WRITTEN QUESTION E-0752/02 by Caroline Lucas (Verts/ALE) to the Commission. Private Finance Initiatives (PFIs) in the UK.
Date: 2002-03-14
Institutions: European Parliament, Provisional data
Subjects: United Kingdom, application of EU law, award of contract, drafting of EU law, interpretation of the law, proposal (EU), public contract, services contract

12.12.2002

EN

Official Journal of the European Communities

C 309 E/43

If such a notification obligation was not observed in the case of Mabor-Continental, the measures are to be
assessed in the light of Articles 87 and 88 of the EC Treaty in order to establish their compatibility with
the common market. If the alleged measures are found to be illegal and incompatible aid, the Commission
has to require the recovery of any sums of aid including interest already paid out to this company. The
Commission should examine whether the measures should have been notified under the State aid rules on
the basis of the response of the Portuguese authorities.

(1) OJ L 161, 26.6.1999.

(2002/C 309 E/048)

WRITTEN QUESTION E-0752/02

by Caroline Lucas (Verts/ALE) to the Commission

(14 March 2002)

Subject: Private Finance Initiatives (PFIs) in the UK

Is the Commission aware of the PFI approach in the UK and does the Commission consider it to be in line
with existing public procurement legislation? Furthermore, does the Commission judge that such practices
are in line with the Commission’s proposal for a new directive on the coordination of procedures for the
award of public supply contracts, public service contracts and public work contracts (1), particularly with
regard to Articles 1(7) and 32? Finally, what would the Commission’s evaluation be of the consequences
were the Directive to be amended according to the amendments passed by the European Parliament, in
particular Amendment 24?

(1) COM(2000) 275 final, OJ C 29 E, 30.1.2001, p. 11.

Answer given by Mr Bolkestein on behalf of the Commission

(19 April 2002)

is a broad concept covering a multitude of
The United Kingdom’s Private Finance Initiative (PFI)
arrangements where the public sector contracts to procure services using private sector management skills
and private finance. The exact legal and economic make-up of a given PFI transaction will determine the
extent to which the matter is regulated by public procurement legislation. Subject to this, a given PFI
transaction may, for example, constitute a public contract within the scope of the Community public
procurement directives, a works concession subjet
to minimal regulation under Council Directive
93/37/EEC of 14 June 1993 concerning the coordination of procedures for the award of public works
contracts (1) or a services concession outside the scope of Council Directive 92/50/EEC of 18 June 1992
relating to the coordination of procedures for the award of public service contracts (2), and subject to
general provisions of Community law. The Commission would therfore need a detailed description of any
given transaction to be able to consider whether it is in conformity with existing or proposed legislation.

In its proposal of 10th May 2000 on the co-ordination of procedures for the award of public supply,
service and works contracts the Commission came forward with a new buying technique known as the
competitive dialogue designed to allow a degree of flexibility in the award of particularly complex
contracts. The Commission considers that the competitive dialogue may be an appropriate framework for,
among other things, the award of complex PFI public contracts.

As regards Article 1(7) and Article 32 of the above proposal, the Commission is not aware of any general
practices concerning the use of framework agreements in PFI contracts.

Concerning the Parliament’s Amendment 24, the Commission has already indicated to the Parliament that
it would be prepared to accept this amendment in principle if it is modified so as to clarify that several
contracting authorities may enter into the same framework agreement at the same time.

(1) OJ L 199, 9.8.1993.
(2) OJ L 209, 24.7.1992.