1. PPPs in the EU and implications for the Regional Level
OPEN DAYS 2005
International Conference & Workshops,
European Commission – Regional Policy DG
PPPs in the EU and implications for the Regional Level
Presented by:
V. Kanakoudis, Civil Eng. Phd
A. Sanopoulos, Regional Planner MSc
(EUROCONSULTANTS S.A.),

2. PPP Types, Categories and Forms
Introduction to PPP
types of cooperation between the public & the private sector
finance, manufacture, renovate, manage and maintenance public infrastructure and provide services
either cooperating with the implementation body, or by the form of a services Provider
where market liberation is either impossible or undesirable
goal is to expand to medium-scale projects.
PPP Types, Categories and Forms  
Concessions
Joint Ventures
Hybrid Forms: BOT, DBFO, LRO etc.

3. PPP Legislation Progress in the EU
Weak public sector, strong PPP interest (TR)
Strong public sector, weak PPP interest (DK)
Strong Public Sector, strong PPP interest (UK)
Conclusions
Provision of a central unit
Provision of legislation
Results in the praxis

4. PPP Implementation Areas in the EU
Strong: Roads and Bridges, Water Supply and Sewage
Middle: Railways, Hospitals, Airports
Weak: Schools, Public Housing, Prisons
Typology of PPPs: Definition of Unit of the provided good, Risk allocation, Management issues
PPP Success Factors
formation of strong «partnerships»
public acceptance
management transfer from public to private sector
“bankability” & “viability” of the projects
guaranty of meritocracy & performance evaluation during the contracting procedures

5. PPP and Structural Funds
New Programming Period
Remaining funds for and implementation pace
Changing Status for Objective 1 regions and financial implications
Two choices:
develop procedures for the “direct combination” of private funding and EU funds
Pre-assess a possible PPP allocation

6. Case Study 1: a PPP project in urban development: the new town of ZEP (Zone of Alternate Urban Planning) Kozani
Major land uses based on urban-planning regulations:
Tourism
Residential
Regional Administration
Common Facilities
Regional Trade and Recreation
Central Square and Common Areas

7. THE 4 SELF-FINANCING PROJECTS OF THE ZEP BUSINESS PLAN
Project I
construction of ready-built houses for Structured Urban Development sub-division of residential use
6 blocks in m2 (A areas), with a total built surface area of m2
Estimated cost of the investment: 35M€
Project II
construction of buildings for Trade & Recreation sub-division with an Urban Center land use (based on concession)
4 blocks over an area of m2 (YELLOW areas), with a total built surface of m2
Estimated cost of the investment: 17 M€.

8. THE 4 SELF-FINANCING PROJECTS OF THE ZEP BUSINESS PLAN
Project III
construction of ready-built houses for Structured Urban Development sub-division for residential use
5 blocks over an area of m2 (the ‘B’ area), with a total built area of m2
Estimated cost of the investment: 35M€
Project IV
construction of buildings for Tourism & Recreation use (based on concession)
1 block over a total area of m2 (PINK areas), with a total built area of m2
Estimated cost of the investment: 30M€

9. Financial Data: Total Budget of 65 M€ (1998 - 2010)
Case Study 2: Environment Protection Project - Integrated Waste Management (DIADYMA S.A.)
DIADYMA S.A.: founded in 1996 by the Municipalities of Western Macedonia to serve the needs of Waste Management and especially to implement the Integrated Waste Management System (IWMS) of the Region (4 Prefectures, 61 Municipalities, residents, tones of MSW per year)
Financial Data: Total Budget of 65 M€ ( )
Mechanical Collection: 6 Μ€
Transferring: 6,8 Μ€
Recovery & Recycling: 4,1 M€
Mechanical Separation & Treatment: 31,5 Μ€
Sanitary Land filling & Restoration: 11,2 Μ€
Other: 5,3 Μ€

10. Integrated Waste Management System
Planning
Environmental Impact Studies
Systems Design & Optimization
Systems Development & Management
Technical & Feasibility Studies
Tenders for Study Assignments and Facility Construction
Facilities Planning & Construction Supervision
Software Development & Logistics Support
Implementation
Supporting Infrastructure co-financed by the CF ( ):
Total budget (initial, 2001): 13 M€
Contracts (March 2004): 11 M€
Deductions (March 2004): 2 M€ (15%)
Expenditure (June April 2004): 4 M€

11. Recycling Facilities: the PPP challenge
The Mechanical Separation and Composting Plant is scheduled to be completed by 2007: recovery is expected to exceed 70% before the year 2010, resulting into local tax reduction and systems optimization
The total budget for the materials recovery & treatment infrastructure is estimated at 26 M€ until 2007
Private investment is expected to exceed 10 M€ (energy recovery unit not included)

12. Case Study 3: Construction & Operation of a small hydropower plant by a wide public base enterprise
Municipal Dept of Vatsounia (Population: 520 habitants, Income sources: agriculture, cattle-raising)
HYDROYLEKTRIKI S.A.: A small hydropower plant producing 600KW/h, provided to the Public Electric Power Utility
Stockholders/shareholders:
Municipal Dept of Vatsounia: 35% + Local population: 65%
Capital stock: € which is divided in nominal stocks of face value of 29,34 € per item
The Public Power Corporation S.A. has undertaken the commitment to buy electric power from HYDROYLEKTRIKI S.A.

13. VIABLE PROJECT!!! HYDROYLEKTRIKI S.A. PROJECT DATA
Renewable Power Source
Environmental Friendly
Landscape remains the same
Environmental Education
New Working Places
E = KWh/year
Local Population stays
Agro-tourist development
motives
VIABLE PROJECT!!!

14. VIABILITY CONTROL - EVALUATION
Construction Cost = €
Construction Duration = 2 years
Economic Lifetime = 19 years
Inflation trend = 2% - 4%
Maintenance Cost 1%
Operation Cost 7%
DATA
attractiveness
IRR = 15-19%
viability
in 2000, the project was awarded by the Center of Renewable Energy Resources as the best innovative initiative among the Greek local authorities

15. PPP Conclusions
1. Legislative Framework and Empowerment of the Local and Regional Authorities
2. Capacity Development at National, Sectoral and Regional Level
3. Compatibility with Structural Funds Regulations and National Co-financing Procedures
4. Establishment of an Independent Authority for Conflict Resolution
5. Assistance in the PPP drafting phase