08-21-2009

In Lippe soon 450 km of Roads without Potholes / District orders Long-Term Road Management, a First in Germany




Following extended negotiations and heavy resistance, it is now final: On August 21, 2009, the Lippe district will celebrate the finalizing of its partnership with the bidding consortium of mid-sized companies led by Walter Bau GmbH. After detailed review, the district government agreed to the long-term road maintenance contract for the Lippe district roads and confirmed the district's cost-efficiency examination.

The project sets perfectly new standards in Germany for pothole-free roads under long-term maintenance. For about the next 25 years, the private partner will maintain all district roads for the Lippe district and will guarantee a high-quality road network. In addition, the district's budget was considerably relieved: about 10% in savings, thus a minimum of EUR 700,000 per year, is expected.

All attacks against the project were successfully held off. A petition for a referendum failed. The losing bidders withdrew their petitions for review when the Award Council indicated during the proceeding that the district had led a legally sound procedure. In the end, only the approval of the supervision body of local authorities was missing. It had carefully examined the district's cost-effectiveness calculation and also confirmed its plausibility.

"The conclusion of the project represents a huge success for the Lippe district," Dr. Ute Jasper, Attorney and Partner at Heuking Kühn Lüer Wojtek, who had provided counsel on the project since the initial feasibility study in 2005, is pleased to note. "The model is groundbreaking for all road maintenance authorities. The right type of incentives and a departure from individual contracts based on budgetary situations create the basis for long-term road management.“

Dr. Ute Jasper and her team provided legal counsel to the Lippe district in the implementation of the project from the feasibility study up until the awarding of the contract.

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