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Standpoint: Public-private partnerships

Thomas Alberghina
Thomas Alberghina

"As one of the few European countries which still has an AAA rating, Germany is predestined to draw liquidity from private investors under investment pressure to maintain and expand its infrastructure."

"To date, PPPs have been used in Germany only for the construction of new infrastructure but not for its maintenance. However, the flexibility of this procurement variant makes it possible to commission maintenance projects for existing infrastructure on a selective basis and to make use of the liquidity which is abundantly available from private sources."

There are numerous examples in other European countries that show how the flexibility of public-private partnerships (PPP) is used to carry out the renewal of existing infrastructure. KfW IPEX-Bank has already supported many PPP projects in the USA, Canada, the United Kingdom, France, the Netherlands and Australia, but in Germany this procurement variant still only has a niche existence.

"Being one of the few European countries which still has an AAA rating, Germany is predestined to draw liquidity from private investors under investment pressure to maintain and expand its infrastructure. But in order to use these sources and also to be able to further develop the financial instruments, this possibility needs to be used continuously at various public levels and further standardised to make more efficient use of it, especially in Germany.“

Full authored article by Thomas Alberghina and Christian K. Murach, Immobilien & Finanzierung magazine, 11 September 2014, page 8-9 (in German only)  (PDF, 312 KB, non-accessible)