What is PPP?

PPP or 'Public-Private Partnership' is an important commercial mechanism that allows public sector authorities, working in partnership with private sector organisations, to deliver important and often expensive infrastructure projects, both on a national and local level. This could be roads and transport infrastructure, social housing, healthcare (such as hospitals), education and even municipal buildings and offices.

PPP requires specialised financial solutions that involves private sector investment (and often skills) applied to public sector projects. The public authority then works with the Private Partner to realise the project and to repay the cost of such over significant timescales (often 20 to 30 years).

‘Concession’ is another commercial mechanism aimed at realising public sector projects through the introduction of private sector investment and skills. Typical Concession projects can include sports and leisure facilities (such as Aqua Parks) or municipal infrastructure such as car parks. Whilst Concession is similar to PPP there are a number of key commercial differences which we explain within the PDF attachment.

Despite the benefits of PPP in delivering much needed national infrastructure projects, Poland has not yet fully embraced this important commercial model. Given the current nature of Polish infrastructure and the country’s Public Sector finances, PPP is a vital tool in helping Government and regional Municipalities achieve rapid and dynamic development. Therefore, it is important to note that in 2009 new legislation was introduced to make PPP and Concession projects significantly easier to achieve in Poland. Also, new Central Government initiatives have been recently launched to promote and support PPP. This new focus and drive to make PPP work is now visible at all levels within Central and Local Government.

Saritor is the only PPP delivery company in Poland to have participated in every PPP social housing project that has so far gone to tender. We are also engaged in a number of PPP projects in those other market sectors listed elsewhere in our web-site. Therefore, our comments within come from the real-world experience we have gained negotiating project commercial and contractual terms with both the Public Partner and the Bank.

Our experience shows us that although PPP deals are often commercially complex and have within them sometimes conflicting commercial needs, they can be successfully negotiated.

The attached PDF document provides more information.
download »