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The Organisation for Economic Cooperation and Development (OECD) will support the government of Slovenia to select a PPP model for the Koper - Diva?a rail link upgrade project.
The government will pay €160,000 for the services, in exchange the OECD will draw a list of possible PPP models that will include financial, technical, social and economic aspects of each model and possible risks associates.
The project involves the upgrade of the Diva?a-Koper rail link, which at the moment is a 50-kilometre single track line that connects Ljubljana and Diva?a with the coastal town of Koper.
After a PPP model is selected the government will launch a tender process to select a private partner. Construction works are expected to start by 2016.
The total project investment is estimated at €1.4 billion (US$1.59 billion). To finance the project, the goverment plans to submit an application for funding under the Connecting Europe Facility (CEF). The proposed project could obtain around €380 million (US$433 million) form the CEF.
The project is a key infrastructure for the Port of Koper, which will hit its limit within years if the track, currently the biggest bottleneck on the rail network, is not upgraded. Transport of merchandise through the port of Koper increased by 42.5% between 2004 and 2013.
We have recently reported about several rail PPP projects globally: