A consortium comprising BAM-PGGM and Habau has achieved financial close on the Availability Model A10/A24 AS Neuruppin to AD Pankow road project in Germany.
The construction volume is €650m.
The project includes the design, build, finance, maintain and operate contract, which involves the widening of the A10 to six lanes for a length of 29.6km and the reconstruction of the A24 with four lanes plus an extended hard shoulder for a length of 29.2km.
The scope of work includes the construction of several bridges (27 replacement constructions, 10 new constructions, two demolitions), noise protection walls, traffic sign bridges, traffic management installation, interchanges, rest areas and secondary/agricultural roads.
BAM’s German civil engineering company Wayss & Freytag Ingenieurbau will carry out the construction activities in collaboration with Habau.
Construction on the project will begin in March 2018 with completion is expected in December 2022.
The scope of work of operation and maintenance (O&M) services, which includes winter maintenance, covers the complete contract section of 64.2km of motorway, including 51 bridges (37 new constructions and 14 existing).
BAM PPP and Habau will carry out the O&M works and these works will run until 2048.
The financing structure comprises a long-term bond funding, including institutional investors. In addition, the European Investment Bank (EIB) will provide its Structured Finance Facility. Short-term facilities will be provided as bank loans.
The funders are BayernLB, DekaBank, DZ Bank, European InvestmentBank, Rabobank and Tecta. The equity sponsors for the project are BAM PPP PGGM Infrastructure Cooperatie (70%) and Habau (30%).
Consultants for the project include legal advisers DLA Piper (sponsors) and Allen & Overy (lenders) as well as the financial adviser Bank of Tokyo-Mitsubishi UFJ.
BAM PPP is an operating company of the Royal BAM Group. The group involves in public-private partnership (PPP) projects through BAM PPP, which operates in the Netherlands, Belgium, the UK, Ireland and Germany.
PGGM, a cooperative Dutch pension fund service provider, offers asset management, pension fund management, policy advice and management support to institutional clients.