BAFOs in for a €400MM-German road PPP

BAFOs in for a €400MM-German road PPP

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Best and final offers have been submitted for Germany’s A10/A24 Neuruppin-Pankow German A-Model motorway PPP project.

As we reported in mid-May, the German government prequalified two bidders – BAM PPP PGGM and Vinci – for the project. A consortium formed by Strabag and Meridiam also submitted an initial bid but it has not been prequalified.

The project is being procured by German Unity Motorway Planning and Construction Company (DEGES), the government-owned company that is managing the tender on behalf of the federal government. The tender was launched in May 2015.

The project involves the widening of the A10 highway to six lanes for 29.6 km and the complete reconstruction of a 29.2 km section of the A24 road.  The 30 year contract will also include the operation and maintenance of the widened and reconstructed sections and will be remunerated on an availability basis.

The contract has a value estimated at €400 million (US$445 million). 

The main economic benefits of the project will stem from reduced travel times and improved road safety, thanks to enhanced road capacity. Likewise vehicle operating costs for road users are expected to decrease.

As we reported in August 2015, Germany was seeking help from the European Investment Bank to finance the project. The total financing sought from the bank amounted to €284 million.

The project is the first of a pipeline of 11 road projects, totalling €7.5 billion, to be procured by the German Ministry of Transport and Digital Infrastructure under their “Neuen Generation ÖPP” (New Generation PPP)programme, announced in April 2015.. The second project, the A3 Biebelried - Fürth/Erlangen road PPP, was launched last October. 

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