Press Releases 2002

February 28, 2002
Preferred bidder for €520 million project in Sydney - Bilfinger Berger takes a major step in expanding its BOT activities

Bilfinger Berger is successfully expanding its international position as a supplier of BOT (Build-Operate-Transfer) models. A consortium, led jointly by Bilfinger Berger and Deutsche Bank, has been confirmed as the preferred bidder for the privately financed Cross City Tunnel project in Sydney, Australia. The joint venture will plan, finance and build the two kilometer-long toll tunnel underneath downtown Sydney, and will be responsible for operating it for the next 30 years. The project is worth €520 million. The Cross City Tunnel will play a major role in alleviating the city's through-traffic problems.

Investors Bilfinger Berger and Deutsche Bank are also joined by Cheung Kong Infrastructure Holding, a company of the Li Ka-shing Group, Hong Kong. "The Cross City Tunnel will be Bilfinger Berger's biggest privately-financed BOT project to date. Winning this contract will represent a major step forward in the strategic expansion of our BOT activities", explains Herbert Bodner, Chairman of the Board of Executive Directors at Bilfinger Berger AG.

The concession agreement is set to be signed with the State of New South Wales' Ministry of Transport around the middle of the year. The financial close is scheduled for the end of 2002, and the intention is to begin construction at the start of the new year. Bilfinger Berger and its Australian affiliated company Baulderstone Hornibrook will be responsible for the project planning, implementation and operation. The two companies' outstanding cooperation was recently underpinned with the successful completion of a city freeway construction project for the M 5 East in Sydney.

One key reason behind the Bilfinger Berger Group's selection as preferred bidder was its unrivaled expertise in the implementation of large infrastructure projects. Through the contractor's proposals for routing and construction methods, the flow of traffic will actually be affected less during the construction of the tunnel than the Ministry's invitation to tender had originally envisaged. Bilfinger Berger has many years' experience of privately funded projects on its international markets. The company is involved in the Beijing Lufthansa Center in China, and is a shareholder in the Bangkok Expressway Company, which runs major parts of the overpass system in Thailand's capital. Further examples include the Colonial Stadium multi-functional event center in Melbourne, Australia, along with various school and hospital projects in the United Kingdom.

In Germany, Bilfinger Berger is one of the leading experts in this sector. Bilfinger Berger was also responsible for the new embassy building in Berlin, a pioneering project commissioned by the British Foreign Office. The company also played a major role in the realisation of the Herrentunnel in Lübeck. The initiative by the Federal Ministry for Transport aimed at privately funding extensions to sections of freeway that are particularly congested also mirrors Germany's growing interest in privately-financed solutions. Thanks to its international experience, the Bilfinger Berger Group is in a prime position to capitalize on the opening up of the German market.