Public Private Partnership (PPP)
in sport facility construction
Public Private Partnership (PPP) is an innovative concept, which makes the investment into an infrastructure facility and their long-term operation possible by a private company. This applies not only to large stadiums, but also to smaller sport facilities of popular sports or for restructurings. PPP concepts are proven as efficient, which are to a large extent standardized in handling and also in parts of the technical procedure. The private partner takes over the financing, planning and the operation and/or the facility management of a sports facility. Over the contract period of 10 to 30 years the municipality pays an annual continuous payment for the services. The planning, construction and final completion risks are with the private partner who can carry these better than a municipality, which is rarely dealing with sports facility planning.
The so-called „owner model“ passed the test. In that model the municipality becomes owner after the acceptance of work of the sports facility. Compared with conventional procurement variants an efficiency gain of 15% and more can be achieved. The advantage is particularly related to the direct cost of the private partner for the entire life cycle of a project. In addition the public client profits in the fast realization of the project and building use, the sound distribution of risks and the guaranteed maintenance.
High Need of Rehabilitation:
The investment demand for sport facilities is estimated to be approx. Euro 12 billion. Determined by the German Olympic Sport Federation (DOSB) in their last sport statistics, 70% of all sport facilities in the old Federal States and about 40% in the new Federal States in Germany are not optimally usable due to their age or structural defects.