Improving the Public Private Partnership policy model in Belgium
The European Commission has supported the Belgian Federal government to identify standardised principles for Public Private Partnership (PPP) and Energy performance contracting (EPC). The support also included training opportunities and guidancein this sector.
The project has been implemented with the support of AARC and Rebel.
The PPP market in Belgium can have an impact on the capacity to pursue an ambitious investment agenda. The federal government is aimed at carrying out a policy of major structural investments, in order to achieve an investment rate of 4% of GDP by 2030. Investments will be made through various means, notably via public financing (European, federal and federated entities), via alternative financial instruments designed to stimulate private financing such as energy performance contracts (EPC) and public-private partnerships (PPP).
The Commission’ support covers the areas of the PPP/EPC market in Belgium which can still be improved to reach a higher potential.
The Commission provided support to the Federal government to:
- Define a more efficient process to procure PPP and EPC, with reduced transaction costs and procurement periods and improved quality of documentation. This documentation would improve the competitiveness of the PPP and EPC market and, in the longer term, boost the level of investment in infrastructure across Belgium;
- Establish a better allocation of public spending by having an objective assessment of the procurement route chosen to make an investment. In the longer term, the decision-support tools under the form of a “Value for money” (VfM) will objectify the public debate on PPP and lead to a more consistent support at the political level
The support provided will lead to a more standardised procurement process and contractual arrangements for both EPC and PPP projects. Thanks to this support, the EPC contracts can become an attractive alternative to energy savings for existing public buildings. The support will contribute to more efficient PPP process and contracts. Finally, the support will generate regular communication between the public and private sector on both EPC and PPP projects.
In the long run, the project is expected to contribute to an improved infrastructure and public housing sector with the engagement of the private sector in a more sustainable manner. For the private sector the infrastructure and public housing sector will provide more predictable, inspiring and attractive investment.
More about the project
“On 22 and 23 September 2021, the European Commission, in cooperation with the State Secretariat for Recovery and Strategic Investments, is organising a joint event on mobilising public and private finance to accelerate investment in buildings and infrastructure in Belgium. This event will present existing initiatives to be strengthened and best practices to be developed from the results of the first Round Table on Financing Energy Efficiency in Belgium and the Operational Working Group PPP on improving the Public-Private Partnership (PPP) policy model.”