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France's PPP bonanza pushed into 2011, but renewables even further
17 December 2010
France’s PPP market will be the busiest in Europe in 2011, as government moves to compensate for some slow deal closings. But its renewables sector will have to wait much longer for the right regulatory push.
By Tom Nelthorpe.
France was never meant to grow into a PPP powerhouse. During the middle of the last decade, while other jurisdictions tried to extract greater feats of complexity from the private sector, the French dailly obligation, which featured little performance risk, made for low-margin, straightforward business.
Post-crunch, the broader European PPP market moved into sync with the French conception of risk transfer, just as the French state rolled out a guarantee product that surpassed most of the post-crunch palliatives for weak lender appetite. The full debt guarantee could only be used for designated major projects and was set to expire at the end of 2010.
For all this support, big deals have still been a long time closing, and several have fallen by the wayside, most notably the Reunion Tram-Train, which was set to be the first deployment of the state guarantee. The French overseas department, located in the Indian...
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