Senior Loans Officer, European Investment Bank

Nick Jennett

Workshop 10C08

Presentation: Instruments and Development Needs

This presentation will summarise the key lessons learned from EIB’s experience of PPP transactions in respect of:

· Evidence on project performance;

· Key success factors; and

· Initiatives being taken by EIB to assist the development of PPPs, including those in the Regions.

The presentation will point particularly to the importance of open and competitive procurement, and the role that public authorities need to play in attracting contractors and sponsors. In the regional context, there will be particular emphasis on what will sometimes be a need to educate local and regional contractors on the demands PPP projects will make on them. This will be important in deepening, and strengthening the local contracting market.

The public sector also has a key role in ensuring the ‘bankability’ of the PPP projects they support. Reference will be made to the options for blending grants and loan finance in those regions that benefit from structural and cohesion funds.

Finally, attention will be drawn to the overriding importance of ensuring the public sector has the skills and competencies to undertake the successful procurement, negotiation and management of a PPP project.

The EIB is looking to play a supporting role in a number of these areas. The Bank has developed a number of new financial instruments to increase the value it can bring to PPP projects. It is also cooperating with the Commission and EBRD in the JASPERS initiative, designed to support Member States bring forward, and implement, high quality projects including PPPs which can be part financed from cohesion and structural funds. Finally, the European PPP Expertise Centre (EPEC) initiative will be presented as a means for public sector bodies with the responsibility for the development of PPP policies and programmes to share experience and benefit from best practice.