[rtl]Friday 2 October 2020 | 05:19 pm[/rtl]
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The head of the National Approach bloc, MP Ammar Tohme, presented, on Friday, a set of notes on the Public-Private Partnership Law
We present the observations according to the press release received by "Eye of Iraq News".
1. Partnership is defined as the activity related to infrastructure, production, and service projects, and this is a dangerous trend, as the law grants merchants and their influential political partners to own the infrastructure of state ministries, whether productive, such as the oil and gas sector, or service, such as the electricity and health sector, etc.
The Iraqi constitution is explicit in restricting the ownership of oil and gas and the infrastructure involved in its production, extraction and marketing to the Iraqi people, and it is administered by the constitutional authorities that the people have authorized to administer according to specific and clear criteria, not including the granting of the privilege of authoritarianism and possession of a few merchants for the most important resources of the national economy.
The same applies to the Ministry of Electricity’s facilities and its infrastructure, including production stations, transmission and distribution networks, on which the Iraqi state has spent tens of billions of dollars in decades of years. How can merchants and political influencers participate in its ownership and grant them once a partnership contract with the public sector is concluded or for a small sum of money?
This approach clearly shows a waste and a waste of state property that benefits the people.
2. This law paves the way for restricting the state's economic resources and its vital service facilities in the hands of a number of merchants lining up behind them with support, and influential politicians share the benefits of the decision of the administration of these public institutions and the setting of their general policies and the profits resulting from their operation.
3. The motives of the merchants' partners is to collect and increase profits, which is what is obtained from increasing the prices of the services of those institutions and reducing the employees working in them (laying off a lot of employees) because the profit equation for them depends on these elements.
4. The partnership contract includes assigning the tasks of designing, implementing, financing, maintaining and operating projects to the private sector. Are the technical competencies and expert cadres in the ministries lacking to carry out such tasks?
5. One of the risks of this law is that it allows foreign companies to partner with the public sector (state departments and their public productive companies) in infrastructure and production projects, including even the oil sector and infrastructure already in place according to a formula for expanding or amending that project, meaning that the infrastructure on which the state has spent Billions of dollars are shared by the foreigner.
As the law stipulated that the private sector be entrusted with full or partial financing for those projects, which requires that it be involved in the ownership of these projects and their infrastructure!
6. The law grants the region and the governorate that is not organized in a region the right to conclude a partnership with the foreign private sector, including infrastructure and production companies, and this includes even oil and gas, and then the country's economic resources will be dispersed and are subject to contracts that grant foreign companies to participate in their management decisions and formulate their production, extractive and marketing policies. The country's economy and the independence of its economic decision.
7. The law grants the exclusive right to the private sector in the matter of a project covered by the provisions of this law without competition with third parties, and this is contrary to the principles of competition and transparency stipulated in Article Two of the Law.
8. Introducing such a law is a prelude to a dangerous approach to managing the national economy that is intended to adopt partnership contracts with foreign companies in
The development of the oil and gas sector, and then it will depend and depend on the country's future, economy, and sovereign decision to the mood and desires of these major companies.
9. The law granted (the Public Private Partnership Council) the power to conclude partnership contracts, which may include productive sectors such as oil and gas, and services such as electricity and health, without requiring the approval of the Council of Ministers. Despite some of its members with the rank of general manager!
10. There is an overlap in the powers between the council (public-private partnership) and the (public-private sector partnership) department regarding the mechanisms and methods of partnership contracts, even if they differ, which opinions are presented and applied?
11. The law stipulates that the partnership contract includes determining the ownership of the funds and assets of the projects. The law allows the partnership contract to include infrastructure projects that already exist through the formula of expansion, modernization, or modification. Part of it is owned by a businessman according to the formula of the partnership contract or wholly owned in exchange for providing some of his services and benefits to the public! .
12. The law makes the partnership contract a substitute and a ruler over the laws in force so that it can suspend those laws by including the partnership contract with clauses opposing it and ruling on it, and this is a dangerous trend that robs the legislative authority of its powers and empties these laws from their meaning and replaces them with a contract concluded by the Partnership Council, which includes in its membership a person with the rank of director general.
13. Determining the tools of control, supervision and follow-up for the project is limited to what is included in the partnership contract, while there are bodies and departments concerned with these duties of control, supervision and follow-up according to enforceable laws whose role will be suspended.
14. The term of the partnership contract may reach fifty years, noting that Article (11) of the law allows the parties to the partnership contract to be subject to legal jurisdiction other than the Iraqi law, and here the subject of risk, the private partner can file a lawsuit in international courts and has influence on their decisions - especially foreign companies Major - Iraq then bears one of two dangers, one of which is more severe than the other. Either it is subject to the private partner's desire to change the contents of the contract in his favor and at the expense of the Iraqi interest to avoid decisions of international courts, or that those courts issue decisions that carry the Iraqi economy high costs and burdensome obligations.
15. Article (14) of the law states that the government provides project support through the use of infrastructure by the private partner for free, although the state has spent billions of dollars on it and the government presents it as a gift to big merchants, not for anything, but they are partners of influential politicians in the state’s decision.
16. The law stipulates that the government provides the project with financial facilities and any other means required by the project and bears part of the risks of the project, providing land, existing infrastructure and public utility services. This is so that the state bears providing all these grants to him !?
17. The types of contracts mentioned in the provisions of the law allow ownership of the project for a period of fifty years in partnership with the state, and if the contract includes renewal of a concession in specific circumstances, the period of ownership of the private partner may be extended for an additional period.
18. The law permits the creation of exclusive rights for the private partner during the implementation of the contract, enabling him to obtain new concessions at the expense of the interests of the public sector, and if the state wants to cancel these added exclusive rights, the approval of the signatories of the partnership that includes the private partner must be obtained.
19. A partner may waive his obligations mentioned in the partnership contract for the purpose of financing by a new partner, and this means that the initial partner will be required to introduce new partners who were not contracted with them in the original partnership contract.
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