Overview

Portugal currently has a significant public-private partnership (PPP) market, with several projects already concluded and many more in the pipeline. As a percentage of gross domestic product, the country has the highest level of investment in PPP/private finance initiatives (PFI) in the EU. Although the road sector is the most active, there is also a variety of other projects in sectors including energy, railways, waste, prisons, healthcare and airports.

Since the late 1990s Portugal has had an ongoing involvement in a number of projects, and as a result has developed a favourable environment for PPP projects. It has all the ingredients necessary to carry out PPP projects successfully: the public sector is engaged in PPP schemes and the recently-approved Portuguese Public Contracts Code acknowledges all the most sophisticated practices, both in public procurement and in financial contracts. Portugal introduced a PPP law in 2003 and has now adapted its general rules, not only transposing the competitive dialogue from the EU Directives, but also allowing negotiations with selected bidders when it comes to concession agreements. With regard to financial contracts, the legislature has developed rules on common issues such as the 'step in and step out' clause or the benefits of refinancing agreements.

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