Home >> Information >> Library >> Frequently Asked Questions

Frequently Asked Questions

Can a small contractoring company implement a PPP project?

Small contractoring companies can submit a tender and undertake the implementation of a PPP project, since the new legal framework does not include any such restriction, but also since the maximum limit of 200 million euros for a PPP project, shows the intention to include small and medium size projects under its provision.

Is the design of the projects undertaken by the Public or Private Entities?

Normally, Private Entities are responsible for the delivering and finalizing the required design studies. Of course, the determination and the settlement of the technical specifications (or the functional requirements) or the elaboration of the preliminary designs (when this is required) will be made by the Public Entity that acts as the Contracting Authority.

How can we ensure the quality of a PPP project throughout its contractual period?

The payments of the Public Sector to Private Entities are linked with the pre-determined output specifications for the provision of infrastructure and services of high quality. In each PPP contract, there is a number of parameters that determine the quality and performance of the project, so as to quantify whether the contractual obligations of the Private Sector are fulfilled. Low quality services result in reduced payments by the Public Authorities. This way, the quality of a project throughout the contractual period is ensured.

How can quality and safety of a PPP project be ensured without the direct monitoring of the Public Authority?

Even though many people believe that Public Authorities cannot monitor the quality and the safety of construction projects, this is not true. Public Authorities can do so, through the terms and regulations that are obligatorily set in the contractual agreements. The monitoring of the Private Entities by the financial institutions (banks) is an additional guarantee for the Public Authorities and the end users. Banks want to ensure that the Private Entity delivers the PPP project according to the quality specifications set out in the contractual agreement. In this way the payment mechanism, which is linked to the agreed quality specifications, is activated and with these payments, the Private Entity repays its loans. It is emphasised, however, that the monitoring by the banks (for example via technical advisors) offers an additional safety feature that cannot substitute the monitoring by the Public Authorities.

Will PPPs affect engineers in a negative way? Will the monitoring of PPP projects by the banks reduce the engineers' duties?

Engineers will not be affected by PPPs or by the monitoring of the Private Entity by the banks. The implementation of PPP projects requires the participation of engineers, to the same or even bigger extent, as in every public work. Indeed, the participation of engineers or technical companies is necessary: - for the preparation of proposals, which the Public Authorities submit to the Special Secretariat for PPPs for the approval of a project that falls under Law 3389/2005 - for the preparation of tender award documents - during the implementation of the contractual agreement, acting as technical advisors to banks, or as independent engineers or engineers of Public Authorities.