The problem

Public-private partnerships (PPPs) are increasingly being used to develop transport infrastructure and services. This type of collaboration, however, introduces possible tensions between commercial priorities and the social obligations of public authorities to provide transport systems at optimal costs. In particular, private profit requirements can appear incompatible with the social marginal cost (SMC) pricing principle, which includes the effect of pricing policies on society as a whole. There is a need to examine and, where possible, resolve this apparent conflict.

Overview:

ENACT explores ways to implement optimal pricing schemes in transport, without hindering the increasing use of PPPs

The project will:

• Assess the extent to which the introduction of SMC pricing obligations may affect the further development of PPP schemes
• Devise ways to incorporate SMC obligations in PPP schemes while taking advantage of the positive aspects that such partnerships can have
• Produce guidelines to establish a common framework for socially optimal SMC pricing obligations in PPPs in the provision of transport infrastructure and/or services

Contribution to policy development:

• ENACT will help fill gaps in knowledge about the use of PPPs to implement transport policies.
• It will help to develop “down to earth” guidance for policy-makers by integrating abstract theoretical understanding into real-world examples and options.
• The project will provide data to assist the possible development of a common European regulatory framework for the use of PPPs in the transport sector

Project deliverables

• Survey of SMC and second-best pricing alternatives – January 2008
• Studies of incentives, contracts, financing structures and costs in PPPs – May 2008
• Integrated theoretical framework – September 2008
• Case studies and simulations – April 2009
• Final conclusions – August 2009

Dissemination

• Close interaction with stakeholders through the Advisory Board – formal meetings in November 2007 and June 2009
• An intermediate workshop and a final seminar – June 2008 and August 2009
• Participation of ENACT partners in major research conferences – as they occur
• Publication of a book with the results of ENACT – manuscript by August 2009

Technical information

Project acronym: ENACT
Project’s official full title: Design Appropriate Contractual Relationships
Research priority: The development of tools, indicators and operational parameters for assessing sustainable transport and energy systems performance (economic, environmental and social)
Specific webpage: not available
Proposal/contract no: 038558
Start date: 15 May 2007
Kick off meeting: 31 May 2007
Completion date: 31 August 2009
European Commission scientific officer: Frederik Rasmussen, Frederik.RASMUSSEN@ec.europa.eu

Coordinator:
Name: Consultores em Transportes, Inovação e Sistemas, S.A
Abbreviated name: TIS.PT
Address: Av. da República, nº 35 - 6º Floor, 1050-186 Lisboa
Country: Portugal
Tel: +351 21 350 44 00
Fax: +351 21 350 44 01
Website: http://www.tis.pt/asp

Partners

Name: Transporti e Territorio, SRL
Abbreviated name: TRT
Country: Italy

Name: Transportøkonomist Institutt
Abbreviated name: TØI
Country: Norway

Name: Fraunhofer Institut für Systemtechnik und Innovationsforschung
Abbreviated name: Fraunhofer ISA
Country: Germany

Name: Erasmus Universiteit Rotterdam
Abbreviated name: EUR
Country: the Netherlands

Name: Centrum Dopravního Výzkumu
Abbreviated name: CDV
Country: Czech Republic

Name: Todor Kableshkov Higher School of Transport
Abbreviated name: VTU
Country: Bulgaria

Name: Fertagus, S.A.
Abbreviated name: FERTAGUS
Country: Portugal

Name: RebelGroup
Abbreviated name: REBELGROUP
Country: the Netherlands