ANALYSIS
2013, 25% of tender procedures failed due to insufficient interest from the private sector and other factors (i.e., zero bidders).
But big projects with more significant public impact are still something to be desired so Davitkovski calls for concrete action. He says that the Macedonian Law on Concessions and PPPs is one of the biggest obstacles because it is “too complicated and restrictive” so “the private partners cannot recognize
their interest in it”. He adds that Macedonia, “has to
amend the law to allow private partners’
access to publically held assets like natural resources. However, the law should contain precise provisions to protect the public interest.”
One other obstacle is the process of decentralization, which on paper transfers authority from the central government to local municipal governments, but in practice
has created confusion over who has the
right to form and manage PPPs. “The Constitution bans the transfer of authority over
national assets to local authorities. However, this is not clearly stated in the laws,
so we often have confusion where municipalities think they can create a PPP utilizing a certain asset located in their municipality, when in fact only the central government can
do this. These details need to be clarified, as well,”
Davitkovski says.
Verica Markovska, a marketing expert and co-founder
of Analysis and Advertising Group-Skopje, says that
PPPs are “a matter of learning by doing. The more
you create and carry out PPPs, the better you get at
it.” She says that the situation with PPPs in Macedonia now largely mirrors global trends, where investors are more cautious about investing in the wake of
the global economic downturn. “We are certainly not
seeing the mid-2000s frenzy when investors were actively competing for more and more projects. Everyone’s expectations probably need to be lowered a bit
because today’s reality is different from that prior to
the crisis,” Markovska explains. However, she said
she still sees great potential for PPPs, especially as a
“great way for Macedonia’s municipalities and public enterprises to get projects and build public goods
without spending their own money.”
Emerging Macedonia Summer 2