Study on State asset management in the EU · SCHOELLER-BLECKMANN Gesellschaft m.b.H. 4 APK...

Written by KPMG and Bocconi University February 2018

Study on State asset management in the EU

Final study report for Pillar 3 – Austria

Contract: ECFIN/187/2016/740792

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EUROPEAN COMMISSION

Directorate-General for Economic and Financial Affairs Directorate Fiscal policy and policy mix and Directorate Investment, growth and structural reforms European Commission B-1049 Brussels

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Austria

This country fiche presents a qualitative overview of the mix of governance models

and investment strategies implemented by the Austrian general government to

manage its assets portfolio.

1. MAPPING OF THE GOVERNANCE OF THE PORTFOLIO OF ASSETS

Art. 2 of the Austrian Federal Constitution defines Austria as a federal state. The

Austrian general government consists of three levels: (1) federal, (2) regional (or

state - Länder level), and (3) local level. Throughout this country fiche, we re-cluster

these three levels of government into two categories, i.e. the “central government”,

which includes the federal government, and the “local governments”, which include

both the regional governments and the local governments.

There is not a unique government entity responsible for managing the portfolio of

public assetsas a whole. The central government has centralised the majority of

strategic and operational decisions in the hand of few central bodies: federal ministries

(e.g. the Federal Ministry of Finance and Ministry for Transport) or Public Sector

Holdings (PSHs) for specific sectors (e.g. ÖBIB, ASFINAG).

There is no consolidated and integrated national public data source listing all public

assets and their key features and performance. Many ad hoc information sources on

government’s assets are made available from the Austrian information system; these

are kept updated by many relevant public bodies.

The annual financial statements are composed of a full suite of statements and

disclosures. With the exception of natural resources, assets are measured at historical

cost or replacement cost (heritage assets), and are recorded in the balance sheets.

The annual financial statements cover all central entities, which include the Federal

Chancellor, Ministries, as well as subordinate agencies and institutions. The financial

statements are a consolidation per se of all central entities that are controlled by the

Central government1.

1.1. Financial assets

The PSHs owned by the Austrian general government operate in a broad spectrum of

the domestic economy. This variety is reflected in the patterns of ownership and

governance. For example, some financial assets are owned by the central

government; others by the local governments.

The main body in charge of strategic decisions for financial assets owned by the

central government is the Federal Ministry of Finance. Operational decisions are

usually under the responsibility of the public owner of the PSH (ministries, central and

local public authorities). .

The ownership and operational decisions are devolved to The Austrian State and

Industrial Holding Limited (ÖBIB)2 – including privatization management, acquisition

of shares, execution of ownership rights, and general advice to the central

government. It represents the interests of the central government shareholdings

labelled as "strategic". It is itself a PSH fully held by the Federal Ministry of Finance. It

1 Moretti, D. (2016). Accrual practices and reform experiences in OECD countries. Results of the 2016 OECD Accruals Survey. OECD Journal on Budgeting, 16(1), pp. 9-28. 2 Österreichische Bundes- und Industriebeteiligungen GmbH (ÖBIB).

Study on State asset management in the EU – Pillar 3

Austria

has direct majority participation in 5 companies3 and direct minority in 4 companies4 –

weighting roughly 10.4% of the total assets owned by all PSHs within the Austrian

general government’s portfolio5. ÖBIB group’s workforce accounts for approximately

102,800 employees (20166).

Despite the fact that there were no changes in the composition of ÖBIB’s portfolio, the

value of the listed companies rose by nearly 17% from 4,847 Mn Eur in 2015 to 5,658

Mn Eur in 2016. In the same period, the Austrian equity index ATX rose by 9%. In

total, the value of the entire portfolio (i.e. including both the listed and non-listed

PSHs) amounted 5,824 Mn Eur7.

The ÖBIB Act of 2015 has established the following role and governance:

the Austrian Parliament sets the general legal framework in which ÖBIB

operates by passing legislation;

the central government takes strategic decisions about the methods by which

shares/PSHs ought to be privatised/acquired. The ÖBIB is mandated to act on

the basis of these decisions;

ÖBIB is required to report to the Federal Ministry of Finance, which reports to

the Federal Chancellor and Vice-Chancellor;

the Nominating Committee, which serves as an advisory council for ÖBIB under

special law, is responsible for selecting supervisory board members nominated

by the central government. The Nominating Committee consists of four

members who are appointed by the central government for one legislative

period based on the joint recommendation of the Federal Chancellor and Vice-

Chancellor. They remain in office at least until a new central government is

sworn in;

With respect to financial assets in the general government’s equity portfolio, the five

most important sectors in terms of Value Added (VA) generated by PSHs8 are as

follows:

1. H – Transportation and storage;

2. M - Professional, scientific and technical activities;

3. B – Mining and quarrying;

4. Q - Human health and social work activities;

5. D – Electricity, Gas, steam and air conditioning supply.

3 Finanzmarktbeteiligung Aktiengesellschaft des Bundes i. L. (FIMBAG), Immobilien- und Industriebeteiligungen GmbH (IMIB), GKB-Bergbau GmbH, Österreichische Post Aktiengesellschaft, SCHOELLER-BLECKMANN Gesellschaft m.b.H. 4 APK Pensionskasse Aktiengesellschaft, OMV Aktiengesellschaft, Casinos Austria AG, Telekom Austria Aktiengesellschaft. 5 This share has been calculated using data collected and elaborated in Pillar 1. 6 For more details, please see the ÖBIB annual report 2016, available at: http://www.oebib.gv.at/fileadmin/annual_reports/OEBIB_GB_en_2016_final.pdf [Accessed 17th January 2018]. 7 Ibid. 8 The five most important sectors in terms of VA generated by PSHs have been mapped in Pillar 1. For industry classification we rely on data provided by Bureau van Dijk (BvD) Orbis, which in turns gets its data from other service providers and bases industry classification on the NACE codes provided.

http://www.oebib.gv.at/fileadmin/annual_reports/OEBIB_GB_en_2016_final.pdf


Austria

Table 1 Governance regimes: Financial assets, Austria

Owners of the

asset

Both the central and local governments participate in

the companies’ capital. One significant PSH held by the

Federal Ministry of Finance is the ÖBIB, which

represents the ownership interests of the Central

government in shareholdings defined as "strategically

important".

C3

D1

Most important sectors in terms of VA:

1. H – Transportation: the majority of PSHs are

owned by the local governments. In addition,

some strategically important PSHs are directly

owned by the central government either through

its Ministries, or through the ÖBIB

2. M – Professional, scientific and technical

activities: the majority of PSHs are owned by

local governments. In addition, some strategically

important PSHs are directly owned by the Central

government either through its Ministries, or

through the ÖBIB

3. B – Mining: in compliance with data retrieved for

Pillar 1, this sector includes only two PSHs, i.e.

Fosslienwelt GmbH, which is partially owned by

local governments, and Aktiengesellschaft, which

is partially owned by the ÖBIB

4. Q - Human health: the majority of PSHs are

owned by local governments. In addition, some

strategically important PSHs are directly owned by

the central government

5. D – Electricity and gas: almost all PSHs are

owned by local governments. A few PSHs are

directly owned by the central government

Bodies

responsible for

the strategic

and investment

decisions

The Federal Ministry of Finance is the main body

responsible for outlining the overall strategic

framework related to the Austrian PSHs. It operates in

accordance to other ministries and local governments

(when involved in the ownership of each PSH).

C1

Most important sectors in terms of VA: the relevant

local governments and each relevant ministry are

responsible for the strategic decisions on PSHs

operating within their jurisdiction in compliance with

the strategic framework outlined by the Federal

Ministry of Finance.


Austria

Bodies

responsible for

the operational

decisions

The Federal Ministry of Finance is in charge for

managing the majority of the central government-

owned financial assets9.

Practically, the ÖBIB, a PSH owned by the Federal

Ministry of Finance, is in charge of investment

management (including privatization, acquisition of

shares), the execution of ownership rights, and advice

to the central government.

Local governments are responsible for decisions

regarding the management of the own financial assets

they own

C3

D1

Most important sectors in terms of VA: since the

majority of the PSHs operating in these sectors are

owned by local governments, then local governments

are responsible for operational decisions.

National Public

Data Sources

The Federal Ministry of Finance reports the list and the

main information regarding PSHs in the Federal

government’s equity portfolio (e.g. the stakes held in

its enterprises), while the Public Audit Office examines

the financial administration of enterprises.

C1

Source: KPMG elaborations.

The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.

For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.

9 In compliance with the terms of the Austrian Federal Ministries Act.

Legend

C3C1 C2= Central government

= Central public body

= Central company-typestructure

D1 = Local governments

D2 = Local public body

D3 = Local company-typestructure

= Private bodyPM


Austria

1.2. Non-financial assets

Airports

Table 2 Governance regimes: Airports, Austria

Owners of the

asset

The property of Austrian airports belongs to the central

government10.

C1

Bodies

responsible for

the strategic

and investment

decisions

The supreme authority for civil aviation is the Federal

Ministry for Transport, Innovation and Technology

(BMVIT) 11, which is responsible for the strategic and

investment decisions regarding the Austrian airport

network.

Some residual responsibilities for aviation are also

vested in the local governments.

C1

Bodies

responsible for

the operational

decisions

The majority of the Austrian airports are managed by

the relevant airport operators, which are organised as

both central government-owned PSHs and local

government-owned PSHs.

C3

D3

National Public

Data Sources

Statistics Austria reports about airport traffic in the

country (e.g. transport volume of airport freight

transport). With regard to the airport infrastructures,

there is currently no single, definitive, public source of

information.

C2




Ports

Austria does not have maritime ports12.

Roads

10 Aviation Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011306 [Accessed 6th December 2017]. 11 Bundesministerium für Verkehr, Innovation und Technologie (BMVIT). 12 Fluvial ports are not considered in the analysis. For further detail, please see Methodological Notes of Pillar 2.

Legend







= Private bodyPM

https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011306


Austria

Table 3 Governance regimes: Roads, Austria

Owners of the

asset

The property of the Austrian road network belongs to

the Austrian general government13.

C1

D1

Bodies

responsible for

the strategic

and investment

decisions

The BMVIT is responsible for the strategic and

investment decisions on the Austrian road network.

Among its tasks, the BMVIT defines the strategic and

investment decisions in a six-year master plan which is

then implemented by ASFINAG, which is a PSH fully

owned by the central government with the Federal

Ministry for Transport, Innovation and Technology as

shareholder representative.

C1

Bodies

responsible for

the operational

decisions

In compliance with the long-term agreement signed

with the central government, ASFINAG is responsible

for the operational decisions regarding the central

government’s road network. As stated in the Federal

Budget Act14, the central government must ensure that

ASFINAG has sufficient liquidity and equity of at all

times. In addition, the relevant local public bodies are

responsible for managing their portion of the Austrian

road network. They directly report to the central

government.

C3

D2

National Public

Data Sources

The Federal Council of Ministers is responsible for

keeping and updating the inventories of the State road

network. ASFINAG and Statistics Austria15 collect and

report key information about the road infrastructure

(e.g. the length of motorways) and road traffic in

Austria.

C1

C2




13 Federal Roads Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011428

[Accessed: 6th December 2017] 14 For more detail about the Bundeshaushaltsgesetz (BHG) (the Federal Budget Act), please see: https://www.bmf.gv.at/budget/budgetpolitik-und-grundsaetze/rechtsgrundlagen.html [Accessed 13th September 2017]. 15 For more detail about the information reported by Statistics Austria, please see https://www.statistik.at/web_de/statistiken/energie_umwelt_innovation_mobilitaet/verkehr/schiene/index.html [Accessed: 15th December 2017].

Legend







= Private bodyPM


https://www.bmf.gv.at/budget/budgetpolitik-und-grundsaetze/rechtsgrundlagen.html

https://www.statistik.at/web_de/statistiken/energie_umwelt_innovation_mobilitaet/verkehr/schiene/index.html

https://www.statistik.at/web_de/statistiken/energie_umwelt_innovation_mobilitaet/verkehr/schiene/index.html


Austria

Railways

Table 4 Governance regimes: Railways, Austria

Owners of the

asset

Railways infrastructures are owned by the Austrian

federal railways (ÖBB-Infrastruktur)16,17, which is a

PSH fully owned by the central government.

C3

Bodies

responsible for

the strategic

and investment

decisions

The BMVIT is responsible for strategic planning and

financial decisions regarding railway infrastructures.

Representatives of the BMVIT review the operational

and financial management of ÖBB-Infrastruktur and

approve the six-year master plan, which must be

renewed each year. The central government must

ensure that ÖBB-Infrastruktur AG has sufficient

liquidity and equity at all times18.

C1

Bodies

responsible for

the operational

decisions

As the manager of the railway network, ÖBB-

Infrastruktur is responsible for operational decisions in

compliance with the long-term agreement signed with

the central government.

C3

National Public

Data Sources

ÖBB-Infrastruktur annually publishes the “Network

Statement”19, which contains the essential

administrative, technical and financial information

concerning the railway network, the service facilities as

well as related services offered by the company.

Moreover, since ÖBB-Infrastruktur compiles its annual

report based on the International Financial Reporting

Standards (IFRS), its balance sheet maps the value of

its railway tracks in compliance with the accounting

principle of IFRS 12 (“Property, plants and

equipment”).

In addition, Statistics Austria collects and reports key

information about railway infrastructures (e.g. the

length of railway tracks) and traffic in Austria.

C3




16 Österreichischen Bundesbahnen-Infrastruktur (ÖBB-Infrastruktur) AG. 17 1992 Federal Railways Act (BBG 1992) as amended by Federal Law Gazette (BGBl) I No. 95/2009). Available at: https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf [Accessed 13th October 2017]. 18 Art. 41 (1) of the Federal Railways Act. 19 For more detail about the information reported by the Network Statement, please see http://www.oebb.at/infrastruktur/en/_p_Network_Access/NetworkStatement/index.jsp [Accessed 9th November 2017].

Legend







= Private bodyPM

https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf

http://www.oebb.at/infrastruktur/en/_p_Network_Access/NetworkStatement/index.jsp


Austria

Mineral and Energy reserves

Table 5 Governance regimes: Mineral and Energy reserves, Austria

Owners of the

asset

Mineral and Energy reserves belong to the central

government20.

C1

Bodies

responsible for

the strategic

and investment

decisions

The Federal Ministry of Science, Research and Economy

(BMBWF)21 is the relevant authority for all forms of

Mineral and Energy reserves within the central

government’s portfolio including prospecting and

exploring.

In addition, among its duties, the BMBWF is responsible

for outlining the central government’s mining policy. On

this subject, it prepared two key documents, i.e. the

Austrian Minerals Strategy22 and the Austrian Mineral

Resources Plan23.

C1

Bodies

responsible for

the operational

decisions

Many companies are given the rights to exploit Austrian

mineral and energy resources in concession.

C3

D3

National Public

Data Sources

There is no information sources on Mineral and Energy

resources in the country

n.a.




20 Mineralrohstoffgesetz – MinroG (the Mineral Raw Materials Act). Federal Law Gazette I No. 95/2016. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetze [Accessed 14th September 2017]. 21 Bundesministerium für Bildung, Wissenschaft und Forschung (BMBWF). .22 For more information about the Austrian Minerals Strategy, please see https://www.en.bmwfw.gv.at/Energy/AUSTRIANMINERALSSTRATEGY/Seiten/default.aspx [Accessed 18th September 2017]. 23 Der Österreichische Rohstoffplan (the Austrian Mineral Resources Plan). Available at: https://opac.geologie.ac.at/wwwopacx/wwwopac.ashx?command=getcontent&server=images&value=AL0026_001_A.pdf [Accessed 18th September 2017].

Legend







= Private bodyPM

https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetze

https://www.en.bmwfw.gv.at/Energy/AUSTRIANMINERALSSTRATEGY/Seiten/default.aspx

https://opac.geologie.ac.at/wwwopacx/wwwopac.ashx?command=getcontent&server=images&value=AL0026_001_A.pdf

https://opac.geologie.ac.at/wwwopacx/wwwopac.ashx?command=getcontent&server=images&value=AL0026_001_A.pdf


Austria

Other natural resources

Table 6 Governance regimes: Other natural resources, Austria

Owners of the

asset

Other natural resources are owned by both the central

government and the local governments.

C1

D1

Bodies

responsible for

the strategic

and investment

decisions

The Federal Ministry of Sustainability and Tourism24

(BMNT) is the main regulatory body for the proposal

and implementation of the government's policy on

Other natural resources. C1

Bodies

responsible for

the operational

decisions

The different relevant departments and agencies of the

BMNT are responsible for operational decisions

regarding the portion of Other natural resources within

their jurisdiction.

In addition, the relevant local public bodies are

responsible for managing their portion of the Austrian

Other natural resources.

C2

D2

National Public

Data Sources

There are many ad hoc registries each of them

covering a small portion of the state-owned natural

heritage (e.g. the Austrian Forest Report25). The BMNT

is the body responsible for keeping these registries

updated.

In addition, Statistics Austria periodically collects and

reports some key information about Other natural

resources.

C1

C2




24 Bundesministerium für Nachhaltigkeit und Tourismus (BMNT). 25 The Austrian Forest Report. Available at: https://www.bmlfuw.gv.at/english/forestry/The-Austrian-Forest-Report-2015--Austria-s-forests-receive-top-grades.html [Accessed 15th December 2017]

Legend







= Private bodyPM

https://www.bmlfuw.gv.at/english/forestry/The-Austrian-Forest-Report-2015--Austria-s-forests-receive-top-grades.html

https://www.bmlfuw.gv.at/english/forestry/The-Austrian-Forest-Report-2015--Austria-s-forests-receive-top-grades.html


Austria

Dwellings, Buildings other than dwellings

Table 7 Governance regimes for Buildings cluster, Austria

Owners of the

asset

Assets falling into this cluster can be owned either by

the central government or the local governments.

Pursuant to the Federal Real Estate Act26, the central

Government reorganised the management of its real

estate and transferred most of government-owned

buildings to a new, state-owned real estate company,

the Federal Real Estate company (BIG)27.

C3

D1

Bodies

responsible for

the strategic

and investment

decisions

The Federal Ministry of Finance is the main body

responsible for outlining the overall strategic

framework related to the central government’s

buildings. It also addresses the activity of BIG.

C1

Bodies

responsible for

the operational

decisions

BIG is responsible for operational decisions related to

the management and disposal of residential and non-

residential buildings within its portfolio.

In addition, local governments are responsible for

operational decisions regarding their own Dwellings and

Buildings other than dwellings.

C3

D1

National Public

Data Sources

Statistics Austria has to annually collect some

information about Dwellings and Buildings other than

dwellings in Austria (e.g the stock of dwellings and

buildings, housing costs, the estimated value of

dwellings and buildings).

C2




26 Federal Real Estate Act. Available at: https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf [Accessed: 7th December 2017] 27 Bundesimmobiliengesellschaft (BIG) m.b.H.

Legend







= Private bodyPM

https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf


Austria

Figure 1 Asset-responsibility chain and ownership matrix for the cluster of assets in

government’s portfolio, Austria

Source: KPMG elaborations. n.a. = not available Central gov. = Central government; Local gov. = Local government; Min. Fin. = Federal Ministry of Finance; Local PB = Local public bodies;

For more detail about the clusters of governance regimes, please see Methodological Notes. (a) The network graphs in the table above highlight the main bodies involved for each role of the (b)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.

For some clusters of assets the responsibility for some aspects of the governance regime is spread (c)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.

Ports are not represented in this figure as there are no maritime ports in this country. (d)

In light of the analysis presented earlier and summarised in Figure 1, the overall

governance regime for the Austrian government’s asset portfolio can be defined as

centralised both in terms of ownership and in terms of responsibility for strategic and

investment decisions on the assets.

In particular, the PSHs owned by the central government own the majority of the

state-owned assets and they also have the responsibility for operational decisions

relating to assets in their portfolio.

Asset cluster

Role of the bodyNational public

data sources

Responsible for the operational

decisions

Responsible for the strategic

decisions

Owner of the asset

Financial assets

Airports

Ports

Roads

Railways

Mineral and Energy

reserves

Other naturalresources

Dwellings, Buildings otherthan dwellings

ÖBB

C3

ÖBB

C3

ÖBB

C3

ÖBIB

C3

Local gov.

D1

ÖBIB

C3

Local gov.

D1

Fed. Min. Fin.

C1

BMVIT

C1

Central Gov.

C1

Local gov.

D1

BMVIT

C1

Central Gov.

C1

Central Gov.

C1

Local Gov.

D1

BMNT

C1

ConcessionairePSHs

C3 D3

Agencies & Local PB

C2 D2

No

n –

finan

cia

lassets

Fed. Min. Fin.

C1

Central Gov.

C1

Airport operators

C3 D3

StatisticsAustria

C2

n.a. n.a.n.a. n.a.

ASFINAG

C3 D2

Local PB

BMBWF

C1

BMNT

C1

BMVIT

C1

Fed. Council

C1

StatisticsAustria

C2

n.a.

Legend







= Private bodyPM

StatisticsAustria

C2

Fed. Min. Fin.

C1

BIG

C3

Local gov.

D1

BIG

C3

Local gov.

D1

StatisticsAustria

C2


Austria

2. MAPPING OF THE INVESTMENT STRATEGY OF THE PORTFOLIO OF ASSETS

The central government does not have a unique document outlining the investment

strategies for all the assets within its portfolio. Strategies are presented for almost

each cluster of assets in the portfolio of the general government.

Austria has implemented changes in the governance regime for most clusters of public

assets owned by the central level, establishing PSH to which the ownership and

operational management was transferred, while strategic decisions remain the

mandate of the ministries – see next two sections.

2.1. Financial assets

Art. 52 of the Austrian Constitution28 defines and regulates the rights of control in

respect of enterprises in which the Federation has a participation of at least fifty per

cent in the share, stock, or equity capital and which is subject to the control of the

Public Audit Office.

The Austrian central government does not publish a consolidated strategy about its

presence in the economy as an owner of PSHs (acquisition/privatisation). Practically,

until 2005, the central government has privatised some of the PSHs in its portfolio.

Indeed, the Austrian government has been selling many financial assets in its portfolio

(Figures 2 and 3). Specifically, two periods are worth flagging:

1996 – 2000, in which the privatisation process was driven by the dismissal of

government stakes in “Finance & Real Estate industry” and reached its peak in

1998 (in terms of value of the transactions) following the privatisation in public

utilities (i.e. “telecommunications”, and “utilities” sectors);

2001 – 2005, in which the privatisation process was driven by the dismissal of

government stakes in “Finance & Real Estate industry”, “Telecommunications”,

“Utilities” and “Manufacturing” sectors;

Figure 2 Privatisations across markets by value and by number, 1980 – 2014,

Austria

Sources: KPMG elaborations on Fondazione Eni Enrico Mattei (FEEM) database, 1980 - 2014.

28 Austrian Constitution. Available at: https://www.constituteproject.org/constitution/Austria_2009.pdf [Accessed: 8th December 2017]

https://www.constituteproject.org/constitution/Austria_2009.pdf


Austria

The value of privatisations refers to the sum of the values of the transactions agreed between a public (a)body (seller) and a private entity (bidder) for that period.

The number of privatisations refers to the total number of transactions for that period. (b) Sectors that are below the threshold of 5% in terms of both total value of the transactions and number (c)of deals have been included in the aggregate cluster “Other”.

16

Figure 3 Privatisations across markets by value over time, 1980 – 2014, Austria

Sources: KPMG elaborations on Fondazione Eni Enrico Mattei (FEEM) database, 1980 - 2014.

The value of privatisations refers to the sum of the values of the transactions agreed between a public body (seller) and a private entity (bidder) for that period. (a) According to data retrieved from the FEEM database, there were no privatisations during the years 1980 – 1985. (b)

5,000

3,000

4,000

8,000

0

7,500

2,500

7,000

2,000

6,500

3,500

4,500

5,500

6,000

500

1,000

1,500

9.3%

2006 - 2010

20.6%

1996 - 2000

6.7%

20.7%

38.1%

22.2%

2011 - 2014

71.1%

3.3%

2001 - 2005

42.0%

1991 - 1995

5.0%

1.4%

10.0%

34.2%

66.2%

28.2%

5.3%

2.3%11.6%

1.1%

3.7%

1980 - 1985

23.8%

10.3%

23.8%

11.3%

65.1%

1986 - 1990

14.2%34.9%3.1%

10.4%

Eur Mn

Transportation Industry

Petroleum Industry

Telecommunications

Services Industry

Utilities

Finance & Real Estate Industry

Manufacturing


Austria

17

2.2. Non-financial assets

The central government does not have a unique document outlining the investment

strategy for all Non-financial assets within its portfolio. However, in recent years, the

Austrian government has launched and approved many ad hoc initiatives for almost all

Non-financial assets in its portfolio.

In the following sub-sections more details on the Austrian investment strategy relating

to Non-financial assets are provided.

Airports

The reform based upon the Aviation Act and its subsequent amendments was

addressed to concentrate the responsibility for strategic and investment decisions in

the hands of a unique entity within the central government, i.e. the BMVIT.

Although no clear details have been given yet with respect to the amount to be

invested in the Austrian airport infrastructures, the BMVIT has launched the Aviation

Road Map 202029, which is the central government’s strategic plan for the optimal

development of the Austrian aviation by 2020. This strategy was developed with

stakeholders within the Austrian aviation industry, and offers the aviation industry a

comprehensive planning and decision-making structure for the coming years. This plan

focuses on developing high-capacity and sustainable infrastructures to boost domestic

and international airport traffic in the country.

Ports

Austria does not have maritime ports30.

Roads

The Federal Roads Act31 transferred the property of the road network to a fully publicly

owned PSH, ASFINAG32 and mandated it to manage of the majority of the Austrian

road network

According to the 2017-2022 investment programme adopted by the government,

ASFINAG will invest 7.8 Eur Bn in infrastructures33. The construction programme is

financed only by toll revenues without any state grant.

Railways

The current governance regime adopted by the Austrian government was established

by the entry into force of the Federal Railways Act34, which aimed at incorporating the

principles established at European level in the directive of the first railway package.

29 Aviation Road Map 2020. Available at: https://www.bmvit.gv.at/en/service/publications/transport/downloads/aviation_roadmap2020.pdf [Accessed 17th January 2017]. 30 Fluvial ports are not considered in the analysis. For further detail please see Methodological Notes of Pillar 2. 31 Federal Roads Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011428

[Accessed: 6th December 2017] 32 http://www.asfinag.at/about-us/core-areas [Accessed 13th September 2017]. 33 For more information, please see https://www.unece.org/fileadmin/DAM/trans/doc/2017/TEM/Austria.pdf [Accessed 09th January 2018]. 34 1992 Federal Railways Act (BBG 1992) as amended by Federal Law Gazette (BGBl) I No. 95/2009). Available at: https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf [Accessed 13th October 2017].

https://www.bmvit.gv.at/en/service/publications/transport/downloads/aviation_roadmap2020.pdf


http://www.asfinag.at/about-us/core-areas

https://www.unece.org/fileadmin/DAM/trans/doc/2017/TEM/Austria.pdf

https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf


Austria

The ownership and the management of railway infrastructures were transferred to

ÖBB-Infrastruktur.

In addition, the Council of Ministers adopted a six-year, 15.2 Eur Bn investment

master plan with the ÖBB-Infrastruktur from 2017 to 202235. Most of the funding will

go into ongoing construction projects.

Dwellings, Buildings other than dwellings

In recent years, the Austrian central government has transferred the property of the

majority of the central government-owned to a PSH, i.e. BIG m.b.H, through the

adoption of the Federal Real Estate Act36.

This PSH is responsible for implementing the general investment strategy outlined by

the Federal Ministry of Finance. Annual reports are published by BIG m.b.H.

presenting its investment plans.

Mineral and Energy reserves

With regard to the investment strategy launched for Mineral and Energy reserves,

BMBWF prepared two key documents:

the Austrian Mineral Resources Plan, which is the national master plan to

secure the supply of mineral resources and to serve as a planning basis for

future mining activities with the central government and the local governments

in relation to their specific needs;

the Austrian Mineral Strategy, which is an essential tool to implement the

national mineral policy. Its priority objective is to ensure and to improve the

supply of minerals and commodities to the Austrian economy. Similar to the

Raw Material Initiative launched by the European Commission, the Austrian

Mineral Strategy is grounded on three pillars:

1. securing minerals supply from the domestic sources through the

implementation of the Austrian Mineral Resources Plan;

2. securing minerals supply from non-EU sources through the

establishment of raw materials partnerships;

3. promoting resources efficiency through substitution, recycling, and even

development of new methods with reduced minerals input.

Other natural resources

The current legislative framework on the Austrian general government’s Other natural

resources makes very difficult to infer the general investment strategy for Other

natural resources within the general government’s portfolio.

35 ÖBB-Infrastruktur AG, Annual Report 2016. Available at: http://presse.oebb.at/file_source/corporate/presse-site/Downloads/Publikationen/OEBB_INFRA_AnnualReport2016.pdf [Accessed 09th January 2018]. 36 Federal Real Estate Act. Available at: https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf [Accessed: 7th December 2017]

http://presse.oebb.at/file_source/corporate/presse-site/Downloads/Publikationen/OEBB_INFRA_AnnualReport2016.pdf

http://presse.oebb.at/file_source/corporate/presse-site/Downloads/Publikationen/OEBB_INFRA_AnnualReport2016.pdf

https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf


Austria

3. PERSPECTIVE ON THE EXECUTION OF THE INVESTMENT STRATEGY

From the mapping of the governance regimes (Section 1) and the investment

strategies (Section 2) for the state-owned asset portfolio, some key insights about the

perspectives on the execution of the investment strategies can be drawn as follows:

the Austrian central government has concentrated the ownership and the

responsibility for operational decisions on the majority of the central

government-owned assets in the hands of a few PSHs fully owned by the

central government (e.g. BIG, ÖBB-Infrastruktur). In addition, the ultimate

responsibility for investment and financial decisions regarding state-owned

assets belongs to the central government;

as it can be inferred from the analysis of a considerable sample of investment

strategies, master plans, and programmes, the central government aims at

developing and exploiting its portfolio, mainly using the Federal State Budget.

However, private investors and the local governments bear a portion of the

investment costs for some assets within the Austrian general government’s

portfolio (e.g. airport infrastructures, real estate, mineral and energy

reserves).

Figure 4 Matrix of Governance regimes vs Investment strategy by clusters of assets,

broad features, Austria

Source: KPMG elaborations, based on governance regimes and recent observed strategies.

The position of each asset cluster with respect to the “investment strategy” dimension (x-axis) reflects (a)the general investment strategy adopted by the government for the cluster. The general investment strategy might not apply to every single asset within the cluster (e.g. the position of the cluster indicates that the government currently plans to invest/divest, and this does not imply that this applies to all assets within the cluster).

Ports are not represented in this figure as there are no maritime ports in this country. (b)

As Figure 4 shows, the governance regime is mostly “centralised” with regard to those

assets for which the central government is responsible for the bulk of the investment

Decentralised

InvestmentInvestment with private investors

involvement

Divestment/Fullyprivate investment

Governanceregime

Investmentstrategy

Centralised

Legend

= Financial assets = Airports

Not clearinvestment

strategy pattern

= Ports = Roads = Railways= Mineral and Energy reserves

= Other naturalresources

= Buildings


Austria

(e.g. the railway network through ÖBB-Infrastruktur AG, and the central government-

owned buildings through BIG m.b.H) (first two quadrants on the left of Figure 4).

The centralised model adopted for most of transport infrastructures forced the central

government to bear the greatest part of investments in transport infrastructures. In

fact, in compliance with the Austrian legislation, the central government must ensure

that ÖBB-Infrastruktur AG and ASFINAG AG have sufficient liquidity and equity to be

able to implement the government transport policy.

Currently, there is no publicly available document that defines the destination of the

proceeds from forecasted privatisations.

4. SYNTHESIS OF STRENGTHS, WEAKNESSES, OPPORTUNITIES AND RISKS

Financial assets

Strengths/Opportunities:

o in order to represent the central government’s interests as owner of

some companies labelled as "strategic", the central government has

transferred the ownership and the responsibility for the operational

decisions on these companies in the hands of a unique PSH fully owned

by the central government, i.e. ÖBIB;

Weaknesses/Risks:

o the mandate of ÖBIB and its objectives are set by the central

government and therefore are strictly depending on political

discretionary decisions;

Non-Financial assets

Strengths/Opportunities:

o the central government has transferred the ownership and the

responsibility for the operational decisions on a significant portion of its

assets in the hands of PSHs fully owned by the central government (e.g.

BIG, ÖBB-Infrastruktur and ASFINAG);

o lack of a unique document or law outlining the government’s general

investment strategy for the asset portfolio as a whole. At the same

time, the central government has not launched any strategies covering

significant portions of the government’s asset portfolio:

the Aviation Road Map 2020 for airports;

ASFINAG six-year master plan for roads;

Öbb-Infrastrukure six-year master plan for railways;

the Austrian Mineral Resources Plan and the Austrian Mineral

Strategy for Mineral and Energy reserves.

Weaknesses/Risks:

o lack of a unique integrated and consolidated National public data source

covering the public asset portfolio as a whole.

Study on State asset management in the EU · SCHOELLER-BLECKMANN Gesellschaft m.b.H. 4 APK...

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