PUBLIC PRIVATE PARTNERSHIPS (PPP)
Public private partnerships (PPP) are becoming increasingly important in Germany. Not least because of the strained budget situation at the central, federal and local authority levels PPPs are becoming a genuine funding alternative. PPPs have several advantages, such as, for example, the efficiency gains obtained thanks to the use of private sector know-how and capital, an optimum risk allocation and cost certainty for the public sector.
PPP may generally be defined as a long-term, contractually-regulated cooperation between public sector authorities and the private sector to ensure the economic provision of public services. In doing so, neither the product nor its ownership is privatised, but rather the provision of the project over the entire lifecycle is transferred to a private company. The public authority is no longer a producer and provider of public infrastructure realised in the conventional manner, but becomes a purchaser of integrated and complex services. This new demand creates enormous business potential for bidders and bidding consortia.
For those seeking to tap this business potential, DZ BANK is a strong, competent and competitive partner for the structuring and financing of complex PPP projects. Our in-house project finance department has vast experience in infrastructure financing at both the national and international level. DZ BANK played a part in this structural change from the very outset in Great Britain, the pioneer of PPP.
DZ BANK’s PPP services include:
- Assisting and advising private bidders and bidding consortia in the tender procedure.
- Support with the formation of competitive consortia.
- Structuring the financing for complex PPP projects.
- The implementation of various financing models, such as, for example, non-recourse forfaiting or project finance.
- Financing PPP projects of all types.
Financing public authority projects requires a strong and reliable financial partner – at the regional and national levels. Besides classic loans to public bodies, interest-rate hedging with public authorities is also becoming increasingly important here. We support institutions and companies here with our expertise and individual financing concepts.
Our products and services are aimed at:
- Towns and local authorities.
- District councils, municipal organisations and municipal corporations.
- The Federal Republic of Germany.
- The Deutsche Bundesbank.
- Central governments and central banks.
- Regional governments or local central, regional and authorities abroad.
- Credits to other borrowers guaranteed by the aforementioned.