KfW IPEX-Bank and EIB finance new section of A6 motorway in Baden-Württemberg

Frankfurt am Main (ots) -

- PPP according to the 'A model'
- Project qualified for the Juncker Plan for investment in Europe

KfW IPEX-Bank, as part of a consortium of commercial banks and in
cooperation with the European Investment Bank (EIB), is financing a
project to widen Germany's A6 motorway between the town of
Wiesloch/Rauenberg and the Weinsberg junction. On 25 km of the
section being expanded under the project - altogether 47.1 km - the
number of lanes will be increased from four to six to eliminate a
major bottleneck on one of the country's most congested east-west
axes. The project also encompasses the construction of the
1.3-km-long Neckartal Bridge.

The bidding consortium made up of the construction firms HOCHTIEF
and JOHANN BUNTE Bauunternehmung together with the financial investor
DIF Infrastructure IV was awarded the concession to carry out the
Public-Private-Partnership (PPP) project. The Federal Government,
represented by the regional administrative council
(Regierungspräsidium) of Stuttgart, had initially put the roadworks
to public tender. This PPP project is designed as a business model
type 'A' - or availability model - according to which the Federal
Government renders payment to the private contractor based on the
passability of the lanes.

The project is qualified for the Juncker Plan under which the EIB
and the European Commission provide funds for infrastructure projects
in order to overcome the current investment shortfall in Europe. KfW
IPEX-Bank is offering its tranche as a project bond, which involves
the project company placing the bond on the capital market.

By providing this financing, KfW IPEX-Bank - which has also taken
on the role of Facility Agent - underscores its commitment to
structuring financing for private-sector infrastructure projects. "We
are particularly pleased to be able to work together with our
esteemed and experienced business partners HOCHTIEF, JOHANN BUNTE
Bauunternehmung and DIF on another important German PPP," said
Christian K. Murach, member of the Management Board of KfW IPEX-Bank,
when the deal was closed. "This instrument allows making optimal use
of private investor liquidity while also involving the SME sector in
order to upgrade and expand public infrastructure. In Germany, PPP
has been used only sporadically up until now, whereas in a number of
other countries it is already a frequent and successful financing
option with a proven track record for large-scale public
infrastructure projects."

The overall project volume adds up to approx. EUR 1.3 billion, of
which roughly EUR 600 million are purely construction costs. The
works are scheduled to start at the beginning of 2017. Plans call for
a construction period of 5 1/2 years, with the section near Heilbronn
scheduled for completion earlier as the German national garden show
will be held in the city in 2019. Apart from construction work, the
project also involves operation and maintenance forthe entire
47.1-long-section. The concession period for this PPP is 30 years.

An information graph illustrating how PPPs work is available for
download on our website (www.kfw-ipex-bank.de).

Background information:

The European Investment Bank (EIB) is the long-term lending
institution of the European Union, owned by its Member States. It
makes long-term finance available for sound investment in order to
contribute towards EU policy goals.

The Investment Plan for Europe

In December 2014, the EU Heads of State or Government decided to
launch a EUR 315 billion investment offensive. With this initiative,
the EU Member States are addressing the continued lack of investment
and innovation within the Union. The EIB is playing a vital role in
this investment drive. Through guarantees from the European Fund for
Strategic Investments (EFSI), the EU bank is able to take on a higher
share of project risk, encouraging private finance providers to
participate in the projects. Up to now, nearly 400 operations have
been mounted with EFSI support, which are expected to mobilise a
total investment of more than EUR 150 billion EFSI is supported by a
new advisory service, the European Investment Advisory Hub, which
will enable public and private project operators to structure their
investment projects more professionally. The investment offensive
also aims to make the regulatory environment in the EU more conducive
to investment, especially in the digital, energy and capital market
sectors.

Contact:

KfW IPEX-Bank GmbH
Dela Strumpf, Kommunikation, Tel +49 69 7431 2984,
Fax +49 69 7431 85 36, dela.strumpf@kfw.de,
Website: www.kfw-ipex-bank.de

European Investment Bank

Christof Roche, c.roche@eib.org
Tel: +352 43 79 89013, Mobile: +32 479 65 05 88
Press Office: +352 4379 21000, press@eib.org
Website: www.eib.org/press, Follow us on Twitter @eib

Original-Content von: KfW IPEX-Bank, übermittelt durch news aktuell