The global financial crisis that began in late 2008 has set back ambitious infrastructure development plans among many countries in Europe and Central Asia (ECA). Many such plans relied on Public-Private Partnerships (PPP) arrangements. Furthermore, the financial crisis resulted in sharp declines in gross domestic product (GDP) and country’s deteriorating fiscal space restricted the scope for maintaining the level of investment or introducing counter-cyclical measures driven by public sector investment in infrastructure. Soaring levels of public debt, limited room to cut expenditures, and lower tax receipts due to slower than expected economic growth will mean that the ‘fiscal space’ in the region to make public investments in infrastructure will be strained in the coming years. The ability of many ECA country governments to expand expenditure any further, even for productive investments in infrastructure, will thus prove challenging. Nevertheless, the year 2010 saw some countries and cities reaching financial close on multi-billion projects while others are still struggling to close their first PPP project in highway. The comparison of the Pulkovo Airport in Russia and the Comarnic-Brasov Highway in Romania is an illustration of this situation. On one hand St Petersburg developed a robust PPP project that involved the rehabilitation of an existing asset with established demand. On the other hand, the Romania examples show how projects with large capital requirements with unknown demand risk are still considered risky for the private sector, especially in the context of reduced liquidity from the financial crisis. This study shows that PPP financing remains viable and can bring value to the economy, despite the difficulties that projects faced. The global financial crisis has created new opportunities for the ECA Region to refocus PPP projects on value-for-money and financial sustainability, as the primary drivers for private participation, and using the range of options and innovative approaches discussed above.

Public and Private Participation in the Water and Wastewater Sector provides practical guidance on applying Public Private Partnership structures within the constraints of European legislation, with examples on how to ensure consistency with EU procurement, competition law and the Water Framework Directive. It reconciles the need for adequate regulation within the context of a monopoly provision of service – a major concern of the European competition policy. The purpose of this book is to provide practical guidance on how to introduce a Public Private Partnership (PPP) as a strategy towards helping meet the demands for massive capital investments and improved management and performance in the water and wastewater sector. The introduction of PPPs within a European context needs to be assessed against compliance with basic EU law principles related to Competition and the Water Framework Directive. International legal structures in the management, distribution and treatment of water are discussed. There is a brief overview of the present realities of European integration, the political and legal aspects involved in the water sector and two cases in which a viable solution was reached and which form the basis of this research. The book examines the general principles of EU law in terms of competition and procurement and how other directives have an impact on PPP. It then assesses the specific rules applicable to PPP in the EU context, and their implications in designing water PPPs. The book concludes with a review of two case studies (the City of Sofia, Bulgaria and the City of Tallinn, Estonia) that show how the Public Private Partnership structure chosen provides a sound legal basis and a viable way to achieve compliance with Community law and the Water Framework Directive, thus assisting the process of accession to the EU for each country. Public and Private Participation in the Water and Wastewater Sector: Developing Sustainable Legal Mechanisms is principally aimed at supporting municipal, provincial, and central governments and other policy makers seeking to improve water services. It is a must read for policymakers and practitioners seeking to navigate through the intricacies of EU legislation and the complexities of public private partnerships. The principles addressed in this book will also be useful outside the European context. See also: Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009; Public Private Partnerships in the Water Sector, Innovation and Financial Sustainability, Cledan Mandri-Perrott and David Stiggers, 2012

Public and Private Participation in the Water and Wastewater Sector provides practical guidance on applying Public Private Partnership structures within the constraints of European legislation, with examples on how to ensure consistency with EU procurement, competition law and the Water Framework Directive. It reconciles the need for adequate regulation within the context of a monopoly provision of service – a major concern of the European competition policy. The purpose of this book is to provide practical guidance on how to introduce a Public Private Partnership (PPP) as a strategy towards helping meet the demands for massive capital investments and improved management and performance in the water and wastewater sector. The introduction of PPPs within a European context needs to be assessed against compliance with basic EU law principles related to Competition and the Water Framework Directive. International legal structures in the management, distribution and treatment of water are discussed. There is a brief overview of the present realities of European integration, the political and legal aspects involved in the water sector and two cases in which a viable solution was reached and which form the basis of this research. The book examines the general principles of EU law in terms of competition and procurement and how other directives have an impact on PPP. It then assesses the specific rules applicable to PPP in the EU context, and their implications in designing water PPPs. The book concludes with a review of two case studies (the City of Sofia, Bulgaria and the City of Tallinn, Estonia) that show how the Public Private Partnership structure chosen provides a sound legal basis and a viable way to achieve compliance with Community law and the Water Framework Directive, thus assisting the process of accession to the EU for each country. Public and Private Participation in the Water and Wastewater Sector: Developing Sustainable Legal Mechanisms is principally aimed at supporting municipal, provincial, and central governments and other policy makers seeking to improve water services. It is a must read for policymakers and practitioners seeking to navigate through the intricacies of EU legislation and the complexities of public private partnerships. The principles addressed in this book will also be useful outside the European context.   See also: Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009; Public Private Partnerships in the Water Sector, Innovation and Financial Sustainability, Cledan Mandri-Perrott and David Stiggers, 2012

The global financial crisis that began in late 2008 has set back ambitious infrastructure development plans among many countries in Europe and Central Asia (ECA). Many such plans relied on Public-Private Partnerships (PPP) arrangements. Furthermore, the financial crisis resulted in sharp declines in gross domestic product (GDP) and country’s deteriorating fiscal space restricted the scope for maintaining the level of investment or introducing counter-cyclical measures driven by public sector investment in infrastructure. Soaring levels of public debt, limited room to cut expenditures, and lower tax receipts due to slower than expected economic growth will mean that the ‘fiscal space’ in the region to make public investments in infrastructure will be strained in the coming years. The ability of many ECA country governments to expand expenditure any further, even for productive investments in infrastructure, will thus prove challenging. Nevertheless, the year 2010 saw some countries and cities reaching financial close on multi-billion projects while others are still struggling to close their first PPP project in highway. The comparison of the Pulkovo Airport in Russia and the Comarnic-Brasov Highway in Romania is an illustration of this situation. On one hand St Petersburg developed a robust PPP project that involved the rehabilitation of an existing asset with established demand. On the other hand, the Romania examples show how projects with large capital requirements with unknown demand risk are still considered risky for the private sector, especially in the context of reduced liquidity from the financial crisis. This study shows that PPP financing remains viable and can bring value to the economy, despite the difficulties that projects faced. The global financial crisis has created new opportunities for the ECA Region to refocus PPP projects on value-for-money and financial sustainability, as the primary drivers for private participation, and using the range of options and innovative approaches discussed above.

Public and Private Participation in the Water and Wastewater Sector provides practical guidance on applying Public Private Partnership structures within the constraints of European legislation, with examples on how to ensure consistency with EU procurement, competition law and the Water Framework Directive. It reconciles the need for adequate regulation within the context of a monopoly provision of service – a major concern of the European competition policy. The purpose of this book is to provide practical guidance on how to introduce a Public Private Partnership (PPP) as a strategy towards helping meet the demands for massive capital investments and improved management and performance in the water and wastewater sector. The introduction of PPPs within a European context needs to be assessed against compliance with basic EU law principles related to Competition and the Water Framework Directive. International legal structures in the management, distribution and treatment of water are discussed. There is a brief overview of the present realities of European integration, the political and legal aspects involved in the water sector and two cases in which a viable solution was reached and which form the basis of this research. The book examines the general principles of EU law in terms of competition and procurement and how other directives have an impact on PPP. It then assesses the specific rules applicable to PPP in the EU context, and their implications in designing water PPPs. The book concludes with a review of two case studies (the City of Sofia, Bulgaria and the City of Tallinn, Estonia) that show how the Public Private Partnership structure chosen provides a sound legal basis and a viable way to achieve compliance with Community law and the Water Framework Directive, thus assisting the process of accession to the EU for each country. Public and Private Participation in the Water and Wastewater Sector: Developing Sustainable Legal Mechanisms is principally aimed at supporting municipal, provincial, and central governments and other policy makers seeking to improve water services. It is a must read for policymakers and practitioners seeking to navigate through the intricacies of EU legislation and the complexities of public private partnerships. The principles addressed in this book will also be useful outside the European context. See also: Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009; Public Private Partnerships in the Water Sector, Innovation and Financial Sustainability, Cledan Mandri-Perrott and David Stiggers, 2012

Public and Private Participation in the Water and Wastewater Sector provides practical guidance on applying Public Private Partnership structures within the constraints of European legislation, with examples on how to ensure consistency with EU procurement, competition law and the Water Framework Directive. It reconciles the need for adequate regulation within the context of a monopoly provision of service – a major concern of the European competition policy. The purpose of this book is to provide practical guidance on how to introduce a Public Private Partnership (PPP) as a strategy towards helping meet the demands for massive capital investments and improved management and performance in the water and wastewater sector. The introduction of PPPs within a European context needs to be assessed against compliance with basic EU law principles related to Competition and the Water Framework Directive. International legal structures in the management, distribution and treatment of water are discussed. There is a brief overview of the present realities of European integration, the political and legal aspects involved in the water sector and two cases in which a viable solution was reached and which form the basis of this research. The book examines the general principles of EU law in terms of competition and procurement and how other directives have an impact on PPP. It then assesses the specific rules applicable to PPP in the EU context, and their implications in designing water PPPs. The book concludes with a review of two case studies (the City of Sofia, Bulgaria and the City of Tallinn, Estonia) that show how the Public Private Partnership structure chosen provides a sound legal basis and a viable way to achieve compliance with Community law and the Water Framework Directive, thus assisting the process of accession to the EU for each country. Public and Private Participation in the Water and Wastewater Sector: Developing Sustainable Legal Mechanisms is principally aimed at supporting municipal, provincial, and central governments and other policy makers seeking to improve water services. It is a must read for policymakers and practitioners seeking to navigate through the intricacies of EU legislation and the complexities of public private partnerships. The principles addressed in this book will also be useful outside the European context.   See also: Private Sector Participation in Water Infrastructure, Organisation for Economic Co-Operation and Development (OECD), 2009; Public Private Partnerships in the Water Sector, Innovation and Financial Sustainability, Cledan Mandri-Perrott and David Stiggers, 2012