PUBLIC-PRIVATE PARTNERSHIPS
NEEDED FOR DEVELOPING
CENTRAL AND EASTERN EUROPE
26 May 1998
Public-private partnerships are emerging as a promising
solution to developing public utilities in central and eastern
Europe. That was one of the main conclusions of the Seminar on
the Privatization of Public Utilities in Europe, held in Tallinn,
Estonia, on Friday, 15 May. The Seminar, which was attended by
senior government officials, international experts and members of
parliament, was organized jointly by the United Nations Economic
Commission for Europe and the Estonian Government.
In public-private partnerships, the private sector, with its
management skills, efficiency, financial resources and capacity
for innovation, can help modernize the public utilities. The
government's role should be to ensure that the necessary public
services are provided, to regulate the vital areas of the economy
and to shoulder those burdens which do not fall within the scope
of the private sector.
The Estonian Minister of Transport and Communication, Mr. R.
Vare, spoke on privatization in his country. He pointed out that
the example of the United Kingdom's independent regulation
of its private utilities was particularly useful for Estonia.
Estonian Telecom, Estonian Railways and Estonian Energy are
already earmarked for privatization. However, these plans are
still controversial.
The representative of the United Nations Economic Commission
for Europe told the seminar that UN/ECE's Group on BOT
(build-operate-transfer) was harnessing private-sector expertise
to promote public-private partnerships for developing
infrastructure in the region.
A partner in a London-based international law firm gave a
comprehensive overview of the results of the privatization of
British utilities. Another participant described Hungary's
experience, pointing out the positive effect of privatization in
the overall transformation of the economy and in mobilizing both
foreign and domestic capital.
The seminar also examined the experience of Poland and Croatia
and the influence that the privatization of large companies and
utilities had had on the Polish and Croatian stock exchanges.
Further details can be obtained from:
Mr. Geoffrey Hamilton
Regional Adviser, Trade Division
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations
CH - 1211 GENEVA 10, Switzerland
Tel: (+41 22) 917 2838
Fax: (+41 22) 917 0037
E-mail: [email protected]