Document Infocentre

This paper, written collaboratively by EPEC and the Economic and Financial Studies division, offers an updated description of the macroeconomic and sectoral significance of PPPs in Europe - without assessing PPPs from a normative perspective. Building on Blanc-Brude et al. (2007), it looks at the evolution of PPPs in the EU, with a particular focus on the recent financial crisis. In 2009, PPP transactions stood at EUR 15.8 billion; a decrease of almost 50% compared to 2007. The total value of closed deals has declined more than the number of deals. At the same time, the PPP market in Europe continues to diversify across countries and sectors. In 2008, the UK share in the total number of EU-PPPs fell below 50%. In many respects, however, the reduction in the European PPP market observed during the financial crisis can be seen as a reversal of an extraordinary spike in the years preceding the crisis.

Public-Private Partnerships in Europe - before and during the recent financial crisis

This report examines the effects of the credit crisis on privately financed government infrastructure projects, the Treasury's response and the challenges ahead.

Among its key findings were that in the circumstances the extra finance costs of projects financed during 2009 were value for money. It expressed concerns regarding value for money in the future if current structures are taken forward. Infrastructure UK, it believes, gives a platform for wider consideration of risks, other funding options and alternative procurement models.

The Directorate General for Mobility and Transport of the European Commission and the Trans-European Transport Network Executive Agency are responsible for the completion of an increasingly complex, and expensive, Trans-European Transport Network (TEN-T). PPPs have a key role to play in delivering this investment.  

As part of its collaboration with DG MOVE and the Agency, EPEC has produced a guidance document for PPPs.  This "Guide to Guidance" seeks to identify the best of breed guidance currently available from PPP guidelines worldwide and selected professional publictions, and covers the three phases of the PPP project cycle: Identification, Procurement and Implementation.

There are two versions of the Guide:

 A Guide to Guidance - Sourcebook for PPPs in TEN-Transport (designed to assist project promoters and procuring authorities for TEN-T PPPs to develop and deliver PPP projects)

A Guide to Guidance - Sourcebook for PPPs

The analysis by UCL, part of a government-funded project in collaboration with the KPMG consultancy, shows that  NHS hospitals that have been built with private sector money are cleaner than hospitals built entirely with public sector financing.

Analysing data at hospitals built since 1995, the researchers show that hospitals operating under PFI have better patient environment ratings than conventionally funded hospitals of similar age. The PFI hospitals also have higher cleanliness scores than non-PFI hospitals of similar age, according to data collected by the NHS.

Operating healthcare infrastructure - analysing the evidence

The paper entitled Capital markets in PPP financing, was published by EPEC in the second quarter of 2010.  The paper is the product of several meetings between the EPEC Executive and EPEC Members on the subject of the capital markets. 

With regard to its content, the paper provides an introduction to the history of capital market funding of PPP projects, in particular explaining the role played by the monoline insurers (and why this business model came to an end).  The paper also looks at options for revitalising capital markets as a source of funding for PPP infrastructure.

Capital markets in PPP financing- Where we were and where are we going?

Following the publication of the European Guide to PPP in 2005, Allen and Overy has produced the Global Guide to Public Private Partnerships 2010.

The Guide aims to raise readers' awareness of the issues to be addressed in implementing successful PPP projects around the world and to show areas of common ground as well as areas of difference in the jurisdictions covered.

The Guide highlights:
-the keys issues private sector participants need to be aware of when engaging in PPP in the countries addressed;
-provides governmental bodies with an insight into how and to what extent PPPs are run in other countries;
-and explains the role export credit agencies and multilateral agencies can play in PPP projects.

Global Guide to Public-Private Partnerships (March 2010)

1. Remedial actions within the procurer's control
2. Remedial actions within the States and Public Authorities control
3. Remedial actions aimed at facilitating the entry of new investors in the PPP market

• EPEC_Credit_crisis_paper-abridged.pdf

Please find herewith the Commission’s communication “A sustainable future for transport: Towards an integrated, technology-led and user friendly system”.

• section 2 refers to recent developments of the European transport policy (ETP) and outstanding issues;

• section 3 looks at the future, identifying trends in transport drivers and the likely challenges they could pose to society;

• section 4 proposes some intermediate policy objectives, which could be pursued to address the emerging challenges in the transport sector;

• section 5 describes some available instruments and possible lines of intervention for achieving the stated objectives.

The European PPP Summit, held this year on 5-7th May in Warsaw, is one of the chief annual conferences on the PPP circuit.  The aims of the conference are to disseminate information about potential projects in the PPP pipeline throughout Europe and enable delegates to discuss pertinent issues through practical case studies and share best practice.  Both Nicholas Jennett (Head of EPEC Division) and Andy Carty (Special Advisor to EPEC) spoke at the conference and their presentations, along with the programme for the event, can be found below. 

Available material:

• Presentation by Nicholas Jennett on 'PPP drivers and challenges in CEE countries'
• Presentation by Andy Carty on 'Understanding the role of PPP taskforces and the role of EPEC'
• Programme

This is a useful bibliography of rail PPP projects across the globe.

• Bratislava slides.pdf

The EIB and European Commission launched the European PPP Expertise Centre (EPEC) on Tuesday 16 September in Paris. The collaborative initiative aims to enable public authorities in EU and Candidate countries to become more effective participants in PPP transactions. EPEC’s team of experts will share experience and information with its members, helping to reduce transaction costs and increase the European PPP deal flow.

Powerpoint presentations

• Press release
• Building bridges
• Factsheet
• The team