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EPEC Private Sector Forum

EPEC’s activities in 2010

Nicholas JennettHead of EPEC

Private Sector Forum2 June 2010

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What:

• Assisting the public sector to deliver more, and better, PPP deals

How:

• A closed, public sector club

• Sharing information and expertise, promoting good practice across the public sector

Delivering two product lines:

• Public goods: Membership working groups supported by EPEC Executive, Market intelligence, private sector dialogue, working with the Commision

• Private goods: Bilateral working with member organisations to support policy and programme development

By:

• An international team including nationals of France, Germany, Ireland, Italy, Greece, Romania, Russia, United Kingdom

Mission, Members, Governance

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EPEC Membership

• Public sector entities with policy and programme responsibility for PPP in EU and Candidate countries

• 27 national / regional members including EU PPP taskforces

• Balanced membership across the EU and Candidates

• 25 members at foundation; • 30 total as of June 2010.

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Activity update

• The European PPP Report 2009 (with DLA Piper)

• Market monitoring and updates

• Bilateral working with Members

• Impact of the credit crisis

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Impact of the credit crisis

• Membership workshops:• Understanding the impact of the

financial and economic crisis• Guarantees and co-lending

instruments• Implications for procurement

• Working papers• Private sector perspectives• Public sector initiatives

• Consultation paper on responses to the crisis

• Available at www.eib.org/epec

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Capital Markets in PPP

• Bonds versus bank debt• Analysis of the monoline model• The scale of the potential market• How to revive capital markets• The role of the public sector

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• Eurostat Guidance – coming soon• Procurement and competitive

dialogue – in preparation• Benchmarking public sector PPP

units – in preparation• Loan / grant blending – in

preparation• The ‘Guide to Guidance’ on PPP

TEN-T PPP

Looking to the future

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The Guide to Guidance

1 Guidelines for successful public private partnerships, European Commission, Directorate General Regional Policy, (March 2003). → section 2, part 3 (pages 50-55) contains a brief description of the main sources of risk in a PPP project and its financial implications. http://ec.europa.eu/regional_policy/sources/docgener/guides/ppp_en.pdf

Reference

number

Publication

title

Internet

link

Author

and date

Source

description

• Identifies best available guidance to support public authorities by:• identifying the scope for PPP in TEN-T projects;• providing an interactive “roadmap” of the PPP procurement phase;

• identifying issues which occur during the negotiation of a PPP transaction.

• From PPP guidelines worldwide and selected professional publications

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‘Best of breed’ references

Guidance

1 Toolkit for Public-Private Partnerships in Roads and Highways, PPIAF/Word Bank, Module 5, (version March 2009). → Highlights key information about the use of advisers, including typical costs and types of advisory skills needed. http://www.ppiaf.org/documents/toolkits/highwaystoolkit/5/5-8.html

*2 How to Appoint and Manage Advisers to PFI Projects, Technical Note No. 3; HM Treasury Taskforce (undated). → A useful guide to the engagement of legal, technical, financial and project management advisers, the appointment process, checklists and forms. http://www.hm-treasury.gov.uk/d/PPP_TTF_Technote3.pdf

*3 Toolkit on Hiring and Managing Advisers for Private Participation in Infrastructure, PPIAF -World Bank (2001). → An extensive document giving guidance on all aspects of engaging and managing PPP project advisers. Pages 51–53 contain a discussion of whether to hire a lead advisor. http://rru.worldbank.org/Toolkits/HiringManagingAdvisors/

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EPEC’s strategic development

• Increasingly operational focus designed to demonstrate impact

• Developing secondments

• Re-balance of network activity and policy & programme support

• Increased focus on less mature markets

• Increased focus on loan / grant blending) and assisting members identify new funding sources / instruments (e.g. Marguerite)

• Complementary activities with the private sector

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Conclusion

www.eib.org/epec

EPEC• In something over 18 months EPEC has

established itself as the leading regional PPP expertise centre

• Membership engagement has been maintained – indeed is growing

• High quality staff have been recruited• Outputs well received

The market• The crisis and its aftermath, along with the

Commission’s political commitment, give a positive strategic context

• National and regional interest in growing PPP capacity is likely to increase

• Further collaborative working with the Commission, Members & the private sector both desirable – and expected by market

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Nicholas JennettEuropean Investment Bank

jennett@eib.org

Telephone: +352 4379 87320

****European PPP Expertise Centre

epec@eib.orgTelephone: +352 4379 85434

****

www.eib.org/epec