Across Europe, many public-private partnerships
are struggling. But a small majority of projects lawyers
believe it’s premature to overhaul the funding
Pretty on paper, poor in practice. This is how the European
Bank for Reconstruction and Development (EBRD) described
public-private partnerships (PPP) in relation to eastern Europe
just over a year ago.
PPP model broken?
A flexible arrangement whereby the private sector builds,
owns and operates public projects – with the
government backing the revenue streams – seems like a
But the shortage and failure of PPPs in recent years
suggests the EBRD could be correct. In fact, the statement
could apply to the continent as a whole. Despite some strong
markets, notably the Netherlands and UK, the model has arisen
in fits and starts across much of the region.
This sparked IFLR to poll the market on whether Europe's PPP
model is flawed.