Barbara Walters chats with Forward Syria
Swaying between art and seduction
Discussing monetary policy with the man in charge
Where the earth screams in horror
12/01/2009 - Issue 34
Syria’s next move: Partnership
by Stephen Starr
The Public Private Partnership Conference, held from October 31 to November 1, promises to engage the private sector in transforming Syria’s economy.
Organized by the British-Syrian Society, a two-day conference seeking to establish an environment for Public Private Partnership (PPP) in Syria brought together international experts and advisors to exchange ideas and viewpoints on how best to move Syria forward in its next step of the reform process.
Public Private Partnership is the joining of a state’s resources with private sector firms and companies in order to unite the positive aspects of both sides and also to improve a country’s intellectual and physical infrastructure. In other countries such as Britain, South Africa and Ireland, PPP has seen motorways, universities and railways built for the purpose of benefiting the public at large.
Over 50 speakers took part in the event where issues including social housing, transport infrastructure, the impact of the international economic crisis, the reduction in tender of loans from 35 to just 10 years, as well as financing and regulating PPP were addressed.
Adullah Dardari, the Deputy Prime Minister for Economic Affairs, said before a large audience on day one of the event, “We are already engaging the world’s best legal and technical advisors in order to push this process forward".
Paul Noumba, lead economist of the World Bank for the Middle East and North Africa, offered three solutions to “bridge the investment gap,” such as using public resources to fund initiatives, readying the financial sector, and overall establishing realistic guidelines. Noumba also made it clear many countries had not managed to reach their original expectations. “We are building the foundations, meaning the government still has to spell out its policies and establish an institutional framework, which is something that has not been defined before. Maybe three years down the road we will see some projects concluded,” he told Forward Magazine.
Rania Zayed of the Egyptian Ministry for Finance, a pioneer of PPP in the Arab world, said during her presentation that some governments thought PPP was coming to “take the carpet from under their feet,” but that “the party most able to take this risk is the private sector.” “Political backing is the most important issue,” she added.
The Syrian government is introducing PPP as part of its ongoing reform process as it enters its sixth Five-Year Plan with ventures including the development of the Latakia port and the Fijeh water project east of Damascus.
“Money and ideas must be backed up by infrastructure. Without this the country will not reach its potential,” according to John Davie, an advisor to the British government on Public Private Partnership initiatives. Britain itself was the original entrepreneur and benchmark for PPP having carried out more than 300 projects, but it went through a lengthy process of trial and error over a period of almost 15 years.
“Thirst must be met with supply”
A lack of electricity, something all Syrians can relate to, was another issue highlighted at the forum. Ahmad Kayyali, the Minister of Electricity, recounted how his branch of government provides 92 percent of the country’s demand for power, which is set to grow by seven percent this year in the public and private sectors with fossil fuel being the main source. Globally, demand is set to double in 25 years. Another important source of energy discussed briefly at the conference was that of wind energy. Syria hopes to install more than 4 million solar water heaters and wind parks with the capacity to produce 2,500 megawatts of electricity by 2030.
Wilhem Icke, Vice President of DEG KFW Bankengruppe for Europe, the Middle East and Central Asia made the point that the environment is an issue not to be underestimated when planning Syria’s future development. “NGO’s are always next door and we ask clients to follow EU or international environmental standards – it is very important for us to maintain a good image".
Jonathon Robinson, HSBC’s Managing Director for Project Finance in the Middle East and North Africa, told Forward Magazine that “HSBC is looking for good, new emerging markets and Syria is certainly within that category.” The bank, one of the world’s biggest companies, doesn’t yet have a physical presence in Syria but is looking to change that.
Branding Syria
Clive Woodger, founder and owner of SCG London, a branding company, said Syria has much potential. “There is not a lot of branding out there. There is some advertising, but we think Syria is certainly ready for branding. The whole point about branding is how a company differentiates itself from its competitors. There also has to be a credibility issue. It is very easy to say how great your company is but the truth will come out and this is why I find new markets particularly interesting because they are starting to realize that.” Woodger claimed to be fascinated by Syria, believing it to be “ready to go.”
On the second day of the conference, focus shifted to managing and making PPP work. Deputy Prime Minister Dardari conceded that, “We don’t have a detailed scheme for each project” but that introducing a new mentality is important. The conference also served as a shop front for local operating businesses to showcase their qualities.
