Over US$129bn invested in infrastructure projects in Germany
Since the country’s reunification in 1990, the German government has been constantly investing in infrastructure.
While the water sector has invested over US$122.2bn in infrastructure, the Federal Ministry of Transport and Digital Infrastructure launched the “Gigabit Germany Initiative for the future” with aim to attract over US$111.1bn of public and private investment.
A growing infrastructure market set to expand rapidly
Currently 189 strategic infrastructure construction projects are taking place in Germany at all stages of development with a total investment value of US$129.6bn. The US$7bn Berlin Brandenburg Airport Expansion is the largest airport infrastructure project in the pipeline.
According to Timetric’s Infrastructure Intelligence Center (IIC), Germany's infrastructure construction market’s value grew from €48bn (US$53.3bn) in 2011 to €55.6bn (US$61.8bn) in 2016, and is projected to reach €70.3bn (US$78.1bn) by 2021. Electricity and power projects account for the largest share of infrastructure projects in the pipeline, with a total project value of US$49.1bn.
Data points towards a relatively strong pace growth in the infrastructure industry over the forecast period (2017-2021). Higher government spending for transport and broadband infrastructure is the main driver for growth.
A US$147.6bn federal government investment plan to support the growth
Higher government spending, (especially for transport and broadband infrastructure), alongside structural measures to improve access to public investment is expected to support the sector growth in the next five years.
Under the Federal Transport Infrastructure Plan (2030 FTIP), the Federal Government plans to invest US$147.6bn in the country’s roads for the period from 2016 to 2030, of which, US$74.4bn will be spent on structural maintenance and replacement infrastructure. Over the period to 2030, €269.6bn (US$299.6bn) will be invested to renovate and interlink the country’s transport infrastructure.
According to the IIC, the public sector will directly fund 57.4% of the overall infrastructure construction project pipeline
Opening to private investment to support the growth
In a bid to attract more private investment, the Federal Government has thoroughly revised its energy policy over the last three years, placing it on a long-term basis and bringing it in line with European law.