The Ministry of Finance
Since 01.06.2009 the Ministry of Finance has been appointed as the leading public administration institution responsible for the PPP policy-making and coordination of its implementation. Since 2003 this function had been fulfilled by the Ministry of Economics, however as the draft Public-Private Partnership Law was reviewed by the Cabinet of Ministers a decision was made to hand over the PPP function to the Ministry of Finance taking over from the Ministry of Economics, including from its subordinated state agency “Investment and Development Agency of Latvia” (IDAL), the financial and human resources provided for the fulfilment of the PPP function.
In addition to the PPP policy-making and coordination of its implementation the Ministry of Finance before implementation of each PPP project provides an opinion on the estimated impact of the conditions provided for in financial and economic calculations of the project on the state budget long-term liabilities and national debt.
The Monitoring Institution
As the regulation on the operations of the monitoring institution and provision of a report on the execution of public partner’s or its representative’s contract has been adopted by the Cabinet of Ministers the subordinated public administration institution of the Ministry of Finance “Central Finance and Contracting Agency” (CFCA) has been appointed as the monitoring institution mentioned in the Public-Private Partnership Law.
The CFCA fulfils the following functions of the monitoring institution:
- publishes on its website the decision on performance of PPP project financial and economic calculations;
- before implementation of each PPP project provides an opinion on the conditions included in its financial and economic calculations, risk allocation between the public partner and private partner and estimated contract value;
- provide an opinion on draft concession procedure regulation and concession agreement, amendments thereto, and amendments to the concession contract;
- monitor PPP projects evaluating report on PPP contract execution and providing opinions on it;
- submit to the Cabinet of Ministers a report on the execution of concluded PPP contract.
The CFCA also fulfils functions of the PPP competence centre, similarly to how it was done by the IDAL until 01.06.2009. If necessary, in order to fulfil functions of the PPP competence centre the CFCA can conclude cooperation contracts with other institutions involved in the PPP.
The Ministry of Economics
If necessary, it can be involved in drafting the opinion of the Ministry of Finance on financial and economic calculations of the PPP project providing evaluation of financial and economic calculations of the PPP Project according to conditions developed by the Eurostat regarding PPP statistical accounting.
The Procurement Monitoring Bureau
The Procurement Monitoring Bureau subordinated to the Ministry of Finance supervises PPP procurement procedures, as well as considers claims regarding violations of PPP procurement procedures.
The Register of Enterprises
The Register of Enterprises subordinated to the Minister of Justice accounts for and registers concluded PPP contracts in the Register of Public-Private Partnership Contracts maintained by the Bureau. The Register comprises information about amendments to PPP contracts and their termination.
According to the latest PPP regulation the PPP implementation structure also includes the Cabinet of Minister, line ministries, local governments and other subjects of Clause 15 of Article 1 of the Public-Private Partnership Law involved in the PPP project implementation on the public partner’s side.
PPP monitoring within its competence is also performed by the State Audit Office and other competent institutions.