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Governmental district built in PPP

On the 28.5 acres territory owned by the government and MÁV, the first ministerial buildings are to be built by the end of May 2009.

The Cabinet has opted for the PPP method for the construction of the new governmental district said state secretary Zoltán Gál J. arguing that this is the most cost-efficient way of realizing the project, costing only Ft 68 billion (€275.6 million) in comparison to a state investment or rental, based on the calculation of the Treasury and Asset Management.

On the 28.5 acres territory owned by the government and MÁV, the first ministerial buildings are to be built by the end of May 2009, and the complex constructed in 25 years would employ 5700 people. From the investors’ point of view PPP is the least profitable, said Sándor Nyúl, the operative director of TriGránit, who also intends to run in the project, along with other Hungarian, French, German and Japanese constructors.

Experts say PPP is the most advantageous at present value, but it is the most expensive regarding the absolute costs. The deadline for submitting project plans is 11 July. Besides construction works, operational services would also constitute part of the private investor’s responsibility.

Operating the governmental offices currently costs Ft 13 billion (€52.6 million) a year, which is expected to fall to Ft 8.5 billion (€34.4 million) in the new setup. PPP is beneficial for the government because works can be done by professionals in shorter period of time, and most of the risks involved in such complex works are borne by the private partner. (Napi Gazdaság)