforcing use of PPPs. Moreover, PPP Task Force moved to the Prime Minister’s Office
2011
• The public grant for SPVs can be reduced and/or cancelled through a fiscal compensation mechanism
2012
• Possibility for SPVs to issue project bonds. Moreover, private partners can benefit from tax credits
2013 • Provisions designed to facilitate the bankability and financing of PPP projects
2014 • Tax credits: The threshold is reduced further from 200 million to 50 million
PPP Developments in Italy: a brief Overview
The PPP Italian Legal Framework: Focus on the Work Concession Contract
Award of concession contracts - two procedures:
Art. 144. of the Public Contracts Code - Work concession under “public initiative”:
On the basis of a preliminary project, of a business plan and of a draft covenant, the Administration issues and publishes a call for tender. The procedure establishes that the awarding administration may entrust works concessions in compliance with the principle of the most economically advantageous tender.
Art. 153 of the Public Contracts Code - Work concession under “private initiative”:
Current legislation for project finance distinguishes between several main schemes for awarding works concessions. The Administration aims to stimulate the private sector in offering innovative and qualified proposals. The schemes are: • a “one‐step” procedure, disciplined by art. 153 para. 1-14 of the Code; • a “two steps” procedure, disciplined by art. 153 para. 15 of the Code; • a private initiative procedure, disciplined by art. 153, para.16‐18 of the Code; • a private initiative procedure, disciplined by art. 153, para.19 of the Code.
Relevant Ministries
Presidency of the Council of Ministers – Department for Planning and Coordination of
Economic Policy
CIPE Other Ministries
Government
Relevant Ministries
Stakeholders
Relevant Ministries
PROPOSAL
ASSESSMENT
DECISION
IMPLEMENTATION
MONITORING
LEGEND mandatory flow optional flow PCM – DIPE: Cipe Office NARS: Public Utilities and Infrastructure Regulation Unit UTFP: PPP Task Force
Unità Tecnica Finanza di Progetto
Unità Tecnica Finanza di Progetto
Strategic Infrastructure Projects: The Decision-Making Process
Strategic Infrastructure Programme (L. 443/2001)
Most relevant infrastructure projects including TEN-T corridors
Displayed and analysed in the Strategic Infrastructure planning document «Allegato Infrastrutture» attached to the Economic and Financial Planning Document «Documento di Economia e Finanza»
Total Value 231 Billion EUR
«Legge Obiettivo» n. 443/2001 – Strategic Infrastructure Law
Articles 161 and following of the Public Contract Code
New approaches: Fiscal Incentives Tax Relief Measures for the Infrastructure Financing
Corporate Tax – Regional Tax on
Productive Activities
Motorway concessions only
ART. 18 Law n. 183/2011
PUBLIC CONTRIBUTION
CONCESSION FEE
VALUE-ADDED TAX
BUSINESS PLAN OF PPP
CONTRACT OR CONCESSION
≤ 50% TOTAL
INVESTMENT
Compensation with
Public Utilities and Infrastructure Regulation Unit: General Overview
“NARS” typically facilitates CIPE’s decision-making process…but may also be activated by a single Minister
Governmental advisory body specialized in tariff issues
Its remit lies within sectors not regulated by Independent Authorities
“NARS” stands for “Public Utilities and Infrastructure Regulation Unit”
According to the 2008 Reform it is organized as follows:
A Coordinator
9 Representatives of Ministries
Up to 10 Experts
Head of Secretariat as Executive Director of CIPE Office
The Public Utilities and Infrastructure
Regulation Unit produces opinions and
recommendations, especially on long term
contracts and tariffs regarding public utilities
Public Utilities and Infrastructure Regulation Unit: General Overview
9
Contact Point
Gabriele PASQUINI Presidency of the Council of Ministers Department for Planning and Coordination of Economic Policy Public Utilities and Infrastructure Regulation Unit (N.A.R.S.) - Head of Secretariat Via della Mercede, 9 – 00187 Rome, Italy Tel. +39 06 6779 6534; Fax. +39 06 6779 3291 E-mail: [email protected] Web site: www.programmazioneeconomica.gov.it
Marco TRANQUILLI Presidency of the Council of Ministers Department for Planning and Coordination of Economic Policy Public Utilities and Infrastructure Regulation Unit (N.A.R.S.) – Senior Expert Via della Mercede, 9 – 00187 Rome, Italy Tel. +39 06 6779 6534; Fax. +39 06 6779 6907 E-mail: [email protected] Web site: www.programmazioneeconomica.gov.it