PPPs in the EU: Widespread Shortcomings and Limited Benefits (ECA 2018)

Public-Private Partnerships (PPPs) have been used across the EU to deliver infrastructure, especially in transport, but only a small portion has involved EU funds. Between 2000–2014, just 84 PPPs received €5.6 billion in EU support. 

A review of 12 co-financed PPPs revealed mixed outcomes: while they enabled large-scale procurement and often maintained good service standards, most faced significant delays, cost overruns, and underperformance. Greece’s PPPs had especially high costs per km and reduced project scopes. Many lacked prior comparative assessments, suffered from poor risk allocation, and offered high private returns with insufficient justification. 

Moreover, long contract durations were ill-suited for rapidly evolving sectors like ICT. Only a few Member States have the legal and institutional capacity for successful PPP implementation. EU-wide promotion of PPPs should pause until existing shortcomings are addressed. Recommendations include improving selection methods, risk management, transparency, and aligning EU frameworks for more effective blended projects involving PPPs.