Germany announces 10 road PPP projects

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Germany announces 10 road PPP projects

The government of Germany, thought its Finance Minister Wolfgang Schaeuble and Transport Minister Alexander Dobrindt, has announced plans to develop ten road PPP projects.

The projects will repair and extend around 600 km of motorways as well as maintain and operate existing roads.

According to the head of the Berlin-based DIW economic institute, the country is currently investing about €100 billion (US$112 billion) in the road transport sector, which is not enough to cover the sector needs.

Alexander Dobrindt stated:

"This new generation of PPP projects will help us reduce the biggest cause of economic damage at decisive junctions in our road network: the traffic jam..."

According to sources, several institutional investors are willing to be involved in the German road PPP sector to obtain higher returns than they can earn by investing in 10-year German government bonds.

In February we reported that the European Investment Bank (EIB) was considering financing the A6 Wiesloch/Rauenberg-Weinsberg road PPP project in Germany. The project will be developed under a 30-year concession  on a design, build, finance and operate (DBFO)basis.

In late 2014 we reported two updates regarding the German road sector: the opening of the A9 section between Berlin and Munich and the financial close of the A7 Bordesholm-Hamburg. These two PPP projects add up an investment of about €390 million (US$441 million).

Germany's autobahn network has a total length of about 12,900 km which ranks it among the most dense and longest systems in the world. The Autobahn is the federal controlled-access highway system in Germany.

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