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Deal Maker of the Year Awards 2013 WINNER - HENNER M. PUPPEL
DEAL: Thuringia largest building project: The University Hospital Jena is to build 15 new hospitals
NAME: Henner M. Puppel COMPANY: Luther Law Firm POSITION: Partner TEL: +49 201 9220 24037 EMAIL: henner.puppel@luther-lawfirm.com
BIO
Areas of practice • Public procurement law (EU and German) • PPP/PFI • Building contract law • Plant engineering • Procedural law/arbitration
Vita
Henner M. Puppel was born in 1973. He studied law and philology at the Ruhr University of Bochum and the University of Salamanca (Spain). Before being admitted to the bar, his work experience included employment at Roland Berger Strategy Consultants. At the German University for Administrative Sciences Speyer he specialized in matters of public economic law, public procurement law and real estate economic law. Henner M. Puppel is head of the firm‘s PPP and project finance practice. He joined Luther in 2004.
Clients • German Federal Ministry of Education and Research and German Federal Real Estate Agency: Federal Exhibition Centre “House of the Future
• German Federal Ministry of Education and Research: New head office in Berlin (volume over EUR 120 mill.). Financial Deal of the Year 2011 and PPP Innovation Award 2012
• University Hospital of Essen: Proton Therapy Centre (investment volume approx. EUR 400 mill.). Healthcare Deal of the Year 2006, Financial Deal of the Year 2006 and PPP Innovation Award 2006
• University Hospital of Aachen, in association with University Hospital of Maastricht (NL) and Liège (B): Particle Therapy Centre (investment volume over EUR 500 mill.)
• German Bank: Rearrangement of a real estate portfolio (investment volume approx. EUR 250 mill.) • University Hospital of Münster: Various construction projects (investment volume approx. EUR 500 mill. • Regional Hospital of Hannover: New hospital (construction volume approx. EUR 180 mill.) • International consortia for the construction of power plants: Two atomic power plants (Finland and Argentina), various brown coal and hard coal fired power plants (aggregate volume over EUR 4 bn.) (FIDIC)
• UNESCO World Heritage Zollverein Trust: Numerous construction and public procurement procedures • Vattenfall Europe: Arbitration procedure and legal advice during the civil works of a large coal-fired power plant in Germany (volume over EUR 1,6 bn)
DEAL OVERVIEW Q
Please summarise the transaction
Currently, many of the clinical buildings of the University Hospital of Jena (UKJ) are scattered around the city. In many cases they are housed in historic buildings that do not reflect today’s needs for up-to-date medical facilities. Both facts called for concentrating all infrastructure in one place, adjacent to the already newly constructed new campus of the UKJ in Jena-Lobeda several years ago.
With around 49.000 m² effective surface and a total investment of EUR 316m, this project will now give home to 15 new clinics and institutes, 710 hospital beds, 12 operating rooms and ample laboratory space for science, R&D and
transaction, from initiating the EU wide tender procedure, over the contract and finance negotiations to the award of the contract. Luther is now also mandated for the construction phase. Legal advice covered procurement, contract, construction law, state aid and public funds law.
Q
What were the challenges or difficulties presented
Large tender procedures for hospitals are always complex. With the Jena project, a large team of architects, engineers, technical and financial advisors had to be coordinated, a reliable tender procedure to be set up and a balanced set of contracts to be drafted. At the same time and with regards to “Maastricht criteria”, new ways of financing had to be found that were compatible with the size of the investment, the future budgets of the State of Thuringia and the needs for securitization of the banks.
Q
How were the challenges or difficulties overcome
Together with UKJ and the involved ministries of Thuringia, Luther developed and negotiated a new model of integrating public funds into the long-term private financing provided by the banks of the private contractor. This model proved to be both economical and cared for the necessary amount of reliability for the public buyer that the contractual obligations from the building and operations phase would be fulfilled. At the same time, it reflects the security interests of the financing banks.
Q
teaching. It is Thuringia’s largest building project. Until the year 2018, all patient care will be centralised in Jena-Lobeda to provide for the most modern clinical infrastructure for cross-generation treatment, research and teaching.
The construction will be done by a general contractor who also provides the intermediate and long-term financing over 20 years.
Q What was your role within the transaction
Luther’s team around partners Henner M. Puppel and Dr. Thomas Gohrke gave legal, financial and strategic advice to UKJ and the state of Thuringia throughout the whole
What other types of clients or transactions have you been involved with
Henner M. Puppel regularly provides legal advice for large construction, PPP/PFI and other life-cycle projects as well as plant engineering. His clients include public clients like the Federal Ministry for Education and Science for its new headquarters in Berlin (Germany’s first federal PPP project), the Federal Real Estate Agency for the Federal Exhibition Center “House of the Future” in Berlin, the West-German Proton Therapy Center in Essen (Germany’s first healthcare PPP project), but also private enterprises in the construction, real estate investment and plant engineering sector (energy and industrial production).
Q
What are your thoughts and predictions for 2014 and beyond
With budgetary restraints no easing up soon, we expect to see more projects that can benefit from the model of UKJ.
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