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| Hochtief consortium reaches financial close for Canadian ring road A consortium around Hochtief Solutions subsidiary Hochtief PPP Solutions North America and ACS has reached the financial close for the Northeast Anthony Henday Drive project in Edmonton, Alberta, Canada. The public-private partnership (PPP) will design, build, operate and partially finance the project at an overall contract value of EUR 1.39 billion (CAD $1.81 billion) over 34 years. Sections of the ring road were built in the 1970s and the 1990s. The current Anthony Henday Drive project began in 2000 with the construction of the southwest section. Hochtief and ACS responded to the procurement process which began in March 2011 and cooperated closely to secure the contract, bringing in other members of the corporate group. The construction work, for instance, is to be carried out by a joint venture which includes group subsidiaries Flatiron and Dragados. Hochtief and ACS each hold a stake of 25 percent in the concession company. Flatiron and Dragados each hold a 33.75 percent share in the construction joint venture. The PPP project will be financed by the issuance of a bond which has been placed extremely successfully: The CAD $535 million bond issue, which has received an A- rating, was met with great interest on the part of investors and was over-subscribed. In their assessment, the rating agencies particularly emphasized the great experience of the companies concerned in designing, financing and constructing transportation infrastructure projects. The project will include the construction of 27 kilometers of six- and eight-lane divided roadway, nine interchanges, two road flyovers, eight rail crossings (flyovers), and two bridges across the North Saskatchewan River, for a total of 46 bridge structures. Construction will commence in June 2012, with completion of the project scheduled for the fall of 2016. write your comments about the article :: © 2012 Construction News :: home page |