US$800 million road PPP in Germany reaches financial close

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
US$800 million road PPP in Germany reaches financial close

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The consortium consisting of BAM-PGGM and HABAU has announced the financial close of the A10/A24 Neuruppin to Pankow highway expansion PPP project in Germany. The estimated construction cost is EUR650 million (US$806.54 million).

Under a design, build, finance, maintain and operate contract, the consortium will widen 29.6km of the A10, the highway that orbits the German capital Berlin, to six lanes and completely reconstruct 29.2km of the A24 with four lanes plus an extended hard shoulder. The A24 connects to the A10 to the north-west of Berlin.

In addition to the highway, the construction scope of works also includes several bridges (27 replacement constructions, 10 new constructions, 2 demolitions), noise protection walls, traffic sign bridges, traffic management installation, interchanges, rest areas and secondary/agricultural roads.

The construction activities will be carried out by BAM’s German civil engineering company Wayss & Freytag Ingenieurbau in cooperation with HABAU. Construction will commence in March 2018 with completion expected in December 2022.

The operation and maintenance services scope, which includes winter maintenance, covers the entire contract section with a total length of approximately 64.2 km of motorway, including 51 bridges (37 new constructions and 14 existing). The O&M works will be carried out by BAM PPP and HABAU until the contract expires in 2048.

The project has been financed through long-term bonds including institutional investors, the details of which have not been disclosed. The European Investment Bank's Structured Finance Facility is providing a EUR250 million (US$309 million) loan. The consortium has also received short-term loans from BayernLB, DekaBank, DZ Bank, Rabobank and Tecta.

The equity sponsors for the project are BAM PPP PGGM Infrastructure Coöperatie (70%) and HABAU (30%).

As reported on this platform, the consortium were selected as the preferred bidder for the project in December, over one other shortlisted team. The tender was launched in June 2015 with best and final offers of the shortlisted teams being submitted in October 2017.

BAM and HABAU have received legal advice from DLA Piper. The lenders were advised by Allen & Overy. The Bank of Tokyo-Mitsubishi UFJ has provided financial advice.

List of country news

Country news

  • January 04, 2018

    VINCI awarded school PPP in Cologne

    VINCI Facilities SKE, the German subsidiary of VINCI Energies, has been awarded a contract to restructure, expand and manage four schools by the City of Cologne. The value of the 29-year PPP contract is EUR163.5 million (US$196.7 million). It took effect on 1 January 2018.

    Read more
  • December 20, 2017

    Allianz Group announces restructure of investment divisions

    The Allianz Group has announced that from 1 January 2018, Allianz Capital Partners (ACP) will become a discrete entity under the umbrella of Allianz Global Investors (AllianzGI).

    Read more
  • December 19, 2017

    Success for BAM-PGGM and HABAU in German road tender

    On December 15, 2017, the consortium consisting of BAM-PGGM and HABAU was appointed preferred bidder for the A10/A24 Neuruppin to Pankow project in Germany by the German Unity Motorway Planning and Construction Company (DEGES GmbH), a publicly-owned project management company representing the Federal Republic of Germany.

    Read more
  • December 04, 2017

    The Marguerite Fund sells a portfolio of five assets to Pantheon

    Marguerite has announced the sale of a portfolio of renewable and concession-based assets by the Marguerite Fund to Pantheon.

    Read more
  • October 25, 2017

    BAFOs in for a €400MM-German road PPP

    Best and final offers have been submitted for Germany’s A10/A24 Neuruppin-Pankow German A-Model motorway PPP project.

    Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.