Macquarie team signs telecom P3 project in the state of Kentucky

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Macquarie team signs telecom P3 project in the state of Kentucky

The government of Kentucky, USA, and Macquarie Capital - First Solutions consortium have achieved commercial closure of a telecom public private partnership (P3) project.

Macquarie and its partner First Solutions are the project's sponsors. Fujitsu Network Communications Inc. will be responsible for network design, equipment, operations and maintenance and refresh, Black & Veatch will be responsible for the design-build of the outside plant and Bowlin Group, a local Kentucky wire and fiber-line contractor based in Walton, will be responsible for the construction services.

The project involves the development of a High-speed broadband network in Kentucky. The project will have more than 3,000 miles of fiber across the state. The fiber will be in all 120 counties and it is planned that Eastern Kentucky will be the first priority area. It is expected that more than 100 key properties will be connected, including universities, state government buildings and community and technical colleges.

The project includes the design, development, operation and maintenance of the new facilities for a period of 30 years.

The contract has an estimated value between US$250 million and US$350 million. The final value of the contract depend on the possibility of using some existing fiber line that is buried or aerial.

According to sources, the project is expected to be be supported by about US$30 million in state bonds and between US$15 million to US$20 million in federal grants.

Nick Hann, Macquarie Capital's managing director, commented:

"Macquarie Capital and its partners are extremely excited about the opportunity to develop this network under the public-private partnership model, bringing together a team of market leading specialists focused on implementing the network as quickly as possible,"

Currently only about half of the Kentucky's households use broadband service and about 23 percent of rural areas in the state do not have access to broadband.

In mid October we reported that Macquarie Capital had proposed a PPP project to complete the development of the Utah fiber optic network, UTOPIAMacquarie's proposal involves the completion of the project under a 30-year contract to operate and upgrade the fiber optic network.

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