The privately financed extension of traffic infrastructure is increasingly gaining significance. This makes toll roads an important product market segment for HOCHTIEF PPP Solutions. Together with its international participating interests, HOCHTIEF currently realizes or operates 16 toll road projects world-wide, adding up to a total length of more than 1000 kilometers.

The toll roads market segment bears great growth potential: In Europe alone, the investment volume in transport infrastructure projects up to 2009 is estimated at around EUR 20 billion. In Germany, projects with an investment volume of EUR 3 to 4 billion are anticipated in the period up to 2009.

The advantages are obvious: Bottom-line, considerable efficiency gains can be achieved by public-private partnership models. This is due to the fact that private partners can optimize the life-cycle costs of the project as a whole. The follow-up costs for maintenance and repairs, for instance, can be minimized as early as in the planning and building phase.

Even users profit from the public-private partnership models: Urgently needed investments into traffic projects can finally be made to avoid traffic jams in future. Users generally get better standards if traffic projects are realized by private companies. The bid invitation documents for concessions, for instance, include precise definitions of which servicing level private operators have to guarantee.

PPP models can thus help to solve an ever more critical problem: the public-sector investment backlog. Roads, bridges and tunnels can be built or extended without touching public budgets. Even the costs for operation, servicing, maintenance and repairs do not burden public coffers. Another advantage for the public sector is the transfer of risks to the private partners. To give an example: If operation of a tunnel starts later than planned or the construction costs are higher than budgeted, the resulting costs are generally borne by the private partners. The latter also bear the risks associated with operation.