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The consortium consisting of BAM-PGGM and HABAU has announced the financial close of the A10/A24 Neuruppin to Pankow highway expansion PPP project in Germany. The estimated construction cost is EUR650 million (US$806.54 million).
Under a design, build, finance, maintain and operate contract, the consortium will widen 29.6km of the A10, the highway that orbits the German capital Berlin, to six lanes and completely reconstruct 29.2km of the A24 with four lanes plus an extended hard shoulder. The A24 connects to the A10 to the north-west of Berlin.
In addition to the highway, the construction scope of works also includes several bridges (27 replacement constructions, 10 new constructions, 2 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 BAM’s German civil engineering company Wayss & Freytag Ingenieurbau in cooperation with HABAU. Construction will commence in March 2018 with completion expected in December 2022.
The operation and maintenance services scope, which includes winter maintenance, covers the entire contract section with a total length of 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 until the contract expires in 2048.
The project has been financed through long-term bonds including institutional investors, the details of which have not been disclosed. The European Investment Bank's Structured Finance Facility is providing a EUR250 million (US$309 million) loan. The consortium has also received short-term loans from BayernLB, DekaBank, DZ Bank, Rabobank and Tecta.
The equity sponsors for the project are BAM PPP PGGM Infrastructure Coöperatie (70%) and HABAU (30%).
As reported on this platform, the consortium were selected as the preferred bidder for the project in December, over one other shortlisted team. The tender was launched in June 2015 with best and final offers of the shortlisted teams being submitted in October 2017.
BAM and HABAU have received legal advice from DLA Piper. The lenders were advised by Allen & Overy. The Bank of Tokyo-Mitsubishi UFJ has provided financial advice.