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
ESSEN, Germany, June 19, 2012 /CNW/ - 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
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