D4 motorway project in the Czech Republic PPP finance includes KfW IPEX-Bank
The consortium consisting of VINCI Highways and Meridiam (50/50) achieved successful financial close on the PPP project for the D4 motorway linking Pøíbram (Central Bohemia) and Písek (South Bohemia).
EUR 474 million of financing has been arranged for the project through debt denominated in both euros and Czech koruna. KfW IPEX-Bank participates in the transaction as member of a nine-financier strong club, providing long-term financing in euros.
The project consists of designing, financing, building, operating and maintaining a new 32km motorway and widening an existing 16km section of road to two lanes in each direction.
The new motorway will provide an improved road connection between Prague and rural South Bohemia, thereby fostering local economic and social development, and will also help improve traffic conditions on major commercial routes, particularly towards neighbouring Germany and Austria.
“We are very glad to conclude another important infrastructure PPP with our valued business partners VINCI and Meridiam,” said Andreas Ufer, member of the Management Board of KfW IPEX-Bank. “By participating in the financing for this flagship project, KfW IPEX-Bank is once again underscoring its commitment to financing privately implemented infrastructure projects in Germany and Europe.”