Rijkswaterstaat and BAM/PGGM joint venture reach financial close for PPP project for doubling the width of the N33 Assen-Zuidbroek road
(Joint press release by Rijkswaterstaat and Royal BAM Group:) Utrecht/Bunnik, The Netherlands, 21 November 2012 - The design, building, financing and maintenance (‘DBFM’) contract between Rijkswaterstaat and BAM-PGGM Infrastructure Coöperatie U.A. involving the doubling of the width of the N33 Assen-Zuidbroek road, which was signed on 1 October 2012, reached the financial close - the signing of the financing agreements - on 21 November 2012.
The building part of the project has a value of around €120 million. However, this is not the total amount for the widening of the N33. As well as the road-building costs, the project also includes the costs for, among other things, the purchase of land, nature compensation, surveys, and building costs that fall outside the scope of the DBFM contract.
The work will start in 2013, and the project will be completed in the spring of 2015. Around half of the necessary project budget will be provided by the provinces of Groningen and Drenthe, and the Assen, Aa en Hunze, Veendam and Menterwolde municipalities.
The project will be carried out by the ‘Poort van Noord’ BAM joint venture, which includes BAM PPP, BAM Civiel, BAM Wegen and BAM Infratechniek Mobiliteit, and which will be supported by BAM Infra Projectmanagement on the N33 project.
BAM PPP secured the project with joint-venture partner PGGM; together, they will be providing their own capital. The N33 is the second Dutch infrastructure investment for PGGM, who are making this investment through the joint venture with BAM PPP. After the building work has been completed, pension administrator APG will provide part of the loan capital, for which it will receive an inflation-proof fee. Commercial banks BTMU, KfW-Ipex and Rabobank are also involved.
KPMG was involved during the tendering process and the preparations for the financial close as a financial advisor. Other advisors to BAM/PGGM were De Brauw Blackstone Westbroek (legal advisors), and BDO (model auditor). Advising the banks were Nauta Dutilh (legal), Mott MacDonald (technical) and AON Global Risk Consulting (insurance).
- BAM: A.C. Pronk, +31 (0)30 659 86 21 (press), or P.R.E. Snippe, +31 (0)30 659 87 07 (analysts);
- Rijkswaterstaat Noord Nederland, Communication department, +31 (0)6 21 12 56 48.