HICL Infrastructure acquires stakes in Dutch PPPs

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HICL Infrastructure acquires stakes in Dutch PPPs

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, has acquired equity interests in two Dutch PPP projects from Ballast Nedam:

  • A 20% interest in the A9 Gaasperdammerweg (Holendrecht - Diemen) PPP road project; and
  • An incremental 25% interest in the Zaanstad prison PPP project.

The total consideration of €21.3 million (US$22.3 million) includes a loan stock subscription obligation payable following the substantial completion of construction of the A9 Project.

The A9 Project, an availability-based road PPP, has a capital value of €574 million (US$607 million) and forms part of the Schiphol - Amsterdam - Almere Corridor Programme which is intended to increase the capacity of the motorways to the south and east of Amsterdam.  Construction and maintenance works are being undertaken by a single joint venture contractor comprising Ballast, Heijmans and Fluor, with construction scheduled to be substantially completed in 2018.  The concession ends in 2038.  Ballast retains a 5% shareholding and provides management services to the project company.

The Zaanstad Project, an availability-based PPP, comprises the construction and operation of a new correctional facility with a capacity of approximately 1,000 detainees.  The facility reached construction completion in March 2016 and maintenance works are being undertaken by Ballast.   Custodial services do not form part of the project's scope of services.  HICL acquired a 75% interest in the Zaanstad Project in March 2015 and with this incremental investment now owns 100% of the equity and loan stock.

The consideration paid for the projects was funded from existing cash resources. The letter of credit associated with the loan stock subscription obligation for the A9 project was provided using the company's existing revolving credit facility.

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