BAM PPP PGGM Infrastructure Coöperatie, (the joint venture between BAM PPP and PGGM) and its consortium partners VAMED and DIF have reached financial close on the University Hospital Schleswig-Holstein (UKSH) PPP project in Germany.
BAM (50%) and VAMED (50%) are responsible for the planning, new construction and renovation of one of Europe's largest centres for medical care at its locations in Kiel and Luebeck in Germany.
The total costs for construction and renovation amount to €520 million (US$658 million). 75% of the project finance debt will be provided by UKSH as milestone payments, the consortium partners and commercial funders will provide the remaining 25% of the debt as equity and long term funding.
Construction will commence early 2015 and reach completion in 2021. The operational phase will include hard facilities management and technical management services and will run until 2044.
Christian K. Murach, member of the Management Board of KfW commented:
PPPs are becoming increasingly popular in Germany: The financing for the Medical Center that has now been closed is another example of how the flexible financing option of PPP is able to use the ample liquidity of private investors in order to renew and expand social infrastructure while at the same time easing the burden on public-sector budgets.
Germany has several social PPP projects in tender stage.