Introduction to Hybrid Public Private-Partnerships in Poland

Abstract

Public-private partnership (PPP) is an alternative form of delivering public services by the private sector. The concept of hybrid PPPs developed by the European Commission puts emphasis on integration of the EU funding with the commercial financing supported by private investors. The Commission has introduced a number of advantages of so-called “blended” projects, and among them are: the opportunity to implement undertakings which otherwise would not be exclusively financed by commercial sources or reducing financial risk of projects. Hybrid PPPs demand respect for basic EU principles such as open market access, state aid regulations, protection of public interest and defining the optimal level of subsidization. In Poland PPP has been developing since 2009 when the legislation on PPP and concessions entered into force. The Polish legal framework allows the formation of hybrid PPPs according to the EU concept. Hybrid projects may be realized in a different variants, defining private partner’s role as a beneficiary or operator of the co-financed infrastructure, or mixed types of his engagement in projects.