25 January 2021

COUNTRY | Germany

REGION | Europe

SECTOR | transport

SUB-SECTORS | roads

QII Principles | Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 6 Infrastructure Governance

QII Sub-Principles | 2: Life-cycle costing, 2: Operation and maintenance, 3: Environmental Impact Assessment, 6: Growth & development strategies, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Anti-corruption

Overview

Cost: est. construction costs approx. € 680m, contract volume approx. € 1.1bn

Size: Federal Highway: 61,8 km (operation and maintenance), inclusive 31 km new construction

Parties involved (public and private): Federal Ministry of Transport and Digital Infrastructure (public); SPV STRABAG Infrastrukturprojekt GmbH (STRABAG and MERIDIAM) (private special purpose vehicle)

Relevant contractual details (type, length etc.):

  • Public Private Partnership (PPP)
  • Private partner designs, builds, maintains, finances and operates a federal highway, contract duration: 30 years
  • Private partner receives a start-up financing and a availability fee from the public partner

Context: PPP-Projects on Federal Highways, 5 Concessions (shadow toll) (2005-2011), 8 Availability-Projects (since 2009), 6 Availability-Projects in tender or pipeline (if efficient), widening from 4 to 6 lanes, mainly brownfield but as well some greenfield sections https://www.vifg.de/de/infrastrukturprojekte-finanzierung/projekte/oepp-projekte-im-bundesstrassenbereich/

Aim(s) of the project: life-cycle costing, availability, quality, price guarantee

Timeline

Key dates including procurement, construction, operations
- public tendering: february 2018, conclusion of contract: july 2020, financial close: august 2020, contract start: september 2020, contract duration: 30 years
- construction: 4,33 years; operation, maintenance, finance: 30 years

Relevance to QII

– feasibility study provides economic performance,
- model/project structure is adjusted to the life cycle approach,
- life cycle costs are subject to competition during the awarding
- the Federal Transport Infrastructure Plan provides for a needs based prioritisation of projects
- environmental impact assessment studies are a mandatory part of the public works planning procedures

Benefits

Highlights
all projects feature a reduced construction time
Expected and realised benefits
price guarantee through efficient risk allocation, visible cash flow for the complete project period, efficient procurement of federal highways through life cycle approach, high quality construction and operation, reduced traffic impact, ensuring quality and maintenance through long-term financing, positive effect on economic growth through early implementation of projects

Metrics

contract management, monthly invoice on the basis of availability, annual project report, evaluation of the model

Name of Institution

Die Autobahn GmbH des Bundes- Economic Feasibility studies and PPP –Georgenstraße 25, 10117 Berlin

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