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State invests heavily in PPPs

Investment between the Portuguese State and the private sector in public private partnerships (PPPs) will top 51 billion euros by 2017.

The 8.5 billion euros per annum, which will help provide cash for infrastructure programmes such as the TGV High-Speed Rail Link and new Lisbon International Airport, means that Portugal is now the second largest subscriber to PPP investment projects in the European Union, after Spain.

The total amount of investment represents around one third of Portugal’s total national wealth per annum.

These figures, which have been published by the National Association of Public Works Contractors (ANEOP), have already placed Portugal ahead of Germany and the United Kingdom, which was the country that pioneered PPPs in the 1980s.

In the past 15 years, successive Portuguese governments have invested heavily in PPPs with 48 per cent on road and rail projects, 16 per cent on environment projects, 24 per cent on electrical energy and distribution projects, nine per cent on gas, two per cent in security and one per cent in health.

The benefits of PPPs, apart from getting on board the expertise of private sector companies, are cost and time efficiency, strict budgets and the benefit that the cost of the whole project is not supported by the taxpayer.