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19.01.2016 – 16:57


KfW IPEX-Bank finances construction of new section of A94 motorway in Bavaria

Frankfurt am Main (ots)

KfW IPEX-Bank, as part of a consortium of commercial banks and in cooperation with the European Investment Bank (EIB), is financing the construction of a 33-km-long section of the A94 motorway between Munich and Passau in southern Germany. Following a public tender, last year the bidding consortium made up of the construction firms BAM, Eiffage and Berger Bau was awarded by the Autobahndirektion Südbayern, the contract to carry out the Public-Private-Partnership (PPP) project.

The 30-year contract covers the operation and maintenance of another 44 km of the motorway. The total project volume mounts up to around 1,1 bn EUR.

A total of 410 mn EUR is provided by loans from KfW IPEX-Bank, commercial banks and the EIB. By providing this financing KfW IPEX-Bank underscores its commitment to structuring financing for private-sector infrastructure projects. "We are very pleased to be involved in an important German PPP," said Christian K. Murach, member of the Management Board of KfW IPEX-Bank, commenting on the closing. "This instrument allows making optimal use of private investor liquidity to renew and expand public infrastructure. In Germany, PPP has been used only sporadically until now, whereas in a number of other European countries it is already a frequent, flexible and successful financing option with a proven track record for major public infrastructure projects."

The project will substantially improve the connection between Munich and Bavaria's economically prosperous southeastern region while reducing the risk of traffic congestion and also accidents in the A94 transport corridor. Berger Bau, a mid-sized construction firm based in Passau with over 2,400 employees, is involved throughout the project cycle in both construction and maintenance of the transport infrastructure. As a result, the project also safeguards local jobs.


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