The thesis at hand deals with the European programme Trans-European Networks (TEN) as support for infrastructure of a common interest for Europe in connection with Public Private Partnerships (PPPs or P3s). It will be shown that the former encourages the latter and the other way around and that this encouragement is inherent. This is also underlined by the area of applications for PPPs and TEN.
Collaborations of public and private sector are not seen as a panacea, but it will be shown that there is much more to gain then to loose from this unconventional way of implementing infrastructure projects, which become more and more important. This is especially underlined through the need of investment in Europe’s infrastructure and tight budgets of the European Union and their member states at the same time. Furthermore, the gain of additional expertise, faster realisation and cost savings through synergetic effects are normally by-products of a rather commercial orientation. However, it is also stressed that such a participation of the private sector shall be accompanied by sharing unprofitable parts of projects, even if different types of Public Private Partnerships are used within such a project. Casting a light on the Trans-European Networks programme as a pillar of European regional policy, this view is supported.
Around the world, P3s are used widely in different forms. Three examples will be presented according to the three sectors of TEN. As it is the norm, these different models leave space for inventive solutions to tackle individuality of projects. Rigid PPP structures on European level therefore are not recommended in this work. However, to deal with a variety of problems and to make use of a range of advantages at the same time, a compulsory use of Public Private Partnerships when implementing Trans-European Networks projects is advised.
Table of Contents
1. Introduction and outline
2. The Trans-European Networks programme
2.1 The energy and transport policy of the European Union
2.2 Scope of the Trans-European Networks programme
2.2.1 Trans-European Transport Networks (TEN-T)
2.2.2 Trans-European Energy Networks (TEN-E)
2.2.3 Trans-European Telecommunications Networks (e-TEN)
2.3 TEN approach as part of European regional policy
2.4 Historical and background legal framework of TEN
2.5 Projects within the TEN approach
2.6 Financial aspects and state of TEN in the transport sector
3. Public Private Partnerships
3.1 Definition and separation from privatisation
3.2 Scope of application and dis/advantages
3.3 PPPs around the world
3.4 Models of Public Private Partnerships
3.4.1 The Concession Model
3.4.2 Design, Build, Operate and Finance Model (DBOF)
3.5 Consolidation of PPP and the TEN programme
4. Public Private Partnership projects
4.1 Tunnel to Rostock
4.1.1 Traffic situation in Rostock
4.1.2 Project procedure, tasks and legal relationship of the partners
4.1.3 Model, advantages and disadvantages and financial aspects
4.2 Berlin’s traffic lights system
4.2.1 Privatising traffic lights
4.2.2 Project procedure, tasks and legal relationship of the partners
4.2.3 Model, advantages and disadvantages and financial aspects
4.3 The Galileo project
4.3.1 Independency of Europe’s telecommunication sector
4.3.2 Project procedure, tasks and legal relationship of the partners
4.3.3 Model, advantages and disadvantages and financial aspects
5. Conclusion
Research Objectives and Themes
The primary objective of this thesis is to examine the synergies between the European Trans-European Networks (TEN) infrastructure programme and the implementation of Public Private Partnerships (PPPs). The research explores whether the TEN programme encourages the use of PPPs and how these partnerships, in turn, support the development of European-wide infrastructure in the face of budgetary constraints.
- Analysis of the TEN programme structure and its role within European transport and energy policy.
- Theoretical investigation into Public Private Partnerships as an alternative infrastructure financing model.
- Evaluation of the consolidation of PPP models and the TEN programme.
- Empirical case study analysis of three distinct projects: the Tunnel to Rostock (transport), Berlin’s traffic light system (energy), and the Galileo project (telecommunications).
- Assessment of the effectiveness of P3 mechanisms in realizing European infrastructure goals.
Excerpt from the Book
3.4.1 The Concession Model
“Broadly defined, a concession is a legal arrangement in which a firm obtains from the government the right to provide a particular service” (Queiroz, C. 2005, p.1).
Even though concessions, as described in the quotation above, made the boom of railway construction possible throughout the 19th century, concessions for infrastructure like motorways or airports have become common rather in more recent times (see European Commission 2003, p. 11). In a PPP Concession Model a property holding company designs, finances, builds, operates and maintains an object which has been requested by public authorities. Regularly, this property holding company will be founded only for purpose of the PPP implementation. Therefore, private sector partners often are shareholders or associates of this holding. This P3 model amongst other types comes close to a (timely limited) functional privatisation because a private company takes over all task public authorities would have done otherwise over the lifetime. Only monitoring of public interests (e.g. an appropriate user fee) and some administrative tasks (e.g. assurance of land acquisition) will remain with the public sector (see Schneider, St. 2001, p.12). Regarding ownership and refinancing, concessions are used in different ways. Regularly, the object is refinanced by usage-related fees directly from the users. This separates the Concession Model from other types because the legal relationship with third parties is a direct one, meaning a contract for the use of the object arises directly between user and property holding company (see Lenkungsausschuss PPP im öffentlichen Hochbau 2003, p.133-134). However, some projects use public emoluments in addition to direct fees from users. This can change the legal relationship with third parties too when public authorities collect fees for the concessionaire from users. Also, the ownership is often with the private sector gaining it through the construction of the object. In such a case, ownership will be transferred to the public sector at the end of the contract. However, in other cases legal ownership is with public authorities at all time.
Summary of Chapters
1. Introduction and outline: This chapter introduces the thesis's focus on the synergy between the Trans-European Networks (TEN) programme and Public Private Partnerships (PPPs), outlining the structure of the subsequent research.
2. The Trans-European Networks programme: This chapter details the TEN programme, its embedding in European policy, historical background, and the challenges of infrastructure financing.
3. Public Private Partnerships: This chapter provides a theoretical definition of PPPs, evaluates their scope and advantages, and explores various models like the Concession and DBOF approaches.
4. Public Private Partnership projects: This chapter examines three specific projects (Tunnel to Rostock, Berlin’s traffic lights, and Galileo) to empirically demonstrate the application of various PPP models.
5. Conclusion: This chapter summarizes the findings, arguing that while PPPs are vital for infrastructure financing, they must be implemented with careful risk allocation and without rigid, compulsory structures.
Keywords
Trans-European Networks, TEN, Public Private Partnerships, PPP, infrastructure financing, European Union, Concession Model, DBOF, transport policy, energy policy, telecommunications, Galileo, Warnowtunnel, Berlin traffic lights, infrastructure development.
Frequently Asked Questions
What is the core subject of this thesis?
The thesis investigates the intersection of the Trans-European Networks (TEN) programme and Public Private Partnerships (PPPs) as a method for delivering efficient infrastructure in Europe.
What are the central themes discussed?
Key themes include the institutional and legal framework of European infrastructure programmes, the theoretical advantages and disadvantages of PPPs, and the practical implementation of these partnerships in the transport, energy, and telecommunications sectors.
What is the primary goal of the research?
The goal is to determine if and how the TEN programme encourages PPPs and if such a combination can solve the persistent problem of infrastructure financiability in the EU.
Which methodology is applied in the study?
The study combines a theoretical review of European policy documents and legal frameworks with empirical, qualitative case studies of three specific European infrastructure projects.
What is covered in the main body of the text?
The main body moves from a policy-level analysis of the TEN programme to a theoretical discussion of PPP models, concluding with a detailed investigation of the Rostock tunnel, Berlin traffic lights, and the Galileo satellite system.
What characterize the keywords of this work?
The keywords highlight the essential components: the European TEN initiative, the specific public-private cooperation models used (Concession and DBOF), and the sector-specific applications analyzed in the case studies.
How does the author view the Rostock tunnel project?
The author views the Rostock tunnel as a critical case study of the "F-Modell" in Germany, noting that while the project succeeded in being built, the discrepancy between traffic forecasts and actual usage posed significant financial risks that highlight the need for better feasibility studies.
What is the author's stance on mandatory PPP structures?
The author advises against the rigid, compulsory use of PPP structures, arguing instead for flexibility in selecting the model that best fits the specific requirements and risks of an individual infrastructure project.
- Quote paper
- Michael Dannehl (Author), 2006, The Trans-European Networks programme as encouragement of Public Private Partnerships in Europe and vice versa, Munich, GRIN Verlag, https://www.grin.com/document/68683
