CICA/IFI 2010 CONFERENCE represents a valued link between MDBs and the Construction Industry at a global level.

CICA/IFI 2010 CONFERENCE constitutes a platform where opinions and exchanges of views are essential. It will facilitate the continued dialogue between the Construction Federations and MDBs. We expect that the topics to be discussed in the Conference will contribute to the success of MDBs’ objectives and the continued economic growth of developing countries in which MDBs are active.

CICA proposes a new format for CICA/IFI 2010. Roundtables (RTs) will be organized and include reflections and proposals on various topics, as indicated below, that reflect the MDBs’ and Construction Industry’s strategic priorities. The RTs will consist of a Panel of experts and participants that will discuss topical issues within the respective RT’s scope.

Each Panel will consist of a Chairman, who will organize the presentations and debates, and Panelists to discuss the views and concerns of their own organizations on the selected topics. MDBs will closely participate in the selection of the Panelists.

The schedule of the RTs is expected to allow participants to attend all the RTs.

1. Presentation by Jamal Saghir, Director for Energy Transport and Water, World Bank
2. Presentation on INFRA Platform. Implementation. Marc Juhel, Sector Manager Transport, World Bank
3. Regional Federations: lessons learned, first conclusions, additional proposals for improvement. Presentations by Regional Federations - Zoom on some Countries (60’)

• Fernando Lago, Representative of the Inter-American Federation of the Construction Industry (FIIC)
• Ulrich Paetzold, Director General of the European Construction Industry Federation (FIEC)

1. CICA Position (15’), Jacques Benatar, CICA Director General
2. Q/A & Conclusions

 

 

 

 

 

 

 

 

 

 

 

BRIEF ON THE WELL PREPARED PROJECT (WPP)

Many problems encountered by Contractors relate to the overall environment of the contract, i.e. the conditions governing its preparation and execution. In previous documents, CICA put forward a more rational approach based on ISO standards related to quality.

Even though current procurement rules for Public Authorities usually do not allow following that track, CICA takes the view that better project quality could be achieved through better project preparation and better definition of all stakeholders' duties and responsibilities.

The objective of this session is to highlight these issues, with a view to proposing in the near future guidelines for a WELL PREPARED PROJECT.

1. The CONTRACTOR, Frank Kehlenbach, EIC Director
• Prequalification and selection
• What is found on site vs what should have been found: Reality vs Tender Documents. Case studies.
• Possible incidence on
• Quality of the works VS Quality system
• Corrupted practices
• Claims / Final amount of the Works vs Contract Amount
• Delays
• Litigation / Arbitration
• Responsibility of the Contractor (Common Law / Civil Law)
• Environmental and Social Clauses
• Others
1. LEGAL, Larry Harris, Attorney at Law - Member of the American College of Construction Lawyers (ACCL)
• Lawyer defends a Party (not the project)
• "Consensus Lawyer"
• Adjudicator
• Dispute Review Board [DRB] (edits an opinion) – Dispute Adjudication Board [DAB] ( edits a decision, but possible to be brought to a Judge)
• Others

1. Q/A

• Lunch (60’)

 

 

 

 

 

 

 

 

 

 

CICA-IFI 2010 CONFERENCE

AFTERNOON - February 11, 2010

DETAILED PROGRAM

 

ROUNDTABLE: PUBLIC PRIVATE PARTNERSHIP (PPP)

Infrastructures are a key component to development and growth [Easterly, Calderon, Serven, 2002]. Besides, we note that private participation for infrastructure projects has skyrocketed since 1990 [Armstrong and Sappington, 2006].

Although these contractual arrangements appear rather efficient, they raise a certain number of difficulties all along the sequence of the contracts: from gestation, to the birth, and then the life of the contract.

For each of these steps, the panellists of this PPP round table are going to detail what the difficulties may be, and will propose some tools and methods to overcome them. Several points of view are represented in this roundtable: the academic researchers’, the practitioners’ and the financial institutions’.

SYLLABUS

1. INTRODUCTION by PPP CHAIRMAN, Roger Fiszelson, CICA Special Adviser - Member of the PPP Working Groups of CICA, FIEC, EIC

• Overview of PPP evolution, achievements and imperfections
• Presentation of the panellists

1. ASSESSING THE SOCIO-ECONOMIC UTILITY OF A PROJECT, Pierre Kopp, Professor at the University of Paris I and consultant

• Presentation of two different tools: the Cost-Benefit Analysis and the Cost-Efficiency Analysis,
• Discussion with the audience

1. ASSESSING THE PERFORMANCE OF PRIVATE OPERATORS Vs PUBLIC OPERATORS, Eshien Chong, Professor in Economics, University of Paris Sud 11

• Presentation of the different trade-offs at stake for the choice between in-house production and outsourcing, through the Transaction Cost Theory
• Discussion with the audience

1. FUNDING, Pierre Kopp on behalf of Vincent Piron, VINCI Concessions - Strategy and Investment Director; Team Leader for CICA PPP WG

• Presentation of the trade-off between a funding by taxpayers and by users, through a socio-economic and financial model
• Discussion with the audience

1. RISK ALLOCATION, Enrique Fuentes, Market Analysis and Development Director of Grupo Ferrovial – Chairman, EIC PPP WG (by conference call)

• Discussion about the guarantees for the operators, and about who should bear the different risks
• Discussion with the audience

1. PROCUREMENT, INCENTIVES AND CAPACITIES OF EXPERTISE OF LOCAL AUTHORITIES, Miguel Amaral, Lecturer (ATER) at the Department of Economics of the University Paris 1 Panthéon-Sorbonne

• Presentation of an econometric paper showing that contracts with high levels of incentives do not suffice to improve the operator’s efficiency. On the contrary, the operator’s efficiency depends on the capacity of expertise of the local authority
• Discussion with the audience

1. PREPARING THE PROJET AND SELECTING THE OPERATOR: THE EXPECTATIONS OF THE INDUSTRY FOR SUCCESSFUL PPP PROJECTS, Marc Frilet, Avocat, Chair of the PPP Task Force of the International Bar Association and Chair of the PPP Task Force of the French Institute of International Legal Experts (IFEJI)

• Lessons learned from PPP in distress shows that in many cases this is due to a deficiency in the preparation process by the public authority. Based on day to day experiences, it is proposed to discuss essential milestones and related best practices
• Discussion with the audience

1. MANAGING THE LIFE OF THE CONTRACT, Julie de Brux, PhD in the Department of Economics of IAE, University Paris 1 Pantheon – Sorbonne, Member of the Chair on Economics of Public-Private Partnerships

• Presentation of a theoretical and empirical paper proposing a way to overcome one of the main problems of the execution of a PPP contract, i.e. the over-incentive to invest in cost-reduction at the expense of quality
• Discussion with the audience

 

 

END OF CICA-IFI 2010 CONFERENCE