MegaProject 711: Financial close for A6 highway in the Netherlands
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The Dutch Ministry of Infrastructure and the Environment (Rijkswaterstaat) and Parkway 6, a consortium of John Laing Group, Dura Vermeer, BESIX and Rebel, have recently announced that they have reached financial close to deliver the A6 Almere Havendreef - Almere East PPP project.
The contract has a total value of approximately €300 million (US$340.92 million) and the European Investment Bank (EIB) has committed to provided nearly €80 million (US$90.91 million), fully guaranteed under the European Fund for Strategic Investments (EFSI). Two other commercial banks, Bank of Tokyo Mitsubishi UFJ (BTMU) and Deka Bank provided an €160m loan with a 24-year tenor.
It is also known that John Laing’s equity contribution is €12 million for an 85% share in the Parkway 6 consortium
The project involves the upgrade and redevelopment of the A6 Almere highway from 2 x 2 to 4 x 2 (lanes). The project will include the design, build, finance and maintenance (DBFM) of the road for a period of 20 years.
The A6 Almere highway runs over 100 kilometers in length and it connects the A1 motorway at interchange Muiderberg with the A7 motorway at interchange Joure. The A6 Almere highway, of which the largest part is located in the province of Flevoland, is the shortest route between the city of Amsterdam and most parts of the northern provinces of Friesland and Groningen.
The beginning of construction work of the road is scheduled for 2017 and will last until no later than 2020.
The growth of the town of Almere, together with forecast traffic increases on this road section, has created the need to expand the road's capacity. The widening will allow for a smoother flow of traffic, thus reducing traffic jams and emissions.
Clifford Chance and Turner & Townsend advised the lenders. The consortium was advised from Allen & Overy, Rebel, Marsh and Turner & Townsend.
The Dutch Ministry of Infrastructure and the Environment was advised by Pels Rijcken and PwC.
John Laing CEO Olivier Brousse said:
"This road project in the greater Amsterdam region will improve traffic flow through an important economic corridor and use state of the art solar panels to power the lighting of the motorway. John Laing is delighted to be involved in such an important project for the Netherlands, operating alongside partners Dura Vermeer and BESIX and reinforcing our presence as an active investor in Dutch infrastructure projects."
Pim van Ballekom, EIB Vice-President, added:
“Transport has always been one of the main priorities for the EIB. This project shows the Bank’s broad commitment for this sector in the Netherlands. I am particularly pleased that this public-private partnership is guaranteed under the EFSI. Getting concrete projects off the ground is our main contribution within the Juncker-Commission’s Investment Plan for Europe and this well-structured PPP sets an example for other transport projects in Europe."