Econostrum | Economic News in the Mediterranean

“Do not yield to the temptation of building quickly on the cheap"

By Marc TEYSSIER d’ORFEUIL, General Manager of the Club des PPP

Written by Frédéric Dubessy on Monday, October 8th 2012 à 15:08 | Read 856 times

“Do not yield to the temptation of building quickly on the cheap"
Without doubt, PPP can be a driver of growth In the Mediterranean to help meet the infrastructure requirements in countries surrounding the Mediterranean. 

More than ever, with the influence and pressure being brought to bear by the people on governments in northern Mediterranean countries, we are certain that in the next ten years it will be indispensable to build quality public infrastructure post haste in order to meet the challenges of growth, and thus to provide the public facilities necessary for this growth to occur.

At a time when government coffers are depleted, the main difficulty is resisting the temptation to build universities, schools, roads and hospitals quickly and on the cheap, only to find that 10 or 15 years later they cannot be used. Therefore, around the Mediterranean models must be found that have already been proven in certain countries and which could be duplicated in others (without adopting a “cut and paste” approach). This is the case, for example, with the El Gardane irrigation project in Morocco, which is a shining example in its method of finance and implementation.

Promote innovative forms of finance

Formulating methods of investment that incorporate the upkeep and maintenance of public infrastructure is an urgent matter. For the public entity, it is a guarantee to recover works that will have
significant residual value 20 or 30 years later and be able to have a second lease of life, and not to be dismantled in order to be rebuilt. 
The flexibility of PPP, in the organisation of competitive dialogues with the possibility of envisaging an increase in property values in order to generate the associated revenues, can adapt and arrive at specific manifestations, if experts and AMOs gather at the table to put solutions forward to our public decision-makers. 

However, there must be real political will to promote the growth of PPP in countries surrounding the Mediterranean. To this end, the meetings with the EIB in Casablanca and our role in highlighting positive experiences of PPP have become necessary in order for governments to be inspired by practices and invest government funds by using new legal tools that allow them to ensure sustainable development. 
It goes without saying that in the Mediterranean, our objective is to promote innovative forms of finance, whether in the form of concessions, DSPs or something closer to a French-style partnership agreement. 
In France, the Club des PPP has worked on the pedagogy of the partnership agreement, promoting local community initiatives and allowing it to spread in our country. 

The Club PPP MEDAFRIQUE will work on the pedagogy of PPP in the broader sense of the term in the Mediterranean and Africa, promoting national and local initiatives by fostering debate and the exchange of experiences and allowing an adapted development of PPP.

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