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  • Dear Readers!

    Public private partnerships create a win-win situation. There is no better way to sustainably safeguard jobs, create new jobs or use efficient innovations for public services and so help keep local fees and charges stable. And yet one might occasionally get the impression here in Germany that there is currently a kind of trench warfare going on between the public and private sectors. People are talking about the current trend of some local authorities to renationalise services. Something that is threatening to eliminate fair competition. There are a number of impartial studies around that have looked in detail at the pros and cons of nationalisation. The international economics research institute, e.ca economics, for example, discovered that this trend towards nationalisation is one that is catching. On the one hand, districts that have renationalised services in the past are more likely to do so again in the future. Consequently, this effect is seen more often in districts where a large percentage of the services are already being delivered by municipal businesses. On the other hand, there is also a noticeable trend towards local authorities trying to drive private sector competition out of their market, in particular in districts with a low population density.


    Having worked together with local authorities for many years, REMONDIS is, of course, critical of these trends. Each and every day, REMONDIS shows that things are so much better when the public and private sectors work together. Being a partner in 50 PPP companies and delivering services via numerous third party contracts, we have perfected the concept of public private partnerships for all those involved – both when it comes to public services and water management. All in all, REMONDIS and its public sector partners serve over 12 million people. The local authorities and their residents are provided with high quality services at a fair price. At the end of the day, they are the ones who finance the public services via the fees and charges they must pay. At the same time, the municipal partners must keep a close eye on their budgets and economise where necessary. Having a reliable source of income from taxes can also help here. It is well worth taking a look at the way the different tasks are allocated in Germany.

    Around 35% of waste management services are provided by the local authorities themselves via their own municipal companies, which means no VAT is charged on these services. More than one third of the people living in Germany, therefore, do not pay VAT on these public services; and yet at the same time they benefit from the payments made by other local inhabitants as a result of funds being allocated between districts. The local authorities themselves lose out as they receive less tax. An unfair tax situation that ends up hurting everyone. Councils are deliberately choosing not to open up their markets even though this would enable them to cut costs. They are effectively holding back the private sector economy rather than making the most of the opportunity available to them to improve their situation and work together with the private sector to take the pressure off the public purse, increase their workforce, stabilise fees and charges and ensure they have a steady and reliable source of income.


    Both we and our long-standing municipal partners agree that the best solution is to work together as partners. This special edition of our company magazine focuses entirely on the subject of public private partnerships and aims to provide a more detailed picture of the various PPP business models, the advantages they bring for local authorities and their residents as well as the positive impact they have on jobs, on the local economies and on the environment. And, as self-praise is no praise, we are more than happy to give our partners the opportunity to speak about their PPPs here. Local authorities, which would like to have a stable and sustainable budget, to provide their residents with high quality services and to achieve the highest possible levels of sustainability in their waste management and recycling sector, will find some valuable suggestions and experiences here to help them in their decision-making process. Here’s to future collaborations!


    Yours

     

    Thomas Conzendorf

Services for more than twelve million people

REMONDIS operates PPPs with many local authorities both at home and abroad. The group owns a share in 50 public private partnerships in Germany alone, providing services for more than 12 million local inhabitants across 13 German states. Choosing to work with REMONDIS creates many advantages for local authorities.

  • More than 9,000 people are employed by the PPP companies, in which REMONDIS owns a share.

Three fields of business: recycling, services, water

A PPP with REMONDIS can offer a very wide range of services as the group operates in three different fields of business: recycling, services and water management. REMONDIS has numerous strengths that have a positive impact on the PPP’s everyday business – making it a particularly suitable candidate for a public private partnership.

    • Our recycling division comprises classic services such as collecting and recycling household waste and operating the plants and facilities needed to do this.


    • Our services division includes public services such as clearing roads of snow and ice in winter, cleaning roads and maintaining green spaces as well as producing electricity and district heat and landscaping closed landfill sites.


    • Our water division provides a wide range of services from water management, to maintaining sewer networks, all the way through to managing technical and commercial operations.

Expertise & network of facilities

One of the main arguments in favour of working with REMONDIS is its comprehensive portfolio of services that includes diverse fields of business. Its extensive experience of providing classic public services plays a vital role here as well. Moreover, the group’s facilities are also a key factor as it operates a network of 800 plants covering a wide range of treatment and recycling processes.

Regional proximity & local ties

REMONDIS has over 500 branches in Germany and operates in every single German state. Thanks to its decentralised structure and its nationwide network, REMONDIS has local knowledge of all areas and regions in the country – an important factor for creating strong regional ties and gathering information about local customer requirements.

Innovations & investments

REMONDIS considers innovations to be vital for its company’s success and so carries out intensive research and development work. This can also be seen by the fact that, compared to its competitors, REMONDIS invests an above-average amount of money in its business.

  • Working together in partnership: REMONDIS’ comprehensive technical and organisational know-how and its in-depth knowledge of the markets make it an ideal partner for a PPP.

Continuity & stability

What is noticeable at REMONDIS is its consistency – something that is hugely important for long-term partnerships. Being a family-run company, REMONDIS has proven to be an extremely reliable partner, planning and acting across generations. The continuity resulting from this is reflected in the company’s history, in the growth it has enjoyed as well as in its management team. Over half of all the managers have been working for the company for 16 years or more. Moreover, the economic stability of the group is safeguarded by its high equity ratio of more than 40 percent.

Apprenticeships & jobs

REMONDIS helps to secure jobs and to grow the workforce in PPPs as well. Special mention should be made here to the fact that we always pay our employees in accordance with wage agreements to ensure they are paid a fair salary. Our workforce in Germany has tripled since 2000. The ratio of apprentices and trainees at our company lies at 4.7% – considerably higher, therefore, than the industry average.

Public service expertise

  • Providing public services has always played an important role at REMONDIS. Besides its work in PPPs, the group de­livers an extensive range of services in Germany via classic public procurement contracts. This includes, for example, carrying out the kerbside collection of household waste for a total of 11.5 million local residents. Our public sector clients here comprise 75 towns and districts as well as around 50 rural districts.

    REMONDIS has been delivering services for the public sector since 1959; the group’s first public private partnership was established in 1987.

    The results of a customer survey show in black and white just how much REMONDIS is appreciated by its public sector clients. According to the survey, municipal customers gave the way REMONDIS provides its services an average grade of ‘1.94’, i.e. ‘good’ to ‘very good’. This high satisfaction rate was further confirmed by the high results awarded in the individual categories, ‘reliability’ and ‘expertise’ – two qualities that are particularly important for a partnership.

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