Hochtief PPP Solutions, a subsidiary of German infrastructure group Hochtief, has been awarded a 25-year public-private partnership (PPP) contract to build nine schools and a trio of day care establishments across Braunschweig, a city in northern Germany.
The German developer will create, build and renovate as well as operate the educational facilities in an endeavor worth €279 million. Over the life of the PPP, the city of Braunschweig expects to reap savings of €32 million as a consequence of private sector participation, according to a statement.
The combined Braunschweig project extends across 44 buildings and includes the integration of sports facilities. The site is sufficient for some 11,000 students and 200 children in the schools and day care centers, respectively. Hochtief is set to break ground on the project in the spring of 2012 and the project is slated for completion in the fall of 2014.
According to the terms of the PPP, Hochtief and its subsidiary will lead the construction activity in addition to overseeing the operation of the campus. This commitment extends to the upkeep of the facilities. Municipality officials and Hochtief agreed that more than one-third of any subcontractor activity must be restricted to local developers in anticipation of economic development in the region.
In related news, senior staff at Hochtief continues their exodus from the firm following its takeover by Spanish developer ACS.
Henner Mahlstedt and Heiner Helbig, respectively the chief executive and chief financial officer of Hochtief Solutions, a services and facility management unit of Hochtief, have resigned citing “differing views about the further strategic alignment of the company”. Their replacements have yet to be announced.
Likewise, Bernward Kulle, the head of Hochtief Concessions, is stepping down due to “differing strategic views about the future of the PPP business”. Hochtief’s PPP activities will be integrated shortly into Hochtief Solutions, the German firm said in a statement.