JVA Burg, one of Germany’s few PPP prisons, was tendered in 2005. A consortium consisting of Bilfinger Berger BOT GmbH and Kötter Justizdienstleistungen GmbH & Co. reached financial close in 2006. The aforementioned consortium entered into a DBFM contract with the Land of Saxony-Anhalt, the grantor, over a period of 25 years. The project has a design capacity of 650 inmates and an investment volume of c. €100m. JVA burg became operational in April 2009.
The services in responsibility of the consortium cover around 40% of all services associated with the prison. To be more specific, the consortium’s scope of services originally included maintenance and life cycle, cleaning, healthcare, catering and the provision of educational programmes. Interestingly not all services remained in the responsibility of the SPV, as some services turned out to be better positioned within the public sector. This is, in our view, a good demonstration of how PPP projects remain flexible and can be improved if both sides participate in the partnership principle. Also, the efficiency of some services needs to be tested on the project sometimes. The results, however, are important knowledge for TA Europe for the setup and evaluation of future PPPs.
TA Europe’s team is providing technical advisory services to the financing banks, comprising NORD/LB, Commerzbank and HSH Nordbank, since the tender phase.
TA Europe specialises in the consultancy of Investors and Lenders in PPPs and other infrastructure transactions all over the globe. We work in diverse infrastructure and social infrastructure sectors. In addition to TA Europe’s ongoing monitoring role in Prison Burg, we have recently been appointed as Lenders’ Technical Advisor for an upcoming PPP prison wave in Belgium, expanding our own prison experience as well as building upon the track record of our new team members from Belgium and South America.
Please do not hesitate to contact us if you have further comments or questions. Our infrastructure and PPP experts would be delighted to share their experience and expertise with you in order to see how TA Europe’s services could be beneficial to you and your organisation.