Transcript PowerPoint

OPEN DAYS 2005
International Conference & Workshops,
European Commission – Regional Policy DG
PPPs in the EU and
implications for the Regional
Level
Presented by:
V. Kanakoudis, Civil Eng. Phd
A. Sanopoulos, Regional Planner MSc
(EUROCONSULTANTS S.A.),
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Introduction to PPP
types of cooperation between the public & the private sector
finance, manufacture, renovate, manage and maintenance
public infrastructure and provide services
either cooperating with the implementation body, or by the
form of a services Provider
where market liberation is either impossible or undesirable
goal is to expand to medium-scale projects.
PPP Types, Categories and Forms
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Concessions
Joint Ventures
Hybrid Forms: BOT, DBFO, LRO etc.
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PPP Legislation Progress in the EU

Weak public sector, strong PPP interest (TR)
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Strong public sector, weak PPP interest (DK)
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Strong Public Sector, strong PPP interest (UK)
Conclusions
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Provision of a central unit
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Provision of legislation
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Results in the praxis
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PPP Implementation Areas in the EU

Strong: Roads and Bridges, Water Supply and Sewage
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Middle: Railways, Hospitals, Airports
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Weak: Schools, Public Housing, Prisons
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Typology of PPPs: Definition of Unit of the provided
good, Risk allocation, Management issues
PPP Success Factors

formation of strong «partnerships»
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public acceptance

management transfer from public to private sector
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“bankability” & “viability” of the projects
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guaranty of meritocracy & performance evaluation
during the contracting procedures
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PPP and Structural Funds

New Programming Period 2007-2013

Remaining funds for 2005-2006 and implementation
pace
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Changing Status for Objective 1 regions and financial
implications

Two choices:
1.
develop procedures for the “direct combination” of
private funding and EU funds
2.
Pre-assess a possible PPP allocation
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Case Study 1: a PPP project in urban
development: the new town of ZEP (Zone
of Alternate Urban Planning) Kozani
Major land uses based on urbanplanning regulations:
Tourism
Residential
Residential
Regional Administration
Common Facilities
Regional
Trade
Recreation
Central
Square
Common Areas
and
and
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THE 4 SELF-FINANCING PROJECTS OF
THE ZEP BUSINESS PLAN
Project I
construction of ready-built houses for Structured
Urban Development sub-division of residential use
6 blocks in 46.551 m2 (A areas), with a total built
surface area of 29.932 m2
Estimated cost of the investment: 35M€
Project II
construction of buildings for Trade &
Recreation sub-division with an Urban Center
land use (based on concession)
4 blocks over an area of 43.904 m2 (YELLOW
areas), with a total built surface of 11.700 m2
Estimated cost of the investment: 17 M€.
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THE 4 SELF-FINANCING PROJECTS OF
THE ZEP BUSINESS PLAN
Project III
construction of ready-built houses for Structured
Urban Development sub-division for residential use
5 blocks over an area of 49.485 m2 (the ‘B’ area),
with a total built area of 29.691 m2
Estimated cost of the investment: 35M€
Project IV
construction of buildings for Tourism &
Recreation use (based on concession)
1 block over a total area of 28.255 m2 (PINK
areas), with a total built area of 16.953 m2
Estimated cost of the investment: 30M€
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Case Study 2: Environment Protection
Project - Integrated Waste
Management (DIADYMA S.A.)
DIADYMA S.A.: founded in 1996 by the Municipalities of Western
Macedonia to serve the needs of Waste Management and
especially to implement the Integrated Waste Management
System (IWMS) of the Region (4 Prefectures, 61 Municipalities,
300.000 residents, 100.000 tones of MSW per year)
Financial Data:
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Total Budget of 65 M€ (1998 - 2010)
Mechanical Collection: 6 Μ€
Transferring: 6,8 Μ€
Recovery & Recycling: 4,1 M€
Mechanical Separation & Treatment: 31,5 Μ€
Sanitary Land filling & Restoration: 11,2 Μ€
Other: 5,3 Μ€
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Integrated Waste Management System
Planning
 Environmental Impact Studies
 Systems Design & Optimization
 Systems Development & Management
 Technical & Feasibility Studies
 Tenders for Study Assignments and Facility Construction
 Facilities Planning & Construction Supervision
 Software Development & Logistics Support
Implementation
Supporting Infrastructure co-financed by the CF (2002 - 2004):
Total budget (initial, 2001): 13 M€
 Contracts (March 2004): 11 M€
 Deductions (March 2004): 2 M€ (15%)
 Expenditure (June 2002 - April 2004): 4 M€
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Recycling Facilities: the PPP challenge
 The Mechanical Separation and Composting Plant is
scheduled to be completed by 2007: recovery is expected to
exceed 70% before the year 2010, resulting into local tax
reduction and systems optimization
 The total budget for the materials recovery & treatment
infrastructure is estimated at 26 M€ until 2007
 Private investment is expected to exceed 10 M€ (energy
recovery unit not included)
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Case Study 3: Construction &
Operation of a small hydropower plant
by a wide public base enterprise
Municipal Dept of Vatsounia (Population: 520 habitants, Income
sources: agriculture, cattle-raising)
HYDROYLEKTRIKI S.A.: A small hydropower plant producing
600KW/h, provided to the Public Electric Power Utility
Stockholders/shareholders:
Municipal Dept of Vatsounia: 35% + Local population: 65%
Capital stock: 264.123 € which is divided in 9.000 nominal stocks
of face value of 29,34 € per item
The Public Power Corporation S.A. has undertaken the
commitment to buy electric power from HYDROYLEKTRIKI S.A.
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PROJECT DATA
Renewable Power Source
Environmental Friendly
Landscape remains the same
Environmental Education
E = 3.980.448 KWh/year
New Working Places
Local Population stays
Agro-tourist development
motives
VIABLE PROJECT!!!
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VIABILITY CONTROL - EVALUATION
•Construction Cost = 901.000 €
•Inflation trend = 2% - 4%
•Construction Duration = 2 years
•Maintenance Cost 1%
•Economic Lifetime = 19 years
•Operation Cost 7%
attractiveness
viability
in 2000, the project was awarded by the Center of Renewable
Energy Resources as the best innovative initiative among the
Greek local authorities
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PPP Conclusions
1.
Legislative Framework and Empowerment of the
Local and Regional Authorities
2.
Capacity Development at National,
Regional Level
3.
Compatibility with Structural Funds Regulations and
National Co-financing Procedures
4.
Establishment of an Independent Authority for
Conflict Resolution
5.
Assistance in the PPP drafting phase
Sectoral and
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