New EPEC report "PPPs and Procurement: Impact of the new EU Directives"
Two new Directives of relevance to PPPs in the area of procurement (specifically, public procurement and concessions) should now be available for Member States to use in procuring their projects. This report, written in collaboration with Herbert Smith Freehills, seeks to summarise the key impacts of these Directives on PPPs in the EU and, in particular, how the two Directives interrelate for those seeking to choose the most effective path for their PPPs. The report is available here.
European Commissioner for Transport, Ms Violeta Bulc, invited invite high-level representatives involved in the planning and financing of transport infrastructure to a Regional Conference on the Investment Plan for Europe. Amongst the EIB speakers were Guy Chetrit (EPEC) and Neri Di Volo (JASPERS). The videos of their respective interventions are available here and here.
New EPEC report “Blending EU Structural and Investment Funds and PPPs in the 2014-2020 Programming Period"
Combining European Structural and Investment Funds (ESI Funds) with private financing in a PPP structure is often referred to as ‘blending’. Blending ESI Funds with private financing can help to ensure better value for money in the use of ESI Funds and improve affordability of PPP projects. The Common Provisions Regulation for ESI Funds for 2014-2020 provide significant improvements compared to previous regulations, including a specific chapter on PPPs. EPEC has developed this guidance note to update and improve general understanding of the practical implications and possibilities afforded by the current regulations for blending. The guidance is available here.
New EPEC report "PPP Motivations and Challenges for the Public Sector: Why (not) and how"
Policy-makers and project procuring authorities make reference to a range of motivations to justify the use of PPPs. This report seeks to identify the key motivations that have been used in communicating the rationale to use PPPs. It also sets out the main challenges for the public sector in implementing PPPs.
The report is available here.
New EPEC report “Value for Money Assessment. Review of approaches and key concepts”
In many countries, Value for Money (VfM) assessment is used by public authorities as a decision-making tool to help compare project procurement options and support the resulting decisions. However, approaches to VfM assessment can differ, reflecting government policies, administrative processes and views on methodology. This new EPEC document, developed with Rebel consultancy, summarises and reviews the different VfM assessment approaches as well as the methodologies for risk analysis, discount rates and non-valued effects which play an important role in VfM assessment. You can find the report here.
New EPEC report “A Programme Approach to PPPs – Lessons from the European experience”
PPP programmes have been, and continue to be, used across Europe in a range of sectors. A PPP programme uses tools and resources, such as standardised documents or a specialised team, to deliver PPP projects more effectively and efficiently than might be the case with delivering projects individually. This new EPEC document uses case studies from around the EU to demonstrate the benefits of the programming approach for PPPs. The report is available here.
Ministere De L'Economie, De L'Industrie Et De L'Emploi De La Republique Francaise
Bundesministerium Für Finanzen
Vlaams Kenniscentrum Pps And Cellule D'Informations Financieres
The Ministry Of Finance Of The Republic Of Bulgaria
The Agency For Ppp
The Planning Bureau Of The Republic Of Cyprus
The Ministry Of Finance Of The Czech Republic
The Competition Authority Previously The Danish Enterprise And Construction Authority
The Ministry Of Finance Of The Republic Of Finland
Bundesministerium Für Verkehr, Bau Und Stadtentwicklung And Finanzministerium Des Landes Nordrhein-Westfalen Der Minister
The Ministry Of Economy And Finance Of The Hellenic Republic
The Ministry Of National Development Of The Republic Of Hungary
The Ministry Of Finance Of The Republic Of Ireland
Unità Tecnica Finanza Di Progetto - Presidenza Del Consiglio Dei Ministri Della Repubblica Italiana
The Ministry Of Economy And Finance
The Ministry Of Economics Of The Republic Of Latvia
The Ministry Of Finance Of The Republic Of Lithuania
The Malta Investment Management Co Ltd
The Ministry Of Finance Of The Netherlands
The Ministry Of Economy Of The Republic Of Poland
Ministry Of Finance
The Ministry Of Public Finance Of Romania, Ppp Central Unit
Scottish Futures Trust
The Ministry Of Finance Of The Slovak Republic
The Ministry Of Finance Of The Republic Of Slovenia
Direccion General De Presupuestos Y Analisis Economico De La Comunidad De Madrid And Ministerio De Fomento And Departament De Territori I Sostenibilitat De La Generalitat De Catalunya
Prime Ministry Undersecretariat Of Treasury
Her Majesty’s Treasury
The Welsh Assembly Government
Ministry Of Finance Of Israel
The Government Of Montenegro
Ministry Of Economic Development, Trade And Entrepreneurship
Inspection Generale Des Finances
Strategic Investment Board Limited
49 transactions reached financial close for an aggregate value of EUR 15.6 billion. In value terms, the market decreased by 17% compared to 2014.
Termination and Force Majeure Provisions in PPP Contracts
EPEC paper on “Termination and Force Majeure Provisions in PPP Contracts” is available here. This paper has been produced in collaboration with Allen & Overy LLP. Its aim is to provide contract design guidance to PPP procuring authorities and public decision-makers.
State Guarantees in PPPs
State Guarantees have been a feature of PPP programmes for many years. However, with the onset of the credit crisis in 2007, their use has become more prevalent and varied in nature. Based on the now widespread experience of EPEC members in this field, EPEC has produced a paper on this issue (also available in Italian). It is designed to help policy makers in evaluating whether State Guarantees are an appropriate tool for their PPP programme and, if so, by providing guidance on how best to implement and manage them.
Portugal - PPP Unit and Related Institutional Framework
This report provides an overview of the PPP institutional set-up in Portugal. It places a particular emphasis on UTAP, the central government PPP unit. The report is available here.
Financing PPPs with Project Bonds
Bond financing can play a major role in bridging the financing gap for infrastructure investments. This report highlights the key characteristics of bond financing and identifies the main issues that authorities will typically face when PPPs are to be financed with bond instruments. The report is available here.
Sound management by public contracting authorities from signature until the end of the contract life is crucial to the success of PPPs over the long run. To do so, the typical “deal” focus needs to shift to a long-term “management” culture. New EPEC guidance on the matter will hopefully raise awareness and reinforce the ability of authorities to plan their own operational management strategy and execute it without missing out any important steps. You can find the report here.
New EPEC report “Role and Use of Advisers in Preparing and Implementing PPP Projects”
For public procuring authorities, the expertise required to undertake PPP projects is both diverse and specific. This EPEC paper is designed to help public contracting authorities, especially less experienced ones, to understand what they can reasonably expect from their advisers and how they can obtain the best advice from them. You can find the report here.
This revised edition updates the Eurostat Practical Guide published in 2011 to reflect the main changes introduced to the statistical rules on PPPs and concessions, following the implementation of European System of Accounts 2010 (ESA10) in September 2014. It reflects the rules contained in the Eurostat Manual based on ESA10. The Guide is intended to give advice on the impact the risk distribution in a specific project has on government deficit and debt. It contains a checklist of issues designed to help authorities determine the possible statistical treatment of a PPP or concession project. The Guide is available here.
Financing PPPs through project bonds may help to improve the Value for Money of projects by lowering the cost and lengthening the term of financing. However, the use of project bonds may be constrained by procurement hurdles or require procuring authorities to adapt their procurement practices. EPEC, in collaboration with Freshfields and MAPPP, has produced a paper which reviews the main obstacles to the use of project bonds in France and identifies potential solutions to overcome these. The paper, in French, is available here.
Most European countries have established some form of centralised capability as a core part of their institutional framework to implement PPPs, usually in the form of a specialist PPP unit. EPEC has conducted reviews of institutional frameworks for 24 countries. The purpose of this report is to draw collectively from these reviews in order to identify trends and lessons learnt. You can find the report here.
PPP Institutional Strengthening in the Western Balkans
This initiative aims at bringing EPEC’s expertise to the Western Balkans region through the sharing of knowledge and experience. For more information, see here.