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PPP promotion/support: PPP systems e.g. build-operate-transfer (BOT)

FACT SHEET NO.: Cat-No.1 / Subcat-No.1.4

General Information

Title

FACT SHEET NO.: Cat-No.1 / Subcat-No.1.4

Category

1. Pricing

Subcategory

1.4 Other / new financing instruments

Transport policy measure (TPM)

PPP promotion/support: PPP systems e.g. build-operate-transfer (BOT)

Description of TPM

Public-Private Partnerships (PPP) arrangements are the partnership of private and public cooperation which aims to reduce the investment of public funds and take the advantage of the participation of private sector. In a PPP arrangement, the public and private sectors collaborate in the construction and/or maintenance of public infrastructure projects. The Commission has identified four principal roles for PPPs[1][2]:
• Provide additional capital
• Provide alternative management and implementation skills
• Provide value added to the consumer and the public at large
• Provide better identification of needs and optimal use of resources.

Implementation examples

- European PPP in the first half of 2012 with 41 deals [4].
- The aggregate volume of PPP transactions that reached financial close on the European market in the first half of 2012 totalled 6 billion euros [8].

Objectives of TPM

The PPP arrangements aim to [1]:
• Acceleration of infrastructure provision
• Faster implementation
• Reduced whole life costs
• Better risk allocation and better incentives to perform
• Improved quality of service
• Generation of additional revenues
• Enhanced public management

Choice of transport mode / Multimodality

Origin and/or destination of trip

Trip frequency

Choice of route

Timing (day, hour)

Occupancy rate / Loading factor

Energy efficiency / Energy usage

Main source

[1] European Commission (2003): Guidelines for successful public – private partnerships.
[2] European Commission (2009): Mobilising private and public investment for recovery and long term structural change: developing Public Private Partnerships.
[3] European Investment Bank - EIB (2011): The European PPP Expertise Centre - EPEC. Using EU Funds in PPPs - explaining the how and starting the discussion on the future.
[4] European Investment Bank - EIB (2012): The European PPP Expertise Centre - EPEC. http://www.eib.org/epec/
[5] European Investment Bank - EIB (2012):The European PPP Expertise Centre - EPEC. Broadband - Delivering next generation access through PPP.
[6] European Investment Bank - EIB (2010): The European PPP Expertise Centre - EPEC. Eurostat Treatment of Public-Private Partnerships.
[7] European Investment Bank - EIB (2011): The European PPP Expertise Centre - EPEC. The Guide to Guidance: How to Prepare, Procure and Deliver PPP Projects.
[8] European Investment Bank - EIB (2012): The European PPP Expertise Centre - EPEC. Market Update - Review of the European PPP Market First half of 2012.

Traffic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Travel or transport time

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Risk of congestion

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Vehicle mileage

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service and comfort

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

Quantification of impacts


Economic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Transport costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Private income / commercial turn over

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues in the transport sector

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sectoral competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Spatial competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Housing expenditures

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Insurance costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Health service costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public authorities & adm. burdens on businesses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public income (e.g.: taxes, charges)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Third countries and international relations

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

1. The PPP arrangement is a long contract between public authority and private sector for financing, designing, construction and operations of infrastructure projects. Its impacts on economy concern the reduction of transport cost for users/business and increasing the income of public authority and private sectors
2. Spread the cost of financing the infrastructure over the lifetime of the asset, thusreducing immediate pressures on public sector budgets [2]
3. The private sector may be able to generate additional revenues through the use of spare capacity [1]

Quantification of impacts


Social Impacts
Environmental Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Air pollutants

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noise emissions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Visual quality of the landscape

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Land use

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Climate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Renewable or non-renewable resources

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The environment impact of PPPs depends on the propriety of projects.

Quantification of impacts


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