How private investment can support the public regeneration.
Multiply Public Resources to Regenerate Buildings and Cities
Public-Private Partnership (PPP) proposals may include energy efficiency operations or energy services with a perfomance guarantee (through so-called Energy Performance Contracts) and may include private capital investment next to the public ones. These contracts imply a remuneration, for the private operator, that is calculated on the base of the intervention effectiveness, of the correct and full service provision and on the base of the actual saving compared to the goal set together with the customer.
If the PPPs proposed by the private operator is deemed of public interest by the public administration, it becomes the object of a public tender.
The Public Administrations That may Benefit
The Private-Public Partnership Procedure
PPPs concern the design, financing, realisation and management of a specific operation. PPPs procedures may originate from a private operator' initiative: it may identify an opportunity to regenerate public buildings and infrastructures and suggest it to the public body. The latter has to evaluate the proposal within 90 days.
If the technical and economic evaluation is positive, the project is deemed of public interest and therefore included in the public administration planning programme. The project becomes the object of a public tender, at whom the private operator that proposed it may participate with right of pre-emption.
PPP Design and Submission
- Expression of interest by the Energy Service Company to the Public Administration
- Authorisation by the public body
- Documents gathering, energy audit and solution design
- Proposal design and submission
The public body evaluates the public interest and the technical and economic viability. Chenges to the proposal may be requested bu the public body.
- The public administration approves the proposal
- If the PPP is approved, the proposer becomes promoter and acquires a pre-emption right
Publication of the Proceedings
The public body includes the projects in its planning programme and publish the resolution
on the authorised bulletin boards and in the Transparent Administration section.
Call to tender and contract award
- The public body prepares the call for tender and launches it
- The public body receives the offers and appoints the tender committee
- The public body evaluates the offers and awards the concession
- The concession contract is concluded
The Benefits for the Public Administration
Cost control and time and quality effectiveness
The investment is on the private operator. Moreover, the advanced project management skills offered by the private operator ensure time and quality standards.
Off balance accounting and transparency
The assets are not accounted for on the Public Administration budget.
The risks are taken by the private operator
The Public Administration remunerates the private operator exclusively if the intervention is effectively and fully available to the public. This mechanism helps shrinking the operations schedule and the respect of quality standards.
Flexibility and tailored interventions
The offer is tailored on the public administration specific needs.
Local enterprises engagement
Local enterprises are taken into consideration in realising the project.