VINCI finalises financing for Borough of Hounslow highways PFI contract in the UK

30 August 2012 - Projects update and handover - United Kingdom

Hounslow Highways Services, a company owned 50% by VINCI Concessions (leader) and 50% by Barclays Infrastructure Fund, has finalised the financing for the contract to repair and maintain the highways network in the Hounslow Borough of London.

This is the first private finance initiative (PFI) contract won by VINCI in the highways repair and maintenance sector in the United Kingdom.

Awarded by the London Borough of Hounslow in March (see press release of 8 March 2012), the 25.5 year contract covers the upgrade, repair and maintenance of 432 km of roads and 763 km of pavements.

The project, which represents an initial investment of around £100 million (approximately €125 million), will be financed by a bank loan of £88 million (approximately €110 million) with a maximum maturity of 24.5 years from BTMU, KfW and DZ Bank, together with around £20 million (approximately €25 million) in equity from the project company partners. The total amount of the contract, including service and maintenance, will be in the order of £650 million (approximately €820 million). Hounslow Highways Services’ remuneration will be in the form of a fee based on network availability.

Construction, operation and maintenance will be assigned to Ringway, a subsidiary of Eurovia, itself a subsidiary of VINCI. These tasks will start in January 2013.

 

About VINCI
VINCI is a global player in concessions, energy and construction, employing 280,000 people in more than 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.