1. OVERVIEW

- In 2017, the aggregate value of PPP transactions that reached financial close in the European market1 totalled EUR 14.4 billion, a 22% increase from 2016 (EUR 11.8 billion).

Figure 1: 10-year view of the European PPP Market by Value and Number of Projects (2008-2017)

- However, the number of PPP transactions reaching financial close fell to 42, compared to 68 in 2016. This is the lowest number of transactions since 1997.

- Put together, this means that the average transaction size increased to EUR 351 million (EUR 174 million in 2016).

- Eight large transactions2 closed, compared to six in 2016. Their aggregate value amounted to EUR 10.2 billion, representing 69% of the total market value (compared to 42% in 2016). The large transactions reaching financial close in 2017 were:3

- Pedemontana Veneta toll road - (EUR 2.8 billion) in Italy;

- Northern Marmara motorway - Kurtköy-Akyazı section - (EUR 1.8 billion) in Turkey;

- Istanbul Ikitelli health campus - (EUR 1.1 billion) in Turkey;

- Grand Est broadband network - (EUR 1.1 billion) in France;

- Northern Marmara motorway (Kınalı-Odayeri section) - (EUR 1.1 billion) in Turkey;

- West Midlands rolling stock - (EUR 896 million) in the UK;

- Izmir Bayrakli integrated health campus - (EUR 717 million) in Turkey; and

- Gaziantep integrated health campus - (EUR 685 million) in Turkey.

- 62% of the transactions closed were government-pay PPPs (mostly funded from availability payments).4

____________________________________________________________________________________________

1 Defined as EU-28, countries of the Western Balkans and Turkey.

2 Defined as deals of EUR 500 million or more in value.

3 More detail is available in Annex 1.

4 PPPs under which 'government' (whether central, regional or local) pays the private partner in relation to the services provided.