HICL Infrastructure has announced that has acquired equity interests in two Dutch public-private partnership (PPP) projects from Ballast Nedam (Ballast). One is a 20% interest in the A9 Gaasperdammerweg Road Project in the Netherlands (the A9 Project) and the other is an incremental 25% interest in the Zaanstad Penitentiary Project (the “Zaanstad Project”). The total consideration of €21.3m includes a loan stock subscription obligation payable following the substantial completion of construction of the A9 Project. The consideration paid for the projects was funded from the company’s existing cash resources and the letter of credit, associated with the loan stock subscription obligation for the A9 project, was provided using the company’s existing revolving credit facility.
HICL Infrastructure says that the A9 Project is an availability-based road PPP, which has a capital value of €574m, and forms part of the Schiphol – Amsterdam – Almere Corridor Programme. Under this programme, the intention is to increase the capacity of the motorways to the south and east of Amsterdam. HICL Infrastructure says that construction and maintenance works are being undertaken by a single joint venture contractor comprising Ballast, Heijmans and Fluor, with construction scheduled to be substantially completed in 2018. The concession ends in 2038 and Ballast retains a 5% shareholding and provides management services to the project company.
HICL Infrastructure says that the Zaanstad Project is also an availability-based PPP project, which comprises the construction and operation of a new correctional facility with a capacity of approximately 1,000 detainees. It also says that the facility reached construction completion in March 2016 and maintenance works are now being undertaken by Ballast. Furthermore, it says that ‘custodial services’ do not form part of the project’s scope of services. HICL reportedly acquired a 75% interest in the Zaanstad Project in March 2015 and with this incremental investment now owns 100% of the equity and loan stock.
The Company says that it currently has a funding surplus of approximately £6m but also has commitments of approximately £200m in aggregate in respect of the conditional acquisitions of the A63 motorway project and Northwest Parkway, which were announced during 2016. Those commitments will become payable upon completion of the respective acquisitions, both of which are expected to occur during the first half of 2017.
HICL Infrastructure acquires two Dutch PPP projects for €21.3m : HICL