Financial Services Sector

An Expert's View about Banking, Finance and Insurance in France

Posted on: 2 Dec 2012

France is becoming a sough-after market. French PPP is likely to have another busy year, on the back of big-ticket government accommodation and transport deals.

Financial Services Sector in France: PPP France is becoming a sough-after market. French PPP is likely to have another busy year, on the back of big-ticket government accommodation and transport deals. But there are still few signs of an end to the market dominance of the big three French sponsors. Nevertheless the launch of new waves of prison and university PPP’s, courthouses in both Paris and Caen, security devices, public lighting and stadia such as Bordeaux should keep the market ticking over, albeit not matching the scale of the HSR projects. France is now leveraging performance between French PPP and British PFI. From our contacts at the Ministry of Economy there is a real interest in working more closely with the UK. Market overview Despite the financial crisis the PPP sector has been resilient. France is the number one country in Europe in term of PPP value. PPP: The MAPP is the dedicated Government unit in charge of PPP: an administrative service (public ownership) and a Central Unit (national coverage) attached to the Ministry of Economy. It has been assigned a three-fold mission: ξ Information & Promotion, through its interactive website and participation in industry events ξ Support implementation by assisting public procuring authorities in preparing & negotiating PPPs and methodological standard-setting ξ Validation of Preliminary assessment (required for State-sponsored projects only) 2011 ξ We estimate the value of PPP to be close to 5% of GDP. The last 4 contracts to be signed in 2011 were: ξ Defence Ministry (€992m) ξ LGV Train Tours – Bordeaux (€7.8md) ξ LGV Train Bretagne – Pays de la Loire (€3.4md) ξ Transports Ministry – Eco Tax (€1md) ξ Over 48 transactions were signed in 2011 with a value of €16.6md ξ 60% of PPP signed have a capital value of under €30m ξ The average value of a local PPP contract is €28m ξ The average value of a national PPP contract is €315m ξ The highest number of transactions was in Health and Roads Key opportunities ξ PPP: Whereas the French PPP market is still relatively closed on the sponsor side, for international banks it is a far easier proposition. International banks are seen as clever sources of funding to tap into to cover the significant liquidity needs of larger PPP projects. ξ It doesn’t matter where a bank is from as long as it is competitive and fully understands the key matters relating to being an infrastructure project finance lender. Latest export opportunities in the Financial and Professional sector Latest export opportunities in France Getting into the market ξ The main way of getting to the market is to have a presence in France. ξ Companies should organise a meeting with the MAPPP (Mission d’Appui aux PPP) with the Ministry of Economy in order to understand the French regulation around PPPs. ξ Companies should attend the PPP Forum in October to meet the key players. ξ More about doing business in France Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Sophie de Bodisco, British Embassy Paris. Tel: +33 (0)144513341 or email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events in the Financial & Professional Services sector Latest events: France Major Events None at present. Useful links More about OMIS and other UKTI services for exporters
Posted: 02 December 2012

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