The Experience and Reference on PPP Development in Germany

Abstract

At present, Public-Private Partnership (PPP) model is vigorously promoted in China and it is becoming an important way of government financing. Though the amount of PPP projects in China is enormous, there are a lot of problems to be solved. At the same time, German PPP develops rapidly in recent years though it started relatively late. In the past few years, the number of PPP projects in Germany ranked the third place stably in Europe. Germany accumulates a lot of mature experience in PPP projects, including industry, fiscal and taxation policy as well as the set-up of management institutions. This paper summarizes the current situation and experience of PPP in Germany and provides reference for PPP development in China. To be specific, German governments pay great attention to PPP development and its institutional arrangement. The governments provide preferential taxation and industrial policies for PPP projects. Meanwhile, German governments lay great emphasis on risk management of PPP projects. In fact, PPP projects in Germany are supervised in the way of contract supervision. Besides, the federal government sets a good example for state governments. Last but not the least, project consultants are allowed to participate in public procurement under some certain prerequisites.