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. € 1.5bn, contract volume approx. € 2.8bn
Size: Federal Highway: 76 km (operation and maintenance), inclusive 71 km extension
Parties involved (public and private): Federal Ministry of Transport and Digital Infrastructure (public); SPV A3 Nordbayern GmbH & Co. KG (Eiffage / Johann Bunte) (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
Brownfield or greenfield: Brownfield
Timeline
Key dates including procurement, construction, operations
- Public tendering: October 2016
- Conclusion of contract: February 2020
- Financial close: April 2020
- Contract start: May 2020
- Contract duration: 30 years
- Construction: 5.5 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
Unintended consequences: consortia from big well-established construction companies Lessons learned: smaller Projects (contract volume approx. € 1.5bn) to promote competition
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
Website URL