1 / 9

Dr Goetz von Thadden European PPP Expertise Centre

EPEC Private Sector Forum Blending PPPs with EU Grants . Dr Goetz von Thadden European PPP Expertise Centre. Brussels, 2 June 2010. Blending EU grants and PPPs? Cohesion funding of EUR 350bn plus TEN-T funding of EUR 8bn is a major source of infrastructure finance.

niel
Download Presentation

Dr Goetz von Thadden European PPP Expertise Centre

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EPEC Private Sector Forum Blending PPPs with EU Grants Dr Goetz von Thadden European PPP Expertise Centre Brussels, 2 June 2010

  2. Blending EU grants and PPPs? • Cohesion funding of EUR 350bn plus TEN-T funding of EUR 8bn is a major source of infrastructure finance. • Although co-financing rules differ across the instruments, all require contributions, which could come from private sources. • They rarely do, mainly because the schemes were designed for capital contributions (which sit uneasily with PPP models). • The topic needs discussion now for the next programming period, when (i) funding may be less generous – a speculation, (ii) conventional govt co-financing more difficult to find – a certainty, (iii) leveraging has worked – see LGTT, (iv) wider recognition of the benefits of PPP and its whole-live approach to project design, delivery and management. • Learning the lessons from the past to ensure regulations are appropriate and all stakeholders are equipped and ready for 2014.

  3. What can EU grants bring to PPPs? • They lower the cost for TEN investments and make them more attractive. • They bridge the funding gap and make environmental projects viable. • They support non-income generating investments for regional development. • Grants are to PPPs what they are to all public sector projects ...

  4. What can PPPs bring to EU grants? • Professional project management and implementation. • Project delivery on time and on budget. • Improved asset and service quality. • Life-cycle approach with constant performance throughout concession/contract period. • Private finance helps to raise national contribution. • Private finance leverages EU grants for better projects

  5. Why isn’t the EC flooded with PPP grant applications? • Limited public sector capacity to deliver complex project structures. • Organisational bottlenecks at national level. • Lack of encouragement from EC. • Unclear issues re state aid (beneficiary), balance sheet treatment, procurement, cut-off date, etc. for blending mechanisms. • Concerted efforts are needed to start the flow

  6. There is only so much that EPEC can do … • Work stream initiated on blending mechanisms. • Dialogue with Members, relevant DGs, and private sector. • Bilateral support for pilot programme. • EPEC for analysis, guidance, organisation, and strategy at macro level.

  7. And then there is JASPERS at the micro level • JASPERS supports the grant application process for individual projects (incl. PPPs). • JASPERS has done work on the concept of PPP/grant blending as horizontal task. • JASPERS gives feedback to EC arising from individual projects (open issues). • JASPERS has to treat PPPs like all other grant apps

  8. But there is homework for everybody … • The EC has to clarify a number of open issues. • Member states have to set up networks facilitating PPP/grant blending (public-public partnerships). • The private sector has to learn about possible structures and support their development. • PPP/grant blending needs to be pushed at all levels.

  9. http://www.eib.org/epec Goetz von Thadden thadden@eib.org Tel: +352 4379 87613 Fax: +352 4379 65499 For more information…

More Related