IP3 Addresses New Lithuanian PPP Regulatory Framework for Unsolicited Proposals at Ministry of Finance’s Conference

tomaslithuania-collageVILNIUS, Lithuania - October 2, 2015 - Lithuania’s Minister of Finance Rimantas Šadžius, chaired in Vilnius the Conference ¨PPPs: Lithuania´s Experience and Future Prospect¨, organized by the Lithuania´s Central Project Management Agency (CPVA), PPP Lietuva, and the Ministry of Finance. The Institute for Public-Private Partnerships (IP3) of Washington DC, represented by Tomas Kiguel, was invited to brief 200 Lithuanian authorities and private sector representatives on the latest global trends in Unsolicited Proposals and on alternative Infrastructure Procurement mechanisms such as Australia´s and New Zeeland’s Alliance Contracting regulation.

Kiguel addressed the common misconceptions on Unsolicited Proposals mechanisms, and stressed how unsolicited proposals are perfectly compatible with best practices when a clear regulatory framework is in place. IP3´s representative Tomas Kiguel briefed Lithuania´s representatives on different strategies to ensure competitive pricing, increase clarity on the procedures, ensure an effective risk allocation, and maximize the public benefits under this framework.

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Rimantas Šadžius, Lithuania’s Minister of Finance, and Tomas Kiguel, IP3’s Director for Europe and Latin America

On 29th of July the Lithuanian Government has approved amendments to rules for the development and implementation of public private partnership projects (PPPs). These amendments will allow the private sector to initiate project preparation and tender procedures by submitting an unsolicited proposal.

The European Bank for Reconstruction and Development already recognizes Lithuania’s regulatory and institutional framework for PPPs as following best international practices. With greater integration of private sector in projects’ initiation, the attractiveness of Lithuanian PPPs for both local and foreign investors should increase even further.

Unsolicited Proposals are now extensively used throughout the Infrastructure PPP market world in both developed and emerging economies, with many governments having adopted explicit regulations to manage them consistent with international best procurement practices.