Privately Financed Road Infrastructure
There are many reasons for allowing private investors to participate in the development of road infrastructure. It is particularly important to leverage the know-how and expertise of the private sector with regard to the efficient repair and maintenance of roads. This can be beneficial as early as in the planning and initial construction phases.
Private companies are also often best placed to undertake subsequent maintenance and repairs at the technically and financially most opportune time, i.e. free of public budgetary constraints. The significant interest of institutional investors in road infrastructure can be exploited by governments for the efficient development of road networks.
We support our clients by developing legal frameworks which incentivize direct investment and advise on all aspects of tender processes as well as the negotiation of project contracts. When developing and negotiating the relevant legal risk matrix we not only consider the implementation phase but also, from day one, are mindful of optimizing the "bankability" of the project. In our experience, the best possible financing terms can be achieved by identifying and minimizing the particular risks and issues lenders are most sensitive to.
We have not only developed the current standard in Germany for Public Private Partnership (PPP) projects, but also have extensive international project experience. To date we have provided advise with respect to all privately funded motorways in Germany. In more than in every other project the contract was ultimately awarded to the bidding consortium advised by us. This has allowed us to gain deep insights into the implementation phase of such projects.
Our team has advised:
- different consortia under the German PPP motorway A-models in the projects A1, A4, A5, A7 I, A7 II, A8, A9, and A94;
- a successful bidding consortium in connection with the Hungarian PPP project M6;
- the city of St. Petersburg on the award and implementation of toll-financed "Olrovsky tunnel" and on the "Western High Speed Diameter";
- a successful bidding consortium on the "F-Model" Trave river crossing, advising on the implementation and operational phases; and
- the financing banks on the "Warnow crossing".