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.
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
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)
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
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
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.
More about doing business in France
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 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
None at present.
More about OMIS and other UKTI services for exporters