On 26 May 2015, Germany's Federal Minister for Transport and Digital Infrastructure, Alexander Dobrindt, hosted a conference on the future of infrastructure projects in Germany. The conference focussed on public private partnership (PPP) projects for the construction and maintenance of German motorways.
A particular focus was given to the ten new PPP projects that have been identified by the Ministry and are currently in the planning phase (see table below). These projects comprise an investment volume of more than EUR 14 billion and involve approximately 600 kilometres of motorways or federal roads. The tender for the first of these projects – the extension and maintenance of a part of motorway A 10/A 24 close to Berlin – is about to start shortly.
The Minister highlighted that not only the Federal Ministry for Transport and Digital Infrastructure but also the Federal Ministry of Finance have identified PPP projects as one of the main pillars for the construction and maintenance of motorways in Germany. Taking into account the on-going need for attractive investment opportunities the new projects will, for the first time in Germany, give institutional investors the opportunity to participate in such projects by investing in project bonds. Furthermore, the compensation for the operator of the relevant project will be optimized compared to the earlier projects. Therefore, the availability of the relevant project will be even more decisive in calculating the compensation for the operator.
The plans of the Federal Minister to enhance PPP projects were backed by the Vice President of the European Investment Bank (EIB), Wilhelm Molterer. Mr. Molterer highlighted the need for investment opportunities for institutional investors in Europe and elaborated on the financial support that EIB may grant to individual German PPP projects in order to reach an investment grade that enables investors to invest in such projects.
Click on the image below for the full table.