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PPP projects in the Netherlands

PPP projects in the Netherlands. Advisory Group on Privatisation 19-20 september 2000 Budapest, Hungary. Daniel Loschacoff PPP Knowledge Centre. Content. PPP policy of the Dutch Government Background Objectives of PPP Case study: High speed rail link (HSL) Lessons Learned Summary.

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PPP projects in the Netherlands

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  1. PPP projects in the Netherlands Advisory Group on Privatisation 19-20 september 2000 Budapest, Hungary Daniel Loschacoff PPP Knowledge Centre

  2. Content • PPP policy of the Dutch Government • Background • Objectives of PPP • Case study: High speed rail link (HSL) • Lessons Learned • Summary

  3. Why PPP in the Netherlands • Increases value for money for taxpayers (PPP is not off-balance sheet financing) • Instrument to focus government on its core business • EU policy Policy

  4. Value for Money What? • Higher quality (1st) • Less costs • Faster realisation How? • Output orientated approach • Scope optimalisation • Risk transfer (incentive) Policy

  5. Back to Core Business • Let parties do what they are good at • Government: from player to referee/purchaser • Leaving room for innovation by the market Policy This means institutional changes(more private sector supply, different role for the government)

  6. The EU factor • Increased deregulation & third party access • Increased competition

  7. Outline High Speed Rail Link • Links Amsterdam to the Belgian border • Trains will run at 300 km/h • Total costs Euro 5.0 billion • Tendering in three parts • Separate and different tendering procedures

  8. HSL (IP) contract • DBFO-contract for infrastructure; train operation separated out (NS first refusal) • risk transfer: not market risk • performance fee based on availability of railway service • 30 year period • IP contract award by the end of the year • completion of infrastructure by 2005 Projects

  9. Key bottlenecks • Limited experience of PPP • Public and private parties have to adapt to their new role (some reluctance) • No easy pilots (complex projects + projects with budget constraints) Result: progress is slow

  10. Opportunities • Bottlenecks can - and will - be solved within the next few years • Strong political commitment to PPP • Private sector involvement is not controversial • PPP is in line with international policy development

  11. Summary • Objective: value for money, not private finance • Case by case-approach: is PPP better? • Bottlenecks can be removed soon

  12. And Remember:in the Polder Model… all parties want to be involved in the decision making process.

  13. For more information: Internet: www.minfin.nl/pps or d.p.loschacoff@minfin.nl

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