Minister: Major projects require new financing tools

Deputy Transport and Infrastructure Minister Nikos Tachiaos stressed the need to redefine the framework of public-private partnerships (PPP), given the ambitious fiscal goals that the country must achieve, in an interview to the Athens-Macedonian News Agency on Saturday.

“As a society, we have to understand at some point that public-private partnership projects also include some burden on the user,” he stated, adding that taxpayers must not assume the cost through the budget.

The planning so far has earmarked millions of euros from state coffers to finance projects ranging from highways, student residences and cultural centers to police/courthouses and schools.

The existing program envisages the implementation of 40 public-private partnerships projects, where the involved bodies – public, private companies, banking institutions and European authorities – will leverage funds of some €5 billion.

So far, 22 PPP agreements have been signed with a total investment cost of €2.5 billion.

Also, 43 approved PPP projects with an investment cost of €6.3 billion are in the tender process.

The contribution of PPPs to the construction of large projects is important, he said, as both their construction and their maintenance for decades are achieved; however they are not an inexhaustible financial tool.

Ηe added that “the PPP model must change in the long run as it ultimately burdens public coffers, considering the fiscal limitations of our country.”