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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

Benefiting residents, local authorities & companies

  • AWISTA provides waste management and cleaning services in Düsseldorf and the surrounding regions. Working together with a group of specialist partner companies, it offers a strong portfolio of wide-ranging services for local authorities and their local residents as well as for private individuals and businesses.

Around 800 employees

  • Founded in 1999, AWISTA Gesellschaft für Abfallwirtschaft und Stadtreinigung mbH is one of the largest companies of its kind in the region between the Rhine, Ruhr and Wupper rivers. The company and its 800-strong workforce specialise in providing services to their public sector customers as well as in collecting sales packaging. Its customers include the Düsseldorf city authorities, the district of Mettmann and the towns of Remscheid and Solingen.

    No matter whether it involves local authorities, private individuals or business customers: AWISTA has established itself as a provider of high quality regional services, putting it in a strong competitive position.

    AWISTA is responsible for collecting and recycling the various waste streams generated by households as well as bulky waste and hazardous waste. Moreover, it is in charge of keeping the cities clean and the roads clear of snow and ice in winter. Its range of services also includes running all the household recycling centres and delivering material to the waste incineration plant owned by the Stadtwerke Düsseldorf. In addition, AWISTA operates a modern garage that carries out around 12,000 assignments on municipal vehicles every year – from customising the vehicles, to retrofitting them, to installing particulate filters.

    • tonnes – the amount of residual materials processed every year


    • bins are emptied in Düsseldorf every year

AWISTA & REMONDIS – two strong partners

  • REMONDIS has owned a 49% share in AWISTA since 2006 as a result of a cross holding. Stadtwerke Düsseldorf AG (public utility company) owns the remaining shares in the PPP company. Thanks to this strategic partnership, the existing resources have been strengthened and new fields of business created. AWISTA’s portfolio, for example, now includes a graffiti removal service for private sector customers as well as cleaning services for carnival parades and sport and cultural events.

    Collecting waste & cleaning the city are just two of the many services provided by AWISTA

A collaboration with a host of advantages

  • Together with REMONDIS, the company is working on further extending its leading position in the waste management and city cleaning sectors and on acquiring new customers. One ace up its sleeve is its collaboration with a group of specialist companies in the region, with which AWISTA and REMONDIS are affiliated. Each individual company in this network has its own specialist area. In line with its core areas of expertise, AWISTA’s primary task is to provide services to the public sector and collect sales packaging.

    AWISTA places great importance on future-oriented fields of business such as resource conservation, closing material life cycles and recovering and recycling raw materials.

    This affiliated group of companies has a strong infrastructure at its disposal as well as diverse and extensive plant capacities. It has, for example, access to composting and sorting facilities and to thermal treatment plants. Any construction and demolition waste is processed by plants in Düsseldorf and Mettmann. This close cooperation work between the firms makes it possible for just one company to offer a huge range of services. All in all, this group processes around one million tonnes of residual materials every year.

  • tonnes – the amount of CO2 equivalents cut every year

Great prospects ahead

  • At present, half of AWISTA’s business comes from the public sector and half from the commercial sector. The PPP is intending to grow its operations in both areas. To achieve this, it is not only looking to provide top quality services but also to fulfil all its environmental, economic and social responsibilities. A study, published in 2015, confirmed that the waste management sector in Düsseldorf is already making an important contribution towards achieving greater sustainability. This can primarily be put down to the different collection schemes and logistics systems AWISTA uses as well as to the proximity of the recycling facilities. The study gives special mention to its carbon footprint: in 2014, the services provided to the City of Düsseldorf cut greenhouse gas emissions by 168,000 tonnes of CO2 equivalents.

    > Facts & Figures

    A PPP since

    1999

    Shareholders

    51% Stadtwerke Düsseldorf AG
    49% REMONDIS

    No. of employees

    800

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