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

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 Helpdesk – service offered to Members providing rapid responses to enquiries Institutional Strengthening – policy and programme support through bilateral working with Members Identifying key issues, researching/analysing them, sharing information, experience and expertise Promoting good practice across the public sector Strengthening the organisational capacity of public authorities to develop PPP policies and programmes

EPEC Reports EPEC provides Guidance on wide ranging PPP topics: 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: Ex post Evaluations of PPP projects and programmes PPPs and fiscal risk Value for money http://www.eib.org/epec/g2g/index.htm

Key elements of EPEC work programme Network Activities PPP Organisational Capacity PPP Institutional Arrangements PPP Investment Planning, Programme and Project Preparation PPP Financing Instruments Combining EU Funds and PPPs Emerging Solutions for Financing PPPs Value for Money 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 Direct and Discrete Advisory Services for EPEC Members Mandatory Advisory Services Western Balkans Investment Framework Facility for Euro-Mediterranean Investment and Partnership

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

The European PPP Market in 2013: Source: EPEC PPP Database UK, Italy and France largest markets accounting for 73% of the overall European market value 14 countries closed at least one PPP transaction in 2013 (compared to 9 in 2012)

The European PPP Market in 2013 cont.: Large deals (> EUR 500 million) Six large transactions closed in 2013 (four in 2012) Aggregate value of these transactions accounted for 52% of the total market value Two motorway projects in Italy alone accounted for 25% the total market value Other notable projects: Zagreb Airport expansion (EUR 331 million) and Marseille L2 Bypass (EUR 233 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-Amsterdam-Almere (EUR 1.0 billion) Source: EPEC PPP Database Phase 1 of Gebze-Izmir Toll Road (EUR 1.1 billion)

Transaction value - Volume in EUR Number of transactions The European PPP Market in 2013 cont.: Sectorial breakdown Source: EPEC PPP Database Transaction value - Volume in EUR Number of transactions Compared to 2012, transport and education market share remain approximately stable, while healthcare increased by 6% and environment by 9% Education remained the most active sector also in 2013 with stable values in volume terms. Environment recorded 10 deals more than 2012.

Commercial debt pricing for PPP transactions The European PPP Market in 2013 cont.: Financing terms Commercial debt pricing for PPP transactions Commercial debt margins went down in 2013 PPP Loan tenors in 2013 Source: EPEC PPP Database Loan tenors remained on average the same as in 2012

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

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

European PPP Expertise Centre 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