This presentation by Stephane Saussier was made during a session on Competition in Public-Private Partnerships held at the 57th meeting of the Working Party 2 of the Competition Committee on 16 June 2014. Find out more at http://www.oecd.org/daf/competition/competition-public-private-partnerships.htm

1. PPPs in France: What Efficiency?
What Future?
Stéphane Saussier
Sorbonne Business School
EPPP Chaire
European University Institute
saussier@univ-paris1.fr
http://www.chaire-eppp.org
OECD Hearing on PPPs, Competition Division, June 16th 2014, Paris.

2. PPPs in France: What Efficiency? What
Future?
Preliminary remark:
I will not talk about Concession-like contracts but only about new PFI-
like contracts in France
French PPPs
1) What Efficiency?
2) What Future?
2

3. 0
2000
4000
6000
8000
10000
12000
14000
16000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2005-13
Etat 70,00 15,76 330,00 235,02 1064,90 5371,70 2806,90 1060,00 10954,28
Collectivités territoriales 1,10 78,70 148,17 489,94 234,96 773,55 777,77 721,2 503,7 3729,13
Millions€
Investments financed through PPPs since 2004 in France
Source MaPPP – Sept 2013
State
Municipalities
! PPPs are financing a small part of public investments in France (8-9% in 2011).
3

4. Source : EPEC – June 14
Investments financed through PPPs since 2004 in Europe
PFIs are representing a small part of public investments in Europe …
4

5. Still, PFI-like contracts are important
• Still, PFI-like contracts are important because they allow
to finance public infrastructures that could be hardly
financed through concession-like contracts
• Remember PFIs are:
• Global contracts
• Payment is delayed
• Payment is made by citizens through a direct payment by public
authorities
• For some infrastructures the choice is open, for others,
not:
• Museum, swimming pool, Zoo, … Vs. Prisons, Hospitals,
Universities, …
What do we know about their efficiency … in France? Very few!
1) Some remarks on the efficiency of French PPPs 5

6. French PPPs: What Efficiency? A First Study
9%
11%
20%
44%
16%13%
17%
27%
30%
13%
30 PPPs within sample 46 PPPs in operational phase (Jan 12)
Urban equipments
Energy / waste
Culture, sport
IT
Buildings
Urban equipments
Energy / waste
Culture, sport
IT
Buildings
The complete study is available (in English) at : http://chaire-eppp.org/files_chaire/rei_140_0081.pdf
Revue d’Economie Industrielle, 2012
6We know very few about PPPs’ efficiency in France!

7. 7
Scoring by public authorities from 6 (very satisfied)
to 1 (very unsatisfied)
7

8. 8
Scoring by public authorities from 6 (very satisfied)
to 1 (very unsatisfied)

9. 9
Scoring from 6 (very satisfied) to 1 (very unsatisfied)
n=20

10. PPPs promises but (yet) uncertain future
• Value for money assessment
• 18th months before contract signature
• Before competitive dialogue
• Without any social value assessment and project ranking
• No such evaluation concerning public procurement either!
• Municipalities’ capacity building in order to manage
competitive dialog & innovation
• Not a free lunch
• Renegotiations
• What regulation?
• Transparency and accountability
• What data? Where are information concerning future
coming payments?
2) Some remarks on the efficiency of PPPs 10

11. PPPs promises but (yet) uncertain future
• Bundling (i.e. Global contract) is not enough to
define PPPs
• Design, Build, Maintain and Operate … procurement contracts
with no payment delayed exist now
• New 2014 European directives blurring even more
definition of PFIs vs Concessions
• Concession contracts are defined as global contracts in which
operating risk is transferred substantially or partly to the private
party
• Some French PFIs would be classified as concession
• Devil is in the contractual details
• Some concessions without any risk transfer! (e.g. Millau
Viaduc, Lusoponte, …)
2) Some remarks on the efficiency of PPPs 11