9/29/2015
All indications point to forestry financial position of the Iraqi state in the short term, it may not be possible with the allocation of the necessary funds for the implementation of infrastructure projects needed by the citizens, which was one of the main axes for which the masses came out to protest and sit-in ... to be in such This case resort to formulas and non-traditional methods in the country's development, particularly infrastructure projects. Our proposal in this regard to resort to
the so-called service contracts or concession contracts (the establishment, operation, ownership) conversion and dubbed in English (BOT (Built, operate, transfer ... put forward these ideas in more than one occasion and conference and seminar, but to no avail and perhaps the reason is the lack of knowledge of the content and the dimensions of these contracts, or perhaps the lack of material use by some users of the adoption of the traditional formula funding projects from the state budget.
To hide to everyone the importance of the implementation of infrastructure projects because the other economic and social development projects in any country depends on the extent of suitable infrastructure availability, where taken advantage of the multiple services all the projects and then increase the possibility of success of these projects and settle down in economic activity, Projects Industrial when it has the roads, bridges, ports and means of transportation, gas stations, gas and electricity, they undoubtedly will contribute to the industrial resettle in the events of cities and industrial centers, also contributes abundance and transportation and communication facilities of modern land, sea and air to facilitate the exchange of goods and travels from city to city and from state to state broadened domestic and international markets and established various commercial centers, and the abundance of irrigation, sanitation and water treatment plants and desalination contribute to the establishment of agricultural enterprises and to improve agricultural production networks. The concept and the foundations of service contracts (BOT) is a service contract one kind of partnership between the public and private sectors, an agreement between the State party first and the second party, either persons or companies from the private sector Iraqis or foreigners, where he is the second party establishment or rehabilitation project specifications agreed at its own expense, management and exploitation of a specific period under certain conditions and under the supervision of the state and control ... after the expiration of the agreement, which is usually a relatively long are converted management, operation and investment project to the first party (the government) and thus resemble and limit large Musataha force in Iraq contracts ( Arsa). • determined by the price of the service in the light of the feasibility study prepared in advance between the contracting parties take into account the size and specifications of the project, which in sum calculation of the cost of service study, add to it agreed to cover the cost of all of the user's capital and profit for the investor and can not change the price of the service agreed the sidelines But agreement of the parties (the government and the investor) have access variables justify it, that the item is very important to protect citizens from the monopoly of the investor and the lead at determining the price and modify it according to his wishes. from service contracts determinants is limited applied to infrastructure projects that meet the State Agora all performed to the citizens Example Therefore, (electricity, water, sewers, ports, airports ....) while can not be applied to infrastructure projects providing services to citizens free of charge like streets, malls, bridges and tunnels to the lack of tariff for the use of such projects in Alarac.mdy inclusion projects under implementation and stalled projects possible inclusion of these projects service contracts and certainly there will be the status quo and the requirements of improvement and rehabilitation technical and financial evaluation as to help assignment and direct implementation in light of the service contracts, particularly to serve the electricity priority with the state and the citizen general framework and here it must be noted that many of the developed countries took separate activities As a first step in the process of structural reform is the UK leader in this field, where has this measure in 1989 segmenting government Electricity Authority into two companies for production and one company for transport and 12 regional distribution and followed the EU countries the example of the United Kingdom in the second half of the nineties of the last century and can Iraq guided by these procedures to restructure the Ministry of Electricity companies in the light of that entered into service contracts for the completion of ongoing projects and new projects to complete the electricity sector requirements to cover the country's needs. (2) the advantages of service contracts: • exempt the state from spending on the project under which the Iraqi government beyond the problem of providing allocations necessary for such vital projects and is not affected by the implementation of these projects fluctuations experienced by the state budget. • contribute to the reduction of financial corruption rampant state, where it will be contracted directly with international companies sober specialist with an international reputation. • a significant decrease in the cost of the service provided for two main reasons The first is the decline in the cost of the establishment of the project (cost of capital) because of the contract referred to above formula and the second decline in the operating cost of the project as a result of good governance adopted by international companies other than the case in the Iraqi project, which is characterized by crossed economic criteria in administrative expenses, maintenance, and labor surplus numbers Administration great as is the case in the Ministry of Electricity (104 000 employees as announced by the minister of electricity a few weeks ago). • Government take advantage of expertise available to these international companies in the operation of the project and managed according to sound economic principles. • quality of service provided, where committed Investor to provide the service level and the expedition, especially the activities of maintenance, rehabilitation and otherwise subjected to fines and compensation ... and this aspect is very important for the Iraqi people in the light of the Mayaanih of Qtoat going on in the electricity and water supply. • serious contribution of the private sector in the running of economic activity, which has long stated by Iraqi officials During previous years, but without seriousness in implementation. • help transfer technology and knowledge of modern technology. • creation of new jobs. • In the case of the failure of the State to provide infrastructure projects have good quality and acceptable price, it could lead to some unrest and destabilized the political stability. 10-positive intervention by larger countries figs belong contracting companies in the event of any damage or assault on this project because it represents the assets and property of foreign companies and not to the Iraqi government. (3) global applications for service contracts available literature indicates that the service contracts (BOT) has been implemented by many countries without distinction, whether oil or non-oil, developed or developing following the review of applications illustrates this: in the field of transport: applied by many countries such as Kuwait, Morocco, Egypt and the United States, Belgium, Denmark, the Netherlands, India, Korea, Australia and Gerha.vi the field of water and sanitation: class Egypt and Kuwait, Chile, Mexico, New Zealand, Australia, China and Thailand. In the field of electricity: applied by most Arab states such as Egypt, Oman, Saudi Arabia and most Latin American countries and many European countries. It should be pointed to the most important projects that have been implemented in this format, namely: • the Suez Canal: which carried out during the ten years 1859- 1869 by owned by the contribution of the private sector company the duration of concession (99 years) was inaugurated formal ceremony by the Khedive Ismail. • channel the English Channel between England and France for a distance of over 50 km, a railway tunnel under the sea carried out during the years 1988- 1994, was opened officially by the Queen of England / Elizabeth and French President Mitterrand. (4) implementation requirements: • formation of a committee or a specialized Council of elites and skilled in the field of contracting engineers, economists, accountants tabbed legal and other stakeholders. modulation is associated Mr. Prime Minister, or the so-called by him for this purpose. • Due to lack of sufficient experience of the Iraqi staff in this area ... so they can be informed members of the committee formed on a sample of applications of other countries (Arab and foreign) to be a team picture of these applications and problems and the obstacles they faced and how to overcome them • The Committee shall obtain special instructions to contract in the field of implementation of infrastructure projects, which stages the selection criteria and the best deals, the construction and operation of infrastructure for the project and options for dealing with extended or termination, settlement of disputes. These instructions and have the force of law until the issuance of a special law to do so. (Important: not to delay hiring and implementation pending the issuance of the law in view of the urgent need for these projects) • holds the Commission take the necessary steps to contract with the help of cadres specialized departments depending on the nature of the project procedures (Ministry of Electricity as far as the projects electricity, the Ministry of Transport as far as the projects of ports and airports ... and so on). • guided by the instructions of the implementation of government contracts in the public things figs not covered by the instructions and implementation of infrastructure projects. • raises the report of the Commission to the Council of Ministers for approval. economic adviser member of the Baghdad Economic Forum
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