Public Private Partnerships are forms of co-operation between public authorities and the private sector that aim to provide a public service or project. They result in the setting up of complex legal and financial arrangements involving private operators and public authorities carrying out infrastructure projects or services of use to the public.
These partnerships have been developed in several areas of the public sector and are widely used within the EU to ensure the provision of services, in particular in the areas of transport, public health, education, public safety, IT, waste management and water distribution.
But under Community law there is no specific legal system governing the many different forms of PPPs, and contracts for these partnerships are not in general covered by the EU rules on the single market. In certain cases, they can be subject to the detailed provisions of the European Directives on public procurement. However, other cases, and in particular certain "concessions," are not covered.
The Commission wants to ensure that the current legal framework does not prevent economic operators within the EU from gaining access to the different types of PPPs. To this end the Commission launched a consultation in April last year, and is now proposing a number of changes.
These include a clarification on how EU rules should apply to the choice of private partners in “institutionalised PPPs,” which are public-service undertakings held jointly by both a public and a private partner.
The Commission expects to publish an Interpretative Communication (which will explain how the existing law should be interpreted) on this issue in the course of 2006.
On the question of “concessions,” however, the Commission is considering a legislative initiative, to clarify both the term and the rules applicable to their award.
“PPPs are vital to investment in Europe’s infrastructure and public services. But to reap the full benefits of these partnerships and ensure value for money for taxpayers, we need transparency and fair competition in the selection of private partners,” said Internal Market and Services Commissioner Charlie McCreevy.
“The goal towards which we strive is to provide transparent and non-discriminatory conditions that will enable private entities to contribute to setting up infrastructures and provide services throughout the EU in a way that delivers best value for taxpayers,” he added.
