Government actions to promote Private-Public Partnership (PPP)

 

PPP Department within the Ministry of Economy and Transport

Government Decree in May 2003 to set up an Interdepartmental Committee

-         Ministry of Economy and Transport

-         Ministry of Finance

-         Ministry of Justice

-         Prime Minister's Office

-         Central Statistical Office

 

Main fields of Private-Public Partnership:

 

Road infrastructure development program

-         Long-term goal: 2500 km length of expressway network by 2015

-         Act CXXVIII on the development of the Hungarian expressway network (accepted by the Parliament in December 2003)

-         Deficit constraints = need for alternative ways of financing: PPP projects and EU funds

-         Example: M6 motorway

o        Part of the V/c Helsinki corridor

o        Approx. 252 km section between Budapest and the Hungarian - Croatian border to be built in 2 phases: first phase between Budapest and Dunaújváros (54 km) by 2006; second phase between Dunaújváros and the Croatian border (198 km) by 2007

 

Student hostels

-         Projects of the Ministry of Education

-         Goal: development of university infrastructure

-         Government decision on creating 10 000 accommodations in student hostels in the framework of PPP

-         The pilot project of the University of Debrecen

o        Classical DBFO structure

o        Decision of PPP Committee on supporting the project on 30th September 2003

o        Approval of the Economic Cabinet and the Government

o        Public procurement procedure completed, construction is under way

-         11 further similar PPP schemes for other universities

 

Penitentiary system

-         Goal: the development of the penitentiary infrastructure - two new PPP prisons

-         DBFO construction

o        During a period of 15-20 years, 700 prisoner places / prison

o        „Operate” element: only those tasks are performed by the state which cannot be carried out by the private sector (custodial services, on site medical facilities and registering of prisoners)

o        Positive decision of the PPP Committee: 10th October 2003

-         Tender announcement is expected at the beginning of 2005