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Private motorway projects: Left criticizes billions in additional costs

2019-11-15T09:25:54.037Z


Motorway projects with private operators cost more than three billion euros more than originally planned. Left-wing leader Bartsch calls for a statement by Transport Minister Scheuer.



Out of 15 planned motorway projects in public-private partnerships (PPPs), twelve have become more expensive than initially planned. This is the result of a response from the Ministry of Transport to one of the left's requests. As a result, 12 out of 15 planned PPP projects have become more expensive than initially planned. The total additional costs amount to more than 3.2 billion euros.

The parliamentary group of the left attacks in view of the billions in additional costs Minister of Transport Andreas Scheuer (CSU) sharply. "If 80 percent of the PPP motorway projects are more expensive than planned, we have to deal with a huge management failure in the Ministry of Transport," said Left Group leader Dietmar Bartsch. "I demand transparency and explanations."

Scouring must reveal why almost nothing remains in the budget. "PPP as a model has failed." It could not be that in the end always the taxpayers pay the bill.

Percentage more cost increases in PPP projects

However, even projects that are not built in partnership with private companies have become more expensive. The Left points out that PPP projects show more cost increases in percentage terms. In construction projects of this kind, however, there are often additional costs, for example because materials are becoming more expensive.

The newspapers of the spark media group had reported, in the federal budget for 2020 nearly six billion euro are planned for the next years for four new highway projects, planned as public-private partnerships.

The budgetary spokesman for the Greens parliamentary group, Sven-Christian Kindler, told the newspapers that it had not been proven that private financing was cheaper for the state.

Source: spiegel

All business articles on 2019-11-15

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