The European Investment Bank (EIB) is providing a €29 million loan over a period of 27 years to develop the Zwettl bypass PPP project in Austria.

The contractor is the special purpose vehicle "Umfahrung Zwettl Errichtungs- und Betriebsgesellschaft mbh", which was established by the companies Swietelsky and Leyrer+Graf for the sole purpose of the project.

The consortium is working with the State of Lower Austria and the Administrative Bureau for Road Works and Road Administration.

The project will considerably relieve of congestion and noise the city of Zwettl. This will be due to the construction of about 10.6km of the city by-pass realised by the public private partnership (PPP).

About 16,000 vehicles per day enter or leave the city on main arteries, of which approximately 1,600 are heavy goods vehicles. By mid-2017, when the opening to traffic is expected, the new by-pass will considerably relieve the existing streets currently used to cross the city from up to approximately 50 percent of the total traffic volume. Heavy goods vehicles will be redirected to the by-pass.

The project will be developed on a design, build, financing, operation and maintenance (DBFOM) basis.

The total project investment has not been disclosed. According to sources, it is expected that 50 percent of the debt capital will be provided by Unicredit Bank Austria AG.

EIB Vice-President Wilhelm Molterer said regarding the financial close:

"The successful realisation of public infrastructure projects has long been relying on engagement by private investors. When tapping into this potential, the EIB and its instruments play a decisive role. By joining the financing of the by-pass, the EU bank is supporting this long-term project mounted by private partners. Furthermore, it is signalling to other promoters and potential investors that complex projects with long maturities can obtain reliable financing."