Greece: a new dynamic PPP market Despina Tomadaki Head of Financial Services Special Secretariat for Public Private Partnerships Ministry of Economy and.

Greece: a new dynamic PPP market

Despina TomadakiHead of Financial ServicesSpecial Secretariat for Public Private Partnerships Ministry of Economy and FinanceGreece

3 major transport concession projects in operation

4 years before …

Athens International AirportRio – Antirrio Bridge Attiki Odos Motorway

2.22 bl Euros0.74 bl Euros 1.24 bl Euros

Procured and monitored by the Ministry of Public WorksAll co-financed by EU fundsThe contracts had to be ratified in Parliament as distinct laws Free standing projects

Common characteristics

Need for a legal framework that would enable the wider implementation of PPPsOvercome the legal gap that led each co-financed project to the Parliament for ratificationOvercome obstacles that delayed the implementation of projectsFramework for the implementation of projects that are not jurisdiction of the Ministry of Public Works and are not repaid by the end-users

The need for a new legal framework for PPPs

New legal framework – PPP Law 3389/2005

Result of extensive consultation“Umbrella” frameworkIncentives for the private sectorEstablishment of Inter-Ministerial PPP CommitteeEstablishment of a PPP unit within the Ministry of Economy and FinanceClear approval and tendering process for PPP projects

Currently…

Major transport concession projects fall within the jurisdiction of the Ministry of Public WorksAll other PPP projects are procured by other Public Sector Contracting Authorities, controlled by the Ministry of Economy and Finance (Law 3389/2005) and fall into all other sectors

New transport concession projects

New transport concession projects

The “Ionian Motorway”Design, Build, Finance, Operation and Maintenance of the Motorway from Antirrion to Ioannina (160 km) and part of the PATHE Motorway from Varybobi to Skarfeia (180 km)

The Motorway of Central Greece (“E65” axis)Design, Build, Finance, Operation and Maintenance of the Motorway from Skarfeia to Panagia (170 km) and Operation and Maintenance of a part of the PATHE Motorway from Skarfeia to Raches (60 km)

New transport concession projects

The section “Maliakos to Kleidi” of the PATHE MotorwayDesign, Build, Finance, Operation and Maintenance of the Pathe Motorway from Tempi to Skotina (20 km) and Operation and Maintenance of a part of the PATHE Motorway from Raches to Kledi (200 km)

The Motorway “Korinth – Tripolis – Kalamata” and the branch “ Lefktro – Sparta”Design, Build, Finance, Operation and Maintenance of the Motorway Korinth – Tripolis – Kalamata” and the branch “ Lefktro – Sparta” (205 km)

New transport concession projects

The Motorway “Elefsis – Korinth – Patras – Pyrgos – Tsakona”Design, Build, Finance, Operation and Maintenance of the Motorway Elefsina - Korinth – Patra – Pyrgos - Tsakona” (365 km)

The Thessaloniki Underwater ArteryDesign, Build, Finance, Operation and Maintenance of The Thessaloniki Underwater Artery (4 km)

New transport concession projects

All these projects (with the exception of the Salonica underwater tunnel) have been tendered by the Ministry of Public Works and are now under constructionThe Ministry of Public Works has just tendered two new concession projects:

The new urban motorways in Attica

The new airport of Heraklion in Crete

PPP projects under the new PPP Law

Law 3389/2005

The new PPP Law - a major reform is now in place in Greece

The Greek Government has proven to be very consistent 52 PPP projects on track5.7 bn Euros worth of opportunitiesThe first PPP contract was signedTwo more to reach financial close by the end of the yearIn process 14 tenders amounts to 1.5 bn EurosA new market with high potential was created

Actions

Clear legal frameworkPPP UnitPlan of action & prioritization Integration of PPPs in government policies Taking care of the funding issueBriefing the market & educating the public sectorPipeline of projectsSmooth and transparent tender process

www.ppp.mnec.gr/en

Pipeline of projects

22

8

4

23

1

3

5

2 2

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

Public SectorAccommodation

Education Health J ustice Tourism andsports

Portsinfrastructure

Environment Defense TransportationMunicipal PPPprojects

Common characteristics of projects

Public service PPPs

Evaluated by the PPP UnitApproved by the IM PPP CommitteeContracting authorities: public sector authorities that have the responsibility to tender themMonitored by the PPP UnitRestricted procedure

I. Public Sector Accommodation

22 projects (Fire stations, police stations, buildings for Prefectures, etc)Of a total value of 1.687 bn EurosFirst contract signed and set in force in AprilTwo more projects to reach financial close by the end of the year5 more projects under tender

II. Education

8 projects (schools, university buildings, residences)Of a total value of 800 M Euros4 tenders already launched

III. Justice

2 projects (prisons and courts of justice)Of a total value of 360 M Euros2 tenders already launched

IV. Health

4 projects (hospitals)Of a total value of 1 bn Euros1 tender already launched

V. Tourism and sports

4 projects (conference centre and sports centres)Of a total value of 340 M Euros1 tender already launched

VI. Ports Infrastructure

Security systems in 12 ports - € 342 M

VII. Environment

3 projects (waste management systems and sewage network)Of a total value of 450 M Euros

VIII. Defense

5 projects (new and existing buildings, flight simulation centre, security systems)Of a total value of 420 M Euros

IX. Transportation

2 projects (integrated fare collection system, integrated telematics system)Of a total value of 140 M Euros

X. Municipal PPP projects

2 projects (parking centre – house for elderly)Of a total value of 50 M Euros

Smooth and transparent tender process

Tenders in accordance with EU legislationRestricted procedure is used (2 phases)

Phase I - EoI : Pre selection of bidders Phase 2 - Submission of Final offers : Input and detailed output specifications are provided to pre selected bidders

Pre-selection and selection based solely on objective criteria Minimized bidding costs for contractorsMinimized risks for legal challenges

Conclusion

Public Private Partnerships: an established market in GreeceNew opportunities for both public and private sector

More than 150 companies have participated in advisory tenders 45 companies have participated in PPP tenders – 10 international

Greece: focal point on the map of PPPs across EuropeGreat potential for those seeking entry into new, dynamic markets

Contact details

Special Secretariat for PPPsMinistry of Economy and FinanceGreece

Tel: +30 210 3375750www.ppp.mnec.gr e-mail: [email protected]