IXAS Zuid-Oost B.V. has reached financial close for the A9 Gaasperdammerweg (Holendrecht - Diemen) public private partnership (PPP) project.

IXAS Zuid-Oost B.V. is a special purpose company (SPC) created by Ballast Nedam (25%), Fluor (25%), Heijmans (25%) and 3i Infrastructure (25%).

The project includes the design, build, management, maintenance and financing of the existing and new infrastructure of the A9 motorway between Diemen and Holendrecht in the Netherlands.

With this milestone the required project financing is secured. The financing comprises debt and equity. The short term debt of €140 million (US$180 million) and half of the long term debt of around €410 million (US$528 million) has been made available to the project by BNG Bank, DZ BANK, ING, KBC, SMBC and Société Générale.

The European Investment Bank will provide the other half of the long term debt. The equity investment will be made by the four shareholders of IXAS Zuid-Oost B.V., with an equal share.

The project consists of all the work to be performed in connection with the reconstruction and expansion of the A9 motorway between the junctions of Holendrecht and Diemen in the region of Amsterdam, including the bridge over the river Gaasp, the road surface on the A9 Gaasperdammerweg and the construction of an approximately three kilometre overground tunnel.

The work will start after the summer of 2015 and the tunnel will be available for traffic in 2020.

The project has a total nominal value of approximately €700 million (US$902 million), including a 20-year management and maintenance period after the new infrastructure becomes available.

Ballast Nedam, Fluor and Heijmans will participate in the construction and operation phase with an equal share of one third each. The contract with Rijkswaterstaat, the Directorate-General for Public Works and Water Management of the Netherlands, was signed in September 2014.

The A9 Gaasperdammerweg project is the third section of the Schiphol-Amsterdam-Almere (SAA) road expansion. Additional lanes will improve the flow of traffic and the accessibility of the Northern Randstad area. The approximately 3 kilometre tunnel will increase the quality of life in the area, ensuring cleaner air and reduction of noise.

Stibbe was the legal advisor to the project team.

In late June we reported that Rijkswaterstaat published a prior information notice (PIN) for another PPP project, the N18 Groenlo-Enschede highway. The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 25 years after construction.