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The European Bank for Reconstruction and Development (EBRD) is considering the provision of project financing for the D4 - R7 expressways PPP project in Slovak Republic.
The total project investment is estimated at €1.4 billion (US$1.5 billion) and the EBRD is considering providing a €150 million (US$161 million) loan to finance the development of the 59 km road.
The project consists of the design, construction, finance, operation and maintenance of approximately 27 km two dual-lane sections of the D4 motorway around Bratislava and some 32 km three sections of the radial R7 expressway under the terms of a 30 year concession agreement.
The key objectives of the project are to reduce traffic congestion in the Slovak capital, Bratislava, speed up access to motorway networks (D4, D1, D2) and partially reduce traffic on the road network in the catchment areas of Bratislava.
We announced in June 2015 that four teams led by Vinci, Strabag, Porr and Hochtief had been shortlisted for the project. Later on August 19th the EIB announced that the Slovakian government made a request to get €500 million EIB's financing for the project.
The concessionaire for the project is expected to be selected in late November 2015.
A consortium composed of PwC, White & Case and the Obermeyer Corporate Group is advising the government on the PPP project.
The new road will be Slovakia's second-ever PPP project. The first PPP project awarded was the R1 Expressway project between Nitra and Banská Bystrica. A consortium of Vinci Concessions and Meridiam Infrastructure is the sponsor of the project.
We have recently reported on several road PPP projects in Europe: