Barker: State needs proper team
THE State needs a proper project negotiating team to lead project development talks with developers, says Institute of National Affairs executive director Paul Barker.
Barker was responding to the outcome of the recent P’nyang negotiations between the Government and developers.
“Clearly, the State needs a capable negotiating team that can negotiate professionally and realistically with the developers,” he said.
“They should have access to comparative international norms on costs and returns and the details of the negotiating process and positions must be conducted on behalf of the nation with access for public scrutiny.
“These are long terms investments and they provide the opportunity for major short-terms economic stimulation and long term revenue if conditions agreed are sound and risks not unduly born by the State.
“On the other hand, the State must fully recognise the critical role of the investors, and notably the operators, in terms of planning and developing the project, securing finance and taking risk, accessing the market, and choosing this project over alternatives available.
“So they must recognise reasonable levels of expected return, control, risk and so forth.”