BAM PPP PGGM Infrastructure Cooperatie, the investment joint venture between BAM and Dutch pension fund service provider PGGM, together with BAM Contractors has reached financial close on a roads public private partnership (PPP) contract with the National Roads Authority, for the design, build, finance and maintenance of the N11/N7 Arklow/Rathnew PPP contract.

The team composed of BAM and Balfour Beatty was awarded the project in July 2011 but the financial crisis delayed the financial close of the project substantially. Apparently Balfour Beatty is not in the consortium anymore for the final implementation of the project.

The overall capital value of the project is approximately €282 million. An availability based project, the project financing includes circa €160 million of bank debt which will be provided by senior lenders European Investment Bank and the Bank of Ireland, with a maximum maturity of 25 years, and investment from BAM PPP PGGM Infrastructure Cooperatie UA. The concession fee is based on the availability of the related infrastructure.

Construction work will be undertaken by BAM Contractors Ltd and will commence in July 2013 with completion scheduled for November 2015. BAM Contractors will maintain the roads throughout the 25 year contract.

BAM advisers on the project were Ashurst and PwC.

The Project

• Section A: The N11 Arklow / Rathnew element of the scheme consists of the design, construction, operation and maintenance of approximately 16.5km of dual carriageway in the administrative area of Wicklow County Council.
• Section B: The operation and maintenance of an additional 30km section of the existing M11 route (Arklow-Gorey and Arklow Bypass), which also involves some upgrade works.
• Section C: The design and construction of a service area north of Gorey which will provide facilities for N11 traffic. The service area facilities will be provided on the western side of the dual carriageway with access to and from the southbound carriageway via an overbridge.
• Section D: The design, construction operation and maintenance of the N7 Newlands Cross junction to an overpass grade-separated junction. The N7 mainline will be raised above its existing level while the Belgard / Fonthill Road (R113) will remain at the current level.