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The new law for the formation of Private Public Partnerships

30/06/10 14:21
The Minister of Economy and Finance George Alogoskoufis and the Deputy Minister Christos Folias, have presented the main points of the new Public-Private Partnerships (PPPs) Bill that was forwarded today to the Parliament. The Minister said that PPPs constitute the third pillar of the new economic model applied by this administration in order to support entrepreneurship and make the Greek economy more internationally oriented and more competitive. PPPs will have a key role in the creation of new infrastructure and the provision of better services to the citizens of Greece.

The 12 main points of the Bill are:
  1. The Bill specifies the various public authorities (ministries, local authorities, state agencies) that can agree partnerships with private companies through the establishment of Special Purpose Vehicles for every particular partnership.

  2. The objective of such partnerships is the creation of infrastructure and the provision of services that fall under the jurisdiction of the abovementioned public authorities.

  3. It is provided that private agencies undertake a substantial part of the risks associated with the financing, the availability and the completion of infrastructure projects or the provision of the services for a fee, which is either paid upfront or gradually by the public authorities or the end users of the services.

  4. Additionally, the financing in whole or in part of the completion of the infrastructure projects will be accomplished with funds raised by the private agencies.

  5. The maximum budget for a project cannot exceed a total of 200 million euros.

  6. The introduction of PPPs constitutes a strategic choice of the government in order to achieve the maximum possible benefit for the public, through the efficient provision of high quality services. Through PPPs the public sector can benefit from both the innovative nature and the expertise of the private sector.

  7. The Government cannot concede main functions that are reserved by the Constitution exclusively for the State (e.g. law enforcement, national defense and the penal system).

  8. An interministerial Committee for PPPs is established in order to formulate the strategy of the government regarding the creation of infrastructure and the provision of services with the participation of private firms.

  9. A Special Secretariat for PPPs within the Ministry of Economy and Finance will be established in order to:

    • Determine the projects that can be completed through the PPPs according to the Law,
    • Promote the implementation of PPPs,
    • Facilitate and support the various public authorities in the selection process of the private agencies that will undertake the projects.

  10. The Law specifies the particular obligations of the public agencies involved.

  11. The Law specifies the minimum contents of the Partnerships΄ Agreements, where the rights and the obligations of all the parties involved are clearly described. The following issues are defined:

    • the financing and the participation of public authorities,
    • the procedures for collecting the agreed fees,
    • the issuance of permits,
    • the protection of the environment,
    • the protection of archeological treasures and sites,
    • expropriation issues,
    • the involvement of public authorities and State owned enterprises and entities (DEKO).

  12. The Law specifically defines the legal matters associated with PPPs, such as the transfer of claims, the validity of guarantees, the transformation of corporate entities, the various tax issues and the arbitration procedure

For the new law click here (File type: .pdf, Size: 124 KB)