2006-05-23 facility management & public private partnerships –saving of the German building-industry

Partnerships, which are arranged between the government and the economy are get going. The administration (all levels: government, federal state and local authority) transfers the new building, rehabilitation and the maintenance of operation of their building to private companies, which earn rent and fees. The weighting is in the state and the federal-states mainly the road- and tunnel-construction, in the local authorities it is above all the operation of buildings.

The German Institute for urbanisic (Difu) estimates the number of current projects in Germany on 300, approx. 80 per-cent from it account for the local authorities. In the last two years the number of these projects rose about 100%, the totally sum of the current local PPP-projects (public private partnership) amounts three billion euro.

Also the Federal Government wants to expand the quota and draws a comparision with other countries, in which the rate of PPP-projects is up to 15%.
The HOCHTIEF subsidiary PPP-Solutions expects for the next years with an investment volume of arount 30 billion euro and gives out so a carefully estimation.

Against the “private” projects the public projects have the advantage that they give a long-term safety of jobs, because the public projects normally have running-times between 10 and 30 years and not shorter running-times as a result of increasing pressure of competition.
Building-contractors enter with the facility mangement, which is nearly at the core-business, after a long-lasting downsling, a growth-market, and the public authorities profit from the efficiency-gains. Furthermore the companies arrange a own financing or a financing with a bank in the background, if required. Thus they mutate to efficient “building service provider”, which supply their clients complete-offers, or only an extraction from their range, depending on demands and client-requirements.