The European PPP Expertise Centre
Role and Activities
Edward Farquharson
Principal Advisor
European PPP Expertise Centre: Who are we?
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
With significant Member engagement in EPEC Working Groups
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EPEC: what do we do and how?
EPEC’s activities
EPEC’s methods
• Collaborative Working –
information sharing through
Member working groups on key
PPP themes
• Identifying key issues,
researching/analysing them,
sharing information, experience
and expertise
• Helpdesk – service offered to
Members providing rapid
responses to enquiries
• Promoting good practice across
the public sector
• Institutional Strengthening –
policy and programme support
through bilateral working with
Members
• Strengthening the organisational
capacity of public authorities to
develop PPP policies and
programmes
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EPEC Reports
EPEC provides Guidance on wide ranging PPP topics:
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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
… and continues to address new questions:
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Ex post Evaluations of PPP projects and programmes
PPPs and fiscal risk
Value for money
http://www.eib.org/epec/g2g/index.htm
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Key elements of EPEC work programme
Network Activities
PPP Organisational Capacity
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PPP Institutional Arrangements
PPP Investment Planning, Programme and Project Preparation
PPP Financing Instruments
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Combining EU Funds and PPPs
Emerging Solutions for Financing PPPs
Value for Money
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Procurement
Eurostat, Accounting and Fiscal Risk
Ex-post Evaluation
Operational PPPs
Network Support
 EPEC Websites
 EPEC PPP Guide
 Market Updates
 Helpdesk Requests
 Events
Bilateral Advisory Services
EPEC Member (country) Bilaterals
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Direct and Discrete Advisory Services for EPEC Members
Mandatory Advisory Services
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Western Balkans Investment Framework
Facility for Euro-Mediterranean Investment and Partnership
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The European PPP Market
Trends and Developments
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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UK, Italy and France largest markets accounting for 73% of the overall European market value
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14 countries closed at least one PPP transaction in 2013 (compared to 9 in 2012)
Source: EPEC PPP Database
The European PPP Market in 2013:
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Large deals (> EUR 500 million)
• 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-AmsterdamAlmere (EUR 1.0 billion)
• Phase 1 of Gebze-Izmir
Toll Road (EUR 1.1
billion)
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Six large transactions closed in
2013 (four in 2012)
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Aggregate value of these
transactions accounted for 52%
of the total market value
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Two motorway projects in Italy
alone accounted for 25% the
total market value
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Other notable projects: Zagreb
Airport expansion (EUR 331
million) and Marseille L2 Bypass
(EUR 233 million)
Source: EPEC PPP Database
The European PPP Market in 2013 cont.:
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The European PPP Market in 2013 cont.:
Transaction value - Volume in EUR
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Compared to 2012, transport and education
market share remain approximately stable,
while healthcare increased by 6% and
environment by 9%
Number of transactions
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Education remained the most active
sector also in 2013 with stable values in
volume terms. Environment recorded
10 deals more than 2012.
Source: EPEC PPP Database
Sectorial breakdown
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The European PPP Market in 2013 cont.:
Financing terms
Commercial debt pricing for PPP transactions
• Commercial debt margins went
down in 2013
• Loan tenors remained on average
the same as in 2012
Source: EPEC PPP Database
PPP Loan tenors in 2013
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EIB Market Share in PPPs since 2004
• Market share increased on average by 5% during the
crisis (14.1% in 2009-2013 vs 9.3% in 2004-2008)
Note: Data for 2013 are provisional
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EIB lending in PPPs since 1990
• Over 175 projects in 19 countries
• Total lending volume > EUR 35 billion
Transport
projects
share
82%
Note: Data for 2013 are provisional
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Edward Farquharson
Principal Advisor
e.farquharson@eib.org
European PPP Expertise Centre
epec@eib.org
www.eib.org/epec
Twitter: @EpecNews
Telephone: +352 4379 22022
Fax: +352 4379 65499
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