14 Amendments of Maria HEUBUCH related to 2014/2233(INI)
Amendment 3 #
Draft opinion
Paragraph 2
Paragraph 2
2. Recognises that private investments and finance are likely to be the key engine for growth, which is projected to be approximately 5 % in developing countries in the coming years;in developing economies can help to support local companies, local economies and provide decent jobs - and therefore lead to poverty eradication - provided that FDI is properly regulated and linked to concrete improvements in the domestic economy, i.e. in terms of transfer of technology, the creation of training opportunities for the local labour force, etc. ; stresses that private investment should not be a substitute to ODA, while PPP should in all circumstances be aligned on the host country National Plan of development; in particular, emphasises that the future public-private partnerships (PPPs) within the post-2015 development agenda must have a greater focus on poverty reduction;
Amendment 13 #
Draft opinion
Paragraph 2 b (new)
Paragraph 2 b (new)
2b. Notes with concern that many donor- funded PPP programs are only accessible for firms from donor countries; hence, fears that the promotion of PPP in developing countries could result in a new form of aid tying; recalls that development aid should be tied to the objective of poverty eradication only, not to the promotion of EU trade' interests policy;
Amendment 14 #
Draft opinion
Paragraph 2 c (new)
Paragraph 2 c (new)
2c. Deems that a clear set of guidelines should be set to channel public support only to those private sector investments that deliver positive development outcomes and comply with principles of responsible financing, which entails among others that companies which are domiciled in secrecy jurisdictions shall be excluded;
Amendment 23 #
Draft opinion
Paragraph 3
Paragraph 3
3. Notes that while properly structured and efficiently implemented PPPs can bring many benefits such as innovation, PPP are an expensive financing model, mainly due to higher costs of private sector borrowing when compared to government rates; outlines that PPPs in developing countries are so far concentrated mostly in the energy and telecommunications sectors, whereas private engagement in social infrastructure remains rares increasing in the provision of social infrastructure, such as schools, hospitals and health services;
Amendment 29 #
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Stresses that PPPs should not be diverted to subsidising Northern-based transnational companies which can access alternative sources of financing; takes the view that any decision to promote the use of PPPs in developing countries should be based on a thorough assessment of these mechanisms, and on the lessons learned from past experience; highlights in this context that existing research show that a large majority of PPPs is not based on robust impact analysis, while there are weak evidence on their development outcomes;
Amendment 30 #
Draft opinion
Paragraph 3 b (new)
Paragraph 3 b (new)
3b. Notes with concern that the privatisation of basic utilities in Sub- Saharan Africa in the 1990s has i.e. hampered the achievement of MDGs on both water and sanitation, as the focus of investors on cost recovery has among others intensified inequalities in the provision of such services, at the expense of low-income households; underlines that, in light of the failure of water privatisation, the transfer of water services from private companies to local authorities is a growing trend in the water sector all around the world; takes the view that other alternatives should be explored to ensure efficient provision of services of general interest, such as Public-Public Partnerships;
Amendment 31 #
Draft opinion
Paragraph 3 c (new)
Paragraph 3 c (new)
3c. Warns against using concessional loans for investments in social sectors such as health and education, as it can hamper the provision of services of general interests, especially for vulnerable population; emphasises that scarce public aid resources should support public investment in the host countries, which are not necessarily expected to yield short or medium term financial returns;
Amendment 41 #
Draft opinion
Paragraph 4
Paragraph 4
4. Calls for increased technical assistance to the governments of the partner countriesPoints out that past experience show that poorly negotiated PPP contracts could add to state indebtedness, since financial risks are often disproportionally carried by the public sector, while profits are mostly granted to the private sector; calls for increased technical assistance to the governments of the partner countries to set up a sound regulatory framework on responsible financing, including on costs recovery and benefit distribution;
Amendment 48 #
Draft opinion
Paragraph 5
Paragraph 5
5. Is concerned that certain safeguards to guarantee the purposeful use of public finance are not always in place; points outin particular, notes that the goals of PPP are often defined in a very general way, while criteria for specific, measurable, attainable and timely objectives are usually absent; stresses that PPP should be a tool which rewards responsible behaviour by private firms; accordingly, deems that a strong regulatory framework shall be put in place to ensure these investments comply with human rights, social and environmental standards, transparency, while ensuring that the private sector pays its fair share of taxes; points out equally that a pro-poor development mandatory ex-ante impact assessment is needed for each PPP project that benefits from official development aid; stresses that measurable output indicators and monitoring as well as evaluation mechanisms need to be agreed upon during the preparatory phase of the projects; highlights the importance of the formal consultative and scrutiny role for parliaments and civil society in order to ensure full transparency and accountability;
Amendment 54 #
Draft opinion
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Urges the European Commission, in a context where it has indicated its wishes to extend considerably the use of blending in future years, to implement the recommendations made by the European Court of Auditors Special Report on the use of blending and to evaluate the mechanism of blending loans and grants, particularly in terms of development and financial additionality, transparency and accountability;
Amendment 57 #
Draft opinion
Paragraph 6
Paragraph 6
6. CallsBelieves that private sectors involved in PPPs shall i.e. commit to implementing the UN Guiding Principles on Business and Human Rights, ILO core labour standards as well as the UN Convention Against Corruption and embed these standards into their core business activities; calls equally on the Commission and the Member States to ensure that companies involved in PPPs respect binding corporate social responsibility (CSR) principles throughout the whole lifecycle of projects;
Amendment 62 #
Draft opinion
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Encourages the EU to support the ongoing process of elaboration of an UN international legally binding instrument on Transnational Corporations and Other Business Enterprises with respect to human rights, as it will clarify the obligations of transnational corporations in the field of human rights, as well as of corporations in relation to States, and provide for the establishment of effective remedies for victims in cases where domestic jurisdiction is clearly unable to prosecute effectively those companies;
Amendment 69 #
Draft opinion
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Stresses that development agencies must ensure that public development finance is used to support the local economic networks in developing countries and is not diverted to promote private firms and multinationals from the donor countries; in particular, stresses that PPP should aim to build capacity of domestic Micro, Small and Medium Enterprises (MSMEs);
Amendment 74 #
Draft opinion
Paragraph 8 b (new)
Paragraph 8 b (new)
8b. Notes with concern that rules on investment protection, which give very strong rights to foreign investors, have reduced government policy space to regulate in the public interest; in this context, reasserts that governments and parliaments of developing countries must retain the right to regulate private investment, including the right to discriminate in favour of investors that support the country's development ; more broadly, urges the EU to strengthen the development dimension of international investment agreements (IIAs) and balancing the rights and obligations of States and investors;