VINCI completed the financing of the PPP of the new B247 federal road in Germany
credit-DEGES-Michael Ritter 2019
23 September 2021 - 6:15 pm - New contracts - Germany
· First federal road to be built and operated under a PPP scheme in Germany
· A 30-year PPP representing a total investment of about €500 million
On 17 September 2021, VINCI Concessions successfully completed – within a record time of two months - the financing of the PPP contract for the new B247 federal road linking the cities of Mühlhausen and Bad Langensalza, in the Free State of Thuringia. The contract had been awarded in July 2021 by the DEGES, the public body in charge of developing transport infrastructure in Germany.
This 30-year PPP represents a total investment of about €500 million, and covers the design, financing, construction, maintenance and operation of the new 22-km road. Design and build also include additional 6 km of crossing sections. Income of VINCI Concessions will be based on availability criterion, without any traffic risk (availability payment).
VINCI Concessions created a special purpose company, which will be in charge of program management, future operations and maintenance.
Works, estimated at around €350 million, will begin on 1 October 2021 and will last about 4 years. The project will be financed by €186.5 million of debt – mainly 30-year private bonds – and grantor’s subsidy. Construction will be conducted by VINCI Construction subsidiaries in Germany (Eurovia Deutschland and VINCI Construction Terrassement). It will include the recycling and reuse of up to 30% of asphalt and 100% of concrete from the existing section.
With a daily estimated traffic of 15.000 vehicles, including around 15% heavy trucks, the new road will fluidify mobility in North-East Thuringia, improve road safety and the quality of life for the local residents by relieving traffic from the existing road that crosses right through the neighboring cities.
As the first German federal road ever attributed to a private operator under a PPP scheme, this project also reinforces VINCI Concessions’ leadership as Germany’s first road concessionaire with 5 PPPs, in synergy with VINCI Construction's local subsidiaries, including Eurovia Deutschland. In Germany, the VINCI group employs more than 15,000 people with a network of local companies some of which are more than 100 years old.
VINCI is a global player in concessions, energy and construction businesses, employing more than 260,000 people in nearly 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.