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Concessionaire’s Performance Assessment in Public-Private Partnerships: journal article

The Case of the Autonomous Province of Bolzano in Italy

Alberto Germani, Karl Zeller

European Procurement & Public Private Partnership Law Review, Volume 16 (2021), Issue 2, Page 125 - 130

This article describes the authors’ experience with Public Private Partnerships (PPPs) being dealt with by the Italian Autonomous Province of Bolzano/South Tyrol. All PPPs considered by the Province and other local authorities must be compulsorily envisaging the enforcement of an effective performance control system during operations, in order to provide a timely assessment of key performance indicators (KPIs) and, in case of non-compliance, to levy relevant penalties to the private partner. Measuring a concessionaire’s performance during operation stage in PPP arrangements is an essential requirement set forth by European standards, in order for PPPs to be accounted off public balance. In the Guide to Statistical Treatment of PPPs, Eurostat sets out that PPP contracts must contain provisions that allow for the Operational Payments to be adjusted for unavailability of the asset and poor service performance by the private partner. Unlike concessions, where the private party bears most of the risks and the majority of revenues come directly from user charges, in PPPs the public party is the major purchaser of the services provided by the operator. The investment repayment is assured for the greatest part by regular availability-based payments granted by the acquiring administration throughout contract duration. In the latter case, it is essential to ensure that a substantial risk portion is transferred to the private party, by contractually defining a clear set of performance levels to be matched during Operations, and making sure that an efficient and sound performance control system is in place to check if requirements are met. Keywords: PPP; concession; PAB; KPI; performance indicator


E-Procurement for PPPs and Concessions: journal article

Current Trends and Opportunities

Bruno de Cazalet, Iryna Zapatrina

European Procurement & Public Private Partnership Law Review, Volume 16 (2021), Issue 2, Page 131 - 150

Recently, also due to the COVID-19 pandemic, the issue of using e-procurement is becoming more and more relevant for all countries around the world, and especially for EU Member States implementing the requirements of the Directives on public procurement. The substantial advantages of the use of electronic procedures for public procurement for reduction of tender costs and better prices, the possibility to avoid misuse, collusion and corruption, led some countries to explore opportunities to adapt the traditional e-procurement experience for public-private partnership (PPP) and concession tenders. Today, the regulation in this field is practically absent and the experience is very limited. This article presents: an analysis of the situation regarding current regulation, experience in electronic PPP procurement implementation, and trends; the peculiarities of PPP procurement compared to traditional public procurement; the difficulties related to PPP procurement as e-procurement; and the recommendations of authors on the use of electronic procurements for PPPs and concessions based on the peculiarities of a project implemented using relevant mechanisms. Keywords: public-private partnership; PPP; public procurement; electronic procurement; e-procurement; digitalisation


Public-Private Partnership as a Solution for Competition Restrictions for Local Governments in Finland journal article

Paukku Eelis

European Procurement & Public Private Partnership Law Review, Volume 15 (2020), Issue 4, Page 292 - 300

This article aims to find out how Finnish legislation allows usage of PPPs by local governments. This study was conducted by analysing the main features of PPPs from literature as well as analysing EU and national legislation. The main findings of the study were that the most significant legislation is EU public procurement legislation, which sets a framework on how the public can acquire the skills and problem-solving from the private sector. The procurement method called ‘the competitive dialogue’ has proven to be effective in PPPs. As there are many different forms of PPPs, it is possible that other legislation can create issues with PPPs as well, mainly EU State aid regulation, national, local government regulation, and national competition regulation. As a main result, it can be stated that regulation does not prevent or even hinder the usage of PPPs as long as legal requirements are taken account and markets are not unnecessarily disturbed. Keywords: public-private partnership; PPP; State aid; public procurement; local government regulation; competitive dialogue



Opinion ∙ Unsolicited Proposals for PPPs in Developing Economies journal article

Iryna Zapatrina

European Procurement & Public Private Partnership Law Review, Volume 14 (2019), Issue 2, Page 118 - 128

One of the features of the legal regulation quality in the field of PPP is the interest of business in the implementation of infrastructure projects using this mechanism. At the initial stage of the PPP development, this interest is expressed in the active participation of business in competitions for the implementation of PPP projects and / or in the preparation of unsolicited proposals (USPs). At the next stage, in the number of successful PPP projects. In conditions when the public authorities do not make efforts to structure PPP projects, it is business who takes the initiative by starting the preparation and submission of unsolicited proposals. The attitude to such proposals by the public authorities and the expert community is very different. In a number of countries, including Ukraine, there are many discussions about the expediency of USPs and the approaches that should be used when considering them. This article presents an analysis of various points of view regarding unsolicited proposals; an assessment of the advantages and disadvantages of USPs compared with the proposals prepared on the initiative of public authorities; the author’s observations regarding the potential of using this mechanism to achieve the public interest and recommendations on how some of the problems existing in this area could be resolved. Keywords: Public-Private Partnership (PPP); PPP proposals; Unsolicited Proposals (USP); Infrastructure Projects, Public Interest.


Boosting Investments in Nigerian PPPs through Better Mitigation of Project Risks journal article

George Nwangwu

European Procurement & Public Private Partnership Law Review, Volume 13 (2018), Issue 2, Page 103 - 112

Nigeria currently has a number of seemingly commercially viable PPP projects which have not attracted financing from private sector investors, despite the best efforts of the government at marketing these projects. The apathy from investors is due to the manner in which the project risks have been managed. Prospective investors have simply not been comfortable with the risk allocation framework underpinning these projects as there has been no conscious effort to incentivise investors through the proper allocation and mitigation of risks. The paper looks at the correlation between investments and the proper management of project risks and suggests ways in which investments in PPP projects within Nigeria may be catalyzed.


Characteristics of the Legal Framework for Serbian PPPs journal article

Slavica Joković

European Procurement & Public Private Partnership Law Review, Volume 13 (2018), Issue 2, Page 113 - 118

This paper reviews the main characteristics of the legal framework regarding public-private partnerships in Serbia, with particular reference to the Law on Public-Private Partnership and Concessions. It notes that compliance with the new EU Directives will require adequate implementation capacity and systematic monitoring and control, in order to implement it effectively and reduce the scope for corruption.