1. www.bmvbs.de PPP projects in federal trunk road construction in Germany by Frank Süsser, (Head of Division StB 28, Liaison Division) Federal Ministry of Transport, Building and Urban Development

2. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 2 Objectives of PPP High efficiency because of life cycle approach Quicker realization of measures, shorter periods of traffic disruptions The state should focus on core functions Promoting innovations in the sectors of construction, operation and maintenance

3. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 3 Principles Provision of services from one source (tender procedure for construction, maintenance, operation and partly financing) No privatization, i.e. the responsibility remains with the state Long-term contractual links, life-cycle approach and contractual incentives for high-quality and efficient realization Functional provisions, more flexibility for industry

4. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau PPP models in federal trunk road construction A model: = upgrading model –In the case of existing federal motorways with first priority upgrading requirement, the private investor constructs the fifth and sixth lanes and operates and maintains all the lanes according to defined quality standards. –He finances his expenses by start-up financing and toll revenue or by availability payments, i.e. no remuneration on the basis of traffic levels from the toll revenue transferred but a total remuneration in monthly payments according to temporal availability. 4

5. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau PPP models in federal trunk road construction 5 F model (named after the Private Sector Funding of Trunk Road Construction Act) - The private investor constructs, maintains and operates bridges, tunnels and mountain passes or multi-lane federal highways with separate carriageways for the two directions of traffic.  He is entitled to levy a toll (even from passenger cars).  Up to now, 2 projects on federal highways have been realized under local authority control.  Further projects at federal level are being planned (e.g. Weser crossing in the course of the A 281)

6. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau PPP in a wider sense Function contracts in road construction -Life cycle approach; -Term of contract 10 – 30 years, currently small-scale projects on the basis of functional requirements; -At the moment, evaluation of 8 pilot projects, Preparation of a Guide on Value for Money Tests. 6

7. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 7 Four A model pilot projects (1st generation) The contracts were awarded for all projects (2007 - 2009): -A 8 in Bavaria: Augsburg – Munich (approx. 52 km, thereof 37 km upgrading) -A 4 in Thuringia: federal state border Hesse/Thuringia – Gotha access point (approx. 45 km, thereof approx. 25 km upgrading) -A 5 in Baden-Württemberg: Malsch – Offenburg access point (approx. 61 km, thereof approx. 41 km upgrading) -A 1 in Lower Saxony: Buchholz motorway junction – Bremen motorway interchange (approx. 72 km, thereof approx. 72 km upgrading) In total: 230 kilometres (of a total of approx. 12,800 km of federal motorways in Germany), thereof approx. 175 km upgrading, Construction costs approx. 1.1 billion €, Period of the contracts: 30 years

8. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 8 8 new projects: The second batch (2nd generation) In total: 450 kilometres (of a total of approx. 12,800 km of federal motorways in Germany), Construction costs approx. 1.5 billion €, Further PPPs A model pilot projects Second batch

9. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 9 Second batch PPP *Depending on the level of the process to achieve construction permission (to be provided by the federal state) and on the positive result of the Value for Money Test Start of the contract award procedure* 1. (Bavaria/Baden-Württemberg) A8, Ulm-Elchingen motorway interchange – Augsburg W motorway junction 28 January 2009, award of contract: 11 April 2011; beginning of the contract: 1 June 2011 2. (Thuringia) A9, Lederhose access point – federal state border Thuringia / Bavaria 18 March 2009, award of contract: 4 August 2011; beginning of the contract: 1 October 2011 3. (Schleswig-Holstein/Hamburg) A7, Neumünster/N motorway junction– Hamburg/N motorway junction 14 December 2011 4. (Baden-Württemberg) A 6, Wiesloch-Rauenberg motorway interchange – Weinsberg motorway interchange 2012 (planned) 5. (Lower Saxony) A7, Salzgitter motorway junction – Göttingen access point 2012 (planned) 6. (Hesse) A 44, Diemelstadt access point – Kassel-Süd motorway junction 2012 (planned) 7. (Rhineland-Palatinate) A 61, Worms access point - federal state border Rhineland-Palatinate/Baden-Wurttemberg & A 650, A 65 2012 (planned) 8. (Northrhine Westphalia) A 1, Lotte/Osnabrück motorway interchange Münster/N access point and A 30, Rheine/N access point – Lotte/Osnabrück motorway interchange 2012 (planned)

10. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 10 Prerequisites for the start of the contract award procedure for the A models  Suitability for realization as PPP model (assessment of suitability for realization as PPP)  Construction permission granted or at least to be granted in the foreseeable future  Positive result of the value for money test

11. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau Value for Money Test Cost of construction, maintenance, operational service, planning/ management Controlling Start-up financing Non-transferable risks Transferable risks Non-transferable risks Remuneration to be paid (tolls/availiability) Economic advantage Total costs Conventional variant (PSC) PPP variant (PPP) Remaining structures

12. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 12 Value for Money Test – taking national economic advantages into account Monetizable benefit differences are primarily possible in the following fields : Earlier activation of the overall benefit of the measure Lower level of disruption due to shorter construction time Benefit differences during the operational phase which are relevant to the national economy

13. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 13 Award of contract for PPP projects in detail EU tender notice, information memorandum Competition procedure Bidding phase (involving only four candidates) Negotiation phase (involving only two candidates) Best And Final Offer (BAFO) Final economic efficiency analysis Conclusion of contract with private partner Financial Close Structured negotiation procedure

14. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 14 Payment system for the A model pilot projects Upgrading, maintenance, operation and pro rata funding by the concessionaire Remuneration of the concessionaire from  the HGV tolls levied on the respective concession section ("user pays" funding cycle)  if necessary, start-up financing  if necessary, deductible amounts (contractually agreed upon)  Mechanism (remuneration based on traffic volumes) provides incentives for the concessionaire to ensure high-quality construction/maintenance and at least equivalent operational service

15. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 15 Structure of the toll remuneration HGV toll Toll Collect Public sector Federal Office for Goods Transport Transport Infrastructure Financing Company A model operator Transfer of the tolls Control functions

16. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 16 Remuneration mechanism availability model A 9 Start-up financing Remuneration according to availability Increases/reductions of remuneration according to availability +/- Reductions due to the system of points - = Remuneration of the private partner Availability restrictions

17. www.bmvbs.de StB 26 30.01.2012 ÖPP im Bundesfernstraßenbau 17 Remuneration mechanism Unit toll model A8 Ulm-Augsburg Remuneration of the concessionaire by  Unit toll rate - amount was subject to competition - transfer of the traffic volume risk to the concessionaire without simultaneous transfer of the fleet mix risk  Start-up financing - pre-determined - payment in annual instalments to the tune of 25 % each

18. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 18 Findings/evolution with regard to future PPPs in road construction 1.Positive market valuation, avoidance of market concentration; 2.Increase in competence (public sector + private sector), standardization; 3.Simplification of central contractual elements/ deepening of the functionality; 4.Integration and evolution of the findings from the function contracts in road construction; 5.Interaction among the procurement variants, e.g. economic efficiency of the project (transparency of the consequential costs, management of the "road"asset).

19. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau 19 Contact details Bundesministerium f ü r Verkehr, Bau und Stadtentwicklung (BMVBS) - Abteilung Stra ß enbau - Robert-Schuman-Platz 1 53175 Bonn, Deutschland Phone: + 49 (0)228-300-0 Fax: + 49 (0)228-300-3428 Contact: Referat StB 26: Ö PP im Bundesfernstra ß enbau Phone: +49 – (0)228/300-5260 Email: ref-stb26@bmvbs.bund.de

20. www.bmvbs.de StB 26 22.03.2012 ÖPP im Bundesfernstraßenbau Thank you very much for your attention! 20