Espoo Kaivomestari: Finland's first public-private real estate PPP partnership project

25
year life-cylce contract

Finland's first
public-private real estate PPP partnership project

11 434 m²
the total surface area of the building

Objectives

The city of Espoo has a lot of properties that require constant maintenance. Due to the ongoing savings and austerity measures, it has been challenging for the city to keep the properties in good condition.
As a result, many properties have had to be demolished and rebuilt, which has become very expensive for the city.
Generally, the warranty period for service providers is only 2 years. After that, all costs are the responsibility of the city.

Solutions

The project was implemented as a Public-Private Partnership (PPP) project
The City of Espoo has signed a 25-year life-cycle agreement with Project Company Arandur. Caverion is responsible for providing real estate services.
The property must be in constant working order and, after 25 years, be good as new in terms of use functionality.
Potential deficiencies in services reduce service fees.
The service level of subcontractors is ensured through annual customer satisfaction surveys.
The city of Espoo has fixed annual costs, no funds from the budget are needed for repairs.
We have cost responsibility for the energy efficiency of the property.
We maintain the property's energy efficiency at a consistently good level through maintenance, HelpDesk services and a property control room.

Project companies and real estate in brief

The Kaivomestari property includes a high school, sports hall, indoor swimming pool, workers' college and a private fitness center.
Kaivomestari is located in Espoo.
The area of the swimming pool is 5,032m², the area of the high school and sports hall is 6,401m².
The total surface area is 11,434m².
Five swimming pools for 250 guests.
c. 260,000 people visit the swimming pool every year.
The high school has 540 students.

Project company Arandur Oy in brief

The project company Arandur Oy is a project company formed by Caverion, NCC, and Sodexo, which manages Kaivomestari's property. These companies also act as subcontractors for real estate services. The Kaivomestari cooperation model lasts over 28 years, the service contract 25 years. The agreement came into force on 1 July, 2003.