Transcript The role PPPs can play in helping to deliver the CEF

The role PPPs can play
in helping to deliver the CEF
6 March 2012, Lisbon
Andy Carty
[email protected]
www.eib.org/epec
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The European PPP Expertise Centre
Established in September 2008
A unique cooperative initiative of the
EIB, the European Commission and
EU Candidate and Member States
International team of 18 professionals
Membership: Initially 20, EPEC now
numbers 35 Members
Excellent engagement from Members
with more than 120 participations
annually in EPEC working groups
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EPEC’s mission:
To help the public sector deliver more, and better, PPP deals
EPEC’s activities:
Collaborative Working –
Information sharing through
member working groups.
Institutional Strengthening –
Policy and programme
support through bilateral
working with member
organisations.
Helpdesk – Service offered to
members providing rapid
responses to enquiries.
EPEC works by:
Sharing information,
experience and expertise
Strengthening the
organisational capacity of
public authorities to develop
PPP programmes
Promoting good practice
across the public sector
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EIB Transport Sector Lending in the EU
EIB loans to Transport
reached EUR 75 billion
in the period 2006-2011*
Transport Lending
The EIB has lent an average of EUR
12.5 billion p.a. to the transport
EUR m
sector in the EU during the period
2006-2011.
*
* 2011 figures are annualised YTD figures as of 30/09/2011
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The European PPP Market
Transport represents half of the market
volume, though outnumbered in terms of deal
numbers.
Key sectors in 2011
0
5
10
15
20
25
Education
General Public Services
Public Order
and Safety
12%
General Public
Services
11%
Environment
8%
Transport
Public Order and Safety
Education
6%
Healthcare
3%
Environment
Healthcare
Other (Housing, Telecoms, Energy)
Transport
58%
Other
(Housing,
Telecoms,
Energy)
2%
PPP Financing per Sector
With 66 projects in 2011, Education and General Public
Services PPPs outnumbered Transport PPPs (12
projects). However, in terms of value, with EUR 10.3
million invested, transport still represents more than the
half of the market volume.
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EIB PPP Financing and Support
EIB has provided
substantial policy
support and
organisational
capacity to support
the development of
PPP markets and
investments since the
1990s
EIB lending has been
a key source of
medium and long term
debt for the European
PPP market since
2007
Since 1990, EIB has progressively broadened geographic and sector spread of its
PPP lending. The Bank is now one of the major funders of projects in Europe with a
portfolio of about 140 projects and investment of around EUR 30 billion. Annual
signatures averaging above EUR 2.5 billion since 2000, reaching EUR 3.8 billion in
2010 with EUR 2.6 billion in the transport sector. In 2011 signatures reached EUR 3.6
billion of which EUR 2.7 billion in the transport sector.
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Major European Transport PPP Projects
Finland
Belgium
UK
Liefkenshoe
k
London Orbital
Rail Tunnel
Koskenkylä-Kotka
Netherlands
HSL
(High Speed
Line)
Poland
Ireland
Germany
Austria
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Delivering the next generation internet through PPP
Private sector involvement (both in terms of capital
and expertise) is key in meeting the ambitious targets
set by the Digital Agenda
The PPP model has enabled NGA deployment in
areas where it would not otherwise have been
feasible, or would have been significantly delayed
Digital Agenda for
Europe
A strategy for achieving
a flourishing digital
economy by 2020
Targets
Lessons learned from past
experiences shows how no
single PPP model suits all
circumstances
It is necessary to understand the
attractiveness of a project to the
private sector before deciding on
the required level of public sector
involvement
100% Internet coverage
by 2013
-100% coverage at more
than 30Mbit/s by 2020
-50% household take-up
at more than 100Mbit/s
by 2020
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PPPs for Energy Efficiency (EE)
Initiative with the European Commission in connection with the Financial
Facility to Support Energy Efficiency and Renewable Energy Initiatives
EPEC will support the EC in raising the awareness of local, regional and
national authorities to ensure optimal use of EU Structural and Cohesion funds,
particularly improving the energy efficiency of the public sector
Events:
-Workshops
-Round tables
-Regional seminars
-Conferences
Knowledgesharing:
-Dedicated website
-Case-study
database
-Contacts database
Guidance materials on:
-PPPs in EE for public buildings
-Street-lighting
-EE and renewables use in housing
and other types of buildings
-Reallocation of ERDF-funds
-ESCOs and EPC contracting
-Linking projects with sources of
support at the EU level
(ELENA, JESSICA, EEEF)
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Transaction Financial Advisory (TFA)
Lending, Blending & Advising
EIB’s TFA department provides advice to public
sector clients to help them develop their:
• Absorption capacity and leverage of EC and EIB
resources
• Design and management of joint financial
instruments
• Project preparation and implementation capabilities
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Combining EU Budgetary Funds with PPPs
EU Structural Funds and sector-specific budgetary
programmes for TEN-T, TEN-I and CEF are major source
of infrastructure finance
EU programmes require co-financing funds which must
come from private sources and/or public authorities.
PPP structures are eligible for EU Budgetary grantfunded projects
The development of appropriate mechanisms and rules to
facilitate joint PPPs and EU funding is necessary in order
to meet the next EU budgetary period policy objectives
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Subordinated Project Bond Instruments
“Project Bonds” have points in
common with LGTT, but they
extend the LGTT experience
to:
All categories of project related risks,
including construction, operations,
performance, traffic etc. ;
A wider eligibility range across sectors,
potentially extending to: transport,
energy, environment, and ICT;
Can be both unfunded and funded,
depending
on
the
project’s
characteristics and requirements. As in
the LGTT, in the unfunded version,
once EIB guarantee is called it will
crystallise into a subordinated debt.
Project
Bonds
SPV
Project
Costs
Target
rating
minimum
A-
Bond Issue and
underwriting
Project
Bond
Investor
EIB Sub-debt
Equity &
Quasiequity
up to 20%
of total
Bond issue
EIB Sub-debt participation can be combined with different types funding sources (bonds and other senior loans)
EIB Unfunded Sub-debt participation can be flexibly used and structured in order to ensure target rating.
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Thanks for
listening…
Andy Carty
[email protected]
****
European PPP
Expertise Centre
[email protected]
www.eib.org/epec
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