Emil Hristov

Reneta Nikolova

Prof. Valaguzza, to begin, could you briefly introduce yourself and tell us more about your professional and academic work, as well as your role as President of the European Association of Public-Private Partnership and scientific coordinator of the Construction Law Lab?

I am a Full Professor of Administrative Law at the University of Milan "La Statale", where I lead the Construction Law Lab, an interdisciplinary research centre merging ethics, sustainability, and legal innovation across infrastructure, public procurement, and urban regeneration. Over the past ten years, I have increasingly dedicated my research and teaching to public-private partnerships (PPPs), with a particular focus on infrastructure and public services. At La Statale, I have established a special course on public-private partnerships, which regularly attracts international students. The course explores the different models of PPPs adopted around the world, combining theoretical analysis with discussions of real-life case studies, including both successful projects and notable failures. In 2020, together with my colleague Professor Eduardo Parisi, I published a monograph on public-private partnerships (S. Valaguzza, E. Parisi, Public Private partnerships. Governing common interest, EE Elgar, 2020), which brought together the results of several years of research. In this work, we examined the different definitions of PPPs adopted at both the national and international levels, tring to grasp the logic of PPPs, overcoming the ambiguity surrounding the concept. Throughout my academic career and legal practice, I have worked closely with public institutions, international organizations, and private stakeholders on the legal and institutional frameworks that support the successful delivery of public infrastructure and services. Over time, my legal practice has become increasingly focused on the construction and infrastructure sector, where effective collaboration between public and private partners is essential to delivering projects on time, within budget, and to the expected quality standards. The idea of establishing the European Association of Public-Private Partnership (EAPPP) grew out of many years of collaboration with academics and practitioners from across Europe who, like me, were studying the different forms of cooperation between the public and private sectors. We wanted to create a network that could foster comparative research, encourage dialogue among experts and institutions, and support public authorities in developing more effective policies based on evidence and international best practices. As President of the European Association of Public-Private Partnership (EAPPP), my role is to promote knowledge sharing and cooperation among academics, policymakers, practitioners, and financial institutions across Europe and beyond. The Association provides a platform for exchanging experiences, identifying and disseminating best practices, supporting research, and encouraging high standards in the design and implementation of PPP projects. At La Statale I also act as scientific coordinator of the Construction Law Lab, established as a center of excellence that sits at the intersection of administrative law, sustainability, and technological advancement. The Lab was founded to address a growing gap between traditional legal frameworks and the rapidly evolving demands of the built environment. Over the years, our focus has expanded alongside major global shifts, from traditional procurement to integrating sustainability, digitalisation, and complex public-private partnerships into infrastructure and urban regeneration. Our mission is to ensure an efficient, sound, socially and environmentally responsible public action. I firmly believe that international cooperation is essential in this field. Countries often face similar challenges but adopt different legal and institutional solutions. By comparing these experiences, we can better understand what works, what does not, and how PPPs can become more effective tools for delivering sustainable infrastructure and high-quality public services.

Today, PPPs are facing new challenges but also new opportunities. Governments need to invest in resilient, sustainable, and digital infrastructure while operating under significant fiscal constraints. In this context, EAPPP seeks to foster informed dialogue, evidence-based policymaking, and international cooperation to ensure that PPPs continue to evolve as effective instruments for delivering public value.

Yes, absolutely. I believe that strengthening research on public-private partnerships is more important than ever. Designing and implementing projects that create public value has become increasingly complex. The transition towards sustainable, resilient, and digital infrastructure requires a combination of technical, financial, legal, and managerial expertise that public authorities cannot always provide on their own. In this context, the contribution of the private sector is not merely desirable—it is essential. However, effective private participation can only flourish under strong public leadership. Governments must be able to set clear objectives and provide a stable legal and institutional framework based on certainty, transparency, dialogue, and cooperation. Public authorities should not simply regulate PPPs; they should actively govern them, ensuring that private innovation and investment remain aligned with the public interest. This is why legal research has such a crucial role to play. In particular, we need to continue developing contractual models and governance frameworks that foster trust, allocate risks appropriately, and encourage long-term cooperation between public institutions and private partners. Well-designed legal frameworks benefit both businesses and governments, creating the conditions for healthy partnerships capable of delivering lasting public value.

What is the mission of the European Association of Public-Private Partnership, and how does it contribute to the development and better understanding of PPP models across Europe?

In this respect, I believe that the contribution of research centres and international networks such as the European Association of Public-Private Partnership is invaluable. Our mission is to bring together scholars, practitioners, policymakers, and industry representatives to exchange knowledge, compare experiences across jurisdictions, and develop evidence-based solutions. By fostering dialogue and disseminating best practices, we can help create the conditions for more effective, transparent, and sustainable PPPs.

In your view, what are the main benefits of public-private partnerships for public authorities, private investors and society?

In my view, the greatest benefit of public-private partnerships is not simply the mobilisation of private finance. Rather, it is the opportunity to create genuine cooperation between the public and private sectors, allowing each party to contribute its own expertise, experience, and capabilities in pursuit of a common objective. Public authorities bring legitimacy, strategic vision, and responsibility for the public interest, while private partners contribute technical know-how, innovation, managerial expertise, and the ability to deliver complex projects efficiently. When these different strengths are effectively combined, PPPs can generate greater value than either sector could achieve alone. However, too often, excessive regulatory rigidity—or, even worse, the absence of an adequate regulatory framework—prevents the parties from adapting to changing circumstances and working together to solve problems. While transparency, accountability, and competition must always remain fundamental principles, they should not come at the expense of flexibility. Long-term infrastructure projects inevitably evolve over time, and the legal framework must allow public and private partners to cooperate, adapt, and innovate while safeguarding the public interest. Effective collaboration must also be embraced by the financial sector. Banks and financial institutions need to recognise the specific nature of PPPs as long-term, complex partnerships and be willing to accept the risks and opportunities that they entail. They should not expect contractual arrangements to remain entirely static, but rather acknowledge that, in long-term projects, carefully regulated amendments and renegotiations may be necessary to preserve the economic balance of the partnership and ensure the continued achievement of the public interest.

Public-private partnerships are often associated mainly with motorways and major transport infrastructure. In which other sectors are they currently producing significant results in Europe?

Although transport infrastructure remains one of the most established areas for public-private partnerships, today PPPs are delivering significant results in many other sectors. Ports, in particular, represent a strategic area where public-private cooperation should be enhanced. Then, I see great potential in projects with a strong social impact. The transition towards decarbonisation, energy efficiency and climate resilience, for example, requires substantial investments and long-term cooperation between public authorities and private actors. Similarly, housing policies—including affordable and social housing, urban regeneration, and the redevelopment of underused public assets—offer important opportunities for innovative PPP models that combine economic sustainability with social objectives. At the same time, we should not think of PPPs only in terms of large-scale infrastructure. Smaller, community-based initiatives can be equally valuable. Across Europe, we are seeing increasing opportunities for residents, local businesses, social enterprises, and civic organisations to take the initiative in shaping urban development and improving public spaces. These forms of collaboration give concrete expression to the principle of subsidiarity, empowering local communities to work alongside public authorities in creating more inclusive, sustainable, and liveable cities. Ultimately, the future of PPPs lies not only in building major infrastructure, but also in building stronger partnerships capable of addressing society's most pressing challenges and generating lasting public value.

Which European countries have developed particularly effective PPP frameworks, and what lessons can be drawn from their experience?

Different European countries have developed successful PPP models, each reflecting its own legal tradition, institutional capacity, and policy priorities. In my view, the Italian experience is particularly interesting. Over the years, Italian legislation has progressively expanded the scope of PPPs beyond traditional concessions for major transport infrastructure. Today, PPPs are increasingly seen as an opportunity for urban regeneration, enhancement and management of public green spaces, cultural heritage projects, sponsorship arrangements, and other collaborative models. This broader approach demonstrates that PPPs are not merely financing mechanisms for large infrastructure projects, but flexible governance tools that can support a wide range of public policies. Italy's experience shows that legislation can play a decisive role in promoting public-private partnerships. A well-designed legal framework can encourage innovation, create legal certainty, and stimulate private initiative in pursuing projects that serve the public interest. At the same time, one important challenge has recently emerged. The right of first refusal traditionally granted to the project promoter under Italian law has been held to be incompatible with EU public procurement law. This creates a significant practical issue. Preparing a PPP proposal requires substantial investment in technical, economic, financial, and legal feasibility studies, often at the promoter's own expense and without any guarantee that the project will ultimately be awarded. If private operators who take the initiative are not provided with an adequate incentive or some form of protection for their investment, they may have little reason to develop innovative proposals in the first place. Yet unsolicited proposals have often proved to be an important source of innovation, enabling public authorities to identify and pursue projects that might otherwise never have been conceived.

What influence has the European Union had on the development of public-private partnerships through its legislation, funding instruments and strategic priorities?

The European Union has undoubtedly played a fundamental role in shaping the development of public-private partnerships. Through its procurement legislation, funding programmes, and strategic priorities—particularly in relation to the Green Deal, digitalisation, and resilience—it has encouraged Member States to make greater use of PPPs as instruments for delivering public infrastructure and services. At the same time, I believe that the current European legal framework still reflects a procurement-oriented approach. PPPs are regulated primarily through the rules governing concessions and public procurement, whereas they should also be understood as long-term governance arrangements based on cooperation, risk-sharing, and the joint creation of public value. In my view, this broader perspective has not yet been fully reflected in EU legislation. One example is the elimination of the project promoter's right of first refusal, which has been found to be incompatible with EU public procurement law. While the objective of safeguarding competition and equal treatment is entirely legitimate, the disappearance of this mechanism raises practical questions about how to encourage private operators to invest their own resources in developing innovative project proposals. If no adequate incentives are provided, there is a risk that fewer private actors will be willing to take the initiative. The forthcoming revision of the European procurement directives offers an important opportunity to address these issues. I hope it will move beyond a purely procurement-based perspective and recognise the distinctive characteristics of PPPs, creating a legal framework that continues to guarantee transparency and competition while also promoting long-term cooperation, innovation, and private initiative in the public interest.

Bulgaria is considering the introduction of a new legal and institutional framework for public-private partnerships. Which essential provisions and safeguards should be included in such a framework?

If Bulgaria is considering a new legal and institutional framework for public-private partnerships, I would suggest focusing not only on legislation but also on governance and institutional capacity. In my experience, successful PPPs depend as much on sound institutions as they do on sound legal rules. First, for strategic infrastructure projects, I believe it would be extremely useful to develop standard contract models. These should not be drafted by government alone, but through a collaborative process involving public authorities, construction industry associations, financial institutions, and a body responsible for transparency and anti-corruption. Standardised contractual models can provide greater legal certainty while ensuring an appropriate balance between public and private interests. Second, governments should adopt clear guidelines to help contracting authorities manage unsolicited proposals and ensure that they can be subjected to genuine competitive procedures. Encouraging private initiative is important, but it must always be combined with transparency, equal treatment, and effective competition. Third, any legal framework should establish clear principles governing contract amendments and renegotiations. Long-term infrastructure projects inevitably face unforeseen circumstances, and the law should provide predictable mechanisms that allow contracts to be adapted without undermining transparency, legal certainty, or the public interest. Finally, investing in institutional capacity is essential. Governments should provide specialised training for public officials responsible for designing, procuring, and managing PPP projects. Equally important is the establishment of permanent advisory bodies composed of legal, technical, and financial experts, capable of supporting contracting authorities in the preparation and implementation of complex PPP projects. Access to independent, multidisciplinary expertise can significantly improve decision-making and increase the likelihood of successful partnerships. Ultimately, a successful PPP framework is not simply a matter of having good legislation. It requires competent institutions, well-trained public officials, effective dialogue with the private sector, and governance mechanisms that inspire confidence among all stakeholders.

What practical recommendations would you give to the Bulgarian Government and municipalities seeking to use PPPs for transport, energy, water, social and urban infrastructure, and which mistakes should they avoid?

My first recommendation would be to invest time and resources in carefully identifying and defining the public interest that a PPP is expected to serve. Public authorities should ask themselves fundamental questions: What is the real need? Who will benefit from the project? For how long will the service or infrastructure be needed? What public objectives should it achieve? Only when these questions have been answered can the market respond with solutions that are genuinely tailored to those needs. A well-defined public demand enables the private sector to develop targeted, innovative, and sustainable proposals directed towards the common good. In this sense, the success of a PPP depends not only on the quality of the private offer, but above all on the quality of the public authority's strategic vision.

If you could give one piece of advice to Bulgaria as it considers the future of public-private partnerships, what would it be?

I would encourage Bulgaria to study carefully what already exists in the legislation and practical experience of other EU Member States, including Italy. There is no need to start from scratch. Comparative analysis can help identify solutions that have worked, understand the mistakes that should be avoided, and adapt successful models to the Bulgarian legal and institutional context. I would reccomand to create open working groups involving experts from the public sector, private operators, financial institutions, academia, and the professions. PPP policy should not be developed in an ivory tower. There is a wealth of knowledge and experience across Europe that Bulgaria can draw upon—and, in doing so, it may also develop new solutions that improve upon existing models.