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The sponsors of the EUR1 billion (US$1.15 billion) Blankenburg Connection PPP project have announced that the project has reached financial close. The project involves the design, construction, financing and maintenance of new road links between Rotterdam and its port, and is the largest PPP project awarded in the Netherlands to date.

The Dutch government's Directorate-General for Public Works and Water Management, Rijkswaterstaat, awarded the project to the BAAK consortium in August 2017. The consortium is comprised of Macquarie Capital (70% ownership of concessionaire), Ballast Nedam (15%) and DEME (15%). Commercial close was achieved in December 2017.

Since then, the consortium has further developed the designs and obtained the required permits. Following the effective Route Degree in July 2018, the consortium commenced construction on 1 September 2018.

Around EUR900 million (US$1.04 billion) financing has been provided by a mix of commercial floating rate lenders (KBC, The Korea Development Bank, Belfius, KfW, BNG and SMBC) and fixed rate institutional lenders (Natixis, MEAG and Samsung Life Insurance). Macquarie Capital acted as the sole financial advisor and debt arranger.

The European Investment Bank (EIB) provided 50% of the term loan, totalling approximately EUR330 million (US$380.8 million), backed by the European Fund for Strategic Investments (EFSI).

The BAAK consortium will deliver a new highway connection of approximately 4km (linking the A15 and the A20 roads, to the west of Rotterdam) including a c.500m land tunnel (Holland Tunnel), a c.900m immersed tunnel (Maasdelta Tunnel), two major flyovers and the widening of the existing A20. Following a construction period of 5.5 years, the consortium will then maintain the new road connection for 20 years.

Engineering, procurement, construction and maintenance will be carried out by an integrated joint venture between Ballast Nedam Infra and the DEME Group companies DIMCO BV and Dredging International. DIMCO and Ballast Nedam will execute all civil infrastructure works, tunnel installations and project management activities. Dredging International will perform the trench dredging and nautical works, and DIMCO will perform the immersion works of the tunnel elements on the busy fairway to the Port of Rotterdam.

The new highway is scheduled to open in 2024.