The Ministry of Economy yesterday sent its bill for a public-private partnership law. The new low sets frameworks, gives up of red-tape, sets the obligations very generally. It lets to build in PPP system roads, high-ways, stadiums, swimming-pools and even hospitals. In the system, a private company invests its own funds and builds a building. Local authorities or the government provide the lot. The private investor manages the building and earns in fees. The present PPP law implemented nearly three years ago has been dead. The Ministry of Economy believes that not a single project has been realized properly. The former government, PiS, was to blame because it hindered the merger of private and public funds.

Entrepreneurs have welcomed the news.

“It’s difficult to build public-private projects and I’m glad that the government takes care of it. In the IT sector, good PPP rules could make IT outsourcing in public sector easier”, Janusz Filipiak, Comarch CEO said.

In the years 2006-07, there were PPP projects worth USD 127bn realized in the world, including USD 70bn in Europe alone. In the EU, the UK is the leader. Within two years, 800 investments worth EUR 53bn were implemented. Poland lags behind Germany, Spain, Portugal, Greece, Ireland and even the Czech Republic.

PLN 121bn will be spent in Poland for infrastructure projects within 5 years.

“Many public projects should be realized by companies cooperating with the state or local authorities and not by the clerks. Our bill is supposed to revive PPP by giving substantial freedom to both parties in implementing projects from state and EU funds”, Adam Szejnfeld, deputy Minister of Economy said.

In his opinion, new rules make it possible to make it with building stadiums, roads and infrastructure before EURO2012.

The new rules provide for easier contracts. They will be based on the civil code, and will not be described by the law. There will be no limits in the choice of projects realized in PPP system. Today, the law enumerates kinds of investments which may be done within PPP. There will be no obligation to make economic analyses and evaluate the risk of planned projects. Today, this is one of the biggest barriers in PPP. The Minister of Finance will need to approve only of investments of above PLN 20m (EUR 5.9m). He will have six weeks to do this, down from 60 days today.

(PLN 1 = EUR 0.298)