PPP framework

The country politics is always intended to reduce the participation of public finance in infrastructure projects to provide services because of a large national debt of the state. This is the main reason due to which the Italian Department of the PPP (UTFP) was created as a target group that promotes the financing of the project and later programs of PPP.

Legal system and structure

The main provision is based on the Article 3.15 of Legislative Decree 163/2006 "The code of public works contracts, contracts for public services and contracts for public supply (the Code)"

the main contract PPP t

(I) the concession of public works, issued by private persons ("private founder member");

(Ii) the concession of public works, issued by the state agencies (public works concession);

(Iii) the concession of public services (concessions for public services);

the main established PPP

(Vi) public and private partnerships for the provision of local public services (i.e, società miste, regulated by the Article 113 of Legislative Decree 267/00 - Consolidated Act on Local Authorities);

(Vii) public and private partnerships for urban regeneration programs (i.e., società di trasformazione urbana - STU, regulated by the Article 120 of the Consolidated Act on Local Authorities).

Budget rules

The contractor (in accordance with the concession for public works or PFI project ) may receive the payment for its services by charging a fee from the end users (what is usually the case with the road projects).The contractor may receive his remuneration directly by the authority, provided that the work and services performed are related to public service and that the Contractor bears the economic/financial risk assumed when providing services.

Implementation of the project and the contracting process

  • Each project is classified as a preliminary, final or operational, depending on the development stage of the tender documents.
  • At the central level each of the ministry develops its own projects /infrastructure plan and approve them formally. Before issuing a tender for each project the Ministry refers to the CIPE (Inter-ministry Committee for Economic Planning) for technical and financial approval.
  • At the local level each region, province and municipality develops its own three-year plan, which requires a "political approval" by local executive body and also financial/budget approval by the executive body of local government.
  • Exclusively private projects based on project funding programs do not require approval by the Giunta.
  • Typical life cycle of PPP:

  • In the "one-step" procedure for awarding the concession contract the authority conducts a public process of selecting a concessionaire on the basis of the most economically advantageous offer by ITB issuance on the basis of a feasibility study.
  • The tenders submitted to the authority should include a preliminary description of the project, the project of the contract, the business plan and specification of the operational phase of the initiative (the specification of project management and services).
  • In the "two-step" procedure the authority holds the public concessionaire selection process, indicating that the procedure will lead to the selection of a preferred bidder, who performed the best proposal.
  • The authority then begins a new selection procedure, based on a preliminary project of the bidder (approved by the authority) and the economic and contractual conditions included into the proposal of the preferred bidder, using the most advantageous tender as a criterion for evaluation.
  • Standards

  • Interpretative information on the application of the law of the European Economic Community on Government Procurement and Concessions on Institutional Public and Private Partnerships (IPPP), adopted by the European Commission on February 5, 2008
  • Standards developed by the Economic Department of the Central Administration and «Conferenze Stato-Regioni-Citta» (a special standing committee with the representatives from the regions, provinces and municipalities)