PPP and Infrastructure

Abstract

This chapter examines the role of public private partnerships in the public procurement of public real estate and transportation infrastructure in Germany. Introductory, the general structure and characteristics of PPPs are explicated along with special remarks about specific features of the German PPP approach. This includes the specific role of the financing models applied, especially the role of non-recourse forfeiting of instalments in municipal projects. Further reference is made to the highly divided and complex approach of federal and federal states’ authorities to PPPs. Any federal state set up its very own taskforce that issues guidelines and provides support to municipalities in heterogeneous ways. Nevertheless, on project level, a certain degree of standardization led to different types of contract models in the public real estate sector that are applied consistently throughout Germany on any governmental level. Although, even standardized, models in the road infrastructure sector are applied only on federal level, whereas single projects on state and municipal level can still be considered ‘pilot projects’. Finally, the flow of deals in the public real estate and the road infrastructure sectors are summed up in tables that also feature updated figures for projects in tendering and under preparation.