VINCI Highways completes the financial arrangements for the A7 motorway PPP in Germany
VINCI Concessions subsidiary VINCI Highways recently completed the financial arrangements for the A7 motorway public-private partnership covering a 60 km section between the Bockenem and Göttingen interchanges in Germany.
Total financing amounts to €441 million, and encompasses 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, and the arrangement includes a €126 million grant from the federal government.
This financial arrangement follows the decision by the federal government, represented by the Lower Saxony authorities, to award the contract for the A7 project to a consortium led by VINCI Concessions and also comprising Meridiam Infrastructure, in February 2017. The contract will take effect on 1 May 2017.
This 30-year A-Modell contract covers financing, design, programme management (upgrade and widening works), operation and maintenance of the A7. The works involve entirely replacing a 29.2 km section with a new motorway (three lanes each way) while keeping the existing route open to traffic throughout this phase.
A consortium led by Eurovia, the VINCI subsidiary specialised in transport infrastructure construction and urban development projects, and including Stutz and Rhode, two local companies, will take about three and a half years to complete the works.
This new contract is bolstering VINCI Highways' leadership in Germany's motorway public-private partnership market, which it has built on the back of its technical expertise and outstanding cooperation with the federal government and local authorities. The A7 should meet the world's highest quality and safety standards amid sharp traffic growth.
The A7 is VINCI Highways' fourth public-private partnership contract won in Germany, where the company now operates a 220 km network. VINCI Concessions is also a shareholder in Toll Collect, which installed and now operates the satellite-based toll collection system for heavy goods vehicles covering Germany's motorway network.
The VINCI Group is active in Germany in all of its businesses. In this country, it employs more than 13,000 people and generated €2.7 billion in revenue in 2016.
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