This presentation by Fernando CRESPO DIU was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm

1. UTAP
Unidade Técnica de Acompanhamento de Projetos
Developing PPP frameworks:
the Portuguese experience
7th Annual Meeting of Senior PPP Officials
OECD – Paris, February 18, 2014

2. PPP portfolio in Portugal
UTAP
Central Government PPP:
 35 contracts: 22 motorways, 10 health sector, 2 railway
sector, 1 security and civil protection
 Cumulative investment up to 2012 = 15.220 million €
PPP portfolio composition
Cumulative investment share per sector
3% 1%
2
1
10%
10
Rodoviárias
Motorways
23
Rodoviárias
Motorways
Health
Saúde sector
Health
Saúde sector
Railways
Ferroviárias
Railways
Ferroviárias
Security
Segurança
86%
Security
Segurança
Source: Ministry of Finance
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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3. PPP sector up to 2011
UTAP
 Number of PPP contracts signed per year: motorways (M),
health care services (Hs), health care infrastructure (Hi),
railways (R) and security (S)
Hi
Hs
Hi
Hi
Hs
R
M
M
Hs
M
M
M
R
M
M
M
M
M
M
S
M
M
M
M
Hs
M
Hi
Hs
M
M
M
M
Hs
M
Hs
M
M
M
M
M
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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4. PPP long term payments
UTAP
Strong fiscal sustainability concerns
 2012 State Budget projections – “do nothing” scenario
2015 public payments ≈ 2.100 million €
≈ 1,5% of GDP
Motorways
Security
Railways
Million Euros
Health sector
Source: 2012 State Budget, Ministry of Finance
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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5. Motorway PPP development
UTAP
 Motorway network: developed 100% under PPP model
3.112
3500
***********************
2.610
2.215
2500
0
1985
1990
1995
*
2000
= PPP Contracts
**************
****************
**
*
500
353
1000
************
764
1500
***
*****
********
**********
***********
1.311
2000
216
Motorways
Kms in Operation
3000
2005
2010
16
23
Source: Institute for Mobility and Transports, Ministry of Economy
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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6. PPP framework comparison
UTAP
Motorways
Health care
 Earliest effort as a “PPP program”
(1999) – batch of shadow toll
contracts
 Earliest PPP (1995), plagued with
difficulties
 Relied on competitive process
plus negotiation of shortlisted
bidders
 No Public Sector Comparator
(PSC) developed
 Value for Money analysis (VfM)
neglected
 Evolution towards a strong
sectorial framework
 Larger contracts are substitution
hospitals
 Efforts towards developing
appropriate PSC methodologies
 Complex contractual structures,
but allow annual outputs (and
payments) negotiation
 VfM perceived as positive
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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7. Public sector capacity issues
UTAP
Traditional underinvestment in public sector’s own resources
 Public teams underdimensioned and/or poorly prepared
 Excessive resource to external advisers
 Low capacity to accumulate experience, assess lessons
learned and implement solutions
 Asymmetry of information, resources and technical capacity
between public and private actors
 Key methodologies neglected: planning process, CBA, PSC,
VfM, fiscal affordability, long term budgeting
 Quality of some projects low, often poor risk allocation
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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8. A sound PPP framework includes…
UTAP
 Solid institutional and legal framework
 Adequate infrastructure planning and selection of sound
projects to be procured
 Capable and well dimensioned public teams, both in the line
Ministries and the Ministry of Finance (MoF)
 Creation of a centralized PPP unit advisable – MoF
 Resource to specialized external advisers as necessary –
avoid substituting tasks of public teams
 Development of PSC and VfM methodologies – pays off in
the long run
Developing PPP frameworks: the Portuguese experience – Fernando Crespo Diu
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9. UTAP
UTAP
Unidade Técnica de Acompanhamento de Projetos
Ministério das Finanças
Rua Braamcamp, 90 – 6º piso
1250-052 Lisboa
Web: www.utap.pt
Fernando Crespo Diu - Coordenador
E-mail: fernando.crespo@utap.pt
Telef: +351 211 119 711
+351 914 448 443
Estruturação de Projetos de PPP
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