It’s official: the European public-private partnership (PPP) pipeline is merely dripping, with the market turning in its worst performance over the last decade in 2012.
According to a recent report from the European PPP Expertise Centre (EPEC), a think tank within the European Investment Bank (EIB), only €11.7 billion of PPPs reached financial close last year, the lowest volume on record since 2003.
Last year’s tally represents a 35 percent drop in market size in relation to the €17.9 billion of PPPs closed in 2011. The number of deals has also fallen from 84 closed in 2011 to 66 last year.
Worryingly, four large projects accounted for 52 percent of the market in 2012 – two in France, one in the UK and one in the Netherlands – but there were less big projects closed last year, with the average transaction size decreasing from €213 million in 2011 to €177 million.