More financial gains to be won from new contracting form

Government implementing DBFMO contracts worth €6 billion, municipalities and provinces showing more interest

The management of government infrastructure and building projects under DBFMO contracts requires close attention from government managers. In this form of public private partnership, the government does not always pay for the availability of a building or infrastructure project in compliance with the agreements. There is therefore a risk of the financial benefits being diluted. Ministers should provide the House of Representatives with information on the long-term consequences of this form of contracting. The Minister of Finance has been promoting the use of DBFMO contracts since 1998. At the end of 2012, 13 such contracts were being implemented (for six roads and seven buildings), with an aggregate contract value of more than €6 billion.