The European PPP Expertise CentreRole and Activities

Edward FarquharsonPrincipal Advisor

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Established in September 2008

As a unique cooperative initiative of the EIB, the EC and EU Candidate & Member States

With a mission to support the public sector to deliver better PPPs

39 Members (typically PPP units)

Multi-disciplinary team

European PPP Expertise Centre: Who are we?

With significant Member engagement in EPEC Working Groups

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• Collaborative Working – information sharing through Member working groups on key PPP themes

• Helpdesk – service offered to Members providing rapid responses to enquiries

• Institutional Strengthening – policy and programme support through bilateral working with Members

EPEC: what do we do and how?

EPEC’s activities EPEC’s methods

• Identifying key issues, researching/analysing them, sharing information, experience and expertise

• Promoting good practice across the public sector

• Strengthening the organisational capacity of public authorities to develop PPP policies and programmes

• Combining EU funds and PPP• State Guarantees in PPP• Non-financial Benefits of PPP• PPP Statistical and Accounting treatment• Competitive Dialogue procurement• Project bonds• Operational PPPs• Project advisers

EPEC provides Guidance on wide ranging PPP topics:

… and continues to address new questions:

• Ex post Evaluations of PPP projects and programmes• PPPs and fiscal risk• Value for money

EPEC Reports

http://www.eib.org/epec/g2g/index.htm

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Direct and Discrete Advisory Services for EPEC Members

EPEC Websites EPEC PPP Guide Market Updates

PPP Institutional Arrangements PPP Investment Planning, Programme and Project Preparation

Combining EU Funds and PPPs Emerging Solutions for Financing PPPs

Procurement Eurostat, Accounting and Fiscal Risk Ex-post Evaluation Operational PPPs

Helpdesk Requests Events

Western Balkans Investment Framework Facility for Euro-Mediterranean Investment and Partnership

PPP Organisational Capacity

PPP Financing Instruments

Value for Money

Network Support

EPEC Member (country) Bilaterals

Mandatory Advisory Services

Key elements of EPEC work programmeNetwork Activities

Bilateral Advisory Services

The European PPP Market Trends and Developments

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The European PPP Market in 2013:Out of the crisis?

Key figures:

Value

• EUR 16.7 billion in 2013

• EUR 12.8 billion in 2012

Deals

• 80 in 2013

• 68 in 2012

Average deal value

• EUR 208 million in 2013

• EUR 188 million in 2012

Large deals (>EUR 500 million)

• 6 in 2013

• 4 in 2012

Source: EPEC PPP Database

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The European PPP Market in 2013:

• UK, Italy and France largest markets accounting for 73% of the overall European market value

• 14 countries closed at least one PPP transaction in 2013 (compared to 9 in 2012)

Source:

EP

EC

PP

P D

atab

ase

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The European PPP Market in 2013 cont.:Large deals (> EUR 500 million)

Source:

EP

EC

PP

P D

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ase

• Thameslink Rolling Stock PPP (EUR 1.9 billion)• Royal Liverpool Hospital PPP (EUR 509 million)

• BreBeMi Motorway PPP (EUR 2.3 billion)• Milan eastern ring road PPP (EUR 1.8 billion)

• A1/A6 motorway Schiphol-Amsterdam-Almere (EUR 1.0 billion)

• Six large transactions closed in 2013 (four in 2012)

• Aggregate value of these transactions accounted for 52% of the total market value

• Two motorway projects in Italy alone accounted for 25% the total market value

• Other notable projects: Zagreb Airport expansion (EUR 331 million) and Marseille L2 Bypass (EUR 233 million)• Phase 1 of Gebze-Izmir

Toll Road (EUR 1.1 billion)

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The European PPP Market in 2013 cont.:Sectorial breakdown

Source:

EP

EC

PP

P D

atab

ase

• Compared to 2012, transport and education market share remain approximately stable, while healthcare increased by 6% and environment by 9%

Transaction value - Volume in EUR Number of transactions

• Education remained the most active sector also in 2013 with stable values in volume terms. Environment recorded 10 deals more than 2012.

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The European PPP Market in 2013 cont.:Financing terms

Source:

EP

EC

PP

P D

atab

ase

• Commercial debt margins went down in 2013

Commercial debt pricing for PPP transactions

• Loan tenors remained on average the same as in 2012

PPP Loan tenors in 2013

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EIB Market Share in PPPs since 2004

Note: Data for 2013 are provisional

• Market share increased on average by 5% during the crisis (14.1% in 2009-2013 vs 9.3% in 2004-2008)

EIB lending in PPPs since 1990

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Transport projects

share82%

• Over 175 projects in 19 countries• Total lending volume > EUR 35 billion

Note: Data for 2013 are provisional

Edward FarquharsonPrincipal Advisor

e.farquharson@eib.org

European PPP Expertise Centre

epec@eib.org www.eib.org/epec

Twitter: @EpecNewsTelephone: +352 4379 22022

Fax: +352 4379 65499

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