Ferrovial, through subsidiary Cintra Infraestructuras, has achieved financial closure of the Bratislava ring road PPP project , in Slovakia. The total projected investment is €975 million (US$1.1 billion). 

The EIB has signed a €426 million financing for the development of the project and the EBRD is supporting the project with debt facilities of up to €150 million. The funds are part of a larger package totaling €875 million provided to the concessionaire. Other participants include the Slovak Investment Holding, Instituto de Credito Oficial (ICO) and Unicredit, CSOB, Sumitomo Mitsui Banking Corporation (SMBC) and Credit Agricole as commercial lenders.

As we reported in early February, the consortium formed by Cintra, Macquarie and Porr was chosen as preferred bidder by Slovakia’s Ministry of Transport. Subsequently, commercial closure was achieved at the end of May.

The winning consortium, through a bid requesting an annual payment of €56.72 million (US$61.6 million), beat out competition from:

• Meridiam and Vinci (advised by HSBC). The team bid for an annual payment of  €69.01 million,
• Hochtief, Iridium, ACS, and DIF (advised by SocGen). The team bid for an annual payment of  €76.78 million; and 
• Strabag, John Laing, and Reding (advised by MUFG). The team bid for an annual payment of  €91.04 million. 

The project consists of the design, construction, finance, operation and maintenance (DBOM) of approximately 27 km two dual-lane sections of the D4 motorway around Bratislava and some 32 km three sections of the radial R7 expressway under the terms of a 30 year concession agreement. The key objectives of the project are to reduce traffic congestion in the Slovak capital, Bratislava, speed up access to motorway networks (D4, D1, D2) and partially reduce traffic on the road network in the catchment areas of Bratislava.