# Public Private Partnerships, PPP (also usually referred to in German; sometimes also Öffentlich-Private Partnerschaft(en), ÖPP)

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- Post ID: 593413
- Modified: 2023-07-25T21:12:44+00:00
- Language: en

## Definition

In general, a contract by which a private company takes over public-sector tasks for a longer period of time because the privately managed company can perform these tasks more cost-effectively. - In particular, the joint financing of infrastructure projects - and here again primarily new road construction - by banks on the one hand and public authorities on the other; both partners set up a new company for this purpose. - The realization of the quota of fifteen percent of PPP in infrastructural investments targeted in Germany by about 2050 has so far failed above all because of - a lack of standardization of the corresponding contracts, - uniform rules at federal level for the profitability calculation of individual projects, - questions of equity capital procurement for individual project companies and, last but not least, - strong resistance from the state administration and the trade unions. - In September 2005, a PPP Acceleration Act became legally effective throughout Germany, improving the framework conditions for PPPs. In particular, it created equal tax treatment for public and PPP procurement, for example by exempting a PPP company from real estate tax and property acquisition tax. However, some questions regarding risk management - also in relation to Basel II - have not yet been clarified down to the last detail. - See co-investment, cornerstone investor, innovation fund, landmark building loan. - Cf. 2006 Annual Report of BaFin. p. 147 (envisaged relief for such funds); Economic Issues 40: Public Investment and Public-Private Partnerships. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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