PPP projects in the
Netherlands
Advisory Group on Privatisation
19-20 september 2000
Budapest, Hungary
Daniel Loschacoff
PPP Knowledge Centre
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Content
• PPP policy of the Dutch Government
– Background
– Objectives of PPP
• Case study: High speed rail link (HSL)
• Lessons Learned
• Summary
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Why PPP in the Netherlands
Policy
• Increases value for money for taxpayers
(PPP is not off-balance sheet financing)
• Instrument to focus government on its
core business
• EU policy
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Value for Money
What?
Policy
– Higher quality (1st)
– Less costs
– Faster realisation
How?
– Output orientated approach
– Scope optimalisation
– Risk transfer (incentive)
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Back to Core Business
– Government: from player
to referee/purchaser
– Leaving room for
innovation by the market
This means institutional changes
(more private sector supply, different role
for the government)
Policy
• Let parties do what they
are good at
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The EU factor
• Increased deregulation & third party
access
• Increased competition
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Outline High Speed Rail Link
•
•
•
•
•
Links Amsterdam to the Belgian border
Trains will run at 300 km/h
Total costs Euro 5.0 billion
Tendering in three parts
Separate and different tendering
procedures
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HSL-Zuid
Civil Works
Design and construction
contractors
PPPs for commercial
developments
of railway stations
Government
Funding for
civil works
Performance
fees
Access fees
HSL
Station Areas
In fras truc tu re P rovide r
B uilding
 C a p ita l co sts
 C o n stru ctio n
p e rio d
O pe ra tion o f line
 M a inte n a n ce co sts
 R e p la ce m e n t
in ve stm e n t
 R e p a ym e n t
 Fin a n cing /ta x
Access fees
Train Operating Companies
• Operating costs
• Rolling stock and maintenance
• Financing/tax/dividends
Repayment
of loans
Loans
Private financiers
payment during construction phase
payment during operations
Fares
transfers
Coordination/cooperation
Passengers
HSL (IP) contract
Projects
• DBFO-contract for infrastructure; train
operation separated out (NS first
refusal)
• risk transfer: not market risk
• performance fee based on availability of
railway service
• 30 year period
• IP contract award by the end of the year
• completion of infrastructure by 2005
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Key bottlenecks
• Limited experience of PPP
• Public and private parties have to adapt
to their new role (some reluctance)
• No easy pilots (complex projects +
projects with budget constraints)
Result: progress is slow
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Opportunities
• Bottlenecks can - and will - be solved
within the next few years
• Strong political commitment to PPP
• Private sector involvement is not
controversial
• PPP is in line with international policy
development
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Summary
• Objective: value for money, not private
finance
• Case by case-approach: is PPP better?
• Bottlenecks can be removed soon
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And Remember:
in the Polder Model…
all parties want to be involved in
the decision making process.
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For more information:
Internet:
www.minfin.nl/pps
or
d.p.loschacoff@minfin.nl
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