Public Private Partnerships in the EU: Widespread shortcomings and limited benefits

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Series Details Number 09
Publication Date 20/03/2018
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Public Private Partnerships (PPPs) harness both the public and the private sector to provide goods and services conventionally supplied by the public sector, while easing the tight budget constraints on public spending. We found that despite PPPs have the potential to achieve faster policy implementation and ensure good maintenance standards, the audited projects were not always effectively managed and did not provide adequate value for money. Potential benefits of PPPs were often not achieved, as they suffered delays, cost increases and were under-used, and resulted in 1.5 billion euro ineffective spending, out of which 0.4 billion euro EU funds. This was also due to the lack of adequate analyses, strategic approaches towards the use of PPPs and institutional and legal frameworks. With only few Member States having consolidated experience and expertise in implementing successful PPP projects, there is a high risk that PPPs will not contribute to the expected extent to the aim to implement greater part of EU funds through blended projects including PPPs.

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ECA News, 20.03.18: EU Public Private Partnerships suffer from widespread shortcomings and limited benefits

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