KfW IPEX-Bank co-financing €70m of the Sotra Connection road project in Norway

KfW IPEX-Bank co-financing €70m of the Sotra Connection road project in Norway

KfW IPEX-Bank provided a circa NOK 700 (c. EUR 70m) million loan as part of a strong international consortium of lenders also consisting of Bank of China, Caixa Bank, Credit Agricole, DZ BANK, K-EXIM, Korean Development Bank, K-SURE and Santander.

The total financing package of NOK 7.8 billion (EUR 790m) will support the Rv.555 Sotrasambandet Road Project (“The Sotra Connection”).

The Sotra Connection project involves the design, construction, financing, operation and maintenance of the new Sotra Bridge and a total of approx. 40 km of roads including the associated bridges, culverts, tunnels and cycling lanes.

The Norwegian Public Roads Administration (NPRA), following the conclusion of an extensive bidding process, has awarded the 21-year concession to a consortium led by Macquarie Capital and consisting of SK ecoplant Co., Ltd. and WeBuild S.p.A.

The project is structured as a public-private partnership (PPP) and was approved by the Norwegian parliament in May 2018.  It will be the fifth such road PPP implemented to date in Norway.

The Sotra Connection will contribute to improved accessibility and traffic safety, as well as strengthen Øygarden’s and the surrounding area’s position for pursuing regional and national business interests as an integrated part of a functional Bergen region.

It will also improve mobility, public transport services, travel time and traffic safety.

The road is scheduled to open to traffic in 2027.

“We are very glad to conclude another important infrastructure PPP with our long-standing and valued business partner Macquarie,” 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.”