Insights and Analysis

The German Grant Procurement Law – How private companies can benefit and what needs to be considered when realising projects

25 September 2025

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Due to an amendment to the Constitution, Germany will invest an additional €500 billion in infrastructure and climate protection projects over the coming years. These projects will also involve grants for private companies. Proper management of these funds is crucial, including compliance with public procurement law, with which private companies may be unfamiliar.

Public procurement law generally applies to public contracting authorities and sectoral contracting authorities when awarding public contracts and concessions. However, private grant recipients may also be subject to public procurement law through ancillary provisions in the grant notice. The key provisions here are the General Ancillary Provisions for Grants for Project Funding (ANBest), which regulate the application of procurement law. Additionally, the grant notice may specify requirements, such as inviting at least three qualified and capable companies to submit bids.

Understanding the complex requirements of public procurement and grant law is essential to avoid risks such as grant revocation or financial recovery.

For a deeper dive into the legal requirements and practical steps read the original article, published in NZBau 2025 Heft 8 Inhaltsverzeichnis - beck-online (in German only) or contact the author or your Hogan Lovells lawyer. We are here to help you navigate the process and maximise your potential to benefit from Grant Procurement Law.

Authored by Dr. Jonathan Möller.