Financial close reached for Milan metro line 4
An Impregilo - led consortium has achieved financial closure for the Milan metro line 4 public private partnership (PPP) project, in Italy.
The project was awarded on 27 May 2011 to the consortium composed by Impregilo, Astaldi, Ansaldo STS, Ansaldo Breda, the Milan municipal transport company and Sirti.
The overall value of the investment, consisting largely of civil works, supply of technological services and mechanical equipment, is estimated at about €1.860 million (US$2.27 billion), of which the Italian State has provided approximately €871 million and Milan City Council has provided about €378 million.
The European Investment Bank (EIB) has provided €300 million financing through the Cassa Depositi e Prestiti (€217.5 million) and Banca Imi (€82.5 million). The remaining project financing has been provided by: Banca Imi, BNP Paribas, Credit Agricole Cib, MPS Capital Services, Natixis and UniCredit.
Impregilo and Astaldi will be responsible, on an equal basis, for the civil works, totaling approximately €870 million overall.
The project envisages total operating revenues of approximately €2.7 billion (US$3.3 billion) throughout the life of the contract, computed on the basis of a minimum traffic of 86 million passengers/year guaranteed by Milan City Council. Impregilo and Astaldi have a 9.6% participation in the concession project.
The new line, which will be driverless and fully automated, will cover a 15.2 kilometre stretch from Linate to Lorenteggio. The project covers detailed and executive design and construction of two single-track tunnels, one in each direction, with 21 stations and a depot/workshop.
The project includes the the engineering, construction and subsequent operation of Line 4 of the Milan underground railway. The concession is for 30 years, including 7 years for engineering and construction works, and the remaining 23 years for the operating phase. The project is currently being developed.
This year we have discussed several Italian PPP projects in our intelligence platform:
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