Vinci Highways, a subsidiary of Vinci Concessions, has secured a total of €441M in financing for the construction of the A7 motorway, which covers a 60km section between the Bockenem and Göttingen interchanges in Germany.
The funding includes two long-term and two short-term tranches. The European Investment Bank, CaixaBank, Development Bank of Japan (DBJ), DZ Bank and KfW IPEX-Bank underwrote the debt. The arrangement also includes a €126M grant from the German government.
The financial arrangement follows the decision by the federal government to award the contract for the A7 project to a consortium led by Vinci Concessions — which also includes Meridiam Infrastructure — in February 2017.
The scope of the 30-year public-private partnership (A-Model) contract, which will become effective on 1 May 2017, covers financing, design, programme management (upgrade and widening works), operation and maintenance of the A7.
It will also involve the replacement of a 29.2km section with a new motorway (three lanes each way) while keeping the existing route open to traffic.
A consortium headed by Vinci subsidiary Eurovia as well as two local firms, Stutz and Rhode, will take nearly three and a half years to complete the works.
The A7 represents Vinci Highways’ fourth public-private partnership contract in Germany, where the company currently manages a 220km network.
* Data provided by Timetric's Construction Intelligence Center.