UPDATE 1. INTERVIEW: Discussing PPP projects with Mr. Van Schoonhoven,Director of the PPP Unit in the Netherlands

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UPDATE 1. INTERVIEW: Discussing PPP projects with Mr. Van Schoonhoven,Director of the PPP Unit in the Netherlands Hello all,This is the first time since this website was created (back in Febreaury 2009) that we are publishing an interview with a PPP official.Mr. Jan van Schoonhoven, Director of the Dutch PPP Unit has kindly asnwered our questions regarding PPP projects in the Netherlands. I would like to thank him again for his fast and direct answers.

We expect this interview is just the first one of a long list, taking place on InfraPPP. We have tried to get a closer look at all the possible PPP projects in the country while remaining close to the current crucial issues when developing PPP projects.

Q: The preferred bidder for the A15 project was expected to be announce in August 30th. Do you already know which consortium has won the tender? If not, what is delaying the result?

A: The preferred bidder will be announced at any minute now. You can image that I cann't and will not reveal the name due to the tendering procedure.

The preferred bidder of the A12 is known to everybody and has been official released.

UPDATE: September 1stThe winning consortium is comprised of Strabag, John Laing, Ballast Nedam and Strukton. It beat competition from two rival consortia: Royal Bam, Vinci & CFE; and DIF, Egis, Fluor, Heijmans & Volker Vessels.

Q: Are banks willing to fund this availability project? I've read that there 25 banks interested in funding it.

A: Yes banks are VERY willing to fund this project. MOT has regularly talks with all major banks and there is no hesitation.

In the Financial close, it is still possible for the preferred bidder to do a debt funding completion, but all signs say that they will not use it. But the consortium is responsible for the funding, the government (we) only feel responsible for a reasonable demand in a sound market.

Q: I know there are 2 other road projects under study and a third one already in the tender stage. What is the situation of these three projects?

A: For formal communication on projects, the project themselves are responsible for communication.I presume you referrer to N33 and A6/A9 (better known as SAA, Schiphol/Amsterdam/Almere).Those two will go to tender very soon (N33) and soon (SAA, first PFI contract, SAA will have 4 PFI contract in total).

There are new ones coming up, but as you can image the talks about a new government, which take some time now, is proposing some actions on PPP decisions.

Q: There are other housing PPP projects? Are they really working?

A: It would be better for my housing colleague to answer that question. But a few remarks:First of all PFI scheme for buildings is excellent and they do really work. They provide better service to the user of the building.

What I think is that we have a German (with some French) culture and an Anglo Saxon contract. We want value for money and smart performance indicators, but we like to discuss things while we are on the way.

In road contract, these differences are seen to be self persisted or vivid than in the building PPP's.

Secondly, the users do not always notice the difference between a PPP building and a more traditional building yet.

Combining that with PPP's in jails, where we do not ask the "clients" everyday to give their option about their service level.

Therefore PPP in housing needs some more success stories. But the new MOT building in Delft (near Rotterdam will be a PPP (PPP DVS Rijkswaterstaat).

Q: PPPs for health projects are getting very popular. Is the Dutch government planning to use them?

A: I agree, PPP in health is very popular. But in the Dutch financial organization of hospitals, PPP are less easy to use. In our health system, most hospitals work more like "apartments" where a group of doctors (associates) rent rooms and facilities for their work.

Actually, the system works very good, but in these cases it's harder to define value for money. As long as those small business units are willing to pay, the hospitals are profitable organizations.

By organizing the "room rentals" efficient and making very efficient ER's and Operation Rooms, its hard to get more when you do a cycle approach. But PPP will work in academic hospitals for example.

The government is promoting PPP in this sector, but cannot (like in roads) demand PPP's in heath, health service is largely of at distance or privatized.

Q: From 1 to 10,how well developed do you think the PPP framework in the Netherlands is?

A: Right, it is always nice to write your own evaluation. But to be honest the PPP FRAMEWORK is near to an eight or higher because:

- Standard contract for buildings, schools and roads- Proven concepts, value for money and all parties satisfied- Really starting up with a firm deal flow- Experienced people in the government who knows what PPP is

Improvement on a number of issues would be advisable:- Long (and costly) tender procedures: for roads, I have the goal to reduce them by 50% the next 3 years- PPP in water infrastructure could boost. I'm director PPP of infrastructure and water management, and we start a program in water infrastructure with PFI- Contract is still to thick, maybe even a bit too much as UK's PFI, we need more Dutch/German culture in it- PPP in schools, hospitals and other areas should be more used- PPP in local community buildings should be more used

If you want to have more information about PPPs in the Netherlands, please, visit their official website.

Again, I would like to thank him for his collaboration.

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