A Tale of Two Dutch PPPs 2nd Intl. EC Workshop on PPPs André Betting, Dir. Dutch PPP Knowledge Centre 5 July 2004
Content 1.HSL-South Infrastructure Provider contract 2.The Hague waste water treatment plant contract (AHR-project) 3.The role of the Dutch PPP Knowledge Centre 4.The EU (presidency) and PPPs
What is HSL-South? London Paris Amsterdam Schiphol Rotterdam Antwerp Brussels Breda
Facts and Figures 15 million passengers 50% national / 50% international Ready 2006/7 contract award civils: 2000 contract award IP: 2001 Infra: 96 km new track State of the art technology
IP contract characteristics Scope: design and build new systems operate and maintain al new infra Terms: 5+25 years Size: over 1 billion Euro Type: DBFM Interfaces: civils works, existing rail infra, train operations
Private finance Infraprovider Civil works Government TransportCompanies Payment during constr. phase Transfer Payment during operations
Availability is key concept IP paid on availability of the service; no payments for products. IP receives no payments during construction. Hence: the State procures a service rather than a product.
The Hague waste water treatment plant (AHR-project)
Facts and figures: Waste water treatment for 1.3 m. inhabitants Private responsibility for treatment immediately following contract close in 2003 State of the art environmental technology and plant management
AHR contract characteristics Scope: new treatment plant, refurbishment of existing plant, exploitation of both plants and of the network of pipes Terms: 30 years Size: >400 m Euro Type: DBFO
Outcomes Both projects demonstrate upfront a better VfM through the PPP structure HSL IP 5% more efficient, AHR > 18% HSL has a 99% availability, AHR extremely clean effluent & highly motivated employees
Role of the Dutch Knowledge Centre PPP Adviser on both projects Supporter in mitigating transaction costs Disseminator of knowledge Institutional enabler of PPPs
PPPs in Europe Objective: Improve the quality & effectiveness of public sector investment policies Actions that we support: Establishing level playing field conditions for PPPs Pan-European dissemination of knowledge & experiences Supporting PPPs by mitigating bottle-necks such as transaction costs
More on the Dutch PPP policy and projects…… Visit our English website: pps.minfin.nl or contact us