Success for BAM-PGGM and HABAU in German road tender

Success for BAM-PGGM and HABAU in German road tender

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On December 15, 2017, the consortium consisting of BAM-PGGM and HABAU was appointed preferred bidder for the A10/A24 Neuruppin to Pankow project in Germany by the German Unity Motorway Planning and Construction Company (DEGES GmbH), a publicly-owned project management company representing the Federal Republic of Germany.

The project is located in the state of Brandenburg, which encompasses the German capital, Berlin. It is expected to reach financial close in February 2018. As reported on this platform, following initial submissions, the BAM-PGGM-HABAU consortium was shortlisted by the German government in May this year. Final offers for the project were submitted in October

The design, build, finance, maintain and operate contract comprises the widening of the A10 to six lanes for a length of 29.6 km of motorway and the complete reconstruction of the A24 with four lanes plus an extended hard shoulder for a length of 29.2 km. In addition to the motorway, the construction scope of works also includes several bridges (27 replacement constructions, 10 new constructions, and two demolitions), noise protection walls, traffic sign bridges, traffic management installation, interchanges, rest areas and secondary/agricultural roads. The construction activities will be carried out by German civil engineering company Wayss & Freytag Ingenieurbau, a subsidiary of BAM,  in cooperation with HABAU.

O&M services (including winter maintenance) will be provided along the total length of the project, approximately 64.2 km of motorway, including 51 bridges (37 new constructions and 14 existing). The O&M works will be carried out by BAM PPP and HABAU.

The construction period is approximately five years, and the overall project period is 30 years.

The equity sponsors for the project are BAM PPP PGGM Infrastructure Coöperatie (70%) and HABAU (30%). They will be remunerated through availability payments.

In August 2015, the European Investment Bank (EIB) approved a financing package of EUR284 million (US$334.5 million) for the project. 

The A10/A24 is the first of 11 projects launched together by the Ministry of Transport in May 2015 as a collective of "new generation" PPPs. The projects that make up the "new generation" comprise around 600km of federal highways and national roads, with a total investment of around EUR7 billion (US$8.25 billion). On top of this, the government plan to invest a further approximately EUR7 billion for other components of PPP projects, (pro rata) funding, operation and structural maintenance.

The scheme focuses on upgrading busy highways, structural maintenance projects and filling existing gaps in road service. It marks the implementation of PPP projects for the first time on national roads.

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