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Germany: private motorways cost more

18 June 2014
A German motorway
German newspaper "Handelsblatt" and magazine "Der Spiegel" report that according to the German Federal Control and Auditing Institution ‘Bundesrechnungshof’, motorway construction financed by public-private partnerships (PPPs) is significantly more expensive than public projects.

German auditors have studied the six projects of private motorway construction carried out so far in the frame of PPP agreements in Germany. Private companies financed the projects and the Federal Government authorised them to run the motorways for 30 years.

However, in its report to the Federal German Parliament, the Bundesrechnungshof says that five out of six of these projects cost 1.9 billion Euros more than a comparable conventional public realisation. It concludes that the projects should not have been implemented as PPPs.

The six motorways constructions carried out by private companies so far have cost 5.1 billion Euros. Another seven projects based on the PPP model and valued at 6.1 billion Euros are supposed to follow, according to Federal Traffic Minister Alexander Dobrindt (Christian Social Party).

Read the article (in German)

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