PPP Workshop Warsaw Part II: Project support and work on framework conditions

(1)

www.partnerschaften-deutschland.de

PPP Workshop Warsaw

Part II: Project support and work

on framework conditions

Ministry of Regional Development

Department for Individual Projects’ Preparation

Dr. Clemens Elbing

Peter Wettengel

Warsaw, 28th / 29th April 2011

(2)

1. Work on framework conditions - current status and

prospect

2. PPP health projects in Germany – sector specific aspects

and potential scope

3. German PPP health projects – case studies

4. Work on framework conditions to reduce the current market

restrictions in the health sector

(3)

Development of new PPP sectors



Market development with standardization of tender documents (e.g.

street-lighting, traffic-signaling, schools, kindergartens, …)

> Great number of potential projects (typically for municipal investment needs) > Possible programme approach (to use scale-effects and standardization) > Repeatability of projects (standard terms and structures)

> Small scale of projects (standardization and reduction of transaction costs)



Market development on single projects without standardization of tender

documents (e.g. waste-to-energy facilities, …)

> Small number of potential projects (single cases)

> Uniqueness of the project (unique project structures, risks, …)

> Large scale of projects (size or transaction costs are no barrier to start projects)

(4)

Business fields

Framework conditions

Beratung von Bund, Ländern, Kommunen und sonstigen öffentlichen Einrichtungen

 Frühphasenberatung, punktuelle Projektunterstützung

 Projektsteuerung

 Vorbereitung des Vergabeverfahrens usw.

Projekt-beratung

Framework conditions

 improving framework conditions and standards

Know-how transfer

 know-how transfer between all involved public and private parties

 development of PPP expertise in public authorities

Market developments

 identifying new potential PPP sectors and structuring new PPP models

 supporting policy-makers and administrations to develop these sectors

PPP

framework conditions

Consulting public authorities on Federal, State and Municipal level on



structuring PPP projects, preparation and supporting tendering processes



economic analysis, cash-flow modeling and project management

(5)

5

Beratung von Bund, Ländern, Kommunen und sonstigen öffentlichen Einrichtungen

 Frühphasenberatung, punktuelle Projektunterstützung

 Projektsteuerung

 Vorbereitung des Vergabeverfahrens usw.

Projekt-beratung

Framework conditions

 improving framework conditions and standards

Know-how transfer

 know-how transfer between all involved public and private parties

 development of PPP expertise in public authorities

Market developments

 identifying new potential PPP sectors and structuring new PPP models

 supporting policy-makers and administrations to develop these sectors

PPP

framework conditions

Consulting public authorities on Federal, State and Municipal level on



structuring PPP projects, preparation and supporting tendering processes



economic analysis, cash-flow modeling and project management

Advisory

Market developments

- PPP street-lighting tender package - PPP for kindergartens

- PPP for sports-facilities

- State and municipal road projects

Know-how transfer

- Impact of the financial crisis on PPP real estate projects in Germany

- Funding law - Transparency

- Workshops with municipalities on street-lighting - PPP for SME

Framework conditions / standardization

- Standard financial model for economic studies - Benchmarking for health projects

- Payment mechanisms with incentives and controlling tools

- Success factors for PPP in IT & services

New strategic options for the public sector due to work on PPP

framework conditions

(6)

Objective for further work on framework conditions is to utlize

new PPP opportunities and reduce market barriers



Professionalization of public

authorities for PPP-projects

 Output-specification, payment

mechanism and controlling tools

 Standardized PSC-model

Market development



Improve established sectors

 Universities

 Health projects

 State and municipal roads

 Sport facilities

 Kindergartens



Development of new sectors

 Street-lighting

 Traffic-signaling

 IT and Public service centers

 Public fleets with electric vehicles

 Medical equipment

 Waste-to-energy-plants

Know-how transfer

 Funding law

 Impact of the financial crisis on PPP

 Workshops with municipalities on

(7)

Development of sustainability projects with the objective to

reduce energy-consumption and CO

₂

-emissions



Street-lighting (completed in 2010 for MoF and MoT)



Traffic-signaling (contract awarded by MoF, to be completed in autumn 2011)

> Development of a PPP-model

> Publication of standardized procurement package



Public fleets with electric vehicles and charging-infrastructure (to be awarded by

MoT soon, completion expected end of 2011)

> Analysis of framework conditions > Development of a PPP model > Market testing

> Publication of standardized procurement package



Waste-to-energy plants (proposal to MoF in preparation)



Geothermal-district-heating (proposal to MoF in preparation)

(8)

Work on framework conditions

Improvement of framework conditions

April 11 May 11 June 11 July 11 August 11 September 11 October 11 …

Standardized PSC-model Payment mechanisms with

incentives and controlling tools

Benchmarking for health projects

Know-how transfer Market development

Public Hospitals PPP and small and medium-sized

(9)

Work on framework conditions

Know-how transfer

9

Impact of the financial crisis on PPP real estate projects

Funding law

Know-how transfer Market development

(10)

Market development

Framework conditions Know-how transfer Market development

PPP in the sector of kindergartens

Success factors for IT and services PPPs

State and municipal roads

PPP in the area of sports facilities

April 11 May 11 June 11 July 11 August 11 September 11 October 11 …

Street-lighting procurement package (September 2010)

Traffic signallng procurement package PPP model for public fleets with electric vehicles

(11)

1. Work on framework conditions - current status and prospect

2. PPP health projects in Germany – sector specific

aspects and potential scope

11

PPP Workshop Warsaw

(12)

Framework conditions for health projects in Germany



Major investment needs for buildings, facilities and medical equipment



Huge energy saving potentials



Restricted public budgets



Traditional dual finance-system of health projects

> State government funding for buildings and infrastructure > Health insurances for medical services



Change to Diagnosis Related Groups (DRG‘s) which leads to financial pressure

on hospitals



Many old hospitals with decentralized structures and inefficient operation

procedures



PPP offers great potentials to close the investment gap but not many projects

have been closed yet

(13)



Uniqueness of projects in terms of

> Required construction (single buildings, master-plan, …) > Services transferred

> Facilities and medical equipment included



Demand risks are typically not transferred



Traditional dual funding for hospitals from the state government (buildings and

infrastructure) and health insurances system (medical services)



Implemented projects differ in terms of transferred services

13

(14)

Possible transfer of services

No transfer

Investments in infrastructure

Tertiary support services

Cleaning, waste-management, housekeeping, washing, driving-services, …

Operation of buildings and facilities, energy-supply, IT, maintenance of buildings and facilities, …

Reception, logistics, material-flow, asset-management, …

Secondary support services

Medical supply processes Diagnostic and therapeutic services

Primary services: all medical services and aid processes

(15)

1. Work on framework conditions - current status and prospect

and potential scope

15

PPP Workshop Warsaw

(16)



University hospital Essen, WPE (operational)



University hospital Cologne (in construction)



University hospital Schleswig-Holstein, NRoCK (in construction)



Health-center Esslingen-Ruit (in construction)



Main-Taunus hospital (contract awarded)



General hospital Viersen (tender stopped)



Hospital Bremen (tender stopped)

(17)

PPP health projects

2010, Aug _{In tender process (11)} _{Financial close (6)} _Total17

17 Partikeltherapiezentrum Kiel (NROCK)

Gesundheitszentrum Ruit, Esslingen -Ostfildern

Protonentherapiezentrum Essen Klinikum Köln – U/B West

ZSP Witos Herborn, Psychiatrie

Bremerhaven Reinkenheide Gesundheitspark

Uniklinik Göttingen

Neckar-Odenwaldkreis Mosbach Ärztehaus

Hochtaunus-Kliniken – Bad Homburg, Usingen

Uniklinik Münster – OP-Zentrum

PTC - Aachen

Klinikum Dortmund – Logistikzentrum

Klinikum Offenbach - Psychiatrie

Bremerhaven Reinkenheide - Reha+Ärztehaus

Konstanz - Ärztehaus

Klinikum am Steinenberg in Reutlingen

Kreisaltenheim Schloss Garatshausen – Landkreis Starnberg

Klinikum GarmischPatenkirchen -Erweiterungsbau

(18)

PPP project NRoCK (Nordeuropäische Radioonkologische

Centrum Kiel) – cancer therapie centre with proton therapy

 New construction of cancer therapy centre

 Investment volume 250 million EUR

 Milestones:

 2008 financial close

 2012 operational

 Contract period 25 years

 Contract model: Inhabermodell

 Project finance transaction

 NRoCK as competence centre for cancer diagnostic and therapy including 3 rooms for proton therapy , other cancer therapy facilities and further hospital facilities

 Total capacity for 3.000 patients per year

(19)

PPP project WPE Essen

19

 New construction of cancer therapy centre

 Milestones:

 Project finance transaction

 PSC-test at contractual close: 20%

 Cancer therapy centre with cancer diagnostic, cancer therapy and other hospital facilities

 Total capacity for 2.2000 patients per year

(20)

PPP health centre in Esslingen-Ruit

 New construction of a health-centre

 Milestones:

 Forfaiting model

 New construction of a health centre

 Gross area of about 3.300 m²,

 Parking-facilities for 200 cars,

 further gross area of 800 m² for third-party use

(21)

1. Work on framework conditions - current status and prospect

and potential scope

4. Work on framework conditions to reduce the current

market restrictions in the health sector

21

PPP Workshop Warsaw

(22)

Health sector

Framework conditions Know-how transfer Market development April 11 May 11 June 11 July 11 August 11 September 11 October 11 …

Benchmarking for health projects Public Hospitals

(23)

Definition of benchmarks for hospital projects



Objective:

>

To develop a standardized benchmarking-model for hospital

projects including services over the whole lifecycle



Work breakdown:

>

Identification of benchmarks

>

Assessment of relevance and usability

(24)

hospitals in public responsibility



Objective

>

Reduction of market barriers for the implementation of health

projects as PPP



Work breakdown:

>

Development of appropriate financing and security structures for

PPP health projects

(25)

Conclusion

 Implemented PPP health projects proof that they offer great value for money

 Major investments under restricted public budgets

 Reduction of lifecycle costs

 Quick delivery of projects

 Risk transfer to private sector

 The following elements of the value chain can be transferred to private partners in a PPP

 Investments in buildings, facilities and medical equipment

 Operation and maintenance of buildings, facilities and medical equipment including all secondary and tertiary support services

 There are still market barriers for PPP health projects

 Work on framework conditions is one step to reduce market barriers

(26)

Thank you for your attention!

Dr. Clemens Elbing

Manager

phone: +49 30 / 25 76 79-338

e-mail: [email protected]

Peter Wettengel

Consultant

phone: +49 30 / 25 76 79-323

e-mail: [email protected]

ÖPP Deutschland AG – Partnerschaften Deutschland

Mauerstraße 79