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.
New EPEC report “Financing PPPs with Project Bonds in France”
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.
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.
In 2014, the aggregate value of PPP transactions which reached financial close in the European market totalled EUR 18.7 billion. In value terms, this represents a 15% increase over the last year.
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.
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.
Using PPP to Increase Energy Efficiency
EPEC developed an awareness-raising campaign on the use of Structural Funds for investment in energy efficiency and renewable energy, with a special focus on public buildings and street lighting. EPEC aim was to improve the understanding and culture of energy efficiency throughout the EU, and inform Managing Authorities on the funding available for energy efficiency and renewable energy. For further information, visit the dedicated website.