The PPP model Oismueller

The PPP model Oismueller is an alternative procurement method designed to enable public authorities to start motorway projects despite budgetary restraints. Besides an immediate project start this model creates not only guaranteed cost savings but also very high incentives for the PPP company to ensure high and steady quality levels as well as high availability of the road.

The PPP model Oismueller provides six key benefits:

  • An immediate project start
  • Guaranteed cost savings
  • No additional Maastricht debt
  • Higher level of service
  • Full project control
  • EU funding eligible

Availability payments

Schematic steps of the computation of the availability payments

  1. Total life-cycle costs of the project had it been traditionally procured
  2. Deduction of extra costs potentially triggered by additional controlling
  3. Annuity (start of payments after the construction phase)
  4. Upper ceiling of availability payments for the tender procedure
  5. Actual maximum availability payments of the awarded tenderer

Due to the chosen approach of computation the PPP model Oismueller guarantees

  • an immediate project start,
  • cost savings,
  • avoidance of additional Maastricht debt and
  • eligibility for EU funding.

The aforementioned benefits "higher level of service" and "full project control" are provided by possible deductions of the payments (please see section "project control").

Deductions due to limited qualitative availability

1. Purpose
  • Securing the road safety to users
  • Providing full project control
  • Securing the minimum qualitative standards

2. Basis of the calculation are the general condition of the infrastructure, safety related parameters and safety related limitations of the use of the road

3. Maximum amount is limited to the availability payment of the section and time in question

Deductions due to limited quantitative availability

1. Purpose
  • Securing the road safety to users
  • Providing full project control
  • Securing the complete availability of the infrastructure

2. Calculation through the relative changes of travel time, risk of accident, consumption of resources and emissions of pollutants due to the PPP company's intervention

3. Maximum amount may outreach the availability payment of the section and time in question

The inventor

Dr Alexander Oismüller is a civil engineer specialised in road design, infrastructure procurement and alternative financing models with more than a decade of experience and a complementary academic education in political science.


Mag.phil. Dipl.-Ing. Dr.-Ing. Alexander OISMÜLLER
Baaderstr. 90/339
D-80469 Munich
Germany
phone: +49 176 58 49 36 78
mail: ppp@oismueller.eu
web: www.oismueller.eu



© Dr Oismueller, 2015