Investor Model in Public Procurement Law 2026

Definition: The investor model is a form of public-private partnership (PPP) in which a private investor finances, designs, builds, and operates a public infrastructure project on its own account over the long term, while the contracting authority acts as user or regulator and typically reimburses the investment costs through user charges or availability payments.

Last updated: January 2026 · Legal basis: Directive 2014/23/EU; BVergG 2018; GWB/VgV; BMI PPP guidance

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What is the Investor Model?

The investor model is a procurement model that allows contracting authorities to deliver infrastructure projects without having to deploy their own budget resources at the time of construction. The private investor bears the investment risk while the public partner benefits in the long term from the infrastructure made available. Typical fields of application are roads, schools, hospitals, sports facilities, and municipal infrastructure.

The investor model can take various forms and, depending on the allocation of risk and the contract design, is to be classified in procurement law as a works concession, services concession, or works contract with an operating phase.

Procurement-Law Classification

The procurement-law classification of the investor model depends on who bears the economic operating risk.

If the private investor bears the substantial economic risk (i.e. whether and to what extent it amortises its investment costs through use of the infrastructure), this is a concession subject to Directive 2014/23/EU. If, by contrast, the economic risk lies with the contracting authority (e.g. through guaranteed availability payments without demand risk), the contract is a classical public works contract.

This distinction is decisive for the choice of procurement procedure:

• Concession: concession award procedure under Dir. 2014/23/EU
• Public works contract: classical procurement procedure under Dir. 2014/24/EU

Related Terms

• Concession
• Concession Contract
• Concession Award Regulation

FAQ

Is the investor model always subject to the tender obligation? Yes; where the threshold for concessions (from 2024: EUR 5,538,000) is exceeded, a formal tender procedure must be conducted. Below that threshold, national rules apply.

What advantages does the investor model offer municipalities? The model enables infrastructure projects to be delivered without an immediate impact on the budget, transfers design and construction risks to the private partner, and harnesses its efficiency potential. It does, however, involve long-term cost commitments and complexity in contract design.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.