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Enhancing Public-Private Partnerships (PPP) in the Netherlands: Insights and Case Studies

This document explores the Dutch government's approach to Public-Private Partnerships (PPP), emphasizing its policy objectives, lessons drawn from the high-speed rail link project, and overall value for taxpayers. It discusses the benefits of PPPs, including increased quality, reduced costs, and faster realization of projects. The challenges of limited experience and adapting roles for public and private sectors are acknowledged, alongside strong political commitment to overcoming these barriers. The analysis culminates in a call for holistic decision-making involving all parties in the PPP process.

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Enhancing Public-Private Partnerships (PPP) in the Netherlands: Insights and Case Studies

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  1. PPP projects in the Netherlands Advisory Group on Privatisation 19-20 september 2000 Budapest, Hungary Daniel Loschacoff PPP Knowledge Centre

  2. Content • PPP policy of the Dutch Government • Background • Objectives of PPP • Case study: High speed rail link (HSL) • Lessons Learned • Summary

  3. Why PPP in the Netherlands • Increases value for money for taxpayers (PPP is not off-balance sheet financing) • Instrument to focus government on its core business • EU policy Policy

  4. Value for Money What? • Higher quality (1st) • Less costs • Faster realisation How? • Output orientated approach • Scope optimalisation • Risk transfer (incentive) Policy

  5. Back to Core Business • Let parties do what they are good at • Government: from player to referee/purchaser • Leaving room for innovation by the market Policy This means institutional changes(more private sector supply, different role for the government)

  6. The EU factor • Increased deregulation & third party access • Increased competition

  7. Outline High Speed Rail Link • Links Amsterdam to the Belgian border • Trains will run at 300 km/h • Total costs Euro 5.0 billion • Tendering in three parts • Separate and different tendering procedures

  8. HSL (IP) contract • DBFO-contract for infrastructure; train operation separated out (NS first refusal) • risk transfer: not market risk • performance fee based on availability of railway service • 30 year period • IP contract award by the end of the year • completion of infrastructure by 2005 Projects

  9. Key bottlenecks • Limited experience of PPP • Public and private parties have to adapt to their new role (some reluctance) • No easy pilots (complex projects + projects with budget constraints) Result: progress is slow

  10. Opportunities • Bottlenecks can - and will - be solved within the next few years • Strong political commitment to PPP • Private sector involvement is not controversial • PPP is in line with international policy development

  11. Summary • Objective: value for money, not private finance • Case by case-approach: is PPP better? • Bottlenecks can be removed soon

  12. And Remember:in the Polder Model… all parties want to be involved in the decision making process.

  13. For more information: Internet: www.minfin.nl/pps or d.p.loschacoff@minfin.nl

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