A model for success in the education sector - Bilfinger Berger wins new orders

August 19, 2010

August 19, 2010

Public private partnerships: A model for success in the education sector - Bilfinger Berger wins new orders

The German cities of Halle and Erfurt have turned to public private partnerships to update their infrastructure: Bilfinger Berger has been commissioned by the city of Halle to modernize and expand two schools and an after-school care center. In the past two years, the Company has already redeveloped or built nine schools for the city council. Erfurt has awarded Bilfinger Berger the contract for the demolition and construction of a sports facility with a capacity for 1,500 spectators. Once completed, the Group will operate both projects over a period of 20 and 25 years respectively. Investment volume amounts to €20 million. In Germany alone, Bilfinger Berger is delivering municipal educational and sports facilities on a PPP basis with a total volume of €75 million.

Public private partnerships offer significant advantages in terms of efficiency compared to conventional approaches. The district of Hof was recently awarded the Bavarian Construction Industry Association’s PPP sponsorship award in recognition of its particularly innovative and efficient solution in the educational area. With this model the district, in conjunction with Bilfinger Berger, can carry out urgently required modernization and new construction of four schools and two sports facilities significantly faster and, in addition, expects to see cost advantages of around ten percent over the entire term of the contract. Using an integrated approach means optimization of construction and operation costs is particularly effective. Bilfinger Berger has pooled its service range for the entire real-estate life cycle in the Building and Facility Services business segment.

Bilfinger Berger has extensive experience in public private partnerships in the education sector and has already delivered numerous projects in the United Kingdom. Bilfinger Berger is also an established partner to the public sector in other areas including healthcare, projects relating to administrative buildings, correctional facilities and transportation infrastructure. In addition to Germany, core markets include other European countries as well as Australia and Canada.