At their informal meeting held in Sopot, Poland, on 6 September 2011, the transport ministers of the European Union discussed the possibilities of involving private capital in improving transport infrastructure. Presenting Hungary's position, Minister of State for Infrastructure, Pál Völner participated in the consultation of the ministers of the Visegrád countries.

At the initiatives of the Polish presidency, the parties sought alternative solutions for mobilising private capital and appropriate methods of applying the PPP model during the ministerial meeting. This issue is especially relevant in light of the debate over the next seven-year (2014-2020) budget period to start before long. As the available national and EU funds are clearly insufficient alone for financing the required infrastructure developments, there is a genuine need for the application of innovative financing solutions.

In his address, Pál Völner called the attention to the participants of the fact that in the past few years the PPP model has been extensively used in Hungary, among others for the construction of prisons, dormitories, educational, cultural and sports facilities. In the transport sector, two motorways along a total of 360 km were built and are operating in this system.

In the Hungarian Goverment's opinion, when a country's sources of financing are limited, the PPP model may be helpful in the short term realisation of the required projects and the identification of additional sources; however, in the long term, they may run up excessive costs. The availability fees paid for the construction, maintenance and operation of motorways built in Hungary within such frameworks amounts to nearly 0.4% of GDP, a rather high value compared to the 3% budget deficit criterion.

Adding up the favourable and adverse impacts of the PPP model, the Hungarian Government has concluded that the negative effects predominate over the long term. The main lesson was that the appropriate sharing of risks and tax-payer benefits was a key factor in the elaboration of viable and sustainable PPP projects, Mr. Völner pointed out.

He reminded the participants of one of the most significant findings of the ministerial meeting organised in Hungary in February this year, concluding that the application of innovative financing schemes may not be either a systemic solution or an overall alternative to public or EU financing. If required, Hungary supports the easing of EU-level administrative obstacles. However, according to the Hungarian position, the Member States must decide on their own whether to use the PPP model or not in view of their peculiar features.

Following the informal meeting, the transport ministers of the Visegrád countries discussed, among others, the preliminary debate of the TEN-T guidelines, and the public road liberalisation recommended in relation to the future EU-Ukraine deep and comprehensive free trade area (DFTCA).

(Ministry of National Development , Department of Communication)