ESSEN, Germany, June 19, 2012 /PRNewswire/ --
- Public-private partnership project reaches financial close
- Total contract volume of around EUR 800m; HOCHTIEF share
is 50 percent; 33.5-year contract
- Collaboration between HOCHTIEF and US subsidiary Flatiron
A consortium lead by HOCHTIEF Solutions subsidiary HOCHTIEF PPP Solutions North America and the infrastructure fund Meridiam has reached financial close for the Presidio Parkway project in San Francisco, California. The two partners will plan, build, operate and partially finance the public-private partnership (PPP) which has a volume of EUR 800 million and will run for 33.5 years. HOCHTIEF has a 50 percent share in the concession company, Golden Link Concessionaire. The Group's US subsidiary Flatiron is the lead in the construction joint venture, in which it has a 65 percent stake. The volume of the construction contract is EUR 197 million. It was only in May that HOCHTIEF PPP Solutions North America reached financial close for another major PPP project in Canada, Northeast Anthony Henday Drive.
Presidio Parkway is to be a new southern access route to the Golden Gate Bridge. Following completion in 2015 the road will run for around 2.5 kilometers along the northern coast of San Francisco, extending from the toll station on the Golden Gate Bridge on the west, to Broderick Street in the east, giving access to historical and cultural landmarks. The existing access road which was built in the 1930s is structurally and seismically unsafe. It is therefore being replaced by the Presidio Parkway which, once completed, will serve approximately 120,000 trips per day. The project also includes various tunnels, major interchanges and a landscaping component.
The HOCHTIEF consortium submitted a bid in mid-2010 and was awarded the contract on December 27, 2010. The PPP project is an availability model in which no traffic demand risks are taken on. Project financing is by means of short-term bank loans and a long-term state-financed TIFIA (Transportation Infrastructure Finance and Innovation Act) loan.
HOCHTIEF is one of the leading international providers of construction-related services. With more than 75,000 employees and a sales volume of EUR 23.28 billion in FY 2011, the company is represented in all the world's major markets. The Group's service offering in the fields of development, construction, services, concessions and operation covers the entire life cycle of infrastructure projects, real estate and facilities. In this connection, HOCHTIEF focuses on four strategic growth areas: creating sustainable energy infrastructure, shaping major cities, building state-of-the-art transportation infrastructure, and contract mining business. With its subsidiary Leighton (HOCHTIEF share around 54 percent), the Group is market leader in Australia. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at http://www.hochtief.com/press.
HOCHTIEF Solutions consolidates the core business of the HOCHTIEF Group in Europe and in selected regions worldwide. The company plans, develops, builds, operates and manages real estate and infrastructure facilities. HOCHTIEF Solutions is the management company of the Group's Europe division which employed around 15,000 people around the globe in fiscal 2011. In many regions and segments, the company is a market and innovation leader. Further information is available at http://www.hochtief-solutions.com.
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SOURCE HOCHTIEF Solutions AG