Nieuwe publiek-private samenwerkingen binnen transport en infrastructuur (en)
Methods for financing transport infrastructure from non-public funds and sharing experiences concerning Public-Private Partnership (PPP) investments were the subjects of the informal session of EU i transport ministers held on 5-6 September in Sopot.
The Polish Presidency i was represented by the infrastructure Minister Cezary Grabarczyk.
Present at the meeting were representatives of EU Member States, while the European Commission was represented by its vice-president and transport commissioner Siim Kallas i, and the European Parliament by Brian Simpson, Chairman of the Transport and Tourism Committee (TRAN i). Speeches were delivered by European Investment Bank representative Maj Theander and Yves Thibault de Silguy, head of the Vinci Group, which carries out public-private partnership infrastructure projects.
On the first day of the informal session of the transport ministers, infrastructure Minister Cezary Grabarczyk held bilateral meetings with the the Romanian transport and infrastructure minister Anca-Daniela Boagiu and the Cyprus minister, Efthemios Flourentzou. On September 6, Minister Grabarczyk also held bilateral meetings with Siim Kallas, European Commission Vice-President. At the same time, meetings were held between the under-secretary of state for infrastructure Maciej Jankowski and representatives of the Visegrad Group states, as well as between Radoslaw Stepnien and the Slovak minister.
Subjects concerning the financing of infrastructure and cooperation between the public sector and private partners within the Public-Private Partnership system were discussed during the plenary session of ministers held on September 6.
The meeting of transport ministers ended in the Presidency’s conclusions, of which the most crucial ones concerned the statement that Public-Private Partnership is a complementary model for financing infrastructure; nevertheless, public funding remains the basic source of finance. Member States perceive the need to develop a catalogue of good practices in applying the PPP model at the EU level. The Presidency was pleased to note that the Commission is planning to propose specific steps to support PPP, as well as the European Commission declaration concerning the financing of the comprehensive TEN i-T network from the EU funds.
Financial crisis and financing transport infrastructure
Due to the current economic situation in Europe and across the globe, public funds earmarked for investments no longer ensure the sufficient development of transport infrastructure. For the entire European Union, the construction of new infrastructure and the overhauling of aleady existing elements are a basic factor in helping to maintain economic growth, and an element of the sustainable mobility of people and goods. Limitations on states' capacity to undertake new obligations to finance long-term infrastructure projects and public debt make the search for alternative sources of financing EU transport infrastructure a significant aspect of the public debate.
The debate conducted by the ministers was based on questions set by the Polish Presidency and addressed to Member States concerning private sources of financing, predominantly the Public-Private Partnership. An analysis of the answers shows that the majority of EU Member States, Poland included, have experience in the cooperation between the public sector with private partners on public investments (whether at national or regional level). Most of them point both to positive and negative experiences. Nevertheless, not all states apply the PPP formula in financing transport infrastructure projects.
Key questions
No uniform definition and methodology for Public-Private Partnership in the EU has as yet been developed, nor is there a risk sharing model. Cooperation between the public and private sector for financing public projects assumes a range of forms, depending on the state in question. The issue of how funds involved in PPP contracts are to be construed is a major concern, as it influences the budgetary deficit/surplus and the public debt.
The macro-economic effects must be borne in mind when comparing project implementation in the traditional and PPP methodologies. The costs of acquiring capital are higher in PPP projects, which is reflected in higher project costs. Greater difficulties in acquiring capital experienced by private partner during the financial crisis has led to problems with ensuring financing.
PPP in the EU in 2010
The value of PPP transactions that were successfully completed in the EU in 2010 amounted to €18.3 billion (approximately PLN 75.8 billion PLN*). 112 projects were completed. When it comes to the number of contracts, the United Kingdom was the leader with 44, followed by France (19), Germany (14), and Spain (13). In terms of the value of contracts, Spain, the United Kingdom and Portugal stood out (each exceeding €3 billion). The value of transport projects accounted for less than 50% of the value of all PPP projects.