PPP gaining ground in Germany

With German Finance Minister Peer Steinbrück on hand, the district administration office in Unna was opened on August 25, 2006. The administrative building, rehabilitated and expanded by Bilfinger Berger on the basis of a public-private partnership (PPP) model, will be operated by the Group for a 25-year period. The project also involves the maintenance and operation of two other public buildings in Unna. The total investment volume is €24 million.

Germany has seen a dramatic rise in interest in PPP projects for public sector buildings.There are currently more than 30 projects with a total investment of €800 million in the realization phase and more than 100 projects in the planning pipeline. Efficiency gains for the public sector over the life cycle of a building can be as high as 20 percent as compared to traditional approaches. The German government has repeatedly stated that it wants 15 percent of public sector investments on the national,regional and local level to be handled through PPP arrangements.

Bilfinger Berger has extensive experience with privately financed concession projects for public sector buildings.In the UK and Australia in particular, the company operates and realizes numerous projects in the education and health care sectors, as well as in the prison system.