Meridiam-led consortium completes construction of E-18 PPP in Finland
The E18 Motorway connecting Koskenkylä and Kotka, Finland, has been completed ahead of schedule on 1 September, with the last two sections of the 53-km road opening to traffic.
In 2011, the national Finnish Transport Agency (FTA) awarded the PPP project. Construction began in November 2011 and the motorway was already partially opened to traffic since 2013. The project achieved financial close on 8 December 2011.
The project involves the stretch of the E18 motorway between Koskenkylä and Kotka in South Finland. It includes the conversion of the current highway into a motorway in the existing section from Koskenkyla to Loviisa (17 km), and the construction of a new motorway from Loviisa to Kotka (36 km). The motorway have six new interchanges and 68 bridges.
The project has been developed on a design, construction, financing, management and maintenance basis. The concession period is 15 years from 2011 to 2026.
The total project investment is €424 million (US$554.5 million). Nordic Investment Bank (NIB) provided in late 2011 a 14-year-maturity loan totalling €91 million for financing of the project.
The project concessionaire is Tieyhtiö Valtatie 7, a consortium formed by Meridiam (60%), Ilmarinen Pension Insurance Company (19.9%), Destia (10.05%), and YIT Construction (10.05%).
The road is strategically important as it is a part of the E18 corridor connecting Helsinki to continental Europe and Russia. The E18 international corridor is prioritised by the EU and stretches in Finland from Turku and Naantali via the Helsinki Metropolitan Area to Vaalimaa at the Russian border. The project will also enhance the connection between urban centres along the southern coast of Finland.