How Public-Private Partnerships Can Support Defence in Difficult and Challenging Times

Public-private partnerships can also play a key role in increasing resilience and security at the local level. Local government units can implement PPP investments related to crisis infrastructure, crisis management centers, secure strategic storage facilities, independent energy sources or digital early warning systems. Especially with the substantive support of the Central PPP Unit, local governments have real opportunities to build local resilience in cooperation with the private sector, while relieving budgets and accelerating the implementation of key investments.

PPP is not just a way to engage private capital in infrastructure. It is a strategic approach that allows for more effective implementation of defense goals. The most important benefits of this model are:

• efficiency : use of private sector resources and know-how.
• innovation : the private sector can contribute modern technologies and solutions.
• long-term maintenance of infrastructure : the pay-for-availability model encourages better management and maintenance;
• risk sharing : private partners can take over risks that they can better manage, reducing the financial burden on the state;
• accelerating investment : PPPs can mobilise additional private funds, especially when public budgets are tight and some projects may be reported off the public sector balance sheet;
• increasing the transparency and quality of project preparation : each project undergoes thorough technical and financial analyses and assessments.

The construction of a military camp in Lithuanian Rudniki is an example of how to effectively combine public and private interests for common security. The project is being implemented in the PPP formula, and its first stage, worth 125 million euros, includes the construction of administrative, storage and residential infrastructure for 600 soldiers. In the future, the camp is to include 120 buildings, training grounds, helicopter landing pads and 10 km of internal roads. Eventually, several thousand soldiers, mainly from the German NATO brigade, will live there.

However, this is not the only example – Lithuania is also developing other military projects in this formula, covering the construction and maintenance of infrastructure in various regions of the country, with investments reaching hundreds of millions of euros. PPP allows Lithuania not only to accelerate the modernization of the armed forces, but also to strengthen interoperability with allies. Good practices in the field of PPP cooperation can also be seen in other European countries.

• The UK remains the most active country in Europe in terms of PPP use in the security and defence sector (26 projects), an example of which is the Allenby/Connaught Barracks project (value €2.7 billion), which built and managed modern barracks and military accommodation facilities in Aldershot and Salisbury.
• France is also focusing on PPP in military infrastructure. The Balard-Défense project is the construction of a new headquarters for the Ministry of the Armed Forces in Paris (EUR 1.55 billion) in the DBFOM model (design-build-finance-operate-maintain).
• Germany is investing in modern PPP training centres for NH90 helicopter pilots in Bückeburg, Fassberg and Holzdorf as part of the NH90 Helicopter Programme (EUR 250 million).
• Denmark is investing in national security with the help of the private sector, building a new headquarters for the Danish Military Intelligence Service in Copenhagen at a cost of €397 million.

There are many examples outside Europe.

• The United States is a global pioneer in the use of PPPs. The Military Housing Privatization Initiative (MHPI) has mobilized more than $28 billion of private investment since the 1990s, creating more than 200,000 units of housing on military bases in 80 projects.
• Australia has been gradually developing the public-private partnership market, including with LEAP 2 – a project providing 3,015 apartments on 14 military bases under a 33-year PPP agreement.

In an era of increased defense spending, when time and efficiency of project implementation are key, it is worth reaching for proven solutions. The PPP model, successfully used by our neighbors, is a real alternative to traditional investment methods. Thanks to the support of the CJ for PPP, every public institution can benefit from this formula - regardless of experience. We offer comprehensive support for public administration:

• step by step advice,
• assistance in preparing documentation and conducting the proceedings,
• free training and e-learning,
• online educational materials and information.

Take the first step today – visit www.ppp.gov.pl , learn about good practices, take advantage of free training and join the group of institutions that are already building a safer future in cooperation with the private sector.