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Economist: partnership of the public sector and the private strategic solution for Reconstruction and construction
Date: Sunday 07/10/2012 07:36 AM
Baghdad / Ali Author
manager said the Iraqi Institute for Economic Reform expert Dr. Kamal Al-Basri said strategic choice for construction and reconstruction is to adopt the government for decades private sector participation for the year under which Government agrees (public sector) with the private sector (foreign or domestic) to implement infrastructure projects
And other vital projects in the construction and reconstruction within the specifications and specified period of time.
He added in an interview (range) that upon receipt of project sites and specifications agreed the public sector to pay the amount of money for a period of time determined by (5 - 20 years old), where it is necessary to use this type of contracts for the development of private and public sector within the formula (twinning) between the general government sector and the local private sector and foreign investment.
He added visual, an economist, "either in the implementation of investment projects, in fact you can not institutions and ministries of the use of more than 50.77 billion dollars (2006-2010) any implementation rate of 63.65%, while attracted delay the implementation of the investment budgets during 2004 -2011 broad interests , which called for the Iraqi Institute for Economic Reform to do to prepare studies to determine the factors the problem, one in 2008 and the second 2011, where he was the most prominent factors in the 2008 survey is the security factor (and its impact on the regularity of work and ease the flow of business requirements and the entry of foreign companies), and not commitment controls and poor skills of workers and the absence of integrated planning to work within the organization and between different institutions. "
And went on "in 2011 did not differ's a lot about in 2008, but there more details about the poor implementation epitomized by external factors was the impact of security conditions, and restrictions Permissions control institutions, and the lack of infrastructure necessary for the performance of the business, and the late adoption of public budgets, laws and procedures inflexible, weak the rule of law because of the exceptional circumstances experienced by the political process, and internal factors are weak application requirements of good governance (transparency in decision-making, and the adoption of competencies, long-term planning), where reflected weak governance on the lack of technical knowledge in project management (commissions open and analysis Tenders, Department resident engineer, and weak technical capabilities of laboratories and measuring devices), and the absence of incentives sense of responsibility and centralized administrative systems and complexity. said visual to that the reality of the investment environment was not the best, however, because there are delays in the enactment of the investment to 2006 despite the fact that investment environment current featuring investment code with a lot of the necessary incentives, but the challenges still facing the businessmen such as not flexible state agencies in the interaction required and the lack of work window each, and the presence of phenomena sporadic embodied not administrative discipline, and weak commercial banks or that can flexibly high rapid response business requirements, and weak insurance companies.
He pointed out that all these factors have contributed to making the investment environment is weak compared to other countries. When reading the survey done by the World Bank "Doing Business in Iraq" we find that the survey results reflect the degree harsh difficulty exercising economic activity declined sequence Iraq of 159 in 2011 to 164 in 2012 note that the survey covers 183 countries, where failed government departments for creating the required conditions and encouraging to attract businessmen and qualified contractors.
And that was to establish banks for regional development for the purpose of providing cash to invest in infrastructure in 2006 (within the federal budget law), but it did not materialize and did not find the initiative of officials on the implementation did not find SAIs executive and legislative any follow-up to the implementation of this law, The aim of these banks to regional development through the rally's own resources so the province, according to the be able to these banks to support provincial and territorial finance specific projects that they can do without referring to the general budget, in order to begin the establishment of three regional banks, in the southern region and Central and North (and the addition of other banks at a later time), where he was planned to organize the work of these banks on the basis of partnership between the Government of the regions or provinces and between the private sector or foreign investors, including the neighboring countries or businesses or international organizations (to be the province or maintain at least 50%).
Basri said was capital allocations for regional development banks and the Ministry of Finance up to (500) million payable over a period of three years has been allocated (270) billion dinars in 2006, where will the provinces and territories in the capital of these banks. He noted that it and despite the fact that the Constitution in 2005 text and explicitly on decentralized management and authority the provinces and territories, which consists of Baghdad (the capital) and provinces (currently Kurdistan only) and other provinces enjoy managing decentralized local, has been recognized constitutionally right regions and provinces to initiate laws the condition they do not conflict with federal legislation, and the provinces currently applying the principle of decentralization, and passing a law (21) in the year 2008 to the provinces is organized in a region which causes legislation is to give the provinces the right to practice decentralization, which failed in practice to give provinces the flexibility to take advantage of annual financial allocations, which reflected poor implementation rate and returned to the state treasury. He added visual saying: in the absence of the investment environment and the absence of development banks and the legal complexities in the conclusion and implementation of contracts, it is important to search for alternatives other to speed up the rehabilitation of infrastructure, where it was put the draft law structures greeting in 2009 to work on the implementation of strategic projects (such as ports) and service (such as hospitals) and the reconstruction of facilities and infrastructure projects vital that have an impact on the economic and social life (roads and drainage), to pay the costs of completed projects for the benefit of companies carried out during a period not exceeding five years from the date of receipt of the project (or any period agreed upon by the not less than five years from the date of the completion of its implementation), and for the purpose of not extravagant to bear the burden of debt for projects implemented select law to increase the amounts of contracts covered by the provisions of this law on the $ 70 billion. He said he Undoubtedly that returns law enforcement not only to provide various services needed by the citizens but beyond other things which provide work for unemployed and technology transfer, and the creation of infrastructure raises as well as the value of the economic feasibility of projects that represent Mentjaha or services inputs for infrastructure projects, and also for projects that production depends on the services provided by the infrastructure.
He pointed out that what a pity that this law did not find light for reasons from the standpoint of some lawmakers that first opens the door of corruption and waste of money, and secondly plunge Iraq debt, but that these reasons to say the least it is objective, corruption and waste of public money no doubt will be less because the government is not obliged to pay to the completion of the project specifications quantity and quality required and increase the degree of credibility of these contracts whenever they are transparent (as do such as contracts of oil licensing), The theme of plunging Iraq debt, the possibility of Iraq after the signing of licensing oil contracts and the high capacity of Iraq export fiscal revenue will increase further expected, even if religion is achieved is a price worth paying for the provision of essential services to the citizens and of water, electricity and housing.
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