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.
