Autumn 2013 Issue
Sampension considers PPP simply as a way to finance public infrastructure projects. PPP should not be seen as a way to bypass budgetary rules (budget law, fiscal compact). It should, however, be a way of thinking, organizing and financing projects. It’s not just that the process becomes more complicated, but also that discipline and a clear allocation of responsibilities and incentives are required. This is probably the reason why the perception of PPPs is that the model has failed to deliver both one cost and time. THE PENSION COMPANIES’ ROLE It is obvious that pension funds in Denmark can play an important role in domestic PPPs. Danish pension funds control significant assets and represent therefore an important source of financing for long-term projects. However, the right conditions must of course be present. Sampension’s main purpose is to ensure the best possible returns for its clients. Therefore, we are not necessarily a PPP pension company. But when you can combine favorable economic investments with sensible urban development and infrastructure projects - thus contributing to growth in Denmark as well as in other countries – in monies invested serve multiple purposes simultaneously. The assumption is that there can be a cooperative model in which different - private and public players can assume the responsibilities of each is best suited to take on. It therefore becomes essential to maintain a good overall economic assessment so that construction and operation may be successfully combined. Only if these conditions are met, a public-partnership can ensure a good and efficient delivery of a given public service while offering a sensible long-term investment option to the pension company. It requires that both the private operator and the public authority are willing to enter into longterm partnerships that are guided by set rules - a willingness that has so far largely been absent in Denmark. i
ABOUT SAMPENSION Sampension manages industry-wide pension schemes for primarily white collar workers in municipalities and central government. The company is organised as a life insurance limited company, but essentially non-profit. The company strategy is to deliver efficient management of labour market pension funds and investment portfolios ar low administration costs. Sampension’s results prove the thorough success of this. Sampension manages assets of around 150 bn. DKK or approx. 19 bn. EUR.
Author: Henrik Olejasz Larsen
CFI.co | Capital Finance International
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