BAM PGGM - HABAU consortium reached financial close on Availability Model A10 / A24 Neuruppin to Pankow in Germany. Credit: BAM.

The European Investment Bank (EIB) is set to provide a €250m loan for the construction, financing, operation and maintenance of the A10/A24 motorway in Brandenburg, Germany.

The scope of the project includes the widening of a 29.6km section of the A10 between Havelland and Pankow from four to six lanes, as well as the rebuilding a 29.2km section of the four-lane A24 between Neuruppin and Kremmen.

Furthermore, it includes the maintenance of an additional 5.4km section of existing road connecting the A10 and A24 motorways.

The EIB loan will be provided through the European Fund for Strategic Investments (EFSI), an important component of the Investment Plan for Europe (IPE).

In addition, the bank will provide an €8.3m Debt Service Reserve Facility (DSRF), which can be used during potential cash shortfalls for a period of up to six months.

“Estimated to cost €650m, the overall A10/A24 project will be built and operated with the help of a Public-Private-Partnership (PPP) financing scheme.”

Estimated to cost €650m, the overall A10/A24 project will be built and operated with the help of a Public-Private-Partnership (PPP) financing scheme.

BayernLB, Rabobank, DekaBank, DZ Bank and Tecta are also set to fund this motorway project.

BAM’s German civil engineering company Wayss & Freytag Ingenieurbau will carry out the construction activities in cooperation with HABAU.

Starting next month, the project contract is for a period of 30 years. Construction is expected to be completed in 2022.

The ‘A10/A24’ project represents the first of 11 PPP projects to be procured under the third A-model programme in Germany.