Hochtief Consortium Gets EUR1.4 Billion Canadian Ring Road Project
05/25/2012| 04:32am US/Eastern
German construction company Hochtief AG (>> HOCHTIEF AG) Friday said a consortium comprising its subsidiary Hochtief PPP Solutions and parent Actividades de Construccion y Servicios SA (>> ACS Activ. de Construc. y Servicios SA) has reached the financial close for a ring road project in Edmonton, Canada.
-The public-private partnership will design, build, operate and partially finance the project at an overall contract value of EUR1.39 billion over 34 years.
-Construction work is to be carried out by a joint venture which includes group subsidiaries Flatiron and Dragados.
-Hochtief and ACS each hold a stake of 25% in the concession company, while Flatiron and Dragados hold a 33.75% stake each in the construction joint venture.
-The PPP project will be financed by a C$535 million bond issue.
-Construction will start in June, with completion of the project scheduled for the fall of 2016.
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500