Public Private Partnerships Vasco da Gama Bridge in Portugal
PUBLIC PRIVATA PARTNERSHIPS AND REGULATORY STRATEGIES COURSE
(MP525)
LECTURER: DR. SHANMUGASUNDARAM SUBRAMANIAN
WRITTEN ASSIGNMENT
PPP of Vasco da Gama Bridge in Portugal
Table of Contents
Topic
PPP of Vasco da Gama Bridge in Portugal
Introduction
Introduction to the Public Private Partnership concept
Need for the Public Service
To solve the congestion problem on Lisbon’s other bridge (25 de Abril Bridge), and to join previously unconnected motorways between north and south around the capital city of Lisbon
Legal Framework for PPP
Mainly Decree Law 141/2006 – 27 July 2006
Possible Alternatives
Another alternative location for the bridge
Critical Analysis of PPP Model chosen by government
The opportunities and limitations for the PPP Model chosen
Description of PPP Model & Tendering/Bidding Process
BOT Model was used “Build, Operate, Transfer”
Lusoponte, a consortium (Portoguese, British and French) companies, won the international public Tender process set by GATTEL (inter-ministerial agency) which made the decision for the location of the bridge
Rights and Obligations of the Private PPP Player
Lusoponte under BOT model (DBFO) had the obligation to design, construct, finance and operate the new crossing
Structure of SPV and the role of participants
Private Partners: Lusoponte consortium
(Portoguese 50.4%, British 24.8% and French 24.8%)
Public Partners:
Government of Portugal
GATTEL
Government Grants
European Cohesion Fund
The European Investment Bank
Risk Matrix
Private Partners: Technical Risk
Public-Private Partners: Financial Risk, Political Risk, Shareholder’s Risk
Problems and Limitations of the PPP Model
The Vasco da Gama Bridge did not manage to reach the initial task which was to decongest the other bridge of Lisbon (25 Abril Bridge). It also had a great impact on ecological and economic issues.
Recommendations
More compliance with project goals in the future. Compliance with the
(MP525)
LECTURER: DR. SHANMUGASUNDARAM SUBRAMANIAN
WRITTEN ASSIGNMENT
PPP of Vasco da Gama Bridge in Portugal
Table of Contents
Topic
PPP of Vasco da Gama Bridge in Portugal
Introduction
Introduction to the Public Private Partnership concept
Need for the Public Service
To solve the congestion problem on Lisbon’s other bridge (25 de Abril Bridge), and to join previously unconnected motorways between north and south around the capital city of Lisbon
Legal Framework for PPP
Mainly Decree Law 141/2006 – 27 July 2006
Possible Alternatives
Another alternative location for the bridge
Critical Analysis of PPP Model chosen by government
The opportunities and limitations for the PPP Model chosen
Description of PPP Model & Tendering/Bidding Process
BOT Model was used “Build, Operate, Transfer”
Lusoponte, a consortium (Portoguese, British and French) companies, won the international public Tender process set by GATTEL (inter-ministerial agency) which made the decision for the location of the bridge
Rights and Obligations of the Private PPP Player
Lusoponte under BOT model (DBFO) had the obligation to design, construct, finance and operate the new crossing
Structure of SPV and the role of participants
Private Partners: Lusoponte consortium
(Portoguese 50.4%, British 24.8% and French 24.8%)
Public Partners:
Government of Portugal
GATTEL
Government Grants
European Cohesion Fund
The European Investment Bank
Risk Matrix
Private Partners: Technical Risk
Public-Private Partners: Financial Risk, Political Risk, Shareholder’s Risk
Problems and Limitations of the PPP Model
The Vasco da Gama Bridge did not manage to reach the initial task which was to decongest the other bridge of Lisbon (25 Abril Bridge). It also had a great impact on ecological and economic issues.
Recommendations
More compliance with project goals in the future. Compliance with the
Bibliography: Cruz, C. O. & Marques, R. C. (2010). Revisiting the Portuguese experience with public-private partnerships. [online]. [accessed 17 September 2013] Available at: http://www.academicjournals.org/ajbm/pdf/pdf2011 Hall, D KATERINA ERGATOUDES ID. 20120183 Name and student number