Public Private Partnerships

Netherlands

If a public authority and a private (market) party enter into an agreement on the realization of a particular project, this is known as a public-private partnership (PPP).

There are two principal forms of PPP: traditional and innovative. The traditional form of PPP occurs with area developments, involving the development and realization of housing, retail, offices, leisure complexes and infrastructure, for example.

The innovative PPP form concerns the development of public facilities such as infrastructure, ministries, municipal offices, schools and hospitals. With this form of PPP, the government transfers the risks to the market parties. Not only are the Design and Build risks transferred, but also Finance and - if desired - long-term Maintenance and Operations.

CMS can assist the government and market parties in both traditional and innovative PPP projects. Furthermore, within the international CMS we have extensive knowledge of the innovative PPP form. For example, our English colleagues have assisted the Dutch government in drawing up the innovative PPP contract for the Southern High-Speed Line ('Hogesnelheidslijn-Zuid').

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