ISTANBUL PPP WEEK’16

FINAL REPORT

02 - 05 November 2016

The main aim of Istanbul PPP Week is to bring all Public-

Private Partnership field stakeholders together, a feat

that Istanbul PPPCoE achieved with flying colors at the

2nd Istanbul PPP Week in 2016.

This year the event was organized in cooperation with

Republic of Turkey Ministry of Economy, DEIK (Foreign

Economic Relations Board) and Istanbul PPPCoE

(Istanbul Public-Private Partnership Center of

Excellence) along with the contribution of Prime

Ministry Investment Support and Promotion Agency,

IFC, World Bank Group, Islamic Development Bank (IDB),

Borsa Istanbul and Boğaziçi University.

Taking into account the feedback and expectations of PPP Week 2015 participants, the main

theme of this year’s PPP Week was defined as ‘Financing of PPP’ under the motto ‘Towards

a Better PPP’.

In a 3-day training program Istanbul PPPCoE hosted public officials from more than 20

countries. During the training sessions, prominent PPP academicians and experts delivered

lectures about the main theme of Istanbul PPP Week’16. Aiming to be more innovative, this

year the training session was designed to be more interactive through workshops, group

discussions and simulations of real show cases.

During Istanbul PPP Summit’16, participants will discuss topics such as ‘Tools of Capital

Market for Infrastructural Investments’, ‘Project Finance’, ‘Risk Management’ and

‘Investment Options in Infrastructure’.

With the success of Istanbul PPP Week’16, Academicians, practitioners, intellectuals,

decision and policy makers were not only provided with a platform to discuss, define and

solve PPP issues, but also to develop better relationships for exceedingly innovative PPP

projects.

FOREWORD

Eyüp Vural Aydın, Ph.D

Chairman of Istanbul PPPCoE

The Ministry of Economy is a government department responsible for the economic affairs of the Republic of Turkey. Their main mission is to develop and implement policies regarding foreign trade and investments in order to contribute to the national economy and development of the social welfare.

DEİK is responsible for leading foreign economic relations of Turkish private sector in a myriad of sectors particularly foreign trade, international investment and services, international construction activities and logistics, exploring

inward and outward investment opportunities as well as increasing the export volume of Turkish business and coordinating similar business development activities.

The Istanbul Public-Private Partnership Center of Excellence (Istanbul PPPCoE) is a non-governmental organization that provides trainings for PPP HR capacity building and offers the best PPP advisory services. Istanbul PPPCoE works closely with governments, corporations, multilateral entities, financial

institutions and MNCs to provide technical and strategic assistance in establishing policies, laws & regulations in PPP domain for both private and public institutions.

Borsa İstanbul brings together all the exchanges operating in the Turkish capital markets under a single roof. Its Articles of Association was prepared by the Capital Markets Board, and following its approval by the Minister in charge, it was registered on April 3, 2013, thereby receiving a foundation and operation permit.

Boğaziçi University is a majör research university located on the European side of Istanbul founded in 1863. The language of instruction is English. It has four faculties and two schools offering undergraduate degrees, and six institutes offering graduate degrees the mostly preferred by students. Boğaziçi University is the only Turkish university among first 200 universities worldwide according to the Times Higher Education World University Rankings of 2013-

2014.

ORGANIZERS

PARTNERS

Istanbul PPP Week covers a 3-day exclusive training program and the Istanbul PPP Summit.

The event entitled Istanbul PPP Week’16, organized in cooperation with Republic of Turkey Ministry

of Economy, DEIK (Foreign Economic Relations Board) and Istanbul PPPCoE (Istanbul Public-Private

Partnership Center of Excellence) along with the contribution of Prime Ministry Investment Support

and Promotion Agency, IFC, World Bank Group, Islamic Development Bank (IDB), Borsa Istanbul and

Boğaziçi University hosted public officials from 20 different countries, PPP experts and private sector

representatives from around the world.

Istanbul PPPCoE concentrates on hosting countries that have traditionally maintained closest

relationships with Turkey and have geographical and cultural affinity to Turkey.

The following criteria were taken into account when deciding upon target countries;

Level of relation with Turkey

Countries with needs for infrastructure investments

Countries of which infrastructure investments are suppored by international organizations

such as World Bank Group, European Investment Bank and Islamic Development Bank

Countries with previous experience in PPP field

Countries which have legal frameworks in PPP field

During Istanbul PPP Week’16 Istanbul PPPCoE hosted participants from at least 26 countries among

them 25 participant public officials from 19 different countries.

The invited countries are as listed as below:

INVITED PARTICIPANT COUNTRIES

1 AZERBAIJAN 11 KOSOVO

2 BANGLADESH 12 KUWAIT

3 BOSNIA AND HERZEGOVINA 13 MOROCCO

4 EGYPT 14 MOZAMBIQUE

5 ETHIOPIA 15 NIGERIA

6 GABON 16 PORTUGAL

7 IRAQ 17 ROMANIA

8 JORDAN 18 SAUDI ARABIA

9 KAZAKHSTAN 19 SENEGAL

10 KENYA 20 TURKEY

INTRODUCTION

The 3-day training program hosted 13 PPP experts who delivered 7 lectures and 4 case studies with

productive discussions and transnational knowledge exchange. Country presentations were

presented by the representatives of Kosovo, Morocco and Portugal. This year the participants were

given the opportunity to be more active in the training program through a one-day workshop. The

training program will serve as a selective platform for networking as the participants came from

public and private sector.

The following companies were represented at the exclusive training program:

PRIVATE SECTOR REPRESENTATIVES

1 ICBC 7 ERNST & YOUNG

2 IP3 8 POLIMEKS CONSTRUCTION

3 BORSA ISTANBUL 9 P3 VIRGINIA

4 YUKSEL PROJE 10 KAZNEX INVEST AGENCY

5 KRK HOLDING 11 YAPI MERKEZI HOLDING

6 RASEEL PROPERTIES 12 TURKISH AIRLINES

At the same time public authority representatives from the following organizations participated at

the training program:

PUBLIC SECTOR REPRESENTATIVES

1 REPUBLIC OF TURKEY MINISTRY OF DEVELOPMENT

2 ISTANBUL METROPOLITAN MUNICIPALITY

3 PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY

4 FEDERAL AIRPORTS AUTHORITY OF NIGERIA (FAAN)

Another group of participants were representatives from international organizations such as:

INTERNATIONAL ORGANIZATION REPRESENTATIVES

1 WORLD BANK GROUP

2 IFC ISTANBUL

3 ISLAMIC DEVELOPMENT BANK

In order to track down the invited bureacrats we seeked again the help of the Turkish Commercial

Counsellor in each country. Our expectation from each commercial counsellor was to suggest two

bureaucrats from the local PPP Unit and to decide which one shall be the first to be invited and which

the back up in case the invited bureaucrat wouldn’t be able to attend. The participants suggested

were thoroughly verified according to the following criteria:

Participants shall work in the field of PPP or in a close field, if there is no PPP Unit. The

assurance whether the participant is the right contact was of high importance. Therefore

each unit and participant was closely looked into; It was our primary intention to invite

participants from PPP Units with experience in the field of PPP.

In the 2nd Istanbul PPP Week the following bureaucrats were hosted by Istanbul PPPCoE:

COUNTRY NAME, POSITION, ORGANISATION

AZERBAIJAN

Dr. Elshan Baghirzade

Counselor of the Rector and Associated Professor of the Department of International

Economics, Azerbaijan State University of Economics

BANGLADESH Md Faruque Ahmed

Director General, PPP Authority - Prime Minister’s Office

BOSNIA AND

HERZEGOVINA

Ernest Đonko

Assistent Minister – Head of Sector for Electronic, Ministry of Transport and

Communications

EGYPT Mona Hussien

Financial Analyst, PPP Central Unit

ETHIOPIA Dawit Nigussie Redai

Business Promotion Officer, Ministry of Foreign Affairs

GABON Joseph Diboma

Business Manager, FGIS (Gabonese Strategic Investment Fund)

IRAQ Murad Saib Mahmood

Professor, University of Kirkuk - School of Law and Political Sciences

JORDAN Osama Suleiman

Head of Unit, Ministry of Finance - PPP Projects Unit

KAZAKHSTAN

Askhat Beisenbayev

Deputy Chairman, Kaznex Invest Agency

INVITED BUREAUCRATS

Yelena Kogay

Head of Expertise and Review Practices, Kazakhstan PPP Center

KENYA Margaret N. Ogai

Senior Manager Contracts, Planning Department at Kenya Roads Board

KOSOVO Arton Ahmeti

Senior Financial Analyst Public Private Partnership Central Department, Ministry of Finance

KUWAIT Fatima Al-Kandari

Senior Engineer, Kuwait Authority for Partnerships Projects

MOROCCO

Asmaa Benslimane

Advisor of the Minister, Ministry of Equipment, Transport and Logistics

Hicham Moumni

Deputy Director of Strategy, Program and Coordination, Transport, Ministry of Equipment,

Transport and Logistics

MOZAMBIQUE Godinho Alves

Deputy Director General, Investment Promotion Center

NIGERIA

Mohammed Bamalli

Director of Contract Compliance Department, Infrastructure Concession Regulatory

Commission (ICRC)

PORTUGAL Dr. Manuel Vieira

Legal Adviser, Technical Support Unit for PPP Projects (UTAP)

ROMANIA Arif Memet

Adviser, State Secretary Cabinet of Ministry of Public Finance

SAUDI ARABIA Zarea Qranbaish

PSP Project Manager, Ministry of Economy and Planning

SENEGAL

Ibrahima Fall

Director of Finance and Public-Private Partnerships, Ministry of Investment Promotion,

Partnerships and Development of the State Teleservices

TURKEY

Zeki Emre Tekin Senior Associate, Ministry of Development Emre Eser Senior Infrastructure Specialist, Ministry of Development Ali Kamil Özmen Coordinator, İSPAT Ali Bengü Project Director, İSPAT

In the 2nd Istanbul PPP Week the following lecturers and speakers were hosted by Istanbul PPPCoE:

NAME ORGANISATION, POSITION

Cem Galip Özenen Islamic Development Bank, Transport & PPP Program Coordinator

Daniel Benitez World Bank Group, Senior Economist

Darrin Grimsey Ernst & Young, Partner

David Baxter Institute for Public Private Partnership (IP3), Director of Advisory Services

Emre Eser Ministry of Development, Senior Infrastructure Specialist

Eren Kangeldi HSBP, CEO

Ass. Prof. Erk Hacıhasanoğlu Middle East Technical University (ODTÜ)

Eyüp Vural Aydın Istanbul PPPCoE, Chairman

Galymbek Mamrayev Kazakhstan PPP Center, Deputy Chairman

Mehmet Ören Istanbul PPPCoE, PPP Expert

Morteza Farajian P3 Virginia, Program Manager

Ass. Prof. Qingbin Cui University of Maryland

LECTURERS

Rabia İlhan Istanbul PPPCoE, Boardmember

Ass. Prof. Renato E. Reside Jr. University of the Philippines

Zeki Emre Tekin Ministry of Development, Senior Associate

Zeynep Kantur Özenci IFC, Senior Investment Officer

AGENDA

02 NOVEMBER 2016 VENUE: BOĞAZİÇİ UNIVERSITY

08.30 – 09.00 REGISTRATION

09.00 – 09.15

OPENING SPEECH Eyüp Vural Aydın, Ph.D, DEIK PPP Committee , Chairman Aslı Özelli, DEİK, Deputy General Secretary Ass. Prof. Ali Coşkun, Boğaziçi University

09.10 – 10.00 LEC01- VALUE FOR MONEY IN PPP PROJECTS Darrin Grimsey, Ernst & Young, Partner

10.15 – 10.30 BREAK

10.30 – 11.45 LEC02- PUBLIC SECTOR COMPERATOR vs. PRIVATE SECTOR PROFITABILITY David Baxter, Institute for Public Private Partnership (IP3), Director of Advisory Services

11.45- 12.00 BREAK

12.00 – 13.15 LEC03- STRUCTURING,SELECTION BANKABALE & SUSTAINABLE PROJECTS (Risk in Finance) Ass. Prof. Qingbin Cui, University of Maryland

13.30- 14.45 LUNCH

14.45 -15.45

LEC04- ISDB EXPERIENCES IN PPPS & CASE STUDY: Konya PPP Integrated Health Campuses Cem Galip Özenen, Islamic Development Bank (IDB), Transport&PPP Program Coordinator

15.45-16.00 BREAK

16.00-16.30 CS01- CASE STUDY CREATING A CENTRAL P3 UNIT TO BETTER SCREEN AND DEVELOP P3 PROJECTS Morteza Farajian, Ph.D, P3 Virginia, Program Manager

16.30-16.45 BREAK

16.45-17.30 CS02- EXPERIENCE OF FINANCING PPP’S IN KAZAKHSTAN Galymbek Mamrayev, Kazakhstan PPP Center, Deputy Chairman

17.30-17.45 BREAK

17.45-18.15 CP01- COUNTRY PRESENTATION - MOROCCO

18.15-18.45 CP02- COUNTRY PRESENTATION - PORTUGAL

19.00-20.00 BOAT TOUR

20.15-21.30 WELCOMING DINNER (Hidiv Pavilion, Hidiv Kasrı, Çubuklu, 34805 beykoz)

03 NOVEMBER 2016 VENUE: BOĞAZİÇİ UNIVERSITY

08.30 – 09.00 REGISTRATION

09.15 – 10.30 LEC05- NEW SOLUTIONS in PPPs: Project Loans, Private Equity, Infra Funds Darrin Grimsey, Ernst & Young, Partner

10.30 – 10.45 BREAK

10.45 – 11.45 CS03- CASE STUDY PPP CONTRACTS AND PAYMENT STRUCTURE Morteza Farajian, Ph.D, P3 Virginia, Program Manager

11.45 – 12.00 BREAK

12.00-13.15 CS04- PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE INVESTMENT: LESSONS LEARNED FROM ASIA-PACIFIC REGION Ass. Prof. Renato E. Reside Jr., University of the Philippines

13.30-14.45 LUNCH

14.45-15.45 LEC06 DECISION MAKING STRUCTURE OF MEGA PROJECTS IN TURKEY Zeki Emre Tekin & Emre Eser, Ministry of Development, Turkey

15.45-16.00 BREAK

16.00-17.00 LEC07- PUBLIC AUTHORITY GUARANTEES & PPP PROJECTS IN LOCAL GOVERNMENT: ISTANBUL METROPOLITAN MUNICIPALITY FERRYBOAT PROJECT Eyüp Vural Aydin, Ph.D, Rabia İlhan, Ph.D., Mehmet Ören, Istanbul PPPCoE

17.00-17.15 BREAK

17.15-17.45 CP03- COUNTRY PRESENTATION - KOSOVO

18.00 NETWORKING DINNER (Malta Pavilion, Yıldız Avenue., 34349 Beşiktaş)

04 NOVEMBER 2016 VENUE: BOĞAZİÇİ UNIVERSITY

08.30 – 09.00 REGISTRATION

09.00 – 10.00 PPP PROJECT FINANCE IN TRANSPORT SECTOR Daniel Benitez, World Bank Group, Senior Economist

10.15 – 10.30 BREAK

10.15 – 10.30 DESCRIPTION OF THE WORKING SIMULATION Risk Allocation & Guarantee Mechanisms in Financing PPPs

10.30 – 12.15 WS01- WORLD BANK SECTORAL CASE STUDY & PROJECT FINANCING SIMULATIONS Zeynep Kantur Özenci, IFC, Senior Investment Officer

12.15 – 13.00 EVALUATION OF TRAINING PROGRAM (WHAT WE LEARNED?)

13:00 – 13.45 BOĞAZİÇİ UNIVERSITY TOUR

13.45 – 14.30 TRANSFER TO LUNCH (Malta Pavilion, Yıldız Avenue., 34349 Beşiktaş)

14.30 - 15.30 LUNCH

15.30 – 16.00 BASILICA CISTERN VISIT ( YEREBATAN SARNICI)

16.00 LEISURE TIME

20.30 TRANSFER OPPORTUNITY BACK TO HOTEL (Van will depart at 20:30 whoever wishes might take the transfer others have to return to the Hotel by themselves)

05 NOVEMBER 2016 Swissôtel The Bosphorus

09:00 – 10:00 REGISTRATION & WELCOME COFFEE

10:00 – 11:10

OPENING CEREMONY Opening Remarks & Protocol Speeches

Omer Cihad Vardan, President of DEİK (Welcoming Speech)

Fatih Metin, Vice Minister of Republic of Turkey of Ministry of Economy

Ahmet Arslan, Minister of Transportation, Maritime and Communication

11:15 – 12:45

INVESTING IN SUSTAINABLE INFRASTRUCTURE: THE ROLE OF PPP Moderator: Ali Çağatay, Bloomberg HT

Ebru Özdemir, LIMAK Investments, Chairperson

Thierry Deau, Meridiam Infrastructure, CEO

Daniel Benitez, World Bank , Senior Economist

Ahmet Burak Dağlıoğlu, ISPAT, Director of PPP Unit

Kenan Kırtıl, Istanbul Metropolitan Municipality, Head of Financial Services Department

12:45 – 13:00 COFFEE BREAK

13:00 – 14:30

FINANCING OF PPP Moderator: Zeliha Saraç,24TV

Aisha Williams, IFC, Country Manager

Xu Keen, ICBC, Chairman of the Board of Directors

Recep Bildik, Borsa Istanbul, Director

Özgür Pehlivan, Rep. of Turkey Ministry of Health, PPP Platform Member of Executive Managing Board

14:30 – 15:30 LUNCH

15:30 – 15:45 DECLERATION OF FINAL COMMUNIQUE OF ISTANBUL PPP WEEK’16 Eyüp Vural Aydın, Ph.D & David Baxter & Darrin Grimsey

15:45 – 17:15

DEVELOPING BANKABLE PPP PROJECTS: CHALLANGES& OPPORTUNITIES Moderator; Darrin Grimsey, Ernst & Young, Partner

Morteza Farajian, Ph.D, P3 Virginia, Program Manager

Sedef Noyan, Turkish Ministry of Development, Head of PPP Department

Ass. Prof. Renato Reside, University of the Philippines

Ass. Prof. Qingbin Cui, University of Maryland

David Baxter, IP3, Director of Advisory Services

17:15- 18:30 B2B MEETINGS

TESTIMONIALS

Yelena Kogay, Kazakhstan PPP Center - Ministry of National Economy

“We would like to extend sincere gratitude for hosting us last week. Let me emphasize one more

time that you succeeded in getting all three parties together – government officials, private

investors and financial institutions – from all over the world, which is very impressive. The whole

event through all 4 days was organized on the very best level. We also could observe how

important PPP projects are in Turkey and how successfully you and your highly esteemed

organizations promote PPP at various levels. We wish you all possible successes in your further

aspirations!”

Mohammed A. Bamalli, Infrastructure Concession Regulatory Commission -Nigeria

“It was my absolute pleasure to attend and gain new perspective in PPPs. My visit to Istanbul would surely aid me in the work I am doing currently at ICRC and my regards to all please.”

Ass. Prof. Qingbin Cui, University of Maryland

“Thank you for the opportunity to participate in the PPP week in Istanbul. It was excellent and enjoyable experience. I find it most rewarding when attendees with invaluable PPP hand-on experience actively participated in the discussion and debate. I look forward to another successful PPP conference next year.”

Darrin Grimsey, Ernst & Young

“It was a great event and I was really pleased to be a part of it.”

Godinho Alves, Investment Promotion Center of Mozambique

“Many thank for the wonderful course you provided us and for your kind hospitality. I am really

pleased to say that the PPP course and its program was one of the best training courses I have

ever attended.”

Md. Faruque Ahmed, PPP Authority - Prime Minister’s Office

“About the training I should say it was a great event to me. The training programe was designed in such a way

that it comes to us as a real platform of learning PPP. The content, resource persons, sequence everything was

as nice as a training program can be. Theoritical seasons and case study analysis made the program successful

for PPP learners.”

GALLERY

Istanbul PPPCoE

Abide-I Hürriyet Cad. No: 158/1 34381 Şişli, İstanbul

• T: +90 212 224 27 43 • F: +90 212 224 37 42

• www.ppppcoe.com • info@pppcoe.com