The Introduction of Public-Private-Partnerships in Germany: Developments, Problems, Hindrances and Solutions

The situation of public budgets is quite scarce nearly all over the world. On the other hand the demand for an appropriate and modern public infrastructure is high and further growing. A gap has been opened between increasing needs and insufficient means to cover these. Public-Private Partnership (PPP) is a new approach to solve these problems. Meanwhile countries like the USA and Great Britain apply the PPP-system on a large scale. But in Germany public entities were following very reluctantly over many years.

In respect to the rapidly growing need for investments in public buildings, the continues economic crisis of the construction sector and the proven efficiency of PPP projects abroad, the attitude towards alternative forms of public procurement changed positively. The legislator took notice of these developments by improving the basic legal parameters in favour of PPP solutions and by establishing PPP task forces both on federal and state level. The task forces have published guidelines and promoted PPP pilot projects on several public buildings, e.g. schools, town halls and administration buildings. This Master Thesis describes the existing models, instruments and elements of the PPP system. It mentions chances and risks of PPPs. The international experiences are compiled and summarised, considering some selected countries as examples.

The latest developments and first experiences of PPP in Germany are critically reviewed on the basis of the situation both of the public sector and the private business. There are still hindrances in the public budget law, the public procurement law and the tax legislation. These hindrances are elaborated in order to develop appropriate solutions and recommendations for application. PPP is not the more efficient way of public procurement per definition. The economic efficiency has to be proven by the economic comparison of the PPP solution with the conventional procurement. The thesis recommends ways to a fair and well balanced economic comparison. The application of the Public Sector Comparator (PSC) is outlined.

PPPs are based on output oriented specifications. Contrary to the conventional way, the bidding process for a PPP project is a competition both of price and design. The features of output oriented specifications are described and recommendations for the tendering process are given. Another important element of PPPs is the allocation of risks. The identification, the evaluation and the distribution of risks are elaborated. Any risk shall be allocated to the partner best able to manage it in a cost effective manner. Furthermore, fiscal problems, the political and social context and issues of financing are shown.

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Fachgebiet: Immobilien » Projektentwicklung
Hochschule: FHTW Berlin, Stadia Polytechnic Helsinki | Prof. Dr. Karl Focke
Grad der Arbeit: Master Thesis
Umfang: 70
Note: 2
Abgabedatum: 02.01.2006