European PPP Center

New Government District in Budapest to be constructed in PPP

The Hungarian Government has decided to implement a unique PPP project. The project will consist of the construction and operation of a central government district with 180,000 sqm office floor on 28 hectars land in the heart of the capital. The government district will accommodate the offices of all ministries and their approximately 6,000 employees.

On 3 August the winners Peter Janesch (Hungary) and Kengo Kuma (Japan)  of the project design were announced.

For the construction and operation 8 offers were delivered in the PQ phase. The prequalified tenderers are:

  2. Duna Sétány Székház Kft. - TriGránit Management Kft.
  3. Europolis Real Estate Asset Management Kft. - KÉSZ Közép-Európai Építő és Szerelő Kft.
  4. Magyar Építő Zrt. - HUNÉP Universal Építőipari Zrt. - VEGYÉPSZER Zrt.
  5. HÉROSZ Zrt. - Future FM Zrt.
  6. Merkantil Real Estate Leasing Zrt. - Merkantil Car Leasing Zrt.
  7. Infopark Development Zrt.
  8. SERVICIOS DE EXCAVACIONES, S.A. IRIDIUM Concersiones de Infraesructuras, S.A. Caja de Ahorros de Valencia, Castellón y Alicante, Bancaja

Negotiation will start in September and the final winner of construction and 25 year operations contract should be known in December. The total investment cost for the construction is limited to 57 million EUR and the deadline is set for August 2009.

To learn more about this unique project join our conference “Promoting PPP Investments in CEE” on the 29-30 October 2007, where György Görözdi, the Prime Minister’s Commissioner in charge of the Government District Project will speak.

Click here to download conference brochure.

PPP Opportunities in Turkey

Turkey has a clear strategy to increase private sector involvement in the provision of public services and in the realization of public infrastructure investments. Following this goal earlier this year a public tender was issued for providing consulting services to establish a competent PPP unit within the public administration and to advice on the required PPP enabling environment in terms of legislation, finance and policy. The project is funded by the World Bank.

According to a presentation from Halil İbrahim AKÇA, Deputy Undersecretary State Planning Organisation (SPO) in the 9th Development Plan (NDP) for 2007-2013 the following sector strategies can be expected:

  • Increase of public investment can be expected in:
    • Education & health
    • Agriculture
    • Transportation with substantially increased involvement of the private sector
  • Decrease of public investment can be expected in:
    • Energy – due to liberalization
    • Mining & manufacturing – due to privatization

As far as concrete projects are concerned we have picked a few sample projects for you:

Road projects - 1775 km of motorway network, 480 km under construction. Major projects are:

  • Gümüşova-Gerede Motorway (completion of missing link between İstanbul and Ankara),
  • Izmir Ring Road,
  • Bursa Ring Road,
  • Kemerhisar-Pozantı Motorway,
  • Gaziantep-Şanlıurfa Motorway and
  • Seismic Reinforcement of Bridges in İstanbul.

Construction of 15 000 km of multi-lane highways envisaged.

Railway projects

Route LengthInvestment
Ankara-Istanbul533 km $ 3 bln
Ankara-Konya212 km $ 0.5 bln
Ankara-Sivas471 km $ 1.8 bln
Ankara-Izmir 606 km $ 2 bln
Bursu-Osmaneli106 km $ 0.3 bln

Health investments

ProjectCity CapacityInvestment
Health CenterIstanbul875 $ 97 mil
Health CenterAnkara3 600  $ 465 mil
Health CenterIzmir 2 300 $ 271 mil
13 Regional Hospitals various4 600 $ 557 mil
7 Regionalvarious2 200 $ 242 mil

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