1 Workshop of the Ministry of Finance of the Czech Republic How to use European funds within a PPP project? Jana Maláčová Ministry for Regional Development/ National Coordination Authority for EU Structural Funds and the Cohesion Fund 5th March 2010

2 Cohesion Policy: Financial Allocation Czech allocation = 27 billion EUR (EU- sources) National co-financing of 15 % = 5 billion EUR Main areas of investments: transport, environmental issues, business support and science and research support Complementarity of regional and sector operational programmes

Current State of Implementation Approved projects: 40% of the whole allocation Already paid to final beneficiaries: 14% of the whole allocation Czech Republic is in comparison with other EU member states above-average (European Commission figures)

Definition of PPP in Czech Republic Economic expression, there is still no legal definition on national and European level Cooperation between public and private sector with the purpose of build-up, operation, maintaining or administration of public infrastructure The principle is to enable the realization of the project, e.g. private sector is in charge of the functioning of public services Private sector invests its own financial resources and consequently administrates and operates this kind of service On the ground of the Czech concession law, one of the possibilities could be also PPP

PPP Study Identification of conditions and possibilities for the realization of PPP projects in the Czech Republic with the use of EU Structural Funds and the Cohesion Fund Furthermore: Specification of appropriate projects with the aim to strengthen the absorption capacity in this area This study serves as an orientation/ guidance/ stimulation for our managing authorities (18 OP are in the hands of Czech managing authorities)

Basic combinations of PPP and EU Structural Funds and the Cohesion Fund Two basic types: 1.Grant – financing by grant PPP projects generating revenues PPP projects as subjects of state aid Others PPP projects 2.Financial engineering in form of interest-free or advantaged credit

Risks and barriers European legislation: –Projects generating revenues –State aid –Temporal limitation of the current financial perspective (till 2015 on ground of the n+2 rule) Fears of the potential beneficiaries: –No experience in this field –Demanding preparation phase

Conclusions We are intensively considering the use of PPP projects in the area of EU Cohesion Policy Especially the current budgetary situation of public actors on all levels makes the PPP projects even more attractive than ever

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