Investment Plan for Europe: EUR 250m loan for motorway project “A10/A24”
- First Financing of EU Bank under third A-model programme in Germany
- Public Private Partnership with support of “Juncker-Plan”
- New EIB Debt Service Buffer on request from Industry
The European Investment Bank (EIB) will provide a loan of EUR 250 million for the construction, financing, operation and maintenance of the A10/A24 motorway in the German State Brandenburg. In particular the project comprises the widening from 4 to 6 lanes of a 29.6km section of the A10 between Havelland and Pankow as well as the reconstruction of a 29.2km section of the four lane A24 between Neuruppin and Kremmen. The project furthermore entails the maintenance and operation of an additional 5.4km section of existing road connecting the two motorways. The EIB loan was made possible by the European Fund for Strategic Investments (EFSI). EFSI is the main pillar of the Investment Plan for Europe (IPE), under which the EIB Group and the European Commission are working together as strategic partners to boost the competitiveness of the European economy.
The “A10/A24” will be constructed and operated with the help of a Public-Private-Partnership (PPP) financing scheme that represents an efficient approach to building infrastructure and delivering public services. Member of the consortium consisting of BAM-PGGM and HABAU The Contracting Authority is the Federal Republic of Germany, represented by the State of Brandenburg, and, in turn, by the local highway agency DEGES. The construction volume is EUR 650 million. Alongside EIB, further funders involved are BayernLB, DekaBank, DZ Bank, Rabobank and Tecta Invest, asset manager of Versicherungskammer Bayern.
The project contract is for 30 years, starting in March 2018. The “A10/A24” project is the first of eleven PPP projects to be procured under the third A-model programme in Germany. Alongside the EIB loan of EUR 250m, the EU Bank will offer – for the first time in Germany – a EUR 8.3m Debt Service Reserve Facility (DSRF), which will be used as a liquidity buffer to cover potential temporary cash shortfalls for a period of up to six months. With this innovative product the EU Bank reacts to long-standing requests from bidding consortia for the German A-Model programme.