Slovakia: EIB supports D4/R7 PPP with EUR 426 million of financing – first EIB transaction under EFSI in Slovakia
- Jun 22, 2016
The EIB has signed a EUR 426 million financing agreement with Zero Bypass Limited (a consortium comprised of Macquarie Capital, Cintra Infraestructuras Internacional SL and PORR AG), which is responsible for the design, construction, operation and financing of approximately 27 km of the D4 motorway around Bratislava.
The European Investment Bank (EIB) has signed a EUR 426 million financing agreement with Zero Bypass Limited (a consortium comprised of Macquarie Capital, Cintra Infraestructuras Internacional SL and PORR AG), which is responsible for the design, construction, operation and financing of approximately 27 km of the D4 motorway around Bratislava.
It is the first EIB transaction in Slovakia benefitting from the support of the EU budget guarantee under the European Fund for Strategic Investments (EFSI), the financing component of the Investment Plan for Europe (IPE).
EIB Vice-President László Baranyay, responsible for the Bank’s operations in Central European countries, stated: “This transaction is unique in three respects: it is by far the largest EFSI project in Central and Eastern Europe to date; it is a model for combining EFSI support with Structural and Investment Funds; and it is a bold PPP structure.” Support from the Structural and Investment Funds is being provided in an innovative way, in the form of a financial instrument.
The new 27 km section of the D4 motorway, located on the strategic trans-European transport network (TEN-T), will establish connections to the R7 expressway and the existing D1 and D2 motorways. The new road infrastructure will provide increased transport capacity to the Slovak Capital and the neighbouring region, improving connectivity locally and internationally with enhanced safety and more reliable journey times.
The new section of D4 motorway, which will be constructed to dual two-lane carriageway (2x2) standard with some dual three-lane (2x3) stretches, is part of the D4/R7 public-private partnership (PPP) project that includes the construction and operation of both the D4 motorway and the R7 expressway. The D4/R7 is an availability payment PPP covering the construction period and 30 years of operation and maintenance.
EFSI is an initiative implemented jointly by the EIB Group - comprising the EIB and the European Investment Fund (EIF) - and the European Commission, and it is one of the three pillars of the IPE that aims to revive investment in strategic projects around Europe.