what is ppp?
DESCRIPTION
What is PPP?. Planning + Building + Financing + Operation (+ Post-contract life) = PPP. PPP-Sectors: PPP – construction, PPP – infrastructure. Folie 2. Movement of selected public sectors towards private structures. Types of PPP contracts - in German law -. - PowerPoint PPT PresentationTRANSCRIPT
GERMANY – B. Müller
What is PPP?
Planning + Building + Financing + Operation(+ Post-contract life)
= PPP
PPP-Sectors: PPP – construction, PPP – infrastructure
Movement of selected public sectors
towards private structuresPublic administration PPP Private sector
•Rail •Post•Waterways •Telecommunications
•Road •Energy supply•Defence
•Water supply •Water supply •Water supply•Health care •Health care •Health care•Social services •Social services •Social services•Waste disposal •Waste disposal •Waste disposal•Sewage disposal •Sewage disposal •Sewage disposal
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Types of PPP contracts- in German law -
Differences and core content
Acquisition model Hire-purchase of facility/asset
Owner model Planning, construction, financing, operation under ownership
of the principal
Leasing model Rent with option to buy
Rent model Contract for rent extending beyond 10 years
Contracting model Contract to operate the facility/asset
Licence model Operation of facility/asset with user fees collected privately
Company model Operation by way of project group
Folie 4
PPP project structure- example -
Advisor AdvisorLicenser
Fed / Land / Municipality
Loan providerLicensee
Project company
General contractor
Construction planning
Banks/capital marketShareholder
Investors
Maintenance
Maintenance
Public sector or private sector use
Operator
Operation
Ren
t or
fee
Pro
visi
on o
f se
rvic
e
Con
cess
ion
Gra
nt
Interest/re-payment
Maintenance
Return
Equity capital Loan
Remuneration Remuneration
Operation
Ser
vice
Con
stru
ctio
n
Con
stru
ctio
n at
agr
eed
pric
e an
d tim
efra
me
Rem
uner
atio
n
Folie 5
History of PPP at EU level
07 May 2003 Commission publishes “Internal market strategy – priorities 2003 – 2006”, which highlights the need to clarify legal issues relating to PPP. The publication of a green paper on PPP is announced.
21 May 2003 Commission publishes Green Paper on services of general interest. This paper entails a substantial review of the Commission's service policy and asks whether a general legal framework should be created at Community level for services of general interest. The Commission plans top publish a green paper on public procurements and on PPP in the second half of the year.
30 Apr 2004 Commission adopts Green Paper
30 Apr 2004 Forwarded to the Council
30 Apr 2004 Forwarded to the European Parliament (EP)
27 Oct 2004 Opinion by the European Economic and Social Committee
17 Nov 2004 Opinion by the Committee of the Regions
End 2005 Commission announces resolution on further PPP legislation for the end of 2006
26 Oct 2006 Resolution by EP
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History of PPP at federal level in Germany
Apr 2001 Federal Chancellor sets up “Kanzler-AG”
Jun 2002 Federal Chancellor announces PPP competence centre
Jul 2002 Steering committee (SC): “PPP in public construction works”
Feb 2003 PPP federal study commissioned
Jul 2003 Bundestag adopts motion for PPP resolution
Dec 2003 Agreement by federal states ministers responsible for building
Dec 2003 SC: Recommendations for framework conditions
Nov 2004 Members’ initiative “PPPs Acceleration Act”
Dec 2004 Agreement by federal state ministers responsible for finance (FMK)
Jul 2004 PPP Task Force set up
May 2005 Creation of federal PPP competence network
Sep 2005 PPPs Acceleration Act comes into force
Sep 2006 FMK decision: Standard guidelines on examining profitability
Source: PPP Task Force, Federal Ministry for Transport, Building and Urban Affairs
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Market structure of PPP in Germany
More PPP
Framework More/bigger projects
Laws Regulations Admin. building
Defence
Education ResearchTransportModels
Provision amendments:
Competition law
Tax law
Accounting law
Statistics law
Change in rules on awarding contracts
modify:
ContractsPC
PSCBudget issuesSystem of NADouble entry bookkeeping
More private capital for public tasks
More co.’s in the provision of public services
Health
PB = Profitability calculations
PSC = Public Sector Comparator
NA = National accounting
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PPP organisation of the govt in Germany
Ministry of Finance
Construction Transport Civil Defence
Project working
group PPP
Roads Rail, Sea,
Air Federal states East West
Task Force
VIFGDeges
Ministry of DefenceMinistry of Transport Ministry of Economics
Project development co.
= Project management co.’s
Deutsche EinheitFernstraßenplanungs- und -bau GmbH
Verkehrsinfrastruktur-entwicklungsgesellschaft mbH
g.e.b.b., Dept. M / Group M I
Gesellschaft für Entwicklung, Beschaffung und Betrieb mbH
Folie 9
The PPP procurement process in GermanyAgreed procedure between central and regional government
Phase I Determining needs, financeability and profitability of measures
Final profitability analysis
Provisional examination of profitability
Determining the maximum amount to be appropriated in the budget (budget readiness)
Drawing up conventional comparative values (Public Sector Comparator – PSC)
PPP test for suitability
Steps in examining PPP profitability
Phase II
Appropriation in budget and call for tender
Preliminary decision for or against continuing to pursue varies PPP options
Final decision on awarding and signing of contract
Project controlling
Phase III
Phase IV
The phases in the PPP procurement process
Preliminary decision for or against publishing call for tender
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An example for possible risk allocation – traditional procurement vs. PPP
Traditional procurement PPP
Publ
ic se
ctor
Priv
ate
partn
er
deficient constructionunavailabilitybad service
insufficient usageobsolescenceresidual value below forecast
deterioration of commercial basis (framework)
force majeurechanging legislation
deficient constructionunavailabilitybad service
insufficient usageobsolescenceresidual value below forecast
deterioration of commercial basis (framework)
force majeurechanging legislation
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ABC modules of tender I
Module A: ConstructionMostly invitation to tender as a general contractor subject to the provisionsof the guidelines on awarding contracts; to be built, for example, on a piece of land owned by the party issuing the invitation to tender
Module B: Financing part AB1: conventional lease financing via the budgetB2: pure finance leasing (no equity capital of private investors,
thus no tax effects), sometimes with forfeiting.B3: tax-optimised fund leasing models with equity capital of private investors.
Module C: Investor modelSame-source construction and financing on the basis of the conditions of
modules A and B with a fixed-price model without disclosing the details of the calculation.
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ABC modules of tender II
In addition to parts A, B und C, additional tenders can be invited in suitable cases:
Module D: Similar to Module C, but using functional description of construction and with the bidder’s own planning, possibly also on a piece of land owned by the party inviting tender.
Module E: Offers to buy, hire-purchase of simply rent suitable objects which have already been built or which are in the process of being built.
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Overview of the current status of the PPP Simplification ActProject working group consisting of the majority parties in the German Bundestag and including representatives of German industry
As of May 2007
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X 4
1 X
Social infrastructure No need recognised
X
Awarding of contract 2
Transport X 3
Defence No need recognised
Note: The original timeframe for the legislation, which provided for a first reading of the PPP Simplification Act in the Bundestag in May 2007, no longer applies. No new timeframe has yet been submitted
(1) The members of the CWGs consistently regarded the proposals by the advisors was not viable. Key issues where appropriate once proposals of the
"Hesse study" has been looked at by the Ministry of Health and the Länder working group "Hospital finances"
(2) Federal Ministry of Finance and Federal Ministry of Transport, Building and Urban Affairs are requested to submit proposals
(3) Advisor proposals concentrate on further development of the Transport Infrastructure Financine Company (VIFG) and on its becoming authorised to borrow
(4) Advisors see no specific need for action. Proposed amendments to the Federal Budget Ordinance were sent to the CWG "Law on government support"/"Budget"
Need for legislation is covered by the amendments to the Investment Act and the Law on Public Procurements
Budget
Health
Taxes
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Overview of standardisation work of central and regional governments in Germany
Field of competence Draft Agreement Publishing
1 Guidelines on examining profitability of PPP projects O
2 Guidelines on awarding public contracts O3 “PPP and government support legislation”
studyO
4 PPP and budget appropriation O5 Guidelines on PPP and SME’s* O6 PPP School study O7 A-model awarding of contracts O
* SME = Small and Medium sized Enterprises
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Sektor Projekt / Ort Auftraggeber Bundesland Vertrags-modell
Zuschlagerteilt
1 Sport/Kultur Thermalbad in Wiesbaden Landes - Hauptstadt Wiesbaden Hessen Bau- und Unterhaltungsvertrag Jan 02
2 Bildung Bildungszentrum Ostend in Frankfurt/Main Stadt Frankfurt am Main Hessen PPP-Mietmodell mit Erwerb nach 20 Jahren Jul 03
3 Bildung Schulen in Monheim Stadt Monheim Nordrhein-Westfalen PPP-Inhabermodell Jan 04
4 Bildung Sonderschule und Dreifachsporthalle in Frechen Rhein-Erft-Kreis Nordrhein-Westfalen PPP-Inhabermodell Feb 04
5 Bildung Schulen und Sporthallen im Kreis Offenbach (Los West) Kreis Offenbach Hessen Gesellschaftsmodell Mrz 04
6 Sonstige Parkhaus am Bundesverwaltungs-gericht in Leipzig Stadt Leipzig Sachsen Erbbaurechtsvertrag mit Bauverpflichtung (Konz.) Apr 04
7 Bildung Sonderschule, Gütersloh Kreis Gütersloh Nordrhein-Westfalen PPP-Inhabermodell Erbbaurecht Jun 04
8 Sport/Kultur Sporthallen in Münster Stadt Münster Nordrhein-Westfalen PPP-Inhabermodell Jun 04
9 Sport/Kultur Freizeitbad in Lüdinghausen Stadt Lüdinghausen Nordrhein-Westfalen Erbbaurechtsvertrag mit Bauverpflichtung Jun 04
10 Sport/Kultur Lipperlandhalle Kreis Lippe Nordrhein-Westfalen PPP-Inhabermodell Jun 04
11 Bildung Schulen in Witten Stadt Witten Nordrhein-Westfalen PPP-Inhabermodell Aug 04
12 Verwaltung Kreishaus in Unna Kreis Unna Nordrhein-Westfalen PPP-Inhabermodell Sep 04
13 Verwaltung Rathaus in Gladbeck Stadt Gladbeck Nordrhein-Westfalen Inhabermodell (Nutzungsüberlassungsvertrag) Sep 04
14 Bildung Schulen im Kreis Offenbach (Los Ost) Kreis Offenbach Hessen Gesellschaftsmodell Nov 04
15 Sonstige Parkhaus unter dem Bowling Green in Wiesbaden Stadt Wiesbaden Hessen Bau- und Betriebs-konzession Jan 05
16 Bildung Schulen in Bedburg Stadt Bedburg Nordrhein-Westfalen PPP-Inhabermodell Mrz 05
17 Bildung Schulen in Köln Stadt Köln Nordrhein-Westfalen PPP-Inhabermodell Apr 05
18 Sport/Kultur Freizeitbad in Leimen Stadt Leimen Baden-Württemberg Erbbaurechtsvertrag mit Bauverpflichtung Apr 05
19 Sonstige Logistikzentrum mit Parkhaus am Klinikum Dortmund Ernesto Grund-stücksverwal-tungsgesell-schaft mbH Nordrhein-Westfalen Inhabermodell Mai 05
20 Bildung Berufsschulzentrum in Leverkusen Stadt Leverkusen Nordrhein-Westfalen PPP-Inhabermodell Jun 05
21 Sport/Kultur Thermalbad in Fürth Stadt Fürth Bayern Betreibermodell Jun 05
22 Bildung Schulen in Achim Stadt Achim Niedersachsen PPP-Inhabermodell Aug 05
23 Verwaltung Landratsamt Bodenseekreis in Friedrichshafen Bodenseekreis Baden-Württemberg PPP-Inhabermodell Aug 05
24 Sport/Kultur Misburger Bad in Hannover Stadt Hannover Niedersachsen Erbbaurechtsvertrag mit Bauverpflichtung Sep 05
25 Sonstige Hubschraubertrainingssimulatoren, Bückeburg, Holzdorf u. Fassberg Bundesamt für Wehrtechnik und Beschaffung Niedersachsen Konzessionsmodell Nov 05
26 Sport/Kultur Hallen- und Freibad in Senden Gemeinde Senden Nordrhein-Westfalen Betreibermodell Nov 05
27 Bildung KITA, Münster-Roxel Stadt Münster Nordrhein-Westfalen PPP-Inhabermodell Dez 05
28 Sport/Kultur Bäderzentrum in Cottbus Stadt Cottbus Brandenburg Betreibermodell Dez 05
29 Bildung Sekundarschule in Barleben Gemeinde Barleben Sachsen-Anhalt PPP-Inhabermodell Feb 06
30 Sonstige Parkhaus an der Universitätsklinik Düsseldorf Uni-Klinik Düsseldorf, Bau- und Liegenschaftsbetrieb NRW Nordrhein-Westfalen PPP-Konzessionsmodell (Erwerbermodell) Apr 06
31 Bildung Gymnasium in Schwarzenbek Stadt Schwarzenbek Schleswig-Holstein PPP-Inhabermodell Mai 06
32 Bildung Kita und Familienzentrum, Langenhagen Stadt Langenhagen Niedersachsen PPP-Inhabermodell Mai 06
33 JVA JVA, Stadelheim Land Bayern Bayern Priv. Vorfinanzierung mit Energie-Contracting Mai 06
34 Gesundheit Westdeutsches Protonentherapiezentrum, Essen Uni-Klinik Essen, Westdeutsche Prot.therapiezentrum Essen gGmbH Nordrhein-Westfalen Mietmodell mit Erwerbsoption Jun 06
35 Verwaltung Ortsgericht, Pforzheim Stadt Pforzheim Baden-Württemberg PPP-Erwerbermodell Jun 06
Table of PPP Projects I
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Table of PPP Projects II
Sektor Projekt / Ort Auftraggeber Bundesland Vertrags-modell
Zuschlagerteilt
36 Bildung Gymnasium in Twistringen Stadt Twistringen Niedersachsen PPP-Inhabermodell Jul 06
37 Bildung Schulen in Köln (Mittelstandspaket) Stadt Köln Nordrhein-Westfalen PPP-Inhabermodell Aug 06
38 Sport/Kultur Multifunktionssporthalle in Bestensee Gemeinde Bestensee Brandenburg PPP-Inhabermodell Aug 06
39 Verwaltung Altstädtisches Rathaus in Brandenburg a.d.Havel Stadt Brandenburg Brandenburg PPP-Inhabermodell Aug 06
40 Sport/Kultur Keitum-Therme, Sylt Ost Gemeinde Sylt-Ost Schleswig-Holstein Gesellschaftsmodell Sep 06
41 Verwaltung Justizzentrum, Chemnitz Freistaat Sachsen (SIB) Sachsen PPP-Inhabermodell Sep 06
42 Sport/Kultur Sportstätten, Bad Oldesloe Bad Oldesloe Schleswig-Holstein PPP-Inhabermodell Sep 06
43 JVA JVA, Offenburg Land Baden-Württemberg Baden-Württemberg PPP-Inhabermodell Okt 06
44 Bildung Schule, Neuss Schulgebäude am Stadtwald GmbH i.Gr., Stadt Neuss Gesellschafter Nordrhein-Westfalen PPP-Inhabermodell Nov 06
45 Bildung Berufsbildende Schulen, Buchholz i.d.N Landkreis Harburg Niedersachsen PPP-Inhabermodell mit Eigentumsübergang Nov 06
46 Verwaltung Finanzzentrum Altmarkt, Kassel Land Hessen Hessen PPP-Vermietungs-modell Nov 06
47 Bildung Schulen, Halle Stadt Halle Sachsen-Anhalt PPP-Inhabermodell Dez 06
48 Bildung Kitas, Halle Stadt Halle Sachsen-Anhalt PPP-Inhabermodell Dez 06
49 JVA JVA, Burg Land Sachsen-Anhalt Sachsen-Anhalt PPP-Inhabermodell Dez 06
50 Verwaltung Heinrich-Böll-Stiftung, Berlin (Investition aus Mitteln der BRD) Heinrich-Böll-Stiftung Berlin PPP-Inhabermodell Dez 06
51 Bildung Schulen, Lahn-Dill-Kreis / Wetzlar Kreis Lahn-Dill Hessen PPP-Inhabermodell Jan 07
52 Verwaltung Rathaus, Freudenberg Stadt Freudenberg Nordrhein-Westfalen PPP-Inhabermodell Feb 07
53 Bildung Schulen, Düren Stadt Düren Nordrhein-Westfalen PPP-Inhabermodell Mrz 07
54 Sport/Kultur Elbphilharmonie, Hafencity Hamburg Stadt Hamburg / ReGe Hamburg Projekt-Realisierungsges.schaft mbH Hamburg PPP-Inhabermodell Mrz 07
55 Sport/Kultur Sport- und Veranstaltungszentrum, Schwerin Stadt Schwerin Mecklemburg-Vorpommern Betreibermodell Mrz 07
56 Verwaltung Justiz- und Verwaltungszentrum, Wiesbaden Stadt Wiesbaden, Land Hessen Hessen PPP-Vermietungsmodell Mrz 07
57 Bildung Berufsbildende Schulen, Winsen Landkreis Harburg Niedersachsen PPP-Inhabermodell mit Eigentumsübergang Mrz 07
58 Bildung Gymnasium, Kirchseeon Landkreis Ebersberg Bayern PPP-Inhabermodell Mai 07
59 Bildung Grundschule und Kita, Hamburg Stadt Hamburg Hamburg PPP-Inhabermodell Mai 07
60 Sport/Kultur Rudolf-Harbig-Stadion, Dresden Stadt Dresden Sachsen Konzessionsmodell Jun 07
61 Sport/Kultur Sportpark, Niederkassel Stadt Niederkassel Nordrhein-Westfalen PPP-Inhabermodell Jun 07
62 Verwaltung Behördenzentrum , Heidelberg Land Baden-Württemberg Baden-Württemberg PPP-Vermietungs-modell Jun 07
63 Sport/Kultur Medienhaus, Mühlheim an der Ruhr Stadt Mühlheim an der Ruhr Nordrhein-Westfalen PPP-Inhabermodell Jul 07
64 Bildung Gymnasium, Lübz, Landkreis Parchim Landkreis Parchim Mecklemburg-Vorpommern PPP-Inhabermodell Jul 07
65 Sport/Kultur Multifunktionshalle und Sportinternat Ludwigsburg Stadt Ludwigsburg Baden-Württemberg Aug 07
66 Bildung Schulen, Frankfurt Stadt Frankfurt am Main Hessen PPP-Inhabermodell Aug 07
67 Sport/Kultur Thermalbad, Thale Stadt Thale Sachsen-Anhalt PPP-Konzessionsmodell Aug 07
68 Sport/Kultur Sporthalle, Halstenbek Gemeinde Halstenbek Schleswig-Holstein PPP-Inhabermodell Sep 07
69 Sport/Kultur Schwimmhalle Burgstädt Stadt Burgstädt Sachsen Sep 07
70 Bildung Gesamtschule Rodenkirchen, Köln Stadt Köln Nordrhein-Westfalen PPP-Inhabermodell Okt 07
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Table of PPP Projects III
Sektor Projekt / Ort Auftraggeber Bundesland Vertrags-modell
Zuschlagerteilt
71 Sport/Kultur Sporthalle Ahrensburg Stadt Ahrensburg Schleswig-Holstein PPP-Inhabermodell Okt 07
72 Bildung Wald- und Hauptschule Lohmar Stadt Lohmar Nordrhein-Westfalen PPP-Inhabermodell Okt 07
73 Verwaltung Amt für Bodenmanagement Limburg Land Hessen Hessen PPP-Vermietungsmodell Okt 07
74 Verwaltung Amt für Bodenmanagement Korbach Land Hessen Hessen PPP-Vermietungsmodell Okt 07
75 Bildung Schulen, Stadt Cottbus Stadt Cottbus Brandenburg PPP-Inhabermodell Nov 07
76 Bildung Schulen, Magdeburg Stadt Magdeburg Sachsen-Anhalt PPP-Inhabermodell Nov 07
77 Sport/Kultur Sportanlagen, Bochum Stadt Bochum Nordrhein-Westfalen PPP-Inhabermodell Dez 07
78 Verwaltung Amt für Bodenmanagement Büdingen Land Hessen Hessen PPP-Vermietungsmodell Dez 07
79 Sport/Kultur Oktopus-Bad, Siegburg Stadt Siegburg Nordrhein-Westfalen Dez 07
80 Verwaltung Polizeigebäude in Buchen Land Baden-Württemberg Baden-Württemberg Dez 07
81 Bildung Schulen, Bergneustadt Stadt Bergenustadt Nordrhein-Westfalen PPP-Inhabermodell Jan 08
82 Sport/Kultur Sport- und Wellnessbad in Bedburg Stadt Bedburg Nordrhein-Westfalen Jan 08
Landesprojekte
Bundesprojekte
Focus of PPP investments in public construction works in
Germany Projects
awarded Projects in the pipeline
Known Estimated
Amount amount amount for
in € million in € million projects
in € million *
Schools / training centres 850 830 1.400
Administrative buildings 345 300 780
Prisons 200 50 200
Hospitals 135 170 1.030
Sports / cultural facilities 485 450 1.075
Car parks / logistics centres / miscellaneous 50 230 525
Federal buildings (barracks) 250 70 140
Total 2.315 2.100 5.150Source: Die Deutsche Bauindustrie * projected
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Plans for the foundation of a company
called Partnerschaften Deutschland
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What Partnerschaften Deutschland represents
Partnerschaften Deutschland is conceived as a broadly positioned quality service provider offering comprehensive consulting services on PPP matters for the public sector – with a focus on the early stages.What Partnerschaften Deutschland offers:– Objectivity, independence and credibility– Cost savings (optimisation of processes, standardisation,
know-how)– Speed (especially easy to engage its services)
But:
Public authorities can continue to procure consulting services on the open market
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Partnerschaften Deutschland’s areas of activity
Specific investment projectsProviding highly qualified, professional advice for the public sector when examining the use of PPP for investment projects as well as when scoping and implementing specific PPP projects
Framework conditionsAdvising the public sector in further developing standards and the institutional basis for PPP
Dual mission
Systematic knowledge transferPromoting knowledge transfer between all involved in PPPs, targeted build-up of PPP know-how within the public administration
Market development Highlighting areas of priority for PPP and supporting policymakers and the administration in creating a sustainable PPP pipeline
Projectadvisory service
Basic PPP advisory service on behalf of public sector
Areas of activity
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Shareholdings
Companies/executive bodiesAdvisory bodies
50.1%
Private-sector shareholdersPublic-sector shareholders
49.9%
99%1%
Advisory board
Federation Länder Local authorities
General meeting
Supervisory Board
Management board
Partnerschaften Deutschland
Organisation and ownership structureof Partnerschaften Deutschland
Industry, banks, etc.
Holding company
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Avoiding the adviser/tenderer conflict and direct holdings through the interposition of the holding company and avoiding overlap between representatives of private shareholders and bodies or employees of Partnerschaften Deutschland
Delegation of staff from the private shareholders of the holding company are excluded from Partnerschaften Deutschland for project work
As the holding company is not dedicated to a specific purposes and is not dominated by one company (or industry) either, steps have been taken to ensure that the operative activities of Partnerschaften Deutschland cannot be influenced by the particular interests of its shareholders
Avoiding the adviser/tenderer problem and conflicts of interest
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AwardBidding competition
“Lots” to include different PPP industries
Selection ofapplicants qualified for PPP
Selection criteria PPP
experience / references
Ability
Procedure for selecting private shareholders
Acquisition of share inholding company /Partnerschaften Deutschland
Criteria for the award of holding Price for the
share Quality of the
concept for participation
Informal survey of market’sinterest
Examine markets‘ interest in participation
Formal award procedure
Assessment criteria Qualitative Financial
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