KfW IPEX-Bank finances A9 motorway section in Thuringia
Frankfurt am Main (ots)
- Innovative financing of a PPP project - executed by VINCI and
Royal BAM
- Improving transport infrastructure and economic development in
Eastern Germany
- Expanding the Trans-European Network (TEN)KfW IPEX-Bank together with Spain's Banco Bilbao Vizcaya Argentaria (BBVA) is financing the refurbishment, operation and maintenance of a 46.5 km section of the A9 motorway in the eastern German state of Thuringia.
The contract for the implementation of this public-private partnership (PPP) project was awarded to a consortium formed by the French and Dutch construction groups VINCI (lead) and Royal BAM, respectively. Under the project, the motorway will be widened from four to six lanes on a stretch of 19 km so traffic on the whole section can run on six lanes from the end of 2014.
The total investment cost of the project will be around EUR 220 million, which will be financed by public funds, equity from the construction groups and the loans provided by KfW IPEX-Bank and BBVA. The agreements were signed in Frankfurt yesterday. "I am pleased that we are able to participate in the refurbishment of this important motorway section", said Christian K. Murach, Managing Director of KfW IPEX-Bank, on the occasion of the signing of the agreement. "The improved accessibility of the region to the European highway network is an important element for the economic development in general. With this financing KfW IPEX-Bank also underscores its important role in structuring financings for infrastructure projects carried out by the private sector in Germany and Europe."
Construction is expected to start in October 2011. The A9 motorway links Berlin and Munich and is of special importance as the major north-south connection between Bavaria and eastern Germany. It is part of the Trans-European Network (TEN) with which the European Union intends to establish a uniform transport infrastructure and, in this way, better connections within Europe.
The A9 project is the first PPP project for upgrading a national motorway using an "availability model" in which the private operator and the financing banks bear the construction, operation and maintenance risk. Unlike in comparable projects carried out in the past, under this model the private operator is paid on the basis of the availability to traffic and quality of the motorway section rather than the actual traffic volume or toll revenues.
About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium- and long-term lending to support the export economy and develop economic and social infrastructure, and for environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has 526 employees (as of 31 December 2010) and is represented in the key economic and financial centres around the globe.
About VINCI Concessions
VINCI is the world leader in concessions and construction, employing 180,000 people in some 100 countries. It designs, finances, builds and operates facilities that improve everyday life including transport infrastructures, public and private building construction, urban development and water, energy and communications networks. As a private sector company VINCI contributes to the development of society, blending the group's business focus on today's priorities with the long-term challenges of the accomplished projects and the forward-looking concessions-construction business model.
About BAM PPP
BAM PPP is a company of the Royal BAM Group, a global construction group with an annual turnover of around EUR 8 billion. The Royal BAM Group has extensive experience and expertise in almost all construction segments, with top market positions in Benelux, Germany, the UK and Ireland. Within the Royal BAM Group, BAM PPP is responsible for PPP project investment and management. BAM PPP currently has 27 projects in its portfolio in the road and rail, education, health and justice sectors.
Wayss & Freytag Ingenieurbau AG is a subsidiary of the Royal BAM Group. The company has a turnover of approx. EUR 300 million and is primarily active in the German civil engineering and international tunnelling markets. Wayss & Freytag Ingenieurbau works in compliance with the applicable standards for quality management and environmental protection and always strives for the highest possible standard of safety at work.
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