EU ‘should play a more central role in fostering PPPs’

THE European Union should play a more central role in fostering Public Private partnerships (PPP) to help member states bridge the infrastructure gap with the more developed economies.

If the infrastructure gap is to be tackled then the EU will have to insist on a more structured, comprehensive approach to tackling the problem.

In a new report, consultants PricewaterhouseCoopers say too much is at stake for countries like Ireland and the new member states to ignore this issue.

While the member state holds ultimate expansibility in this regard, closer involvement by the EU cold pave the way for greater procurement possibilities across Europe and help lower the capital cost.

Developing Public Private Partnerships in New Europe argues while prime responsibility for PPP rests with nation states, the EU must play a more central role.

Launching the report, Aidan Walsh, PPP Partner, PricewaterhouseCoopers Ireland said: “An ‘infrastructure gap’ exists in Ireland and in Europe which has a negative impact on economic growth and on the prosperity of all of its citizens. Research has proven that PPPs can provide efficiency savings in the region of 15% or more over the results of traditional forms of procurement, if they are properly procured”.

Governments are increasingly recognising PPPs as an important means of bridging the infrastructure gap. But a need exists for better sharing of knowledge and experience between different parts of the public sector, he said.

“I believe that this will ensure efficiency in the development of PPPs in the future”.

Uncertainty and confusion surrounding how EU legislation applies to PPPs adds to the overall risks of undertaking such projects, he said.

The risks apply to both public and private sectors and inevitably result in higher costs. The EU has rightly stated that PPPs should be a viable alternative to more traditional forms of procurement and can offer enhanced value for money, he said.

Key findings in the Report include:

Experience shows that PPPs can provide efficiency savings in the region of 15%.

PPP market in Europe as a whole is under-developed.

Officials in EU and member states are often uncomfortable with the complexity of PPPs.

Considerable uncertainty exists as to how PPPs interact with current EU policy.