Mott MacDonald has been appointed by Sociedad Concesionaria Autovía de la Plata (Acciona, Meridiam and Cintra- Ferrovial) as lender's technical advisor for a major highway upgrade project in western Spain.

The project involves the design, construction, maintenance, operation and finance of a 49km two lane dual carriageway between Benavente and Zamora. The new road will bypass the existing single carriageway through local villages and form the final section of the 809km A-66 Autovía de la Plata highway, connecting Gijon in the north to Seville in the south.

The consultancy's role as lenders' technical advisor is split into two phases. The first is technical and commercial due diligence up to financial close. Phase two covers the construction period and involves monthly monitoring of progress. Construction is expected to take two years.The project will be financed through a 30 year concession period. Revenue for the concessionaire will be derived from an availability payment from the government.

The Acciona - Cintra- Ferrovial - Meridiam consortium signed the concession contract with the Government of Spain in December 2012. InfraPPP understands that the concessionaire was in talks with the European Investment Bank to finance the project as part of its innovative European Union's Project Bond 2020 initiative. The Bank would provide subordinated debt for an A-rated bond issue.

Source: Mott Macdonald & InfraPPP