New chapter in concessions success story: Bilfinger Berger reaches financial close for another highway in Canada

July 31, 2008

July 31, 2008

New chapter in concessions success story: Bilfinger Berger reaches financial close for another highway in Canada

Bilfinger Berger has added another chapter to its success story in concessions projects: in Edmonton, Canada, the Group will design, finance, build and subsequently operate a new 21-kilometer long highway over a period of 30 years. The route is part of the ring road around the provincial capital of Alberta and will go into operation at the end of 2011. Investment volume amounts to €750 million. Bilfinger Berger will make an equity commitment of €36 million in the project company which will be wholly-owned by the Group. Financing includes a public-sector grant of around €300 million. Bilfinger Berger has awarded planning and construction to a joint venture consisting of Canadian contractors Graham, Parsons and Flatiron, a subsidiary of the Hochtief Group.

Operation of the new six-lane highway section will be based on an availability model. This solution provides for contractually-fixed payments from the state throughout the operating phase. In return, the concession company guarantees the availability of the route. Because the optimization of a project over its entire lifecycle has been shown to increase efficiency, this solution is now being applied in countries throughout the world.

Within just a few years, Bilfinger Berger has established itself as a market leader for concessions projects in transport infrastructure in Canada. In major cities like Vancouver and Calgary as well as in the Rocky Mountains, the construction and services Group is already responsible for a number of major highways. The volume of Bilfinger Berger’s transport projects in Canada is more than €1.7 billion and total committed equity amounts to €87 million.

Bilfinger Berger’s concessions portfolio now includes 23 transport and real-estate projects to which the Group has committed about €284 million in equity.