Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

UPP

Document Sample
UPP Powered By Docstoc
					UPP - Proposal No 028647                                      11 November 2005




                 SIXTH FRAMEWORK PROGRAMME
                                 PRIORITY 7
          “Citizen and governance in a Knoledge-based society”




Contract for:

           SPECIFIC TARGETED RESEARCH PROJECT

                    Annex I - “Description of Work”

Project acronym: UPP
Project full title: Understanding Privatisation Policy: Political Economy and
                    Welfare Effects
Proposal/Contract no.: 028647
Related to other Contract no.: (to be completed by Commission)

Date of preparation of Annex I: 09 November 2005

Start date of contract: (to be completed by Commission)




                                   Page 1 of 45
UPP - Proposal No 028647                                                                                                                    11 November 2005


TABLE OF CONTENTS


1.      PROJECT SUMMARY ............................................................................................................................... 3

2.      PROJECT OBJECTIVES ........................................................................................................................... 4

3.      PARTICIPANTS LIST ................................................................................................................................ 6

4. RELEVANCE TO THE OBJECTIVES OF THE SPECIFIC PROGRAMME AND/OR THEMATIC
AREA ..................................................................................................................................................................... 7

5.      POTENTIAL IMPACT ............................................................................................................................... 8
     5.1 CONTRIBUTIONS TO STANDARDS ................................................................................................................... 8
     5.2 CONTRIBUTION TO POLICY DEVELOPMENTS................................................................................................... 8
     5.3    RISK ASSESSMENT AND RELATED COMMUNICATION STRATEGY ............................................................. 9
6.      PROJECT MANAGEMENT AND EXPLOITATION/ DISSEMINATION STRATEGY ................. 10
     6.1     PROJECT MANAGEMENT ....................................................................................................................... 10
     6.2     PLAN FOR USING AND DISSEMINATING KNOWLEDGE ............................................................................ 12
        6.2.1 Plan for management of knowledge and intellectual property ........................................................ 12
        6.2.2 Plan for disseminating knowledge .................................................................................................. 12
     6.3     RAISING PUBLIC PARTICIPATION AND AWARENESS ............................................................................... 13
7       DETAILED IMPLEMENTATION PLAN – FOR FULL DURATION OF THE PROJECT ............ 14
     7.1 INTRODUCTION - GENERAL DESCRIPTION AND MILESTONES......................................................................... 14
        7.1.1 Research activities .......................................................................................................................... 14
        7.1.2 Policy activities ............................................................................................................................... 15
        7.1.3 Dissemination ...................................................................................................................................... 15
        7.1.4 Co-ordination and Management ..................................................................................................... 16
     7.2 PLANNING AND TIMETABLE ......................................................................................................................... 16
     7.3 GRAPHICAL PRESENTATION OF WORK PACKAGES ........................................................................................ 17
     7.4 WORKPACKAGE LIST (FULL DURATION OF PROJECT).................................................................................... 18
     7.5 DELIVERABLES LIST (FULL DURATION OF PROJECT) ..................................................................................... 19
     7.6 WORK PACKAGE DESCRIPTIONS ................................................................................................................... 21
8       PROJECT RESOURCES AND BUDGET OVERVIEW ....................................................................... 33
     8.1      EFFORTS FOR THE FULL DURATION OF THE PROJECT ............................................................................. 33
     8.2      OVERALL BUDGET FOR THE FULL DURATION OF THE PROJECT (FORMS A3.1 AND A3.2 FROM CPFS) ... 34
     8.3 MANAGEMENT LEVEL DESCRIPTION OF RESOURCES AND BUDGET .............................................................. 35
        8.3.1 Resources allocated to the project in addition to the eligible costs funded by the Commission ........ 36
9       ETHICAL ISSUES ..................................................................................................................................... 37

10. OTHER ISSUES ......................................................................................................................................... 37
     10.1 GENDER ISSUES ........................................................................................................................................ 37
     10.2 OTHER EC POLICY-RELATED ISSUES ........................................................................................................ 38
APPENDIX .......................................................................................................................................................... 39
     A.1 PARTICIPANTS AND CONSORTIUM ............................................................................................................... 39
       A.1.1 Role of the participants ....................................................................................................................... 39
       A.1.2 Complementarity and interdisciplinarity ............................................................................................ 39
       A.1.3 Skills of the participants...................................................................................................................... 39
     A.2 SUB-CONTRACTING ..................................................................................................................................... 45
     A.3 THIRD PARTIES............................................................................................................................................ 45
     A.4 FUNDING OF THIRD COUNTRY PARTICIPANTS .............................................................................................. 45




                                                                        Page 2 of 44
UPP - Proposal No 028647                                                               11 November 2005




    1. PROJECT SUMMARY
Privatisation is one of the main events of the economic history of the last decades. The privatisation
record to date is impressive, both in developed and developing economies. Despite the relevance of
the process and the extensive research recently carried out, several aspects of privatisation such as its
determinants, methods, and economic and social implications warrant a systematic analysis and
research efforts. Given the relevance of privatisation policy in the European context and in the markets
for the services of general interest (SGI), it is imperative to analyse the record of privatisation and
understand the causes behind failures in order to improve the process in the future.
The project’s main objectives are:
     To study the political and institutional incentives and constraints affecting privatisation;
     To analyse the interactions between private and public ownership and control of firms;
     To evaluate the welfare effect of privatisation policies on consumers, taxpayers and
      shareholders;
     To identify the most appropriate policies to make privatisation deliver the most desirable
      outcomes.
To address these objectives, the Project will use the tools of political economy and welfare analysis,
starting from the premises that privatisation is a political decision taken by governments at
national/sub-national level and it has important consequences on the welfare of several stakeholders in
the economy (consumers, taxpayers, employees, and shareholders). The welfare effects of
privatisation as perceived by different social groups are key element to establish the political
sustainability of reform programmes, or the long-term reversal to public provision.
The Project will adopt a multidisciplinary approach, mobilising researchers from economics, finance,
political science, and judicial disciplines working in five universities and three research institutions of
five European countries, including a new accession country.




                                              Page 3 of 45
UPP - Proposal No 028647                                                              11 November 2005


 2. PROJECT OBJECTIVES
Privatisation is a landmark economic policy of the last two decades both in developed and developing
nations. Yet some countries have pursued a consistent and sustained privatisation policy as a part of
wider reform packages, while in others ambitious programmes have been blocked on their way by
adverse interest groups, so that privatisation has been sporadic and small-scaled. Furthermore, some
governments, have typically transferred the majority of capital of State-owned enterprises (SOE) to
private investors, while in continental Europe the prevailing corporate governance model in privatised
firms appears to be the separation of ownership and control, typified by government wielding power
through pyramiding and statutory constraints especially in services of general interest (henceforth
SGI). Finally, a cosmic “disconnect” is arising between the academic consensus and how privatisation
is perceived by the population, especially in transition economies and in the poorer regions of the
world. In these circumstances, it is imperative to analyse the true record of privatisation and
understand the causes behind failures in order to improve the process in the future.
Against this background, the Project’s first objective is to study the political and institutional
incentives and constraints affecting privatisation. More particularly, the Project aims to develop:
       a sound theoretical foundation for the link between electoral rules (i.e. majoritarian vs.
        proportional systems), political orientation and privatisation activity;
       two international databases assembled jointly by economists and political scientists on
        political and institutional variables;
       empirical tests of the theoretical results using the original databases described above;
       studies of the political economy of privatisation and regulatory reform covering the evolution,
        the sectoral breakdown and the methods of privatisation processes also in Euro-Mediterranean
        Partnership countries.
 The Project’s second objective is to analyse the complex interactions between private and public
 ownership and control of firms, with special reference to regulated markets and SGI. More
 particularly, the Project aims to develop:
       a theoretical framework to evaluate the trade-offs between private and public ownership and
        control of corporations, and identify (if any) the optimal government’s stake in models
        encompassing issues of regulatory governance;
       two datasets assembled jointly by economists and legal scholars with company ownership and
        performance variables and information on “golden share” provisions for OECD countries and
        for the Tzech republic;
       empirical analyses on the evolution of ownership and control structures of privatised firms
        assessing the long term effect of changes of ownership structure on firm value in OECD
        economies and in the Tzech Republic;
       empirical analyses on the different patterns of ownership and control as compared with the
        level of divesting government (central, intermediate, local), with special reference to utilities
        and public services, and taking into account also legal and statutory constraints embodied in
        the so called “golden share provisions”.

The Project’s third objective is to evaluate the welfare effect of privatisation policies on several
stakeholders, such as:
       consumers, analyzing empirically the impact of privatisation, liberalisation and regulation of
        public utilities on individual and household welfare under different policy regimes, with
        special reference to SGI such as water supply, gas, electricity and telecommunications;
       taxpayers, studying the role of privatisation in stabilizing the current budget and in
        maintaining fiscal balance in the long-run both at the local and central level;

                                            Page 4 of 44
UPP - Proposal No 028647                                                          11 November 2005


       shareholders, evaluating the stock market performance of European listed privatised firms in
        order identify the risk and return characteristic of this particular investment;
       employees, analyzing the long term effect of privatization on employment levels and
        wages in selected European countries.
The Project’s fourth objective is to draw from the research milestones and from the results of a
comprehensive ad hoc survey a set of concrete policy recommendations in order to make privatisation
deliver the most desirable outcomes. These recommendations will be strongly based on economic
rationales taking into account the actual legislative and regulatory framework and the political and
institutional constraints facing policymaking. They will be published in a policy report that will be
presented at the final conference in Brussels.




                                          Page 5 of 44
UPP - Proposal No 028647                                                                      11 November 2005


 3. PARTICIPANTS LIST

                                          List of Participants


Partic.   Partic.   Participant name                   Participant     Country       Date enter         Date exit
Role*      no.                                         short name                    project**          project**
  CO         1      Fondazione Eni Enrico Mattei         FEEM             IT              1                24
  CR         2      Universitat Pompeu Fabra               UPF            SP              1                24
  CR         3      University of Milan                   UMIL            IT              1                24
  CR         4      Universiteit van Amsterdam         UvA-CIFRA         NL               1                24
  CR         5      IFO Institute for Economic             IFO           DE               1                24
                    Research at the University of
                    Munich
  CR         6      Stiftung Wissenschaft und             SWP            DE               1                24
                    Politik - Deutsches Institut für
                    Internationale Politik und
                    Sicherheit
  CR         8      Center for Economic Research         CERGE           CZ               1                24
                    and Graduated Education,
                    Charler University
  CR         9      University of Padua                  UNIPD            IT              1                24

*CO = Coordinator
 CR = Contractor

** Normally insert “month 1 (start of project)” and “month n (end of project)”
These columns are needed for possible later contract revisions caused by joining/leaving participants




                                                Page 6 of 44
UPP - Proposal No 028647                                                               11 November 2005


 4. RELEVANCE TO THE OBJECTIVES OF THE SPECIFIC
    PROGRAMME AND/OR THEMATIC AREA
The Project establishes an integrated consortium of eight top tier research institutions and universities.
This structure will ensure a wide representation of core EU15 countries and also of a new Member
State, such as the Czech Republic. Importantly, all the research workpackages of the proposal will be
carried out jointly by at least two members of the consortium, and one of these will involve institutions
from all the five countries represented.
Second, the Project will address some key challenges embodied by the so-called Lisbon strategy,
aimed at making the EU the “most dynamic and competitive knowledge-based economy in the world”
in 2010. Indeed, a competitive and efficient private sector is a crucial component of a dynamic
economy, and a sustained privatisation combined with suitable liberalisation and structural policies is
certainly the right policy instrument to foster economic growth and welfare.
Third, the Project is designed to foster the interaction among research communities, which are often
separated. The Project will thus invite political scientists, economists, and legal scholars to interact in
the study of privatisation, liberalisation and policy issues related to the provision of SGI. Political
scientist will cooperate with economists to develop more realistic models of social interaction and to
interpret the empirical evidence. Legal scholars will contribute to a fuller understanding of the
institutional setting, taking into account the legislative constraints (in terms of EU or national
legislation) affecting the implementation of the policy recommendations of the Project.
The Project aims to improve the state-of-the-art in privatization research. First, while the economic
determinants of privatization policy have been widely investigated, the interdisciplinary study of
political and institutional factors affecting State-owned enterprise reform and regulation represent a
new and largely unexplored area of research. By developing original theories to be tested in
comprehensive datasets, the Project should be able to identify the most critical factors in the
implementation of large reform programs. Second, the conventional economic approach hinges upon a
dichotomy private/privatized company, without taking into account the real complexity of mixed
ownership, where control rights are exerted via structures such as pyramids, statutory constraints, and
special powers of public shareholders. A comprehensive multidisciplinary analysis of these structures
and their economic effect is still missing in the literature, and will be a core focus of the Project’s
analysis. Third, the extant literature has proved that large-scale privatisation programmes may affect
dramatically the welfare of several stakeholders in the economy. Indeed, consumers are affected by the
pricing policies of privatised companies, especially in SGI. Privatisation has important consequences
on taxpayers given that revenues raised can be used to alter the fiscal stance, or to curb public debt.
Furthermore, when privatisation occurs in public equity markets, investors will be affected by the
financial performance of the stocks of privatised companies. Finally, employees of State-owned
corporations are potentially affected by reduction in staff numbers and redundant workers. Even if in
principle privatisation policy could be designed to ensure an overall improvement in welfare, it is
often claimed that it produced strong redistributive effects, paying off well some social classes, and
adversely affecting others. These concerns are significant because the poorest segments of society are
generally the main consumers of goods and services previously produced by SOEs. The dissatisfaction
of part of the public opinion with some of the recent privatisation and liberalisation policies deserve
the attention of policy makers and of the research community. So far, economists have mainly been
interested on the efficiency of privatisation and liberalisation policies, however distributional aspects
of such policies covered by the Project urge to be addressed.




                                            Page 7 of 44
UPP - Proposal No 028647                                                              11 November 2005


 5. POTENTIAL IMPACT

5.1 Contributions to standards
The expected benefit of such analyses is a clearer understanding of one of the main economic and
social processes taking place in Europe. The gradual shift from State to private ownership of
productive assets has been a distinguishing phenomenon occurring in the last two decades in several
European countries, and the cornerstone policy of the transition to a market economy in virtually all
new accession countries. A thorough investigation of why and how governments have privatised SGI,
and to what extent privatisation yielded the desired outcomes in terms of competitiveness, economic
growth and social progress is key to design future privatisation processes and complementary policies,
including liberalisation and regulation.
The Project will improve the state-of-the-art by providing innovative results along several dimensions.
First, it will develop original theories on the role of political institutions in privatisation and on the
optimal level of state ownership in firms hinging upon the new concept of regulatory governance.
Second, it will make demonstrable progress towards comparative research by making freely available
new databases and statistics allowing systematic investigations of the determinants of privatisation, on
ownership structures and additional control devices such as “golden shares”, and on the welfare effects
of privatisation of the main stakeholders in the economy, particularly consumers, taxpayers and
shareholders. Third, innovative methodologies will be established to carry out research using a variety
approaches from different social sciences, such as political science, economics and finance, legal
disciplines and involving also sociology in the validation of research outputs. Fourth, by conducting ad
hoc expert surveys to end-users in a core group of European countries and in the MEDA region, the
Project will provide new information about how privatisation is perceived among the most relevant
decision makers and stakeholders affected by such a policy.
These innovation-related activities will be exploited in various ways. First, given the academic
standing of the research consortium, the primary outlet for the exploitation of the results obtained will
be the publication in possibly impacted scientific journals or in books edited by primary international
publishers. The publication stage will be a fundamental step in the validation of the research output by
the international research community in social sciences.

5.2 Contribution to policy developments
According to recent estimates, European governments own shareholdings in (listed) privatised
companies worth approximately €250bn. If we add to this figure other financial holdings and the value
of non corporatised assets, a conservative estimate of State property in the EU approaches €1trn.
Given that indeed governments have properties left to sell, we expect to be able to formulate useful
guidelines for the management of privatisation processes, both in the Europe and in less developed
regions of the world. These processes pose several problems to policy makers that in the past have
sometimes proven unable to exploit the full potential of privatisation.
The different understanding of SGI and the different answers in the European Member States on the
liberalisation of SGI-markets (or segments of SGI-markets) may lead to different models of
privatisation. The current European discussion on new forms of Private Public Partnerships (PPP) and
the need for a European regulation (Green Book on PPP) show, that Member States, regions and local
communities are seeking for answers on the liberalisation and privatisation of SGI-markets.
Thus, the strategic policy questions we want to answer are:
       what principles should guide the overall approach to privatisation;
       what political and institutional factors favour the implementation and sustainable large-scale
        reform programme, with special reference to SGI;




                                            Page 8 of 44
UPP - Proposal No 028647                                                            11 November 2005


       what is the appropriate role of national and sub-national governments in shaping the
        divestiture process, how to deal with the potential conflict emerging at a different level of
        jurisdiction;
       to what extent privatisation may contribute to the creation of a Single Market and especially to
        the integration of European securities markets;
       how an appropriate management of privatisation can improve the credibility of regulatory
        policies aimed at improving the competitiveness of the European economy;
       how the complementary liberalisation and regulatory policies should be designed to make
        privatisation deliver the most desirable outcomes
       how the liberalisation of SGI-markets could lead to new models of public-private-partnership;
       how should privatisation be designed to minimise the adverse social effects and the impact in
        terms on distribution of wealth.
The Project results will be exploited to strengthen the scientific knowledge bases of policymaking in
the critical area of privatisation, with special reference to SGI. The research outputs will be used to
develop a coherent set of policy recommendations to foster on the one hand the effective deployment
of SGI, and on the other one to promote economic and financial integration between European
countries. Particularly, the new Member States and the remaining Accession Countries should ensure
the consistency of their policymaking with the long term goals of competitiveness, integration, and
social progress that non accession EU countries have historically agreed upon. We believe that a
proper understanding of the relationship between privatisation, liberalisation and regulation can
greatly help to achieve the long term goals of the European Union.
The target group of policy and decision makers that could relevant the Project results are: national
governments and ministries of economics and finance, privatization agencies, financial regulators at
the national and supra-national levels, EU policy makers involved in the regulation, competition,
enlargement, financial integration and fiscal issues, antitrust authorities, regulatory agencies, stock
exchanges, trade unions, and consumers associations.

5.3 Risk assessment and related communication strategy
The scientific and management risk of this project is perceived to be low. Potential risks for citizens
and/or society at large are negligible. This issue is, however, addressed in detail in Section 6 below.




                                           Page 9 of 44
UPP - Proposal No 028647                                                             11 November 2005


 6. PROJECT MANAGEMENT                                       AND           EXPLOITATION/
    DISSEMINATION STRATEGY
In the following Section both the organisational and the decision-making structures (Section 6.1) are
presented. The plan envisaged for the management of knowledge and for using and disseminating
knowledge (Section 6.2) is also outlined.

6.1 Project management
The management structure has been designed to achieve the most appropriate balance, and reduce
management risks to the minimum. The strategies to project management focus on the need to
guarantee efficiency with little financial efforts. The approach devised is simple and clearly defined.
FEEM, a private institution which has a long-lasting experience in co-ordinating research projects and
networks also with large consortia, retains overall responsibility as to the scientific management,
administrative management and co-ordination of the planned activities.
FEEM as Project Co-ordinator acts as an interface i) between single participants or the Consortium
as a whole and the European Commission, as concerns any communications, queries or requests, and
ii) between the Consortium and the outer world, in particular society at large (policy makers,
stakeholders, NGOs, local authorities, the general public and so on) that may show an interest. Main
activities cover:
       The day-by-day co-ordination and management of the activities (WP1), such as i) co-
        ordination of the technical activities of the project; ii) supervision of the degree of
        collaboration within the project; ii) co-ordination of financial, legal, ethical, administrative
        management of the activities, such as administration of EC financial contribution; iii) co-
        ordination of knowledge management and other innovative-related activities; iv) overseeing
        science and society issues, related to the activities conducted;
       Specific activities, such as i) co-ordination a research workpackage (WP4); ii) co-ordination
        the dissemination activity (WP11), in particular: organisation of the Final Conference;
        management and maintenance of the web portal entitled Privatization Barometer; publication
        of working papers.
However, in performing its duties FEEM seeks active intra-partnership collaboration. Most
participants in UPP, in fact, have previous experience of joint European RTD work, and the intense,
cooperative effort of putting this proposal together has further reinforced the cohesion of the team and
their ability to work as a group. Each participant contributes therefore to the definition of the overall
structure of the activities, especially as concerns the scientific content and provision of scientific
information and data to update the web portal and the breadth of the electronic and paper publications.
Within a co-responsible approach, UPP intends to act by consensus and it is not expected that there
will be a need for a vote. Each participant bears equal responsibility for his/her decisions. In this
framework, the Co-ordinator’s role is to propose rather than decide.
A key role will also be played by the institutions which have been assigned the leading of a
Workpackage. Workpackage Leaders will be responsible for the efficient implementation of the
tasks within their WP, in co-ordination with the activities carried out within the other WPs.
Co-ordination and quality monitoring of the research activities will be granted by the Project Steering
Committee (PSC), the collegial body of the STREP, that will be composed by one representative of
each participant. The Committee will be chaired by FEEM delegate, that will be responsible for
preparing the agenda, moderating the meeting, drafting and circulating the minutes.
The role of the PSC is: i) to ensure co-ordination of the research activities; ii) to monitor the
development of the implementation plan and to assess its compliance with the proposed objectives; iii)
to ensure overall quality control on the project implementation; iv) to make proposals and/or
recommendations on the dissemination activities and to review their implementation; v) to discuss and
approve the project deliverables and reports.

                                           Page 10 of 44
UPP - Proposal No 028647                                                                                                                                                   11 November 2005


The PSC will meet at least three times over the life span of the project: at the beginning (Kick Off
Meeting), at the intermediate phase (Intermediate Project Meeting), and by the concluding phase (in
concomitance with the Final Conference). Additional meetings may be organised, subject to the
availability of resources and necessity. Virtual meetings, through electronic fora and tele/video
conferences may also be organised.
Notwithstanding the above, from the administrative and financial perspective, all Partners bear the
same obligations towards the Commission.
This co-responsibility vision to the implementation of the project activities is an indication of all
participants’ strong engagement in the project and their high commitment.
The UPP partners have also agreed to subscribe a Consortium Agreement regulating specific rights,
obligations and operational aspects that are not explicitly defined in the EC contract, to be signed
before the completion of the contract signature procedure with the Commission.
Figures below show the organisational and the decision making structure of UPP.
Figure 1: The organisational structure
    Project Steering Committee (PSC)




                                                                                                            Project
                                                                                                       Co-ordinator (PC)




                                                                                                                                                                                WP10 Leader


                                                                                                                                                                                              WP11 Leader
                                                 WP1 Leader


                                                               WP2 Leader


                                                                            WP3 Leader


                                                                                          WP4 Leader


                                                                                                        WP5 Leader


                                                                                                                      WP6 Leader


                                                                                                                                   WP7 Leader


                                                                                                                                                 WP8 Leader


                                                                                                                                                                  WP9 Leader




                                                                                                   ALL PARTNERS



Figure 2: The decision making structure



                                                                                          PROJECT
                                       Partner
                                                                                          STEERING
                                          1                                                                                                                        Project
                                                                                         COMMITTEE
                                                                                            (PSC)                                                             Co-ordinator (PC)
                                       Partner
                                          2

                                       Partner
                                          3
                                                              Partner                    Partner                     Partner                    Partner                        Partner
                                                                 4                          5                           6                          8                              9




                                                                                                Page 11 of 44
UPP - Proposal No 028647                                                               11 November 2005


6.2 Plan for using and disseminating knowledge
6.2.1   Plan for management of knowledge and intellectual property
Management and co-ordination of the knowledge derived from the activities take place during the
whole duration of the project.
An interactive web page is established to support the varying organisations involved to accomplish
their objectives. The web site is a vital and dynamic working tool and clearly needs to be as user-
friendly as possible to capture the widest audience possible.
Timely and efficient intra-partnership communication is essential to the proper implementation of the
research activities. It is a means to ensure that UPP is proceeding according to its implementation plan,
enabling organisations to interact through web facilities (e.g. e-fora) in a spirit of free, creative and
constructive dialogue. The provision of an interactive web page and e-correspondence allows saving
on travel costs, because it makes meetings among the partners less necessary. The intranet service is
mainly directed at the following activities:
       Circulation of preparatory and internal work (both scientific and administrative);
       On-line exchanges of information and data on privatisation processes;
       Forum for internal debates;
       Refinement of the workplan.
Moreover, an electronic mailing list is established to ensure prompt and easy communication between
participants on both scientific and administrative issues. At a minimum, the e-mailing list is an intra-
consortium communication tool. It is however envisaged that it may be enlarged to other organisations
and interested parties (such as policy makers and stakeholders or individuals) expressing their interest
in being updated on the project’s activities. Of course confidential communication remains restricted
to the consortium. Telephone and fax devices are other valid instruments for an immediate
communication among participants.
Knowledge management and intellectual property rights are addressed in full compliance with the EC
FP6 rules, as defined in the EC Regulation No 2321/2002. This implies, inter alia, acknowledgement
of the following:
       Pre-Existing-Know-How (PEKH) brought into the project remains the property of the partner
        that has generated it;
       Knowledge generated under the project is owned by the partner who carried out the work
        leading to that knowledge. In the most common case where several partners have jointly
        carried out the work and their respective share of work can not be ascertained, they shall have
        joint ownership of such knowledge, for which a co-ownership agreement may be set up.
6.2.2   Plan for disseminating knowledge
Dissemination activities are implemented through a different range of measures and are a fundamental
component of the whole strategy devised by UPP. The project’s efforts in this area are meant to lead to
continuing collaboration and an increasingly concerted approach between the partnership, the EU and
other interest parties.
First of all, the Project uses for dissemination a web portal entitled the “Privatization Barometer”
(PB), that provides insights in privatisation processes in the whole European Area (detailed description
is provided in Section 7 below).
Secondly, a linked web page dedicated to the project is established and maintained. It includes: (i)
producing scientific contents; (ii) publishing all project findings and mid-term scientific reports on this
web site; (iii) and to establish links with the web sites of the partner institutions.
Thirdly, an electronic newsletter, is distributed on a six months basis to a wide list of academics,
policy-makers and interested public at large, starting for from month 6 of the project. The e-Newsletter
updates readers on the progresses of the Action and contains direct links to the output of the Action, in

                                            Page 12 of 44
UPP - Proposal No 028647                                                             11 November 2005


order to disseminate the results of the project outside the project. The e-newsletter will be distributed
to the mailing lists of each partners of the consortium. If necessary a new specific mailing list of
interested parties will be created.
Fourthly, the Final Policy-Informing Conference (to be organised in Brussels by FEEM in
collaboration with European Commission) represent a clear means towards dissemination and is
targeted at policy-makers and stakeholders (in particular development practitioners and the private
sectors). Workshops and conferences will be used to expose end-users (privatisation officials,
regulators, policy makers, academics, practitioners, and stakeholders) to the results of the project and
to receive feedbacks to be included in the final policy reports. This event will be appropriately
publicised through the media (press, partners journals, web) in order to achieve the widest audience.
A press conference will be organized after the event to convey the ultimate results and policy
recommendations of the project to the economic, political, and financial communities.
Fifthly, it is envisaged that 17 Working Papers and a Policy Paper are produced to disseminate the
main results of UPP’s activities. The working papers are posted on the web site (where they are
downloadable free of charge) and distributed in paper copies. They are meant as intermediate outputs
and their aim is to stimulate the debate and to encourage broader understanding on the themes. In
particular the policy paper will be published at the end of the project to prepare policy advice, based
on project’s conclusions, which would be distributed to policy makers. Moreover updated publication
on the project activities are actively sought in specialised scientific journals and newspapers. This
includes local, national and international press.
Dissemination of the Project’s results is therefore achieved using a new instrument and conventional
outlets such as the working papers, workshops and conferences.

6.3 Raising public participation and awareness
The Plan for using and disseminating knowledge and the Communication Action Plan is summarised
in Section 6.2 above. Particularly relevant to this aim is the ad hoc web-based facility entitled
“Privatization Barometer” (PB), described in Section 7 below.




                                           Page 13 of 44
UPP - Proposal No 028647                                                             11 November 2005


7 DETAILED IMPLEMENTATION PLAN – FOR FULL
  DURATION OF THE PROJECT

7.1 Introduction - general description and milestones
In order to target the objectives described in Section 2, UPP Project has been designed in 11
integrated work packages, comprising research (WPs2-11) and management activities (WP1),
and it applies the following principles:
(i)     theoretical and empirical work should be as much as possible intertwined;
(ii)    interaction among the members of the consortium should be promoted at all levels;
(iii)   common research strategies and methodologies should be developed using a variety of
        approaches;
(iv)    comparable evidence should be produced, with special reference to EU, OECD and MEDA
        countries;
(v)     concrete policy recommendations should be a fundamental output of the research.
To implement the principle (i), each research Workpackage presents a theoretical or methodological
part which will yield predictions to be tested in the empirical part of the Workpackage. As to principle
(ii) while establishing a Leader for each Workpackage, the Project also stimulates individual
contributions in definition of common methodologies for data collection and the implementation of
empirical tests. As to principle (iii), the multiple disciplines involved in the project will ensure a
comprehensive analysis of all issues at stakes, combining the economic and financial point of view
with the inputs from political science and judicial sciences. Importantly, some sociologists will
contribute to the validation of the research outputs by participating at the interim meeting and final
conference. As to principle (iv), in order to ensure comparability of data across countries, researchers
will make use as much as possible of centralized and official sources such as the World Bank, the
International Monetary Fund, the OECD, and reliable internet sources. Completeness of the data will
be ensured by the construction of panel dataset, allowing to capture variability across countries and
overtime. Furthermore, the consortium will collect a bulk of original data and information by through
a harmonized survey in five European countries involving the main stakeholders and possible end-
users. Finally, the effort of co-ordination should allow the production of comparable results, which in
turn will be easily interpreted to provide concrete policy prescriptions in application of principle (v).
7.1.1   Research activities
A general Kick-off Meeting will be the key initial milestone. This Meeting will be organised in a
general session, common to all project participants, and three parallel sections where researchers will
brainstorm on the three main themes of the project, namely “The political-institutional determinants of
privatisation” (WP2), “Public vs private ownership and control” (WP4), and “The welfare effects of
privatisation on consumers” (WP6). Within these sessions, each WP Leader will describe the
objectives of their respective research task, and will try to adjust the research agenda taking into
account the inputs and feedbacks received from the researchers within and across WP.
After the Kick-off Meeting, research activity at the WP level will enter the operational stage, and will
be pursued until a second Intermediate Project Meeting that will be called approximately after 12
months from the Project Kick-Off. The structure of the second meeting will be symmetric to the Kick-
Off Meeting, but the brainstorming sessions will be replaced by a thorough presentation of
intermediate results, which will be discussed both within the WP and presented at the general session.
This interaction at these meetings will foster the cross-fertilisation of ideas within the research
consortium, which is one of the main objective of the implementation plan.
In more detail, research activity will be implemented as follows. After the Kick-Off Meeting,
economic theorists will start developing rigorous models of social interaction. The working
assumptions of this theoretical models will be developed with the contribution of political scientists

                                           Page 14 of 44
UPP - Proposal No 028647                                                             11 November 2005


and legal scholars. The inputs from these two disciplines will be particularly important in all WPs as
they will allow to capture the fundamental institutional issues in critical areas such as the functioning
of political systems, liberalisation, regulation, and corporate governance. All these broad themes are
relevant in the study of the determinants, the methods, and the welfare effects of privatisation.
Sound theoretical models will provide the basis for the empirical analysis. Empirical research will be
carried out as follows. First, methodological issues will be addressed, and suitable data collection,
modelling and econometric techniques will be established to conduct the tests. Second, rigorous
methods for data collection and data assessment and validation will be established. Again, the
contribution from various discipline will be fundamental at these stage. Then, the empirical analyses
will be conducted, and validated performing a series of robustness tests. Finally, the testable
hypotheses will be accepted or rejected, according to the results obtained.
At a final stage, the validated output of research will be discussed and examined jointly by all
members of the consortium, and an agreed upon strategy for the formulation of policy
recommendation will be established. Then, the policy prescriptions will be issued and presented to
end-users (WP10).
7.1.2   Policy activities
Given the scientific aims of the Project, theoretical models and empirical analyses will be key
deliverables. However, given the strategic and social relevance of the issues tackled by the Project, it
is also important to connect the academic community to the relevant communities and social actors
affected by the privatisation process. In this direction, the Project will also develop a joint /
harmonised interviewing and survey methodology to be implemented in all the countries represented
in the consortium on privatisation choices and outcomes as perceived by the most relevant
stakeholders (WP9).
7.1.3 Dissemination
Dissemination of research outputs and policy options is one of the key objective of the implementation
plan of the project (WP11). The dissemination strategy has been described in detail in Section 6.2.2
above and its aim is to reach the highest number of possible end-users in Europe and around the world
with useful guidelines for sound policymaking will allow to maximize the potential impact of the
research outputs.
In this paragraph we want to describe in details the web based facility, entitled “Privatization
Barometer” (PB), the major dissemination instrument of the project, that ensures the wider exposure of
the project’s result to the international community.
PB is the first comprehensive Internet portal focusing on privatization in the European Union,
including the first central and eastern European (CEE) accession countries. As a non-profit initiative,
all the content – and its regular updates - is available free of charge to any user.
Funded in 2004 by Fondazione Eni Enrico Mattei and Fondazione IRI (two independent research
institutions) PB has established a unique and independent source for policy analysis of privatization
and related issues that is strongly based on objective research. By reporting comprehensive data and
information on the historical process and most recent and future trends, PB provides a focal point for
an international audience of researchers, analysts, international agencies, governments and policy-
makers. PB has been recently selected by the OECD as its primary source of privatization data, and by
World Bank for the supply of revenues data for the WB Privatization Database.
The resources earmarked to PB will be exclusively employed to create a new platform hosted by the
portal which will disseminate the interim and final results of UPP research project. This new Research
section - to be launched in mid 2006 – will make progressively available to the public databases and
milestones organized in sub-sections for the various workpackages. The implementation and
maintenance of the new section will represent an incremental cost with respect to the current total
technical costs envisaged for the period 2006-2007.
Substantial network effects will be obtained in the dissemination activity of the Project’s results by
leveraging on the high visibility of PB. Since the launch in July 2004, PB has been widely accessed
(97.800 visitors, 198.000 page views, 250 avg. single IP users per day). The breakdown of the first

                                           Page 15 of 44
UPP - Proposal No 028647                                                                    11 November 2005


1.000 registered users shows PB is attracting considerable attention from researchers and academic
users, followed by governments, agencies and international organizations. As the access statistics
show, most of present PB content is widely accessed and downloaded to be utilized as a fundamental
research tool.
More particularly, the breakdown of registered users shows that PB is attracting considerable and
increasing attention from the media as a primary source of data, information and analysis on
privatization. The section of PB dedicated to UPP will therefore target the media audience, providing
information on UPP progress in a widely accessible and non-technical language
7.1.4   Co-ordination and Management
WP1 encompasses the smooth running of project co-ordination and management activities. They are
described in detail in Section 6.1 above.

7.2 Planning and timetable
The following figure (Figure 3) presents the work planning Gantt diagram of the proposed project. The
duration of the project is 24 months. There are 8 organisations participating in the project.

Figure 3: Gantt diagram of Project Plan (Time step = 2months)
                   Semester I            Semester II          Semester III             Semester IV
                B1    B2      B3       B4   B5      B6       B1  B2      B3           B4  B5      B6
        WP1        M                                 D/M                                           D/M

        WP2        M               D                 D/M       D              D         D

        WP3        M                             D   D/M                      D         D

        WP4        M               D                     M     D                        D

        WP5        M                             D       M     D                        D

        WP6        M                     D               M     D                        D

        WP7        M                     D           D/M                      D         D

        WP8        M                                 D/M                                D

        WP9        M          D/M                        M                        D

        WP10                                             M                                             M

        WP11   D   M D             D                 D/M                      D                    D/M

        D      Deliverable
        M      Milestone




                                             Page 16 of 44
UPP - Proposal No 028647                                                            11 November 2005


7.3 Graphical presentation of work packages
A graphical presentation of this implementation plan is presented in the Pert Chart below (Figure 4).

Figure 4: Pert diagram

                                    The Determinants of Privatisation
                                   WP2, Theory and Data, OECD countries
                                          WP3, MEDA countries



                                       The Methods of Privatisation
     ANALYSIS




                                   WP 4, Theory and Data, OECD countries
                                           WP3, MEDA countries
                                          WP5, Accession country




                                    The Welfare effects of Privatisation




                                                                                                 and management
                                             WP6 Consumers




                                                                                                  Co-ordination
                                             WP7 Taxpayers
                                            WP8 Shareholders




                                                                                                      WP1
     POLICY




                                 Assessment of Policy Instruments to
                                      Make Privatisation Deliver
                     Survey                                                     Stakeholders
                                               WP10
                      WP9
     DISSEMINATION




                                             Dissemination
                                                 WP11




                                           Page 17 of 44
UPP - Proposal No 028647                                                                                               11 November 2005


7.4 Workpackage list (full duration of project)


     WP                              WP title                           Lead             Person-           Start          End          Deliv-
     No1                                                              contractor         months3          month4         month5        erable
                                                                         No2                                                            No6

                                                                                                                                       D.1.1
                  Project co-ordination and                                                                                            D.1.2
WP 1              management
                                                                            1               11               1             24
                                                                                                                                       D.1.3
                                                                                                                                       D.1.4
                                                                                                                                       D.2.1
                  The determinants of privatisation                                                                                    D.2.2
WP 2              policy
                                                                            2               12               1             20
                                                                                                                                       D.2.3
                                                                                                                                       D.2.4
                  Privatisation and regulatory
                                                                                                                                       D.3.1
WP 3              reform in the Middle East and                             1               14               1             20
                                                                                                                                       D.3.2
                  North Africa (MEDA) area
                                                                                                                                      D.4.1
                  Public vs. private ownership and                                                                                    D.4.2
WP 4              control
                                                                            1              15,5              1             20
                                                                                                                                      D.4.3
                                                                                                                                      D.4.4
                                                                                                                                      D.5.1
                  Company performance from
WP 5              transition to EU integration
                                                                            8               9,5              1             20         D.5.2
                                                                                                                                      D.5.3
                  The welfare effects of                                                                                              D.6.1
WP 6              privatisation on consumers
                                                                            3               10               1             20
                                                                                                                                      D.6.2
                                                                                                                                      D.7.1
WP 7              The fiscal effects of privatisation                       5                9               1             20
                                                                                                                                      D.7.2
                  The stock price performance of                                                                                      D.8.1
WP 8              privatisation-related indexes
                                                                            4               10               1             20
                                                                                                                                      D.8.2
                                                                                                                                      D.9.1
                  Expert interviews and targeted
WP 9              surveys
                                                                            5               13               1             20         D.9.2
                                                                                                                                      D.9.3
                                                                                                                                      D.10.1
WP 10             Making privatisation deliver                              9              16,5             11             24
                                                                                                                                      D.10.2
                                                                                                                                      D.11.1
                                                                                                                                      D.11.2
WP 11             Dissemination and networking                              1               9,5              1             24         D.11.3
                                                                                                                                      D.11.4
                                                                                                                                      D.11.5

                  TOTAL                                                                    130




1
  Workpackage number: WP 1 – WP n.
2
  Number of the contractor leading the work in this workpackage.
3
  The total number of person-months allocated to each workpackage.
4
  Relative start date for the work in the specific workpackages, month 1 marking the start of the project, and all other start dates being
relative to this start date.
5
  Relative end date, month 1 marking the start of the project, and all ends dates being relative to this start date.
6
  Deliverable number: Number for the deliverable(s)/result(s) mentioned in the workpackage: D1 - Dn.

                                                            Page 18 of 44
UPP - Proposal No 028647                                                                                               11 November 2005


7.5 Deliverables list (full duration of project)


Deliverable                                     Deliverable title                                      Delivery        Nature        Dissemination
    No7                                                                                                 date                              level
                                                                                                            8              9                 10



D.1.1            Intermediate Activity Report                                                              12             R                 PU
D.1.2            Intermediate Management Report                                                            12             R                 PU
D.1.3            Final Activity Report                                                                     24             R                 PU
D.1.4            Final Management Report                                                                   24             R                 PU
D.2.1            Guidelines for data collection on political institutions                                   6             R                 PU
                 Two theoretical papers on the determinants of
D.2.1                                                                                                   12-20             R                 PU
                 privatisation policy
                 Database on political institutions and political
D.2.3                                                                                                      14             O                 PU
                 orientation
                 Two empirical papers on the determinants of
D.2.4                                                                                                   18-20             R                 PU
                 privatisation policy
                 Four reports on privatization and regulatory reform in                                 10-12
D.3.1                                                                                                                     R                 PU
                 the MEDA region                                                                        18-20
                 Database on the privatization transactions in the MEDA
D.3.2                                                                                                      20             O                 PU
                 region
                 Guidelines for data collection on ownership and control
D.4.1                                                                                                       6             R                 PU
                 structures
                 A theoretical paper on the trade offs between public and
D.4.2                                                                                                      14             R                 PU
                 private ownership and control
                 Database on ownership and control structures in OECD
D.4.3                                                                                                      14             O                 PU
                 economies
                 Two empirical papers on the evolution of ownership an
D.4.4                                                                                                   18-20             R                 PU
                 control in privatised firms
                 A panel data set on corporate ownership and
D.5.1                                                                                                      10             R                 PU
                 performance in the Czech Republic
                 A theoretical paper on the effect of ownership changes
D.5.2                                                                                                      14             R                 PU
                 in performance
                 Two empirical papers on company performance in a
D.5.3                                                                                                   18-20             R                 PU
                 transition economy

7
  Deliverable numbers in order of delivery dates: D1 – Dn
8
  Month in which the deliverables will be available. Month 0 marking the start of the project, and all delivery dates being relative to this start
date.
9
  Please indicate the nature of the deliverable using one of the following codes:
            R = Report
            P = Prototype
            D = Demonstrator
            O = Other
10
   Please indicate the dissemination level using one of the following codes:
            PU = Public
            PP = Restricted to other programme participants (including the Commission Services).
            RE = Restricted to a group specified by the consortium (including the Commission Services).
            CO = Confidential, only for members of the consortium (including the Commission Services).

                                                            Page 19 of 44
UPP - Proposal No 028647                                                     11 November 2005


          Databases on welfare measures for consumers and
D.6.1                                                                 8       O          PU
          employees
          Three empirical papers on the welfare effects of           8-14
D.6.2                                                                         R          PU
          privatisation on consumers                                  20
          A panel database on fiscal measures and institutions for
D.7.1                                                                 8       O          PU
          European countries
          Three empirical papers on the fiscal effects of            12-18
D.7.2                                                                         R          PU
          privatization                                               20
D.8.1     A database with daily series of privatization indexes       12      O          PU
          An empirical paper on the stock price performance of
D.8.2                                                                 20      R          PU
          privatization-related indexes
          Standardised questionnaire to be used for enterprises in
D.9.1                                                                 6       O          PU
          all 5 countries
          Frame for in-depth interviews with key informants and
D.9.2                                                                 6       O          PU
          other relevant stakeholders in all 5 countries
          Report on judgements and qualitative other information
          on politics of privatisation user in the individual
D.9.3                                                                 21      R          PU
          countries as well in a synthesised cross country
          comparison
D.10.1    Policy report summarising the main recommendations          24      R          PU
          Regulatory guidelines on Corporate Governance,
D.10.2    Institutional Reform and European Financial and             24      R          PU
          Economic Integration
          Development of a research platform within the
D.11.1                                                                1       O          PU
          Privatization Barometer portal
D.11.2    Establishment of a dedicated Project web page               3       O          PU
                                                                      6-12
D.11.3    Electronic Newsletters                                              O          PU
                                                                     18-24
D.11.4    Policy paper on project’s conclusions                       24      R          PU
D.11.5    Publication of Working papers                               24      R          PU




                                        Page 20 of 44
UPP - Proposal No 028647                                                               11 November 2005


7.6 Work package descriptions

                 Workpackage description (full duration of project)

Workpackage number         1               Start date or starting event:                     1
Workpackage title          Project co-ordination and administration
Participant ID                   1         2        3         4        5               8         9
Person-months per participant: 8           0,5      0,5       0,5      0,5             0,5       0,5


Objectives
    to ensure the efficient of the scientific co-ordination of the project
    to ensure the efficient of the administrative management of the project


Description of work
The following activities are foreseen:
Task 1: the Kick-off meeting at month 1 (to be organised by UPF) and 2 additional meetings of the Project at
month 12 and 24 (to be organised in concomitance with the Final Conference organised in Bruxelles by
FEEM and in collaboration with EC);
Task 2: the overall legal, contractual and administrative management of the project;
Task 3: the maintenance of the Consortium Agreement;
Task 4: the management of the financial flows between the Commission, the Co-ordinator and the partners;
Task 5: the co-ordination of the knowledge management issues;
Task 6: the preparation of 12-months and 24-months Activity and Management Reports;
Task 7: the overall co-ordination of the technical activities of the project, including monitoring of the project
implementation and of the objectives achievement.
FEEM will be responsible of ensuring the overall administrative co-ordination and management of the
STREP (tasks 1-7). All partners will be responsible for the preparation of the Activity Reports as part of the
activities carried out in the research activities WPs (2-11).


Deliverables
D.1.1: Intermediate Activity Report (month 12)
D.1.2: Intermediate Management Report (month 12)
D.1.3: Final Activity Report (month 24)
D.1.4: Final Management Report (month 24)


Milestones and expected result
M 1.1: Kick-off Meeting (month 1)
M.1.2: Intermediate Project Meeting (month 12)
M.1.3: Final Project Meeting in concomitance with the Final Conference (month 24)




                                           Page 21 of 44
UPP - Proposal No 028647                                                                 11 November 2005


                  Workpackage description (full duration of project)

Workpackage number         2             Start date or starting event:                       1
Workpackage title          The determinants of privatisation policy
Participant ID                   1        2         4         6
Person-months per participant: 2          7         1,5       1,5


Objectives
    To provide a conceptual framework to relate the observed differences in privatisation outcomes
       across countries to different political and institutional settings.
       To develop comprehensive databases on the functioning of political systems, on the partisan
        orientation of government and privatisation activity for a comprehensive sample of established
        democracies suitable to test empirically the predictions developed in the theoretical part


Description of work
This workpackage will build a theoretical model of electoral participation and voting behavior that explains
the links between policies and its citizens’ electoral decisions and a theoretical foundation for the argument
that stronger incentives are present under proportional systems as opposed to majoritarian ones to delay and
eventually block privatisation and reform
A joint group of researchers in political science and economics will deliver suitable measures for the working
of political institutions in developed and transition economies at
A comprehensive database of political institutions and political orientation for a comprehensive sample of
established democracies and transition countries will be then assembled using primary data on electoral
outcomes. A preliminary list of variables to be included are (i) the degree of dis-proportionality generated be
electoral rules, (ii) the effective number of parties, (iii) indicators on the type of government, (iv) district size
and (v) electoral thresholds. This database will be delivered at
The political datasets will be used to test empirically (i) the role of political institution in the timing and
extent of privatisation and (ii) the role of the privatisation method in explaining the likelihood of re-election
of the incumbent government. Duration analysis and GMM estimators will be employed in a panel data
setting.

Deliverables
D.2.1: Two theoretical papers on the determinants of privatisation policy (month12 and 20)
D.2.2: Guidelines for data collection on political institutions (month 6)
D.2.3: Database on political institutions and political orientation (month14)
D.2.4: Two empirical papers on the determinants of privatisation policy (month18 and 20)

Milestones and expected result
M 2.1: Kick-off Meeting (month 1)
M.2.2: Intermediate Project Meeting (month 12)




                                             Page 22 of 44
UPP - Proposal No 028647                                                              11 November 2005


                 Workpackage description (full duration of project)

Workpackage number         3               Start date or starting event:             1
Workpackage title          Privatisation and regulatory reform in the Middle East and North Africa
                           (MEDA) area
Participant ID                    1        2
Person-months per participant: 12          2


Objectives
    To examine the track record of different forms of public ownership and control in MEDA countries
       To evaluate the determinants, methods and outcomes of privatization in this area


Description of work
This workpackage will analyse the contribution of State-owned Enterprises (SOEs) to growth,
macroeconomic policy, competitiveness, and technological accumulation. Then it will investigate why, how
and by whom were/are privatisation policies initiated, trying to explain differences across countries, the
importance of external pressures, including IMF conditionality.
This workpackage will study the effect of privatisation on fiscal revenues (in terms of flows of sale proceeds,
cuts in subsidies, and increase in tax revenues), on financial performance indicators before and after the main
changes were introduced, and on the stakeholders such as consumers, employees.
This workpackage will evaluate how privatisation policies contributed to the development of the local private
sector and of financial markets, to the improvement of corporate governance and regulatory reform, including
in major factor and product/service markets, and how they policies interacted with efforts aimed at improving
the public administration system, the political system and political culture (transparency, patronage, etc.), and
private law
This work package aims at creating a comprehensive database covering the evolution, the sectoral breakdown
and the methods of privatisation processes, as well as detailed information on number of transaction and
proceeds of the divestitures. The methodology for data collection will draw on a previous study OECD
Development Centre on privatisation in sub-Saharan Africa (Berthélemy et al. 2004). The information will be
gathered through questionnaires, various media sources, as well as the most recent papers published on the
subjects.

Delivarebles
D.3.1: Four reports on privatization and regulatory reform in the MEDA region (month 10, 12, 18, and 20)
D.3.2: Database on the privatization transactions in the MEDA region (month 20)


Milestones and expected result
M 3.1: Kick-off Meeting (month 1)
M.3.2: Intermediate Project Meeting (month 12)




                                           Page 23 of 44
UPP - Proposal No 028647                                                                11 November 2005


                 Workpackage description (full duration of project)

Workpackage number         4               Start date or starting event:                    1
Workpackage title          Public vs. private ownership and control
Participant ID                   1          4       6         9
Person-months per participant: 8            2,5     3         2


Objectives
    To develop a theoretical models analysing the trade-offs between private and public ownership and
       control of corporations
    To analyse empirically the evolution of ownership and control structure of a large sample of
       privatised firms in developed economies, and to assess empirically the long term effect of changes of
       ownership structure on firm value.
    To analyse the different patterns of ownership and control as compared with the level of divesting
       government (central, intermediate, local), with special reference to utilities and public services and
       taking into account legal and statutory constraints and the different incentives to privatise at the
       central, intermediate (agencies, state-controlled financial institutions), local (regional, municipal,
       etc.) level

Description of work
This workpackage will develop a model to establish the “optimal” size of state ownership according to the
relevance of private and public commitment problems, which in turn depend upon on the notion of
regulatory governance, namely the institutional and regulatory endowment of a given jurisdiction.
A multidisciplinary group of legal scholars, political scientists and economists will analyse constitutional
structures, statutory constraints, and golden shares provisions to identify a list of quantitative indicators to be
used in the empirical analysis.
This workpackage will then assemble a comprehensive dataset using ShareWorld, Global Access and
primary sources about the evolution of ultimate (i.e. direct and indirect) ownership for a large sample of
privatised firms in OECD economies, possibly for the 1996-2004 period, identifying the types of ultimate
owners (taking into account national and sub-national levels), and about their ownership and control rights in
these companies. These data will be used to test the empirical predictions established by the theoretical
models.
This workpackage will develop an empirical based on political economy argument to analyse the different
incentives and constraints affecting privatisations at these various levels, such as at the central government
level, at the local government level (federal states, regions, or municipalities), and at the company level,
when State-owned corporations divest or spin off their assets.


Deliverables
D.4.1: Guidelines for data collection on ownership and control structures (month 6)
D.4.2: A theoretical paper on the trade offs between public and private ownership and control (month14)
D.4.3: Database on ownership and control structures in OECD economies (month 14)
D.4.4: Two empirical papers on the evolution of ownership an control in privatised firms (month 18 and 20)

Milestones and expected result
M 4.1: Kick-off Meeting (month 1).
M.4.2: Intermediate Project Meeting (month 12).




                                            Page 24 of 44
UPP - Proposal No 028647                                                          11 November 2005


                Workpackage description (full duration of project)

Workpackage number         5            Start date or starting event:            1
Workpackage title          Company performance from transition to EU integration
Participant ID                 4         8
Person-months per participant: 1,5       8


Objectives
    To explore how various ownership and management structures affect corporate performance in a
       main transition country such as the Czech Republic.
    To improve theoretical framework to model firms’ performance in the presence of endogeneity of
       ownership structures.
    To identify specifications suitable for the estimation of company performance in a transition
       economy that has been integrated into the European Union.

Description of work
In analysing the corporate performance and firm efficiency, this workpackage will:
     use panel data on a complete population of medium and large firms that went through the mass
        privatisation in the Czech Republic and that constitute the bulk of the country’s economic activity,
     cover the period from the end of privatisation to today, and
     control for endogeneity of ownership using a first-difference specification together with instrumental
        variables from rare data on pre-market initial conditions of these firms.
A systematic analytical framework for evaluating the performance effect of post-privatisation ownership will
be established to distinguish between instantaneous and permanent effects of ownership changes, and to use
more detailed data on the extent of ownership by specific types of owners.

Deliverables
D.5.1: A panel data set on corporate ownership and performance in the Czech Republic (month10)
D.5.2: A theoretical paper on the effect of ownership changes in performance (month 14)
D.5.3: Two empirical papers on company performance in a transition economy (month 18 and 20)

Milestones and expected result
M 5.1: Kick-off Meeting (month 1)
M.5.2: Intermediate Project Meeting (month 12)




                                         Page 25 of 44
UPP - Proposal No 028647                                                             11 November 2005



                 Workpackage description (full duration of project)

Workpackage number         6              Start date or starting event:                  1
Workpackage title          The welfare effects of privatisation on consumers
Participant ID                  3          5
Person-months per participant: 9           1


Objectives
    To study the welfare impact on consumer wealth of privatisation, liberalisation and regulation of
       public utilities under different policy regimes, with special reference to services such as water
       supply, gas, electricity and telecommunications.
    To study the welfare impact on of privatisation on employees


Description of work
A first part of the workpackage will analyze the change in consumers’ welfare “with” and “without”
privatisations by means of the tools of applied welfare economics. The crucial variables are the prices,
quantities and some characteristics of the demand functions. In particular, a series of welfare measure only
base on aggregate information can be used. These welfare measures can then be used for the evaluation of
the welfare effects related to price variations in privatised European public utilities.
A second part of the workpackage aims to evaluate the level of consumer satisfaction with privatisation
policies, by assessing the privatisation discontent in European countries using the Eurobarometer public
opinion surveys. This survey includes detailed questions about the level of satisfaction of telephone services,
electricity, gas and water supply, postal and public transport services, as well as information about the
characteristics of each respondent. This analysis would serve as a complement to the analysis of losers and
gainers of privatisation using household expenditure data sets.
A third part of the workpackage will build long time series of different measures of employment levels and
labour earnings using administrative data normally used for annual publication on labour earnings by
industries in the United Kingdom extending the data collection and analysis to other large EU countries
including France, Italy, Spain and possibly Germany..


Deliverables
D.6.1: Databases on welfare measures for consumers and employees (month 8)
D.6.3: Three empirical papers on the welfare effects of privatisation on consumers (month 8, 14 and 20)


Milestones and expected result
M 6.1: Kick-off Meeting (month 1)
M.6.2: Intermediate Project Meeting (month 12)




                                           Page 26 of 44
UPP - Proposal No 028647                                                           11 November 2005


                Workpackage description (full duration of project)

Workpackage number         7               Start date or starting event:               1
Workpackage title          The fiscal effects of privatization
Participant ID                    1         3         5
Person-months per participant: 1            4         4


Objectives
    To consider the fiscal impact of privatisation on the current and the long-term budget and to relate it
       with the incentives for government policy by means of theoretical and empirical analysis


Description of work
A first part of the workpackage consists of a theoretical analysis of privatisation incentives for government
policy in an intertemporal context with special emphasis on the role of budgetary institutions. This analysis
asks, which kind of budgetary institutions will prevent policymakers from exploiting short-term liquidity
gains from privatisation in order to shift the burden of current fiscal policy into the future.
A second part will consist in an empirical investigation of the fiscal consequences of privatisation using
panel data for national governments and sub-national governments. This part utilises a framework for the
analysis of fiscal adjustment originally proposed by Bohn (1991) and applied to the case of sub-national
governments by Buettner and Wildasin (2002), which will determine the time path for each budget
component in response to privatisation.
A subsequent analysis will then investigate to what extent differences in the incentives faced by
policymakers can explain revealed differences in the long-term fiscal consequences of privatisation. In
particular, the analysis will be concerned with the question of whether specific rules are associated with
privatisation efforts which favour short-run as compared to long-run fiscal balance. The empirical analysis
will consider privatisation using panel data for sub-national governments in the US, Germany, and some
other European countries. This is complemented by an analysis of fiscal adjustment in Europe at the national
level.


Deliverables
D.7.1: A panel database on fiscal measures and institutions for European countries (month 8)
D.7.2: Three empirical papers on the fiscal effects of privatization (month 12, 18, 20)


Milestones and expected result
M 7.1: Kick-off Meeting (month 1)
M.7.2: Intermediate Project Meeting (month 12)




                                          Page 27 of 44
UPP - Proposal No 028647                                                              11 November 2005


                 Workpackage description (full duration of project)

Workpackage number         8               Start date or starting event:             1
Workpackage title          The stock price performance of privatisation-related indexes
Participant ID                   1         4
Person-months per participant: 2           8


Objectives
    To construct several privatisation-related indexes to measure the (adjusted) stock market
       performance of listed privatised firms in the EU.
    To analyse the risk and return characteristics of these indexes using multifactor analysis
    To identify – if any - an undiversifiable risk factor associated with the residual influence of the State
       in the economic system.


Description of work
This workpackage will develop a series of (capitalisation weighted) financial indexes, where the constituents
are the all stocks of the privatised companies of the enlarged European Union, grouped by regions and
sectors, and will then assemble a dataset with daily data on total return of these indexes, respective
benchmarks and control variables for the period 1995-2005.
These data will be used to estimate the 4-factor model. The four factors to be included are: (i) the excess
return on a broad market portfolio; (ii) the difference between the return on a portfolio of small capitalisation
stocks and on a portfolio of large capitalisation stocks (SMB); (iii) the difference between the return on a
portfolio of high book-to-market stocks (“value firms”) and on a portfolio of low book-to-market stocks
(“growth firms”). The residual performance measures will be studied to assess the effect of specific features
of companies such as their historical function, their industry, the form of privatisation, or the evolution of
political demands on their activities since privatisation.


Deliverables
D.8.1: A database with daily series of privatization indexes (month 12)
D.8.2: An empirical paper on the stock price performance of privatization-related indexes (month 20)


Milestones and expected result
M 8.1: Kick-off Meeting (month 1).
M.8.2: Intermediate Project Meeting (month 12).




                                           Page 28 of 44
UPP - Proposal No 028647                                                             11 November 2005


                 Workpackage description (full duration of project)

Workpackage number         9              Start date or starting event:                   1
Workpackage title          Expert interviews and targeted surveys
Participant ID                   1         2        4         5       8
Person-months per participant: 2           2        2         5       2

Objectives
    To develop a joint / harmonised interviewing and survey methodology to be implemented in at least
       the 5 countries - Czech Republic, Germany, Italy, Netherlands, Spain – represented in the
       consortium on privatisation choices and outcomes as perceived by the most relevant stakeholders

Description of work
This workpackage aims at generating comparable data and information on privatisation in a number of
European countries. This will be an important asset for the project, as it helps to analyse where and how
privatisation policies are conducted, and to assess the impact of various forms of privatisation and
liberalisation on competition, growth, employment and gender as well as on various stakeholders and
sections of the population in different national contexts. For that purpose a joint / harmonised interviewing
and survey methodology to be implemented in several European countries. This will not only be beneficial
for data and other information gathering it also will facilitate comparisons across industries and countries. It
will provide a scope for each country team to incorporate questions which will be asked in all considered
countries and various sectors. By this approach cross-country and cross-sectoral multidisciplinary
comparisons will be possible on a systematic scale.
Preliminary target groups for the interviews and surveys are:
     Privatised / liberalised service providers (of selected sectors)
     Linked (forward, backward) enterprises
     Representatives of relevant municipalities or other communal organisations
     Representatives of relevant consumer and labour organisations
     Other relevant public and private stakeholders or key informants
The interviews and surveys will complement other attempts to obtain data on attitudes, motivations, interests
and stakeholder judgements. They will be composed of a standardised (pre-structured) part to permit
comparison between sectors and countries and a non standardised part (in-depth interviews) to take care of
different economic, political and institutional contexts and of information which can not easily be gained
otherwise (e.g. on gender issues). Organisation and implementation in each country will be under the
supervision of the country specific research team. The IFO Institute will take care for the development of a
joint concept and coordinated methodological approach.


Deliverables
D.9.1: Standardised questionnaire to be used for enterprises in all 5 countries (month 6)
D.9.2: Frame for in-depth interviews with key informants and other relevant stakeholders in all 5 countries
(month 6)
D.9.3: Report on judgements and qualitative other information on politics of privatisation user in the
individual countries as well in a synthesised cross country comparison (month 21)

Milestones and expected result
M 9.1: Kick-off Meeting (month 1)
M.9.2: Training Workshop (month 6)
M.9.3: Intermediate Project Meeting (month 12)


                                           Page 29 of 44
UPP - Proposal No 028647                                                           11 November 2005


                Workpackage description (full duration of project)

Workpackage number         10             Start date or starting event:                11
Workpackage title          Making privatisation deliver
Participant ID                  1        2        3       4       5           6        8       9
Person-months per participant: 1         1        2       1       1           3        1,5     6


Objectives
    To identify using the results of the survey developed in WP9 and the results obtained from the
       research WPs policy recommendations for successful implementation of privatisation policies, with
       special reference to the enlarged EU and MEDA countries
    To identify the most appropriate complementary policies in order to making privatisation deliver the
       desired outcomes with special reference to corporate governance, liberalisation, and financial and
       economic regulation.



Description of work
Analysis and cataloguing of the specific policy issues and policy recommendations raised in the WPs (WP2
on electoral rules and constitutional reform; WP3 on liberalisation and regulation in MEDA region; WP 4
and 5 on company law, takeover regulation, federalism and devolution of political decision making; WP 6 on
liberalisation and regulation in Services of General Interest (SGI) in the European Union; WP7 on fiscal
rules and Eurostat principles; WP8 on financial services regulation)
Study of the relevant legal documents of the European countries involved in the project and European
Community law in order to identify possible interference and compatibility between the policy
recommendation and the existing legislation at the national, sub- and super- national level
Analysis of regulation by organisational type (public entrepreneurial bodies, qualified public holding joint-
stock companies, common law joint-stock companies, etc.) with specific attention to deviations from
standard rules of corporate governance.


Deliverables
D.10.1: Policy report summarising the main recommendations (month 24)
D.10.2: Regulatory guidelines on Corporate Governance, Institutional Reform and European Financial and
Economic Integration (month 24)


Milestones and expected result
M.10.2: Intermediate Project Meeting (month 12).
M.10.3: Final Project Meeting (month 24).




                                          Page 30 of 44
UPP - Proposal No 028647                                                                11 November 2005


                 Workpackage description (full duration of project)

Workpackage number         11             Start date or starting event:                    3
Workpackage title          Dissemination and networking
Participant ID                   1       2       3        4       5               6        8       9
Person-months per participant: 6         0,5     0,5      0,5     0,5             0,5      0,5     0,5


Objectives
    To achieve wide dissemination of the project results using conventional outlets and the Privatization
       Barometer portal in order to contribute both to validate the results of the project and to ensure that a
       new research framework to be proposed will be widely known among researchers, policy makers,
       and the interested public at large;
       To enable close collaboration between stakeholders and the network of researchers in the area.


Description of work
The following activities are foreseen:
    -   To enhance Privatization Barometer, a web portal providing insights in privatisation processes in the
        whole European Area;
    -   To establish and maintain a linked web page dedicated to the project, which includes producing
        scientific contents; publishing all project findings and mid-term scientific reports on this web site;
        and to establish links with the web sites of the partner institutions;
    -   To distribute a semi-annual electronic newsletter to a wide list of academics, policy-makers and
        interested public at large, starting for from month 6 of the project;
    -   To disseminate the Final Report through the Commission and the web site of the partners
        institutions;
    -   To establish links with other EU and international initiatives over the entire project life-time;
    -   To organise the Final Policy Informing Conference in Brussels, in collaboration with European
        Commission, aimed at disseminating project findings and produced papers. Both researchers, policy-
        makers and various stakeholders will be invited;
    -   To publish several working papers produced in the previous Workpackages in FEEM Working Paper
        Series;
    -   To publish a policy paper at the end of the project to prepare policy advice, based on project’s
        conclusions, which would be distributed to policy makers. This paper will be available as electronic
        and printed version, in a form of a small book.
    -   In addition, all partners are expected to present project results in international conferences and
        publish project results in scientific and policy journals.


Deliverables
D.11.1: Development of a research platform within the Privatization Barometer portal (month 1)
D.11.2: Establishment of a dedicated Project web page (month 3)
D.11.3: Electronic Newsletters (month 6, 12, 18, and 24)
D.11.4: Policy paper on project’s conclusions (month 24)
D.11.5: Publication of FEEM Working papers (month 24)


                                           Page 31 of 44
UPP - Proposal No 028647                                                      11 November 2005



Milestones and expected result
M 11.1: Continuous management and maintenance of the Privatization Barometer portal (months 1-24)
M.11.2: Intermediate Project Meeting (month 12)
M.11.3: Final Policy Informing Conference (month 24)




                                        Page 32 of 44
UPP - Proposal No 028647                                                                11 November 2005


8 PROJECT RESOURCES AND BUDGET OVERVIEW

8.1 Efforts for the full duration of the project
STREP Effort Form - Full duration of project
Project number (acronym): 028647 (UPP)
                                                                       1          2          3        4 UvA-    5          6           8          9
                                                                                                                                                            TOTAL
                                                                     FEEM        UPF        UMIL      CIFRA    IFO        SWP        CERGE      UNIPD
Research/innovation activities
WP 2: The determinants of privatisation policy                         2           7           0       1,5       0         1,5          0          0          12
WP 3: Privatisation and regulatory reform in the MEDA area            12           2           0        0        0          0           0          0          14
WP 4: Public vs. private ownership and control                         8           0           0       2,5       0          3           0          2         15,5
WP 5: Company performance from transition to EU integration            0           0           0       1,5       0          0           8          0          9,5
WP 6: The welfare effects of privatisation on consumers                0           0           9        0        1          0           0          0          10
WP 7: The fiscal effects of privatisation                              1           0           4        0        4          0           0          0           9
WP 8: The stock price performance of privatisation related indexes     2           0           0        8        0          0           0          0          10
WP 9: Expert interviews and targeted surveys                           2           2           0        2        5          0           2          0          13
WP 10: Making privatisation deliver                                    1           1           2        1        1          3          1,5         6         16,5
WP 11: Dissemination and networking activities                         6          0,5         0,5      0,5      0,5        0,5         0,5        0,5         9,5
Total research/innovation                                             34         12,5        15,5     17,5     11,5         8         12,5        8,5        119
Demonstration activities
Total demonstration                                                   0            0          0            0    0           0          0           0          0
Management activities
WP1: Project co-ordination and management                             8           0,5        0,5       0,5      0,5         0          0,5        0,5         11
Total management                                                      8           0,5        0,5       0,5      0,5         0          0,5        0,5         11

TOTAL ACTIVITIES                                                      42          13         16        18       12          8          13          9         130
AC partners will allocate further 65 person months to the project, in addition to those funded by the EC contribution. Section 8.3.1 provides the details of the
estimated person months allocated by each partner and of its estimation.




                                                                            Page 33 of 44
UPP - Proposal No 028647                                                                                                 11 November 2005


8.2 Overall budget for the full duration of the project (Forms A3.1 and A3.2
    from CPFs)
Form A.3.1
                                                 Financial information - whole duration of the project
Particip Organisation    Cost        Estimated eligible costs and        Costs and EC contribution per type of activity       Total          Total
 ant n°   short name     Model        requested EC contribution             RTD or       Demonstration    Consortium     (4)=(1)+(2)+(3)   receipts
                         used      (whole duration of the project)        innovation      activities (2)  Management
                                                                      related activities                  activities (3)
1       FEEM            AC                 Direct costs (a)                  262.866,67               -       53.000,00      315.866,67          -
                                 Eligible of which subcontracting                   -                 -         4.000,00       4.000,00          -
                                 costs     Indirect costs (b)                 52.573,33               -         9.800,00      62.373,33          -
                                           Total eligible costs (a+b)        315.440,00               -       62.800,00      378.240,00          -
                                 Requested EC contribution                   315.440,00               -       62.800,00      378.240,00          -
2       UPF             AC                 Direct costs (a)                   83.200,00               -         2.000,00      85.200,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 16.640,00               -               -       16.640,00          -
                                           Total eligible costs (a+b)         99.840,00               -         2.000,00     101.840,00          -
                                 Requested EC contribution                    99.840,00               -         2.000,00     101.840,00          -
3       UMIL            AC                 Direct costs (a)                   97.600,00               -         2.000,00      99.600,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 19.520,00               -               -       19.520,00          -
                                           Total eligible costs (a+b)        117.120,00               -         2.000,00     119.120,00          -
                                 Requested EC contribution                   117.120,00               -         2.000,00     119.120,00          -
4       Uva-CIFRA       AC                 Direct costs (a)                  100.600,00               -         2.000,00     102.600,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 20.120,00               -               -       20.120,00          -
                                           Total eligible costs (a+b)        120.720,00               -         2.000,00     122.720,00          -
                                 Requested EC contribution                   120.720,00               -         2.000,00     122.720,00          -
5       IFO             FC                 Direct costs (a)                  127.200,00               -         2.000,00     129.200,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 25.440,00               -               -       25.440,00          -
                                           Total eligible costs (a+b)        152.640,00               -         2.000,00     154.640,00          -
                                 Requested EC contribution                   152.640,00               -         2.000,00     154.640,00          -
6       SWP             FC                 Direct costs (a)                   45.400,00               -         2.000,00      47.400,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                  9.080,00               -               -        9.080,00          -
                                           Total eligible costs (a+b)         54.480,00               -         2.000,00      56.480,00          -
                                 Requested EC contribution                    54.480,00               -         2.000,00      56.480,00          -
8       CERGE           FC                 Direct costs (a)                   81.200,00               -         2.000,00      83.200,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 16.240,00               -               -       16.240,00          -
                                           Total eligible costs (a+b)         97.440,00               -         2.000,00      99.440,00          -
                                 Requested EC contribution                    97.440,00               -         2.000,00      99.440,00          -
9       UNIPD           AC                 Direct costs (a)                   54.600,00               -         2.000,00      56.600,00          -
                                 Eligible of which subcontracting                   -                 -         2.000,00       2.000,00          -
                                 costs     Indirect costs (b)                 10.920,00               -               -       10.920,00          -
                                           Total eligible costs (a+b)         65.520,00               -         2.000,00      67.520,00          -
                                 Requested EC contribution                    65.520,00               -         2.000,00      67.520,00          -
                                 Eligible costs                            1.023.200,00               -       76.800,00    1.100.000,00
                                 Requested EC contribution                 1.023.200,00               -       76.800,00    1.100.000,00          -

Form A.3.2
                                     Estimated breakdown of the EC contribution per reporting period
                                                                                           Estimated Grant to the Budget
      Reporting periods              Start month           End month
                                                                                        Total               In which first six monhts
      Reporting period 1                            1          12                              500.000,0
      Reporting period 2                  13                   24                              600.000,0                       250.000,0
      Reporting period 3
      Reporting period 4
      Reporting period 5
      Reporting period 6
      Reporting period 7




                                                                          Page 34 of 45
UPP - Proposal No 028647                                                                                   11 November 2005


8.3 Management level description of resources and budget
This STREP involves 8 partners based in the EU. It covers a time frame of 24 months, for which a
total grant of 1.100.000 Euro is requested.
As shown in the table below, costs to be supported will be personnel costs for carrying out the
research activities (646.000 Euro); travel and subsistence costs for the participation to project
meetings and workshops (72.600 Euro); consumables for carrying out the surveys and questionnaires
(35.000 Euro); and other costs for the organisation of the meetings and the dissemination activities
(99.066,67 Euro). Provision has also been made for management costs, including personnel for co-
ordination activities and auditing costs (76.800 Euro). Personnel costs for carrying out the project
activities (research and management) represent an overall effort of 130 man/months distributed per 8
participants. More details on the rationale of this financial plan are given below.

Table 1: Overall financial plan
                   Personnel    Travel      Consumables    Other costs   Indirect Costs   Management     Total Cost      EC Grant
1   FEEM           158.000,00   16.800,00      15.000,00     73.066,67       52.573,33      62.800,00     378.240,00     378.240,00
2   UPF             65.000,00    7.200,00       3.000,00      8.000,00       16.640,00       2.000,00     101.840,00     101.840,00
3   UMIL            80.000,00    9.600,00       8.000,00           -         19.520,00       2.000,00     119.120,00     119.120,00
4   UvA-CIFRA       88.000,00    9.600,00       3.000,00           -         20.120,00       2.000,00     122.720,00     122.720,00
5   IFO            107.000,00    7.200,00       3.000,00     10.000,00       25.440,00       2.000,00     154.640,00     154.640,00
6   SWP             40.000,00    5.400,00            -             -          9.080,00       2.000,00      56.480,00      56.480,00
8   CERGE-EI        63.000,00    7.200,00       3.000,00      8.000,00       16.240,00       2.000,00      99.440,00      99.440,00
9   UNIPD           45.000,00    9.600,00            -             -         10.920,00       2.000,00      67.520,00      67.520,00
       Sub-total   646.000,00   72.600,00      35.000,00     99.066,67     170.533,33       76.800,00   1.100.000,00   1.100.000,00

Personnel costs are aimed to carry out the research activities of the project, as previously described in
Section 7. Personnel costs for research activities represent an effort of 119 man/months distributed per
8 participants (see Total Research/Innovation in the Section 8.1)
Travel costs have been calculated at an average rate of 1.200,00 Euro per trip per participant. All
meetings will be held in the EU. The travel cost budget will cover the average cost for the
participation to the following meetings: Kick-Off Meeting, Intermediate Project Meeting, one Training
Workshops and the Final Policy-Informing Conference.
Other costs include the costs for the organisation of the following meetings:
           the Kick-Off Meeting to be organised by UPF, Spain (8.000 Euro);
           the Intermediate Project Meeting to be organised by CERGE, Czech Republic (8.000 Euro);
           a Training Workshops to be organised by IFO, Germany (10.000 Euro);
           and the travel and subsistence costs of the external participants to the Final Policy-Informing
            Conference, to be organised in Brussels by FEEM in collaboration with EC (31.066,67 Euro).
They also cover the costs for the management and maintenance of the web portal (40.000 Euro).
Finally, provision of 2.000,00 Euro has been made for the publication activities.
Management costs include auditing costs for all partners and personnel costs for the co-ordination
and management activities, carried out by the Co-ordinator (FEEM). Personnel costs for management
activities represent an effort of 11 man/months (see Total Management in the Section 8.1).




                                                                 Page 35 of 45
UPP - Proposal No 028647                                                             11 November 2005


8.3.1 Resources allocated to the project in addition to the eligible costs funded by the
Commission
The following table shows the estimated person months of the Additional Cost partners they intend to
allocate to the project in addition to the eligible costs funded by the Commission.

Table 2: AC partners human resources own contribution
                                     Permanent staff involved in the project
          Partner
                                   but not paid by the project resources (if any)
                                            Person months for the whole
                                                                            Personnel costs
     N.    Acronym             Name            duration of the project
                                                                         (approximate figure)
                                                (approximate figure)
                         Carlo Carraro
     1      FEEM       Gabriella Olgiati             7 person/months               30.000 Euro
                       Riccardo Tarquini
     2       UPF        Mireia Monroig               2 person/months               12.000 Euro
                        Massimo Florio
                    Emanuele Bacchiocchi
                          Rinaldo Brau
     3      UMIL                                    32 person/months               100.000 Euro
                       Pier Alda Ferrari
                          Carlo Fiorio
                          Silvia Salini
                         Enrico Perotti
                        Stijn Claessens
     4    UvA-CIFRA Joseph A. McCahery               5 person/months               52.300 Euro
                      Lev Ratnovski Joost
                            Driessen
                        Thiess Buettner
                     Siegfried Schoenherr
                        Ingo Vogelsang
     5       IFO                                    15 person/ months              132.000 Euro
                      Rigmar Osterkamp
                        Wolfgang Ochel
                         Jutta Albrecht
     6       SWP                -                            -                          -
                         Stepan Jurajda
     7     CERGE                                     2 person/months               10.000 Euro
                        Jaroslav Nemec
                         Ettore Scimeni
     8      UNIPD                                    2 person/months                8.000 Euro
                        Paola Santinello
                                  Total             65 person/months               344.300 Euro

In addition, partners will provide the durable equipment (not charged to the project) and the immobile
infrastructures for work. The cost of equipment is estimated at one personal computer (unit cost at
1.500,00 Euro) per each 12 person-months. The cost of infrastructures is estimated on the basis of
average rental rate for office spaces in major European cities (400,00 Euro per m2 per year for an
average office space of 5 m2). Table 3 below estimates the contribution from partners to over
400.000,00 Euro.

Table 3: Contribution from partners
                                                                                     Estimated
                                             #/%                       Avg. rate
                                                                                   contribution
AC human resources own contribution            65                                      344.300
Durable equipment                              16 # pc                   1.500          24.375
                                                       2
Infrastructure                                 195 # m - months            167         32.500
Contribution from partners                                                            401.175


                                                   Page 36 of 45
UPP - Proposal No 028647                                                                  11 November 2005


9 ETHICAL ISSUES
UPP does not raise sensitive ethical questions related to human beings, human biological samples,
genetic information and animal, as no laboratory work is foreseen. The planned activities are all desk-
based and public relations.
Also survey-based data, although potentially not anonymous, are not expected to raise sensitive
questions and ethical issues, such as “data about health, sexual lifestyle, ethnicity, political opinion,
religious or philosophical conviction”.
However, in the first months of the project, an ethical framework for the collection and utilization of
both quantitative and qualitative data will be elaborate. In particular it will be describe:
-       in which countries the data will be collected;
-       how the data will be stored;
-       if the data is anonymised or codified, and if not, who will have access to the data;
-       what will happen to the data after the end of the project.
Moreover, actions will be taken concerning the national, EU and/or other international regulations to
be applied and how the project will deal with these regulations.


10. OTHER ISSUES

10.1 Gender issues
The project is not expected to raise gender related questions.
On the gender front, the applicants acknowledge and share the European Commission engagement in
enforcing the position of women in the research environment. During the whole life of the project, the
involvement of women researchers will be encouraged. Table 4 below shows the list of researchers by
gender involved at the beginning of the project for each partner. The scientific staff is composed by 30
researchers: 24 male (80 %) and 6 female (20 %). The male/female share will be monitored during the
project and intermediate and final figures will be included in the project activity reports. Finally, the
gender issue will be taken into account also in the organisation of the Workshops and the Final
Conference. In particular, the involvement of women researchers as key speakers will be encouraged.
Detailed statistics will be included in the activity reports of the project.

Table 4: Gender of scientific staff
    N. Organisation         Female scientific staff                      Male scientific staff
    1 FEEM (IT)             Valentina Milella (F)                        Bernardo Bortolotti (M)
                                                                         Andrea Beltratti (M)
                                                                         William Megginson (M)
                                                                         Andrea Goldstein (M)
    2   UPF (ES)                                                         Humberto Llavador (M)
                                                                         Paolo Pinotti (M)
    3   UMIL (IT)           Pieralda Ferrari (F)                         Massimo Florio (M)
                            Silvia Salini (F)                            Rinaldo Brau (M)
                                                                         Carlo Fiorio (M)
                                                                         Emanuele Bacchiocchi (M)
    4   UvA-CIFRA (NL) Ibolya Schindele (F)                              Enrico Perotti (M)
                                                                         Stijn Claessens (M)
                                                                         Joseph A. McCahery (M)
                                                                         Lev Ratnovski (M)
                                                         Page 37 of 45
UPP - Proposal No 028647                                                            11 November 2005


                                                                   Joost Driessen (M)
 5   IFO (DE)             Jutta Albrecht (F)                       Thiess Buettner (M)
                                                                   Siegfried Schoenherr (M)
                                                                   Ingo Vogelsang (M)
                                                                   Rigmar Osterkamp (M)
 6   SWP (DE)                                                      Peter Becker (M)
 7   CERGE (CZ)                                                    Jan Hanousek (M)
                                                                   Evzen Kocenda (M)
 8   UNIPD (IT)           Paola Santinello (F)                     Ettore Scimemi (M)
                                                                   Gianluca Romagnoli (M)


10.2 Other EC policy-related issues
The policy impact of this Project in the area concerned has been already largely described (in
particular see Sections above).
It should be here briefly reminded that this project entails also a valuable potential to training and
educational purposes. In particular the involvement of academic institutions in the proposed
consortium will ensure the dissemination of the Project’s findings and results within Universities.
Moreover this project would like to create and to ensures an useful connection with other policy
decision makers and stakeholders involved in other similar project, in order to generate positive
externalities in this research area.
Table 5 below summarises the complementary projects and similar activities carried out by the
partners in EU Member States.

Table 5: Complementary project/similar activities carried out in Member States
N.   Organisation   Complementary project/similar activities carried out in Member States
1    FEEM (IT)       Privatization Barometer co-funded by Fondazione IRI
2    UPF (ES)       N/A
3    UMIL (IT)       Economic integration processes and new financing systems for
                      infrastructures and public services. Project financed by the Italian
                      Ministry of University and Research (MIUR)
 4   UvA-CIFRA (NL)  “ECGTN” RTN project on Corporate Governance in Europe
 5   IFO (DE)        Database for Institutional Comparisons in Europe (DICE)
 6   SWP (DE)       N/A
 7   CERGE (CZ)     N/A
 8   UNIPD (IT)     N/A




                                                   Page 38 of 45
UPP - Proposal No 028647                                                              11 November 2005


APPENDIX

A.1 Participants and consortium
A.1.1 Role of the participants
The project is co-ordinated by Fondazione Eni Enrico Mattei (FEEM), that is responsible both for the
coordination of the technical activities of the project as for the overall administrative and financial
management of the project. FEEM is also responsible for the dissemination activities, including the
management and maintenance of the web portal (Privatization Barometer), publication activities and
the organisation of the Final Conference.
All the partners, except CERCE, act as WP Leaders, thus are responsible for managing the activities of
each WP team and for co-ordinating the partners involved in their WPs. WP Leaders ensure also co-
ordination links with the project co-ordinator.
Other specific activities are carried out by the partners. In particular, UPF organises the Kick-Off
Meeting; CERGE organises the Intermediate Project Meeting; IFO is responsible for carrying out the
surveys and the training workshop.
A.1.2 Complementarity and interdisciplinarity
This Section presents the Consortium of the UPP project. It is composed by 8 partners established in
5 European Members States and is co-ordinated by Fondazione Eni Enrico Mattei (FEEM, Italy).
The complementarity of the Consortium both in its geographical coverage and its activity component
is sufficiently covered, with regards to the type and aims of this research project (STREP).
Concerning the geographic complementarity, the Consortium covers the whole European area and
includes 5 European Member States (Italy, Spain, Netherlands, Germany, Czech Republic) including a
new Member States (Czech Republic).
As regards the interdisciplinarity aspect, the Consortium has mainly an academic background. It is
composed by 4 Universities (Universitat Pompeu Fabra, University of Milan, Universiteit van
Amsterdam, and University of Padua) and 4 research centres (Fondazione Eni Enrico Mattei, the Ifo -
Institute for Economic Research at the University of Munich, the Stiftung Wissenschaft und Politik
and the Center for Economic Research and Graduated Education of Charles University of Prague). All
institutions involved have a strong expertise on the topics covered by the project gained through
several years carried out related research and publication activities. This is shown by the short profiles
of the institutions and by the short bios of the researchers involved provided below.
It is a worth-noting strength of this proposal that the research team involved will mobilise a critical
mass of highly qualified senior researchers, most of whom have previously collaborated through
research and publication activities on privatisation processes. Furthermore, some of the involved
institutions have already jointly participated in funded research projects carried out under the umbrella
of the European Commission Research Framework Programmes. Involvement of more junior
researchers (including Universities’ PhD students) will also be granted, providing an added value in
terms of structuring effect on European research in the field.
Finally, a fundamental characteristic of this consortium is that participants cover a wide spectrum of
disciplines. The partnership gathers some leading institutions that are very active in studying the
relationship between privatisation processes and policy-making under both an economic, a juridical
and a socio-political perspective. Main areas of expertise directly linked to UPP are: privatisation,
liberalisation, regulation, political economy, public policy, corporate governance, welfare economics,
financial economics.
A.1.3 Skills of the participants
In the following paragraphs a more detailed description of the partners involved in the project is
presented. Brief bios of the key researcher of each institure are also included.

                                                     Page 39 of 45
UPP - Proposal No 028647                                                             11 November 2005


A.1.3.1 Partner 1: Fondazione Eni Enrico Mattei (FEEM)

Fondazione Eni Enrico Mattei (FEEM) is a non-profit, non-partisan research institution established
to carry out research in the field of sustainable development. One of its principal aims is to promote
interaction between academic, industrial and public policy spheres in order to comprehensively
address concerns about economic development and environmental degradation. Based on the results
achieved, FEEM has become the privileged interlocutor of a number of policy institutions, among
which the IPCC, the European Commission, the Italian Ministries of the Environment, Treasury,
Finance and Foreign Trade, several Italian regions and local municipalities and an important number
of international institutions (OECD, World Bank, UNEP, etc.).
Research is organised into seven main areas. The main objective of the Privatisation Regulation
Corporate Governance (PRCG) Programme is to catch on the structural changes that privatisation
involves. These aspects call for a systematic inquiry about many fundamental policy issues: (i) the
different objectives and methods of privatisation, the profound causes of divestiture, and the financial
and operating performance of privatised firms; (ii) the new role of the State as a regulator in sectors
like public utilities and infrastructure; (iii) the antitrust policy in a global economy with an enhanced
private sector.
FEEM has been financed by the European Commission over 70 research projects and has a large
experience in the dissemination of theoretical and applied research. In fifteen years FEEM has
organised over 250 seminars among which several workshops and 13 large-scale conferences.
Bernardo Bortolotti (PhD in Economics, Université Catholique de Louvain, Belgium and Doctorate
in Economics, University of Siena, Italy) is Assistant Professor in economics at the University of
Turin and co-ordinator of the research programme “Privatisation Regulation Corporate Governace” at
Fondazione Eni Enrico Mattei. His research interests are in privatisation, regulation, corporate
governance, and auctions theory. He is Secretary of the Italian Global Advisory Committee on
Privatisation (Italian Ministry of Treasury and Finance) and Member of the Privatisation Taskforce of
the Initiative for Policy Dialogue (Columbia University, New York). He also served as consultant for
the World Bank on Financial Development in China.
Andrea Goldstein (Senior Economist) currently works on private sector development and foreign
direct investment in developing regions. In January-August 2004 Andrea worked at the World Bank
Group as Senior Investment Policy Officer at the Foreign Investment Advisory Service. Andrea was
previously at the OECD Economics Department and Consob, the Italian Securities and Exchange
Commission, and has been a consultant for the Inter-American Development Bank and the UK
Department for International Development.

A.1.3.2 Partner 2: Universitat Pompeu Fabra (UPF)

The Department of Economics and Business of the Universitat Pompeu Fabra has earned a solid
reputation in its few years of existence through its policy of attracting internationally-renowned
scholars. The faculty has been formed in the top U.S. and European universities, and it is highly
international (currently, more than 50% of the faculty teaching in the graduate programme are non-
Spanish citizens).
The Department’s strong commitment to research is borne out by the fact that it was recognised as a
“Centre of Excellence” by the European Union, in the framework of the Human Capital and Mobility
(HC&M) Programme. In addition, four research groups of the Department have received grants from
the EU through their participation in the Training and Mobility of Researchers networks with other
European universities, to carry out projects in Macroeconomics, Industrial Organisation, Economic
Theory, Mathematical Modelling Theory and Experimental Economics. The Department is also one of
the very best in the number of projects funded by the Ministerio de Ciencia y Tecnología (the Spanish
National Research Agency). Other sources of recent founding for research projects are Fundación
Ramón Areces, Fundación BBVA, Fondation Banque de France and Mapfre, among others.
The Department organises around two hundred seminars annually, structured in seven series and also
organises several international conferences every year.
                                                     Page 40 of 45
UPP - Proposal No 028647                                                             11 November 2005


Humberto Llavador (Ph.D. University of California at Davis, 2000) is Assistant Professor of
Economics and Ramon y Cajal Fellow at Dept. d'Economia i Empresa of Universitat Pompeu Fabra
(since 2000). His fields of research are: Political Economy, Decision Theory, Distributive Justice. He
was Lecturer at Dept. of Economics, University of California at Davis. Summer 2000. He will be
visiting Assistant Professor, Depts. of Political Science and Economics, Yale University. Spring 2005.

A.1.3.3 Partner 3: University of Milan (UMIL)

The Department of Economics, Business and Statistics of University of Milan (Italy) was founded in
1992 and comprises now around 100 members among faculty members, doctoral students and research
assistants. It contributes with high level teaching in several doctoral and graduate schools in
Economics, Public Economics, Finance and Statistics and in the Masters on International Cooperation,
Public Health Services, Environmental Economics and Policy.
The Department has an interdisciplinary orientation and it is involved in a rich set of research topics.
The main research areas are Economic Theory and Applications (public and welfare economics,
international economics and finance, development economics, labour economics, macroeconomics and
growth theory), Business, Marketing and Finance (business intelligence, knowledge management, geo-
marketing, economics of the media, bank and finance systems, risk management) and Statistics and
Mathematics (applied and theoretical statistics, experimental designs, data-mining and computational
statistics, operational research, non smooth optimisation, stochastic processes and dynamical systems).
The Jean Monnet Chair in Economics of European Integration, obtained in 2003 by Professor Florio,
Head of the Department, provided the opportunity to organise, among other initiatives, the cycle of
Milan European Economy Workshops, to discuss public policy topics that are of interest to economists
across the European Union. The workshop is linked to a wide research programme on European
economic integration and policy-making launched by the Department, and to start up a new degree in
European economic studies.
Massimo Florio is currently Head of the Department of Economics of the University of Milan. In the
same University, he is full professor of Public Economics and Jean Monnet Chair in Economics of
European Integration. He has also served in the Faculty as chairman of the board of European
Economy Studies. His main research interests include theory and practice of cost-benefit analysis and
evaluation of public investment; industrial and regional policies for small business development, long
term trends of public expenditures, infrastructures and growth, privatisations.

A.1.3.4 Partner 4: Universiteit van Amsterdam (UvA-CIFRA)

The CIFRA Research Centre, founded in 1998, is a research centre at the finance group at the
University of Amsterdam. It has been a member of several EC research projects, such as the TMR
network ERBFMRXCT960054 on “Financial and economic efficiency”; the TMR Network on
“Financing Retirement in Europe: Public Sector Reform and Financial Market Development”
(FINRET, proposal n. RTN-2001-00512); and the RTD Project “Privatisation and Financial Markets
Development” (PFM, Contract No HPSE-CT-1999-00007) co-ordinated by Fondazione Eni Enrico
Mattei.
CIFRA researchers include members of the Finance Group at the University of Amsterdam and long
term visitors of the Centre. It has an active weekly seminar series, and a very active role in organising
international conferences (around 10 conferences in the last four year).
CIFRA has a proven track in organising innovative research conferences involving the best
researchers from a very international network. Its expertise includes an extensive policy advice
experience of its members with international organisations. Members of the group manage renowned
research meetings on enterprise finance, such as the Research Network on Corporate Governance, and
the CIFRA International Conference Series, a series of high level conferences organised around the
world.
Enrico Perotti (PhD in Finance, MIT, Boston) is Chair in International Finance at University of
Amsterdam and Research Fellow at CEPR. He has taught at Boston University and LSE, and has been
                                                     Page 41 of 45
UPP - Proposal No 028647                                                              11 November 2005


a visiting professor at the IMF, London School of Economics and the London Business School. His
research focuses on corporate finance, privatisation and international finance. He has published in top
academic journals such as the American Economic Review, the European Economic Review, the
Journal of Financial Economics and the Journal of International Money and Finance. He also served as
consultant for the IMF, the World Bank, the EC, the NYSE and several Eastern European
governments.

A.1.3.5 Partner 5: Ifo - Institute for Economic Research at the University of Munich (IFO)

The Ifo Institute is organised as a registered society whose purpose is non-profit economic and social
science research, founded in 1949. At present its staff amounts to 160 members, about 90 being
academics.
Today the work of the Ifo Institute builds on three pillars: It (a) provides services for research and for
the interested public, (b) advises economic policy-makers, and (c) carries out economic research. To
ensure its research quality, the Ifo Institute has a Scientific Advisory Council consisting of
international academic experts. The technical/administrative processes of the Institute are certified
according to DIN EN ISO 9001. To guarantee an intensive scientific exchange with the academic
community the Institute is affiliated through CESifo with the University of Munich since 2000.
The Ifo Institute functions as think-tank with a strong international orientation, serving politics,
business and the civil society. With its empirical research of economic issues, its wide spread survey
activities, the provision of analyses and forecasts, and the development of scenarios and visions, it
draws attention to new ideas, and develops the theoretical foundations for economic policy decisions.
Currently, the Institute enjoys a strong impact on the German economic and social reforms
discussions.
In the proposed Project mainly two IFO Units will participate: The Department of Public Sector
Economics which is of key importance in IFO’s contribution to the reforms discussion and the
Department of International Institutional Comparisons in which economic and social regulations in
European Countries are assessed and analysed. IFO’s Survey Department will advise on empirical
methodologies.
Thiess Buettner (Prof. Dr.) is Professor of Economics at University of Munich, senior researcher at
IFO Institute and Director of Department for Public Sector Economics. He works on empirical issues
in public finance including the dynamics of fiscal adjustment and has published several empirical
papers on public policy. Together with David E. Wildasin, University of Kentucky, he has developed
an empirical framework based on a vector error correction model which delivers key statistics about
the adjustment of budgetary components towards fiscal balance.

A.1.3.6 Partner 6: Stiftung Wissenschaft und Politik - Deutsches Institut fuer Internationale Politik
und Sicherheit (SWP)

The German Institute for International and Security Affairs of the Stiftung Wissenschaft und Politik
(SWP) is an independent scientific establishment that conducts practically oriented research on the
basis of which it then advises the “Bundestag” (the German parliament) and the federal government on
foreign, security and European integration policy issues. The analyses and publications produced by
and their participation in national and international debates on key issues help to shape opinion in their
respective domains.
SWP was set up in 1962 by private initiative in Ebenhausen, near Munich, and given the legal status of
a foundation. Late in 2000 its headquarters moved to Berlin, which has been SWP’s new home since
January 2001. Since January 1965, when the “Bundestag” unanimously backed the establishment of an
independent research centre, the Institute has been federally funded. This support is supplemented by
contributions from other research sponsors.
There are currently more than 130 staff working at SWP’s German Institute for International and
Security Affairs. SWP has eight Research Units employing more than 60 scholars. One of these Units
is the research Unit on European Integration.
                                                     Page 42 of 45
UPP - Proposal No 028647                                                           11 November 2005


The European Integration Research Unit is responsible for examining the internal development of the
EU and its international relations. The topics of internal EU development include basic constitutional
issues affecting the EU's competences, developments in the individual policies, the enlargement of the
EU and the implications and Germany’s interests and objectives in European policies. The
development of the internal market and questions of Europeanisation are central research topics.
Peter Becker is research associate at the Stiftung Wissenschaft und Politik, European Integration
Research Unit, Berlin (since 2004). He was researcher at the Institut für Europäische
Integrationsforschung, Bonn (1993-1995) and researcher at the Institut für Europäische Politik, Bonn
(1995-1998). He was lecturer at the Department for Political Science, Friedrich Schiller University
Jena (2001-2002) and worked at desk for European Affairs at the State Chancellery of the Freestaate
of Thuringia, Erfurt (1998- 2004).

A.1.3.8 Partner 8: Center for Economic Research and Graduate Education of Charles University
(CERGE)

The Center for Economic Research and Graduate Education of Charles University (CERGE) was
founded in 1991 as an American-style Ph.D. program in Economics taught entirely in English.
The goals and interests which serve as CERGE’s mission are: 1) to train future public officials,
business leaders, and university faculty and researchers from the former communist countries of
Central and Eastern Europe in modern economics; 2) to stimulate and support academic and policy-
oriented economic research; 3) to disseminate this research and policy information to government
officials, corporate managers, and academic economists throughout the region and the world through
seminars, symposia, conferences, working papers, and other publications; and 4) to facilitate the
transfer of modern western standards of economic instruction and scientific work to the Czech
Republic and other countries of Central and Eastern Europe, with a special emphasis on educating the
instructors of future generations of business leaders and voters.
Throughout its history, collaborative efforts between international organisations have played a major
role. Since 1999, CERGE has been the East European Regional Network representative for the Global
Development Network (GDN). The GDN is comprised of nine regional networks and an independent
secretariat in Washington, D.C., and is an open, worldwide network of policy and research institutes
which aims to support the generation, sharing and application to policy of development knowledge.
The CERGE-EI library is an official depository for World Bank publications.
Jan Hanousek (Ph.D. Degree in Probability and Statistics at Charles University, Prague) is Director at
CERGE-EI (a joint workplace of Charles University and the Academy of Sciences of the Czech
Republic, Prague) and Professor of Economics at at Charles University, Prague, Czech Republic
(CERGE-EI). He is co-ordinator for PHARE projects on the informal sector in transitional economies.
He is also member of the National Discussion Group Ministry of Finance (advisory body of the
Ministry of Finance, Czech Republic).

A.1.3.9 Partner 9: University of Padua (UNIPD)

The Department of Comparative Law of University of Padua covers a broad spectrum of scientific
activities in the sphere of law. The Department provides nearly all of the teaching for the
undergraduate degree course in Economic Law as well as the former Course of Studies in Political
Sciences (specialisation Political-Administrative). Some parts of the Department are involved in the
teaching activities of the other undergraduate degree courses and specialisation degrees offered by the
Faculty of Political Sciences, the Faculty of Economics and other faculties of the University of Padua
(Faculty of Engineering, Faculty of Humanities, Faculty of Educational Sciences).
The Department is the administrative base of the Doctorate School of “International Law and Private
and Labour Law”, directed by Professor Paolo Zatti. It participates in the Research Doctorates in
“Labour Law” and “Philosophy of the Law”, based at the University of Padua, “Administrative Law”,
based at the State University of Milan, and “Human Rights: Evolution, Protection and Limits”, based
at the University of Palermo. The Department offers a Specialisation Course in Bioethics. The
Department is the administrative base of the Interdepartmental Centre of Economic and Legal Studies
                                                    Page 43 of 45
UPP - Proposal No 028647                                                           11 November 2005


(with the support of the Department of Economic Sciences), the Interdepartmental Centre of Research
and Services for Legal and Environmental Decisions and the Ethical Certification of Businesses (with
the support of the Department of Philosophy).
Ettore Scimemi graduated in Law at University of Padua and got a PhD in Commercial Law at
University Cattolica of Milan. He has worked as both teacher and researcher at the Institute of
Commercial and Industrial Law of the University of Milan. He has held seminars on the subjects of
Close Corporations, Company Law Regulations in relation to Privatisation, Voting by Proxy and by
Correspondence, and Public Acquisition and Exchange Offers. Further, in the area of economic
analysis of the law, he has held seminars on Company Proprietary Structure, Expropriations, and the
Regulation of Public Services. The winner of a Fulbright scholarship and other scholarships from the
best American universities (Landon H. Gammon Fellowship, Harvard Law School; Oscar Cox
Memorial Scholarship, Yale Law School), he obtained an LL.M. from Yale Law School in 2001,
specialising in the economic and historical analysis of Company and Commercial Law. In 2001 he
became Assistant Professor of Commercial Law at the Judicial Department of National and European
Institutes of Bicocca University, Milan and in 2004 Associate Professor of Private Comparative Law
of the Faculty of Political Sciences of the University of Padua. Ettore Scimemi is a registered lawyer
in Italy (since 1999) and in New York (since 2004).




                                                   Page 44 of 45
UPP - Proposal No 028647                                                             11 November 2005


A.2 Sub-contracting
Each partner commits himself to comply with the article II.6 of Annex II of the FP6 model contract
and the internal, national and European Union rules and directives on sub-contracting.
The partners confirm that for the implementation of the project they will not recur to subcontracts,
except for the external accounting assistance due for the provision of the audit certificates. In
particular, the partners recurring to an external company for carrying out the audit certificates are
identified in Table 6 below. Details on the costs and the award procedure are also specified.
Table 6: Overview of sub-contracts for audit certificates
      Partner           Task to sub-contract             Award procedure             Estimated amount

1    FEEM              Audit certificates       Company accountant to be used           4.000,00 Euro
2    UPF               Audit certificates       University accountant to be used        2.000,00 Euro
3    UMIL              Audit certificates       University accountant to be used        2.000,00 Euro
4    UvA-CIFRA         Audit certificates       University accountant to be used        2.000,00 Euro
5    IFO               Audit certificates       Company accountant to be used           2.000,00 Euro
6    SWP               Audit certificates       Company accountant to be used           2.000,00 Euro
7    CERGE             Audit certificates       Institution’s auditor to be used        2.000,00 Euro
8    UNIPD             Audit certificates       University accountant to be used        2.000,00 Euro
                                                                            TOTAL      18.000,00 Euro


A.3 Third parties
No third parties will be involved in nor give a contribution to the project.

A.4 Funding of third country participants
No third country participants will be involved in the project. Funding is requested only for participants
established in EU Member States, Associated States and INCO target countries (Brazil, China, India).




                                                      Page 45 of 45

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:8
posted:9/28/2011
language:English
pages:45