Financial close for GBP 1bn transport project in UK

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Financial close for GBP 1bn transport project in UK

Transport for London (TfL) and the RiverLinx consortium – comprising Macquarie Capital, Cintra, Aberdeen Standard Investments, BAM PPP PGGM, and SK E&C – have announced that they have reached financial close with Transport for London on the Silvertown tunnel project.

The signing of the contract to design, build, finance, operate and maintain the tunnel will now allow the consortium’s construction team of BAM Nuttall including sister company Wayss & Freytag Ingenieurbau, Ferrovial Agroman and SK E&C to progress with appointing the local sub-contractors and suppliers who will support the project. This will help deliver a vital piece of infrastructure to prepare for London’s future population growth and relieve chronic congestion and poor air quality around the Blackwall tunnel.

Silvertown will be the UK’s first major road tunnel to include a dedicated bus line in both directions. This will improve cross-river public transport connections, with around 37 buses an hour during peak periods in each direction using the tunnel, including the current six single-decker buses per hour which run through the Blackwall tunnel.

This will result in the proportion of cross-river trips via public transport in this area rising from 10 per cent to 30 per cent. These buses are all expected to be zero emission vehicles and will support the growing demand for bus transport across Greenwich, Newham and Tower Hamlets.

When the tunnel opens in 2025, it will support future population growth in this part of London – and minimise the growing delays through the 122-year-old Blackwall Tunnel.

In a highly competitive process, 15 international lenders have agreed to provide financing for the GBP 1 billion (USD 1,29 billion) project, providing value for money for TfL. These include Aviva, Credit Agricole, DZ Bank, Instituto de Credito Oficial, Korea Development Bank, KEB Hana, Export-Import Bank of Korea, Korea Trade Insurance Corporation, KfW IPEX-Bank, Norinchukin, Royal Bank of Canada, Samsung Life, Shinsei Bank, SMBC and Woori Bank.

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