Private capital for public projects

For decades, Germany has suffered from underinvestment in its infrastructure, resulting in traffic jams, crumbling bridges, and endless construction sites. Fragmented procurement practices, where public authorities award numerous individual contracts for planning, construction, and maintenance, have further exacerbated delays and increased costs, often overwhelming administrative capacities. 

This trend is also seen in the limited use of PPPs, a proven instrument for delivering large infrastructure projects more quickly, efficiently, and cost-effectively. In a PPP, the public sector tenders a project as a complete package, including planning, construction, financing, and operation. Private consortia, typically comprising construction firms, financiers, and specialists, take on responsibility and risk for the project’s success, with payment linked to the usability and quality of the finished asset over the contract period. 

Several successful PPP projects in Germany, such as the expansion of the A8 motorway and the construction of the Hannover Justice Centre, have demonstrated timely delivery, cost control, and long-term maintenance at predictable costs. Despite these successes, PPPs still face scepticism, often due to early projects where payments were tied to usage levels rather than service quality. Modern PPP contracts now link remuneration to the quality and availability of the infrastructure, incentivising high standards and proactive maintenance. 

The full article was originally published in the Frankfurter Allgemeine Zeitung on 08 December 2025.