Germany pre-qualifies two bidders for a €400 MM road PPP

Germany pre-qualifies two bidders for a €400 MM road PPP

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The German government has prequalified two bidders – BAM PPP PGGM and Vinci – for its A10/A24 Neuruppin-Pankow A-model road PPP in Brandenburg.

The deadline for submitting bids was February 23. A consortium formed by Strabag and Meridiam also submitted an initial bid but it has not been prequalified.

Technical and financial proposals are expected to be submitted in the third quarter of 2017.

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.

Operis performed the audit of the financial model, including a full tax and accounting review.

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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