KfW IPEX-Bank, as part of a consortium of commercial banks, and the European Investment Bank (EIB) have agreed to finance the new 47.1 km segment of the A6 motorway between the town of Wiesloch/Rauenberg and the Weinsberg junction in Germany.
The €1.3bn project will include the widening of a 25km section from four to six lanes. It will also also involve the construction of the 1.3km Neckartal Bridge.
The ViA6West consortium, comprising construction firms Hochtief and Johann Bunte Bauunternehmung, and financial investor DIF Infrastructure IV, has been awarded the concession to carry out the public-private-partnership (PPP) project.
The concession period for this PPP is 30 years, and involves the operation and maintenance of the entire section.
Christian Murach, member of the management board of the KfW IPEX-Bank, said: "We are particularly pleased to be able to work together with our esteemed and experienced business partners Hochtief, Johann Bunte Bauunternehmung and DIF on another important German PPP.
"This instrument allows making optimal use of private investor liquidity, while also involving the SME sector in order to upgrade and expand public infrastructure.
"In Germany, PPP has been used only sporadically up until now, whereas in a number of other countries it is already a frequent and successful financing option with a proven track record for large-scale public infrastructure projects."
Construction work on the project is expected to commence in early 2017, and last for five-and-a-half years.
* Data provided by Timetric's Construction Intelligence Center.