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PPPs in local infrastructure : • Education • Public sports facilities

III. Astana Economic Forum 1 - 2 July 2010. PPPs in local infrastructure : • Education • Public sports facilities. Bernhard Müller bernhard.mueller@bmf.bund.de Federal Ministry of Finance, Germany. Aktau, 17 th September 2009. PPP in international usage. United Nations

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PPPs in local infrastructure : • Education • Public sports facilities

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  1. III. Astana Economic Forum 1-2 July 2010 PPPs in local infrastructure: •Education•Public sports facilities BernhardMüller bernhard.mueller@bmf.bund.de Federal Ministry of Finance, Germany Aktau, 17th September 2009

  2. PPP in international usage • United Nations • 2000 UN Millennium Declaration • Long-term partnerships with private sector to realize the UN Goals • (“Millennium+5-Summit”, New York 2005: Implementing of commitments reaffirmed) • Monterrey Consensus • Private investment and foreign direct investment for sustainable development. • (Follow-up conference, Doha 2008: Monterrey Consensus reaffirmed) IMF, UNECE, OECD and EU since 2003Agreement on the following understanding of PPPs: PPPs are used in project financing and implementation of infrastructure projects. Further important characteristics in the field of public infrastructure: ● Investment by the private sector ● Significant transfer of risk from the public to the private sector

  3. What is PPP?Agreement on … Planning + Building + Financing + Operation (+ Post-contract life) … between public and private partners PPP sectors: construction, infrastructure

  4. History of PPP at federal level in Germany

  5. Annual development of the volume of investment in PPP projects (building & road construction) as of April 2010 / with contract conclusion / in € millions 38 projects 27 projects 27 projects 22 projects 16 projects 12 projects 3 projects 2 projects Source: ÖPP Deutschland AG

  6. Distribution of PPP projects in public building construction by sectorsas of April 2010:143projects Sectors Source: Die Deutsche Bauindustrie

  7. Focus of PPP investments in public building constructionas of April 2010 Source: Die Deutsche Bauindustrie

  8. 1 2 6 3 PPP in public building construction - regional distribution as of April 2010 - 2 13 3 143 Projects awarded 0 3 2 2 4 2 70 Projects put up for tender 0 0 1 59 0 Projects in the pipeline 0 0 8 6 8 9 5 4 47 5 1 18 4 5 8 15 1 10 2 3 2 11 0 1 1 10 16 1 8 3 0 6 1 Federal projects 9 Source: Die Deutsche Bauindustrie

  9. 143 ongoing projects- public building construction - Examples:

  10. Lessons learned

  11. Ministry of Transport Ministry of Economics Ministry of Defence Federal PPP organisation in 2010 II B 6 PDPT I A 2 V C 6 SC* FN* M I 1 A 21 Transport Construction VIFG g.e.b.b. Ministry of Finance Deges * SC = Steering Committee, FN = Federal Network

  12. Federal and State Government PPP Network Procedure in the Federal and State Government PPP Network under framework agreement between ÖPP Deutschland AG and public sector: Federation and federal states identify need for groundwork Federal Government obtains an opinion from ÖPP Deutschland AG Finance Ministry agrees proposed course of action with other ministries Proposal for contracting to ÖPP Deutschland AG is put forward to the Federal and State Government PPP Network 5. Contract is awarded

  13. Organisation and ownership structure as ofJanuary 2009 Public-sector shareholders Private-sector shareholders PPP sectors Federation Fed. states, municipalities 35 % 65 % Holding company 60 % 40 % General meeting Supervisory Board Management board ÖPP Deutschland AG

  14. Areas of work Contracting authority Framework agreement ÖPPDeutschlandAG Standardization Process optimization Phase- based projectadvice Project- specific advice onindividual issues Involving SMEs Developing areas of use Knowledge transfer = Project work = Core work

  15. Broad public-sector participation: • 10 federal states • over 80 municipalities and • over 30 further contracting authorities • signed framework agreement.

  16. Our groundwork: Establishment of a project pipeline. A range of contracting authorities have given a (non-binding) indication of their willingness to commission PD to provide consulting services in connection with projects already in the planning stage. Volume of investment: approx. €500m

  17. Current contracts for PPP groundwork: • Helpdesk for the entire public sector • Evaluation and refinement of financing models for PPP projects in the context of the financial crisis • Evaluation of schools projects • Project database • PPP in IT and services • PPP and day-care centres for children • PPP for public-sector lighting projects • PPP for hospitals • PPP and local / regional road construction • Standard model for feasibility studies of building construction projects

  18. Current consulting projects: • New Federal Ministry of Education and Research building in Berlin • University Medical Center Schleswig-Holstein (construction / extension / renovation) • • Leibniz Institute of Marine Sciences (IFM-GEOMAR) in Kiel • (mainly construction) • • New building for the Dresden State Operetta • • Regional road construction in North Rhine - Westphalia

  19. Framework agreement‘s project pipeline

  20. Helpdesk Result 2009 24 Enquiries • 50 % project specific advise • on individual issues concerning • data base • framework agreement • financial modelling • 50 % phase based project advise • against 5 projectsfor 5 projects • reasons: issues: • not suitable • requirement specification • less volume • project design • unefficient • 2 offers for PPP aptitude tests • • 2 orders for a market test • Conclusions: • Helpdesk has success • duration of each PPP phase not less than several months • first results not before end of 2010

  21. Local-community issues1in municipality and district self-administration 1 According to Article 28 (2) (1) of the Basic Law of the Federal Republic of Germany

  22. Legal framework and legal systemfor supplying the local population1 in Germany 1 According to Article 28 (2) (1) of the Basic Law of the Federal Republic of Germany

  23. Conditions of lawful municipal PPPs

  24. Supply-organisation issues in Germany

  25. Germany’s topographic situation Lowland plain Upland High Alps

  26. Overall conditions of local communities in Germany

  27. Local community issues- Organization -Example: Hagen Population: 192,177

  28. Local community issues- Organization -Example: Berlin Population: 3,431,675

  29. PPP-School sectorExample: Offenbachdistrict

  30. PPP– School projectOffenbach District – Project data

  31. PPP– Sports facility projectsSports halls- Stadiums - Swimming pools

  32. PPP- History of football stadiums and multi-purpose halls in Germany

  33. Thank you Bernhard Müller Special Task II B PDPT Federal Minstry of Finance, Germany bernhard.mueller@bmf.bund.de Tel.: +49 3018 / 682 – 3138

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