DRAFT AGENDA

4 December 2014 Paris, France OECD Conference Centre

INVESTMENT SECURITY IN THE MEDITERRANEAN

(ISMED): ANNUAL CONFERENCE

Defining a Way Forward for Infrastructure Investment in the Middle-East and North Africa (MENA)

www.oecd.org/investment/psd/ismed.htm

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Background Information

While infrastructure is a key element of the business environment and a generator of employment, increasing demand for infrastructure in the Middle-East and North Africa (MENA) region is hampered by low private investment in major projects due to global economic conditions and regional political uncertainty.

These factors must be added to the inherent complexities of financing long-term infrastructure projects, including high development and financing costs and efficient risk allocation among project participants. The lack of technical capacity of public officials is often cited as an additional impediment in selecting and developing bankable infrastructure projects.

Key levers available to MENA governments as they attempt to secure private investment and offset investor apprehension in these difficult conditions include more robust and predictable legal frameworks for infrastructure projects and an improved business climate.

About the ISMED initiative

The Investment Security in the Mediterranean (ISMED) initiative, implemented by the MENA-OECD Investment Programme with financial support from the European Union and France, seeks to increase infrastructure investment in the region.

ISMED provides a forum where governments, IFIs, development agencies, private sector operators, lenders and investors, work together toward the objective of facilitating private-sector investment in infrastructure projects in the MENA region with a focus on public-private partnerships (PPPs). ISMED provides policy support to governments and helps them engage in public-private dialogues on reducing legal and regulatory risks for specific infrastructure projects and fosters integrated approaches to innovative policy and financial tools to develop PPPs.

More information at: www.oecd.org/investment/psd/ismed.htm

Objectives of the ISMED Conference

The 2014 ISMED Conference will gather top officials from MENA and OECD governments, international financial institutions (IFIs), the business community, and experts who will discuss, on the basis of the work achieved so far under ISMED programme, the current state of play of regional co-operation on infrastructure and define strategic orientation for the future.

Participants will:

Share experiences and perspectives on policy challenges to boost infrastructure investment ;

Discuss innovative tools to improve the legal environment and financial arrangements to facilitate the successful completion of infrastructure projects ;

Define priorities and next steps for international co-operation in infrastructure development and investment promotion and security.

Room Documentation (see Page 5 for further information)

Regional support documents

[Draft] Public-Private Partnerships in the MENA region: A Handbook for Policy-Makers (Draft)

Protecting Investments: Legal Frameworks for Investment in Jordan, Morocco, Egypt and Tunisia

Country-specific studies

Egypt Assessment Report: Promoting Nile River Transport

Jordan Assessment Report: Optimising the Incentives Framework for Renewable Power Infrastructure

[Draft] Morocco Assessment Report: A Benchmark Study on Logistics Zones Development

Draft Proposals of the ISMED Working Group

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Draft Agenda

4 December 2014 OECD Conference Centre

8:30 - 9:00 Registration of Participants Room CC4

9:00 - 09:45 Opening Remarks

Mr. Anthony O’SULLIVAN, Deputy Director, Global Relations, OECD

Ms. Ingrid SCHWAIGER, Deputy-Head of Unit for Regional programmes for South Neighbourhood, European Commission

Mr. Abdelghni LAKHDAR, Economic Advisor to the Head of Government, Morocco

Co-Chairs of the ISMED Working Group:

H.E. Dr. Sami AL-ARAJI, Chairman, National Investment Commission, Iraq

H.E. Mr. Pierre DUQUESNE, Ambassador, Permanent Representative to the OECD, France

09:45 - 11:00 Session 1: Fostering infrastructure investment in the MENA region

Infrastructure investments are complex by nature and involve a variety of stakeholders. In the MENA region, financial support provided by multilaterals is often key to successfully complete projects – yet IFI assistance needs to be complemented by enhanced policy coherence and co-ordination among all interested parties. Session 1 provides an opportunity to assess actions and policies in support of infrastructure investment together with international financial institutions and the private sector, and discuss ways to enhance co-ordination across the region.

Moderator: Ms. Nicola EHLERMANN-CACHE, Head, MENA-OECD Investment Programme

Panellists:

Mr. Fernando NINO-PAGE, Principal Administrator, Trade and Investment Regional programmes for South Neighbourhood, European Commission

Mr. Francesco TOTARO, PPP/Financial Structuring, European Investment Bank

European Bank for Reconstruction and Development (TBC)

Mr. Thomas DJURHUUS, World Bank (TBC)

Mr. Luigi DE PIERRIS, Risk Mitigation Instruments, African Development Bank

Mr. Benoît MAUDUIT, Agence Française de Développement

Mr. Robert RUBIÓ, Union for the Mediterranean

Mr. Anthony SYKES, Deputy General Manager, Structured Finance, Africa, SMBC

11:00 - 11:30 Coffee Break

11:30 - 13:00 Session 2: Improving legal frameworks to support private infrastructure investment

Long-term by nature, infrastructure investments require strong and stable legal frameworks in order to attract the private sector. In conducting project assessments, financiers and entrepreneurs look at multiple dimensions of the business climate and legal environment, from investment protection measures to dispute resolution mechanisms. Session 2 brings together representatives from governments and international organisations to discuss the importance of legal frameworks in increasing private infrastructure investment.

Moderator: Ms. Marie-Estelle REY, Senior Advisor, MENA Division, Global Relations, OECD

Presentation of the Legal Study on Legal Frameworks for Infrastructure Investment

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Ms. Iza LEJARRAGA, Senior Policy Analyst and Lead Manager and Ms. Hélène François, Legal Analyst, Investment Division, OECD

H.E. Mr. Noureddine ZEKRI, Secretary of State in charge of Development and International Cooperation, Tunisia

Dr. Ziad Jibril SABRA, Director, Renewable Energy Department, Ministry of Energy and Mineral Resources, Jordan

Mr. Renaud SORIEUL, Director, United Nations Commission on International Trade Law (UNCITRAL) & Leader of the ISMED Task Force on Arbitration

13:00 - 14:30 Lunch

14:30 - 16:00 Session 3: Making PPPs happen in the MENA region

PPPs are complex contractual and financial arrangements that require sound project preparation. The need for additional technical capacity on behalf of public officials is often cited as a must for selecting and developing bankable infrastructure projects. Session 3 will discuss possible ways to improve the environment in which a project is assessed and developed.

Moderator: Mr. Andrew FITZPATRICK, Coordinator, ISMED Support Programme, OECD

Presentation of the PPP Handbook for Policy-Makers

Eng. Samir SALAMA, Vice Chairman, River Transport Authority, Egypt

Dr. Raouf DABBAS, Senior Advisor, Ministry of Environment, Jordan

Mr. Khalid CHERKAOUI, Director General for Civil Aviation, Ministry of Equipment, Transportation and Logistics, Morocco

Mr. Roger FISZELSON, Confederation of International Contractors’ Association (CICA) & Leader of the ISMED Task Force on PPPs

16:00 - 16:30 Coffee Break

16:30 - 17:00 Session 4: Leveraging financial tools for infrastructure projects

Challenges specific to the region imply that financiers have to think outside of the box and sometimes innovate to successfully close a transaction. Session 4 will discuss how existing and innovative financial tools – including resorting to risk mitigation instruments and Islamic finance, can be used to ensure successful project completion.

Moderator: Mr. Alexander BÖHMER, Head of South East Asia Division, Global Relations, OECD

Mr. Arnaud VOISIN, Caisse des Dépôts et Consignations, France & Leader of the ISMED Task Force on Project finance and risk mitigation

Mr. Arnaud RAYNOUARD, Université Paris Dauphine and Ms. Valentine BAUDOUIN, Kramer Levin LLP, Co-Leaders of the ISMED Task Force on Islamic Finance

17:00 - 17:30 Wrap-Up Session: Defining a way forward for infrastructure investment the MENA region

This session will discuss achievements of the Conference and the way forward.

Chair: Mr. Carlos CONDE, Head, MENA Division, Global Relations, OECD

H.E. Mr. Fareed YASSEEN, Ambassador of Iraq to France & Co-Chair, ISMED Working Group

Mr. Olivier DE SAINT-LAGER, Co-Chair, ISMED Working Group

Cocktail offered by the OECD

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ISMED Support Programme Reports and Studies

During the implementing phase of the ISMED Initiative (2013-2014), which benefitted from financial assistance from the European Union, two horizontal reports and three country-specific studies were developed and are submitted at this Conference. In parallel, 14 proposals for improved policy and financial tools in support of infrastructure investment were developed by the ISMED Working Group Task Forces (see below).

[Draft] PPP Handbook: Public-Private Partnerships in the MENA Region: A Handbook for Policy Makers

This handbook provides an overview of key obstacles and policy issues facing the development of PPPs across the MENA region, with a particular focus on the transport and renewable energy sectors in Egypt, Jordan, Morocco and Tunisia. It is aimed at senior officials and decision-makers in the region and intends to assist them in moving projects forward from a conceptual stage to viable transactions suitable for private-sector and or international financial institution (IFI) investment. It is the result of research and consultations led by the ISMED Support Programme throughout 2014. Building on OECD instruments and good practices related to PPPs and infrastructure investment, as well as on extensive consultations with partner IFIs and local stakeholders, the Handbook contains recommendations to address some of the obstacles identified as inhibiting the successful completion of PPP programmes.

Legal Study: Protecting Investments: Legal Frameworks for Investment in Egypt, Jordan, Morocco and Tunisia

This study looks at legal protection provisions contained in the domestic legal frameworks and international investment treaties of each of the four countries, shedding light on legal framework gaps and suggesting policy options for further strengthening the legal environment for infrastructure investment. The report was prepared by the OECD Investment Division and presented to the OECD Investment Committee, therefore benefitted from valuable input and comments from OECD member countries.

Egypt Assessment Report: Promoting Nile River Transport

Trucks dominate the transport of goods in Egypt and a number of factors including air quality, traffic congestion and road safety have motivated the Government of Egypt to promote a greater role for river transport. It is against this backdrop that the ISMED Support Programme, in collaboration with the River Transport Authority of Egypt (RTA) conducted a series of consultations to identify the short and longer term actions required to strengthen the legal and regulatory environment of a river ports PPP, identify investment climate shortcomings, and prioritise the implementation of appropriate policy remedies. This process was finalised during a Public-Private Dialogue organised on 18 September 2014, which brought together government officials, private sector operators, financiers, experts and IFI representatives in a lively policy dialogue focused on the key challenges and opportunities of developing PPPs in Egypt’s river transport sector.

Jordan Assessment Report: Optimising the Incentive Framework for Renewable Power Infrastructure

Jordan boasts some of the world’s best resource endowment for the deployment of renewable power. Yet in a context of volatile oil prices and fast-rising energy needs, the enhanced risk perceptions and costs associated with renewable energy projects, heightened by imperfect market conditions and economically-distorting energy policies, hamper private sector participation in this sector. This report, prepared in collaboration with the Jordanian Ministry of Environment and the Ministry of Energy and Mineral Resources, provides an in-depth analysis of Jordan’s efforts to promote private investment in renewable energy infrastructure in light of the country's energy needs, fragile sources of supply and macroeconomic environment. The consultation process was finalised during a Public-Private Dialogue organised on 26 October 2014 in Amman which brought together government officials, private sector operators, financiers, experts and IFI representatives in a policy dialogue focusing on the key findings and recommendations from the report.

[Draft] Rapport d’Évaluation du Maroc: Cadre juridique du développement des zones logistiques

Morocco’s National Strategy for Logistics Zones Development, initiated in 2010, sets an objective of creating a network of logistics zones that would cover over 3300 hectares by 2030. Several billion euros of investment will be required, for which enhanced private participation is a must. The strategy provides that the development of an appropriate governance framework will be essential to the emergence of new players and integrated operators, and for the restructuring and optimisation of key supply chains. Consequently, the Moroccan Agency for Logistics Development (AMDL) has requested the assistance of the ISMED Support Programme to complete a benchmarking study of the legal framework for the development of logistics zones in the Kingdom. This report focuses on the key elements of an optimal legal framework for the development of logistics infrastructure in Morocco, based on available data and consultations with major public and private stakeholders.

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About the ISMED Working Group

At the ISMED Inaugural Conference, held in Paris on 9 December 2014, participants recognised the vital role of infrastructure in economic growth and development, and highlighted that demand for infrastructure is growing in the MENA region due to population growth, rapid urbanisation and growing demands for improved public services and employment opportunities. Discussions showed that optimum risk allocation and effective risk mitigation were fundamental interdependent elements in financing and structuring complex long term infrastructure projects in the MENA region. On this occasion, participants endorsed the creation of a forum to discuss ways to foster infrastructure investment in the region: the MENA-OECD Working Group on Investment Security in the Mediterranean (ISMED). The “ISMED” Working Group is now a body for regional policy dialogue of the MENA-OECD Investment Programme, focusing on developing innovative policy tools to enhance the efficiency of legal investment protection measures and risk mitigation instruments. It is currently chaired by:

H.E. Mr Fareed YASSEEN, Ambassador of Iraq to France (Iraq)

Mr Olivier DE SAINT-LAGER, Délégation interministérielle à la Méditerranée (France)

Four Task Forces were further launched on 9 December 2013 in order to independently develop research-based proposals on issues such as arbitration, public-private partnerships, Islamic financial instruments and cost and risk-sharing for guarantee instruments. These proposals are in draft form and will be subject to a process of review and comments beginning with the 4 December 2014 conference. Composition and objectives of the Task Forces are as follows:

Task Force 1

“Risk Mitigation and Project Finance”

Task Force 2

“Arbitration”

Leader(s) Arnaud VOISIN, Caisse des Dépôts et Consignations (France)

Bertrand MARCHAIS, Audencia Business School

Renaud SORIEUL, United Nations Commissions on International Trade Law (UNCITRAL)

Objective(s) This group focuses on a variety of issues such as cost-sharing and risk-sharing, and the adaptation of existing risk mitigation, guarantee, insurance and project finance instruments to the MENA region.

This group will design activities and policy recommendations to foster cooperation between existing arbitration institutions in the MENA region so as to provide the basis for a Euro Mediterranean arbitration community based on networking between the key stakeholders.

Task Force 3

“Public-Private Partnerships”

Task Force 4

“Islamic Finance”

Leader(s) Roger FISZELSON, Confederation of International Contractors’ Associations (CICA)

Kader MERBOUH, Université Paris Dauphine

Arnaud RAYNOUARD, Université Paris Dauphine

Valentine BAUDOUIN, Kramer Levin

Objective(s) This group focuses on legal and governance aspects of PPPs in particular the appropriate proportioning of risk between the private and public sectors. It tries to formalise PPP best practices and pleads for appropriate training of civil servants on acquisition of PPP technique.

This group focuses on steps that can be taken to make infrastructure investment in the MENA region more attractive/ suitable for Islamic Investors, and identify instruments that could be expanded and adapted to long-term infrastructure finance.

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Our Partners

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About the OECD and the MENA-OECD Investment Programme

The Organisation for Economic Co-operation and Development (OECD) is a unique forum where 34 member governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and help governments address emerging policy issues such as finding new sources of growth, building skills, and restoring public trust in government and business. The OECD provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. It increasingly engages with a number of non-members who have become important actors in today’s global economy. More information on: www.oecd.org

The MENA-OECD Investment Programme was launched in 2005 at the request of Middle East and North African (MENA) governments to support investment policy reforms for growth and employment in the region. Today, the Programme convenes representatives of these 18 MENA governments (Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Tunisia, United Arab Emirates and Yemen), OECD member countries and emerging economies to exchange good practices in a wide range of policy areas, leveraging the OECD model of policy dialogue and peer learning. It provides a platform for dialogue with civil society, the business community and academia to collectively identify priority business climate reforms and support their implementation. Find more at: www.oecd.org/mena/investment

Key Contacts

Mr. Carlos CONDE Head, MENA Division Global Relations, OECD T : +33 1 45 24 13 14 E : Carlos.Conde@oecd.org

Ms. Nicola EHLERMANN-CACHE Head, MENA-OECD Investment Programme Global Relations, OECD T : +33 1 45 24 17 48 E : Nicola.Ehlermann-Cache@oecd.org

Ms. Marie-Estelle REY Senior Advisor, MENA Division Global Relations, OECD T : +33 1 45 24 81 46 E : Marie-Estelle.Rey@oecd.org

Mr. Andrew FITZPATRICK Coordinator ISMED Support Programme T : +33 1 45 24 16 06 E : Andrew.Fitzpatrick@oecd.org

Ms. Véronique ZOVARO Policy Analyst ISMED Support Programme T : +33 1 45 24 89 67 E : Veronique.Zovaro@oecd.org

Mr. Sabri DRAIA Junior Policy Analyst ISMED Support Programme T : +33 1 45 24 92 59 E : Sabri.Draia@oecd.org

For more information, visit www.oecd.org/investment/psd/ismed.htm