European PPP Center

Issue 10

India Awards Five Highway BOT Concessions
25 February 2008

The Indian government has awarded five BOT contracts under the fifth wave of its national highways development programme - totalling 882 km of road, and worth US$ 2.7 billion.

The projects involve taking the roads from their current four lanes up to six, and the concessions have been won under a revenue-share model - as opposed to negative grant, as originally planned.

The five sections in question are:

  • Chennai-Tada
  • Chilkaluripet-Vijaywada
  • Gurgaon-Kotputli-Jaipur
  • Panipat-Jalhandhar
  • Surat-Dahesar

The authority also said that all but one of the projects - the Chennai-Tada segment - have been won by consortia with an element of foreign participation in their equity.

Phase five of the national highways development programme will see 6,500 km of highway expanded from four to six lanes.

Source: Infrastructure Journal

Three Bidders can Deliver an Offer on M6
20 February 2008

Three consortia can deliver an offer for the realization of the M6 Motorway project between Dunaújváros- Szekszárd (65.1 km). As a consequence to a competition between the participants the missing central section of the M6 can be realized in a PPP construction, in a transparent way and favorable financing until 2010.

The call for tender related to a concession contract including the planning, construction, renovation, operation, maintenance and financing of these activities. The concession will apply for 30 years within a PPP framework and against an availability fee.
After the evaluation of the applications received based on the call for tender 3 consortia can deliver an offer, followed by negotiations with valid bidders. The announcement of the winner is expected in June 2008 and the contract closing in July.

The consortia invited to place an offer are:

• M6 Tolna Konzorcium
Leader: Bilfinger Berger BOT GmbH
Members: Egis Projects SA, Allgemeine Baugesellschaft A. Porr AG

• Pentele Alisca Konzorcium
Leader: Mota-Engil SGPS SA
Members: Euroaszfalt Kft., Mahíd 2000 Zrt., Macquarie M6 Ltd.

• Tolna Autopálya Konzorcium
Leader: Strabag AG
Members: Colas SA, John Laing Investments Ltd., Intertoll-Europe Zrt.

It can be said about all 3 consortia in case of winning the concession contract they will subcontract Hungarian design and construction companies in a significant scale. Many of these companies were already named in the tender as they are contributing over 10 % to the project.

Source: Official Press Release of the Ministry of Economy and Transport

The National Sports Centre Morava will be built in PPP construction in the Czech Republic
15 February 2008

The construction of the reconstruction and enlargement of the existing Vitkovice stadium should be finished by 2010. The company realizing the concessionary project has been already selected and construction works should begin next year. According to the expectations of the municipality it will be a BFO concession and the winning bidder will be the one offering the best (cheapest) conditions.

PricewaterhouseCoopers has been selected for preparing the concessionary project including the specific conditions for the concession competition as well as for assessing the economic, legal and technical feasibility of the project.

The new national sport center should have a capacity of 22.500 seats and it will give a home for the 1st league football team Ostrava Banik and 2nd league football team Vitkovice. The construction costs are estimated around 1 billion CZK (40 mil EUR).

Source: EPPPC, Asociace PPP

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