Bam and Vinci partner for €220 million road

Bam Group has teamed up with Vinci's road building subsidiary Eurovia to win a €220 million contract to construct, operate and maintain 46.5km motorway in Germany.

The 50:50 joint venture - known as Gateway Thüringen - will build a section of German federal motorway A9 between the Lederhose interchange in the north east of Germany, and the border between the states of Thüringen and Bavaria in the South.

The project also involves widening 19km of motorway into three lanes in each direction, as well as the refurbishment or replacement of existing structures. Construction will start on 1 October and is scheduled to last three years, and the joint venture will operate and maintain the road for 20 years.

Financing for the project consists of €120 million in bank debt provided by German banks KfW IPEX and BBVA, together with a €88 million subsidy from the Federal Government and €12 million equity contributed by the project shareholders.

This financing means that the joint venture will not rely on a toll-based model to generate revenue.

The A9 motorway connects Berlin with Bavaria and Munichm and represents a major north-south link within the country, as well as being the gateway to Austria and Italy.