Financial close for PPP project in the United Kingdom
October 05, 2012
Bilfinger has reached financial close for a Public Private Partnership project in the United Kingdom: a consortium led by the Group will implement several police facilities at four locations in southwest England. The buildings include a police headquarters, a firearms training centre, three custody and crime investigation centres providing 132 cells as well as two police stations. Bilfinger will design, finance and build the properties and subsequently operate them over a period of 25 years. To optimize operating costs, the buildings have been designed to be particularly energy efficient including energy supply from renewable sources. The investment volume amounts to approximately €100 million. Bilfinger holds a share of 70 percent in the project company and will invest equity of about €6 million.
As part of its Concessions business segment, Bilfinger delivers and operates infrastructure projects and properties as a private partner to the public sector on the basis of long-term concession contracts. The United Kingdom, in addition to Canada, Australia and selected countries in continental Europe, is one of Bilfinger's most important PPP markets. In these countries, public private partnerships are an established model for the expansion and renewal of infrastructure offering substantial efficiency advantages compared to conventional public sector procurement models.