PPP
Company HOCHTIEF PPP Solutions Competences
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Competences

Why undertake projects with HOCHTIEF PPP Solutions?
Because they create more security.

  • You have the confidence of working with an experienced and innovative construction services provider
  • The interests of all project stakeholders and third parties are taken into account with regard to environmental and planning issues
  • Lasting project quality: high-end materials, exceptional engineering knowledge, professional project management, adherence to deadlines, and integrated operations
  • Minimized risks: long-term contracts, balanced risk apportionment, planning security, transparency, investment orientation and investment security
  • Faster implementation: access to the know-how of one of the biggest international construction services providers
  • Optimized life-cycle costs: integrated project management with long-term planning right from the start, involvement of investors, ongoing cost control
  • Warranty responsibility in case of a private partner
  • Permanent relief of public-sector budgets

Development of our Concessions Business

HOCHTIEF Solutions has many years of experience with regard to the planning, financing and operation of infrastructure. The PPP Solutions’ segment’s business areas include transport infrastructure, social infrastructure, and other public-private partnership (PPP) projects.

Early on HOCHTIEF already started to systematically upgrade its classic engineering and general contractor services. The company was initially active in the construction and financing of airports, later involving itself in airport management as well (Athens Airport, 1996/2001). The Group has been operating toll roads since the end of the 1990s.

HOCHTIEF first began operating toll roads at the end of the 1990s. In 1999 the company was awarded the concession contract for the Herrentunnel, a road beneath the Trave River near Lübeck, Germany. This was followed in 2001 by the Chilean government’s contract for the planning, financing, construction and operation of the Vespucio Norte Express, a section of the beltway around the Chilean capital, Santiago de Chile, of some 30 kilometers. Further toll roads followed: Tunnel San Cristóbal, Chile (2005), A5 North Highway, Austria (2006), A4 Highway, Germany (2007), Elefsina-Patras-Tsakona and Maliakos-Kleidi Highways, Greece (2008), A8 Highway, Germany (2011), Northeast Anthony Henday Drive, Canada (2012), Presidio Parkway, California, USA (2012), the A1/A6 Highway, Netherlands (2012), the A7, Germany (2014), the New Champlain Bridge, Canada (2015), and the A6, Germany (2016). In September 2012 HOCHTIEF sold its shares in the Vespucio Norte Express operating company in Chile, thus realizing a mature asset. In June 2015, HOCHTIEF has sold its shares in the concession company of the Tunnel San Cristóbal toll highway in Santiago de Chile.

With the establishment of HOCHTIEF PPP Operations GmbH in 2014, HOCHTIEF brought together more than 10 years of experience in the area of road operation into a single company.

HOCHTIEF has been active in the business area of Social Infrastructure since 2003. The company was awarded the contract for what is currently Germany’s biggest public school construction PPP project in 2004 which involved the planning, financing, refurbishment and operation of 50 schools in the district of Offenbach.

In the same year the Group won the contract to build the town hall in Gladbeck, which has been operated on the basis of a public-private partnership since October 2006. This was followed by further contracts in Germany for public-sector building construction (schools in Cologne, 2005; vocational college Leverkusen, 2005; secondary school in Cologne-Rodenkirchen, 2007; schools in Frankfurt am Main, 2007; Moers town hall, 2009; Höhenkirchen-Siegertsbrunn secondary school, 2010; schools in the city of Offenbach, 2010; schools in Braunschweig, 2011; Dortmund U, 2013, Halstenbek High School, 2014; Ballet Rehearsal Building Düsseldorf, 2014; Aachen Police Headquarters, 2015; Berlin-Brandenburg State Laboratory, 2015).

Furthermore, HOCHTIEF Solutions was awarded the Federal Republic of Germany’s first contract for a PPP building project: In Munich, the company planned and financed the Fürst Wrede Barracks and has been operating it since 2008.

The company entered the UK’s PPP market as early as 2005, with the Sports College Manchester. That same year the company commenced its activities in Ireland, working on the Cork School of Music.

With the establishment of HOCHTIEF PPP Schools Capital in 2006, one investor took over parts of the HOCHTIEF schools portfolio. This created the conditions for achieving early appreciation on existing projects.

HOCHTIEF PPP Schools Capital encompasses schools in Manchester, Salford, North and East Ayrshire and Bangor (UK) and Cork (Ireland). HOCHTIEF remains responsible for operating and managing these projects.

HOCHTIEF won its first public-private partnership contract in North America in April 2010, with ten schools in Alberta (ASAP II), Canada. In September 2010 the company was awarded its second PPP project contract in Canada. In Ontario Province the company planned, financed and built a total of 18 police facilities, comprising seven police stations, eight forensic laboratories and three command centers. In September 2012 HOCHTIEF reached financial close on twelve further schools in Alberta Province (ASAP III). With the sale of its shares in the ASAP II project (2013), in the Ontario Provincial Police project (2015) as well as in the ASAP III project, HOCHTIEF realized mature assets.

Sustainability
Sustainable activities as a major element of commercial success

All of PPP Solutions’ worldwide projects have an impact on public life and the environment. We are conscious of our social and ecological responsibilities, and have embedded a commitment to sustainable activities in the HOCHTIEF Corporate Guidelines. We take ecological considerations into account whatever we do, and we use modern, environmentally-friendly technology.

A common goal

We are aware that PPP Solutions’ projects shape living space and have a long-term impact on the environment. We face up to this responsibility by acting sustainably. The investment costs for innovative alternatives are frequently higher than for conventional building. However, the added expenditure is usually offset by lower operating costs. This too is a reason why PPP Solutions will continue to actively drive the environmental-friendliness of the projects in which it is involved—for the benefit of people today and for future generations.

It is often the case that road-building projects meet with criticism from environmental conservationists before they ever get started. Thanks to its diverse activities to protect flora and fauna, HOCHTIEF Solutions has been successful in convincingly diffusing such concerns. One example is the new A4 highway in Thuringia where road builders and nature conservationists jointly developed a comprehensive nature conservation concept. This resulted, for instance, in the creation of a new biotope that once again connects the Hainich National Park with the Thuringian Forest. The construction of three viaducts and other wildlife corridors means that animals such as wild cats, martens, hedgehogs and squirrels now have far larger habitats than they did before the new road was built.

Strained national, state and communal coffers frequently make it impossible to refurbish and modernize public buildings. HOCHTIEF Solutions therefore offers the urgently needed alternative—financing, planning and operating these kinds of buildings. One example here is the new secondary school in Cologne-Rodenkirchen, a showcase for the successful combination of ecology and economy. This has been achieved, inter alia, thanks to a powerful photovoltaic installation, a heat pump system, and state-of-the-art insulation.

We are also meeting high sustainability standards on the PPP schools project, Salford & Wigan BSF. Alternative energy technologies are used, for example, which significantly reduce CO2 emissions at the modernized and newly built schools, and building rubble is recycled.

Apart from the above, wherever possible we involve suppliers and service providers from the local region in our projects.