PPP in the Current Financial Situation: Challenges and Chances I. Introduction The global financial and economic crisis, which started in 2008 in the wake of the collapse of the American real estate market and the subsequent crash of the unregulated collateralized debt obligation and credit default swap market, has infected a still growing number of economic activities. Therefore it is a matter of question if public private partnerships are immunized against the consequences of this crisis. On t...

EPPPL 2|2009 Editorial 65 The White Paper on services of general interest and the importance of public private partnerships in their delivery In recent years, the role of the European Union in shaping the future of services of general interest has been at the centre of the debate on the European model of society. Recognising the crucial importance of well-functioning, accessible, affordable and high-quality services of general interest for the quality of life of European citizens, the environmen...

Does PPP Need Financing? I. Introduction The outcome of some recent tender procedures for public private partnerships, but even more so the current financing situation (“credit crunch”) has led to the question whether “financing” is – and must be – a constituent element of PPP schemes. Without any doubt, for the time being, the private financing of infrastructure (PFI) is one of the key elements and the most attractive aspect of PPP projects. To be honest: it was the possibility and ...

I. Introduction In this age of government deficits and spending constraints, Public-Private Partnerships (PPPs) – the leverage of private sector efficiency and expertise by the governments to increase the quality and cost effectiveness of public services – have become increasingly popular among governments across the globe. Spain, an early user of PPP for highway projects, has been a leader in this trend, as it has launched several PPP hospitals in an effort to cover rising demand for good h...

Editorial Institutional public-private partnerships often represent a preferred option for Member States to deliver public services. Equally, the contractual and procurement interface of such entities attracts the attention of the European Commission. In October 2008, open compliance proceedings against Spain regarding the joint ventures set up by publicly owned companies IVVSA and AUMSA. IVSSA (Instituto Valenciano de Vivienda, S.A.) and AUMSA (Actuaciones Urbanas de Valencia, S.A) are limited ...

I. Introduction Governments demand high quality services, delivered on time and to budget. Historically, major capital investments to facilitate these services, built under public finance, have consistently failed to keep within the initial schedules and funding constraints. Collaboration between the public and private sector, or Public Private Partnerships (PPPs) have developed to use the innovation and experience of the private sector to provide demanded services in a more cost-effective and r...

I. Introduction It has been the fifth anniversary of Lithuania’s accession to the family European Union member states recently. Nevertheless, the legal regulation of public procurement in Lithuania counts more than a decade. Still, this is a relatively short term for the existence of a matured and well developed public procurement system in the broadest sense of it. However, the Lithuanian public procurement system is quite a dynamic one, evolving day by day and being improved by reference to ...

Country Reports Denmark Construction of first PPP Motorway in Denmark to begin in 2010 Currently the Danish Road Directorate is conducting the competitive dialogue phase of a tendering process with four consortia. The four consortia have prequalified to bid on the first public private partnership (PPP) regarding a motorway in the county of Sønderjylland in southern Jutland, Denmark. This country report will, in general terms, describe the project and the process leading up to the project, inclu...

I. Introduction It is now over 13 years since the first public finance initiative/public private partnership (“PFI/PPP”) projects were completed in the UK and there were, as at the end of 2008, some 935 PFI/PPP1 projects worth over £66 billion. The number of projects and the time over which they have been operating enable some assessment to be made of where problems are emerging or are likely to emerge and what the nature of those problems is likely to be. The market has changed between 200...

The Effects of the Principles of Transparency and Accountability I. Introduction The principles of transparency and accountability depict the skeleton of public procurement and public- private partnerships regulation. They have direct influence on two fronts: a) the behavioral patterns of the state, public bodies and contracting authorities and b) the emergence and structure of a sui generis market place. The regulation of public procurement, through the principles of transparency and accountabi...

26 The Railways at the Crossroads of Liberalisation and Public Service EPPPL 1|2009 I. Introduction The liberalisation process of state monopolies such as in the energy, postal, telecommunication or transport sectors (also often called “network industries”), 1 under European impetus, has been part of a wider debate around the liberal tone of European actions.2 It is true that a tension exists between liberalisation and public service objectives.3 It is feared that the introduction of competi...

42 Extending the Scope of Public-Private Partnerships in France EPPPL 1|2009 I. The evolution of French legislation regarding contractual PPPs 1. The French legal framework prior to creating the partnership contract in 2004 Before the creation of partnership contracts, by special law (ordonnance) of 17 June 2004, public legal bodies (State and regional or local authorities) charged with missions of public interest and wishing to grant responsibility to a private person to carry out a complex, gl...

EPPPL 1|2009 Strengthening UN Programmes at national Level 49 I. Introduction Partnerships between the private sector and UN organizations and their programmes are gaining impetus all over the world. There are many different types of cooperation. They range from single projects to global initiatives. One example which is closely associated with the public-private partnership idea is Global Compact. On the assumption that businesses will in future increasingly see longterm sustainability strategi...

A Dutch Court refuses to suspend in interim Proceedings an “in house” Concession for public Bus Transport in Rotterdam I. Facts of the case 1. On 31 October 2007, the City-Region (Stadsregio) of Rotterdam, regrouping several local authorities in the Rotterdam region, has suspended an EU-wide public tender procedure. It did so in order to anticipate a forthcoming amendment of the Dutch regulatory framework for public transport services, which would make it possible for the City-Region of Rott...

Country Reports Portugal Environmental Risk on Public-Private Partnerships As it is well known, the corner stone of Public- Private Partnerships (PPP) is the principle of the effective transfer of risk to the private partner. Among us, the mentioned principle is expressly established in article 7 of Decree-Law no. 86/2003, of April 26, 2003, which sets out the Portuguese legal framework of PPP. On the environmental policy, Portugal has been following the trend that is being implemented around th...

Editorial The European Commissioner for the Internal Market and Services, Charlie McCreevy reiterated the importance of public private partnerships and public procurement in the Commission’s strategy to stimulate the European economy in a meeting with the Business Services Association in London, on 11 December 2008. He referred to the long-standing experience of the UK as far as PPPs and outsourcing services and the demonstrable track record of public sector authorities in embracing these vehi...

The Public-Private Partnership Act of the Republic of Slovenia I. Introduction The purpose of new legislation in the field of Public-Private Partnership in Slovenia was to introduce an aspect of new public management through transforming the execution of public services and other projects into a partnership between the public and private sectors. As in nearly all Continental Europe, forms of public-private partnership were viewed particularly as service concessions even before the legislation ha...

Public-Private Partnership in Slovenia I. Introduction The intention of this contribution is to present the institute of public-private partnership in Slovenia. The introduction outlines the historical framework of executing services of general interest in Slovenia and offers an analysis of the current situation. In the following section the most important and specific provisions of Slovenian Public-Private Partnership Act are set out. The central part of this article provides an analysis of a p...

A new EU Directive on Concessions – the right Approach for PPP? I. Introduction The European Commission published an Interpretative Communication on concessions in European law in April 2000,1 in which it defined, on the basis of the rules and principles derived from the Treaty and applicable secondary legislation, the outlines of the concept of concessions in Community law and the obligations incumbent on the public authorities when selecting the economic operators to whom the concessions are...

I. Introduction Providing sports facilities and other facilities for leisure is one of the voluntary tasks of municipalities. In addition to this, they are required to provide the necessary sporting facilities for schools. However, in the last few years, the necessary capital investment for such provisions has fallen short. As a result, there is a significant investment back-log which must be resolved in the next few years. Figure 1: Required municipal capital investment for structures and equip...