DG Infra and Eiffage complete prison PPP project in Belgium

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DG Infra and Eiffage complete prison PPP project in Belgium Dutch prison

Benelux-based Infrastructure investor DG Infra and Eiffage last week announced the inauguration of the new prison facility in Marche-en-Famenne, the first facility in Belgium to be realized by way of a Public Private Partnership model.

In June 2011 the Ministry of Justice and the Ministry responsible for the Building Agency concluded a DBFM (design-build -finance-maintain) agreement with a consortium consisting of Eiffage Benelux - Eiffage - DG Infra+ for the realization of a greenfield prison facility located in Marche-en-Famenne, Belgium. This PPP project is part of the Penitentiary Master Plan 2008-2012, which aims to address the issue of overcrowded prisons.

The construction work started end of October 2011 and were finished end of September 2013. The project was completed on time and within budget. As from the availability, the consortium will be in charge of both the long-term maintenance of the prison facility and the provision of a number of support services for a period of 25 years on behalf of the Building Agency as grantor and the Ministry of Justice as user.

The project has an investment of €111 million which was financed with a €84 million debt package .

Manu Vandenbulcke , Managing Director of DG Infra, about this project:

"We are delighted that we had the opportunity to contribute to the realization of this new prison facility which is an integral part of the Penitentiary Master Plan. The excellent cooperation with our industrial partner Eiffage and the grantor was essential for the successful and timely realization of this PPP project. We look forward to a long term partnership ensuring a high quality service to our customers, the Ministry of Justice and the Building Agency. This project demonstrates that by combining different competencies within a Public Private Partnership model, long term capital intensive projects can be realized in a timely and efficient way."

Olivier de Guinaumont, Director Operations and Asset Management - Eiffage:

"This new facility inaugurated today by our client, is the result of an intense collaboration in partnership between the teams of the Building Agency, the prison administration and our companies Valens, Duchêne, Collignon, Reynders and FLIS who realised this turnkey project steered by L'Hourgnette, the project company holder of the DBFM contract. Beyond the construction, we will stay in place with Fexim, for the maintenance and our partner Sodexo for the facility services. The success of this project is also due to the association, between a multi-disciplinary industrial group, Eiffage and an infrastructure investor, DG Infra that made it possible to propose a comprehensive and balanced offer and a long term partnership with our clients."

DG Infra+ is an unlisted investment fund incorporated in 2007. The focus is predominantly on investments in early stage infrastructure and selective real estate assets where there is a degree of construction and development risk, including primary Public Private Partnerships.

DG Infra+ raised €135 million in November 2007. The funds' sponsors, Dexia and GIMV, contributed €30 million each.

Various core investors subscribed at the first closing, including Ethias (BE), Holding Communal (BE), the Société Régionale d'Investissement de Wallonie (SRIW) (BE) and Arcofin (BE).

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