Public Private Partnership Conference

1

• Public Private Partnership Conference
• Prague, 11-02-2009
• Make PPP possible by taking advantage of the EU
  Grants
• Christos Gogos
• DG REGIO Deputy Head of Unit for Czech Republic
• E-mail Christos.Gogos_at_ec.europa.eu

2
Build a balanced PP Partnership the other way
3
THE 20072013 NSRF IN CZECH REPUBLIC

• Total allocation 26,7 bn
• Convergence objective 25,9 bn
• Czech Republics contribution 4.6 bn
• Transports total allocation 7,7 bn
• Environment total allocation 10,0 bn

4
Essential PPP contractual elements

• Duration should be an essential criterion for the
  award of the PPP contract and should always be
  objectively justified and proportionate to the
  risks
• Tariffs should also be stated as an essential
  criterion for the award of the PPP contract and
  should promote quality and long-term
  sustainability
• Performance criteria, monitoring and sanctions
• Necessary to ensure optimal efficiency

5
PPP advantages

• Leverage on national and EU Funds and loans
• Reducing costs and construction time-schedule in
  comparison to the traditional public works
• Design and realize a project of high quality in
  order to avoid high maintenance costs
• Increase the volume of realized projects in given
  frame time, create more jobs and accelerate
  economic development

6
The must in PPPs

• Balance between public interest vs. risks of the
  private partner
• Avoid windfall projects
• Consider carefully co-investments
• Carve out the deal with care
• Build the relationship
• Do not harm
• Work together to improve, develop and avoid
  prescriptive contracts

7
The dont in PPPs

• Create complex consortia
• Develop complex regulatory structures that are
  not understood by anyone

8
Country characteristics

• High government commitment
• From public service to service to the public
• Adequate legal structure and willingness to adapt
  legislation
• Transparent tender procedures compatible with
  international best practice standards
• Dedicated agencies and capacity building
• Qualified staff to negotiate, administer and
  monitor complex PPP projects effectively

9
Success brings success

• Capitalizing on best practices
• Enhancing public awareness
• Build on successful domestic and abroad examples
• Chose a reliable and experienced contractor
• PPPs need a change in culture and knowledge
• PPP partnership should not be seen as the
  solution for financial or managerial problems
• In PPPs the public sector is outsourcing tasks
  NOT the end responsibility

10
Additional success factors

• Starts in the early stages of the project
  information, information, information
• Creation of a fair environment for all stake
  holders
• Transparent and fair diversification of risks for
  each involved party
• Common approach, goals and objectives
• Integrated organization - Specific PPP project
  team

11
Make PPPs a win-win process

• Cooperation instead of confrontation
• Common problem solving
• Incentive scheme
• Open books
• Continuous improvement
• Permanent feedback

12
Time planning is time well spent

• Milestones and deliverables (critical path)
• A valid and realistic time-scale
• Flexible work plans
• Accurate cost estimates, detailed financial
  resource requirements
• Early warning system, keep team focused and aware
  of project progress

13
Reporting on performances

• Reporting is a MUST
• Define and make performance measurable
• Respect deadlines in solving problems
• Deal with formal requirements
• Record keeping
• Record monitoring

14

• A successful PPP project delivers value for money
  and what has been agreed is done on time, on
  budget, on scope and on building know-how

15
A successful PPP project connecting
EuropeRio-Antirio, Greece
16
(No Transcript)
17
Total influence on GR economy - 1.5 billion
18
A significant role in the development of the
region
19
The Rion - Antirion bridge West Greece

• Built 1999-2004 (five months ahead of schedule)
• Total cost 803.000.000
• EU Grant 256.000.000 (32)
• State budget 108.000.000 (14 )
• Private financing 438.000.000 (54 )
• Duration 35 years

20
Composition of the private consortium

• Vinci 53
• JP Hellas 11,2
• TEV 7,74
• Helleniki Techno 7,74
• Athena 7,74
• Proodeftiki 7,74
• Sarandopoulos 7,74

21
Comfort and time saving

• reducing crossing time to 5 min (compared to
  previous ferry-boats crossing average of 50 min)
• improving crossing comfort to high standards
• remaining in operation whatever the weather
  conditions

22
Traffic and fees

• Carries - 6 lanes (2 lanes each way 2 emergency
  lanes 1 pedestrian bicycle lane)
• Traffic - 11.000 vehicles/day
• Length 2,880 meters Width 27.2 meters
• SIMPLE CROSSING TOLL RATES FOR 2009
• Cars 11.70
• Mot/cycles 1.80
• Coaches 27.00 - 58.00
• Trucks 18.00 - 39.20

23
The longest cable stayed bridge worldwide - 2.880
m
24

• An engineering masterpiece
• The 2006 IABSE outstanding structure Award has
  been conferred to the Rio-Antirio bridge
• The most remarkable, innovative and creative PPP
  project completed within the last few years
• Outstanding Structure Award for A monumental
  bridge executed with strength and grace
• An impressive and beautiful sea crossing

25
Designed to resist winds of 250 km/hEarthquakes
of Richter magnitude 7
26
During an earthquake, the piers should be allowed
to move laterally
27
The bridge height allows unobstructed navigation
28
Night view
29
Night lighting combinations
30
Other indicative PPP rail projects

• UK
• Channel Tunnel Rail Link
• Netherlands
• South - cross Amsterdam to belgian border
• Norway
• Sandnes Stavanger link
• Italy
• Brenner Base Tunnel
• Belgium
• Diabolo connection to Brussels Airport

• France
• Nîmes - Montpellier Bypass
• Perpignan - Figueras HST
• Tours Bordeaux HST
• Portugal
• Lisbon Madrid HST
• Lisbon Porto HST
• Spain
• Madrid-Malaga HST
• Madrid-Valladolid HST
• Madrid-Barcelona HST

31
PPP needs imaginationJohn Lennon Imagine wall
in Prague
32
Thank you for your attention