Public Private Partnerships. The European Approach
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1 Public Private Partnerships The European Approach José Papí, Secretary General, ERF EU-Russia Road Seminars, June
2 Meeting Agenda The The Trans-European Network Public Private Partnerships and their limits The ERF Perspective on Infrastructure Financing EU-Russia Road Seminars, June
3 The European Union Road Federation coordinates the views of Europe s road sector and acts as a platform for dialogue and research on mobility issues. works with all European Institutions to achieve a range of policies and programmes which will improve road networks both in the European Union and in neighbouring countries. initiates and supports scientific studies and publications aimed at improving the knowledge of the European road system. EU-Russia Road Seminars, June
4 The Trans-European Network (1/3) Transport growth in the EU-15: 38% increase in road freight by 2010 bottlenecks at border are a particular concern lasting collapse of rail freight The challenges of enlargement rising car ownership levels actions required to align road infrastructure standards 14,000 km of new motorways need to be built EU-Russia Road Seminars, June
5 The Trans-European Network (2/3) «The Trans-European Transport Network represents an amibitious programme for the construction, modernisation and interconnection of Europe s major transport infrastructures» European Commission In 2010, the TEN-T will represent: km of roads (20% still to be built) km of railways (30% still to be built) km of inland waterways TEN «label» assigned to existing or planned transport routes to make them eligible for EU financial support EU-Russia Road Seminars, June
6 The Trans-European Network (3/3) TEN Guidelines revision (October 2003) Very much behind schedule: only 20% of projects adopted in 1996 have been completed EUR 600 billion of investment needed (including EUR 220 on 30 priority projects Europe has yet to find stable mechanisms of funding: public investment in transport infrastructure < 1% of GDP uncoordinated public funding European stability pact EU participation capped at 20% Member States must explore new formulas for infrastructure development which do not contribute to raising public debt EU-Russia Road Seminars, June
7 Public Private Partnerships (1/3) imember States have traditionally relied on 3 approaches: Highly selective public investment Exclusive private funding Public Private Partnerships, characterised by Funding Method Role of Public Partner Distribution of risks It is widely recognised that recourse to PPPs will help put in place the Trans-European Network EU-Russia Road Seminars, June
8 Public Private Partnerships (2/3) i Currently, the conditions for PPPs are not always met Lack of long-term political will Reticence on the part of some of the Member States High construction costs and operating risks i A more appropriate framework is require to make PPPs more attractive to the private sector Involvement of private sector in the project design phase Community loans and guarantees European legal and financial management structures EU-Russia Road Seminars, June
9 Public Private Partnerships (3/3) icase study: European Motorway concessions 112 operators on 25 % of TERN Principle: road section conceded to private operator responsible for operation and (sometimes) toll collection Advantages: road network financed by users themselves charge reflects full infrastructure costs high quality network services delivered to the user Concessions enable innovative performance-based contracts (e.g: Darrington-Dishforth motorway in UK) EU-Russia Road Seminars, June
10 ERF Perspective Project selection should be based on: efficiency (C/B) sustainability (EIA) cohesion criteria (accessibility, job creation) Road user charges acceptable if following criteria taken into account: Scientific basis User acceptability Service levels Economic asymmetries Private sector involvement welcome, but State retains pivotal road in road funding EU-Russia Road Seminars, June
11 Thank You For Your Attention European Union Road Federation (ERF) President Building Avenue Louise,, 106 B-1050 Brussels (Belgium Belgium) Tel: : + (32) Fax: + (32) mail:info info@erf erf.be erf.be EU-Russia Road Seminars, June
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