Dutch pension fund administrator PGGM is increasing its commitment to its PPP (public-private partnership) venture with Dutch contractor Bam – BAM PPP PGGM Infrastructure Coöperatie – by €140 million.
This brings PGGM’s committed funding to €620 million and the total joint venture committed funding to €775 million.
Bam said that of this amount, €489 million had been invested and allocated to nearly 30 projects to date. In the Netherlands, the joint venture has invested in seven PPP projects.
The contractor added that it was the intention of both parties to continue to grow the joint venture.
It said the latest increase was a result of a successful 2015 and the joint venture “continuing to achieve the expectations of both clients and the joint venture partners”.
It claimed this was by effectively cementing the partnership between the developer and the pension investor in a short and highly efficient equity investment value chain. It said this allowed the joint venture to focus on maximising the proposition for the client while maintaining an acceptable return for all parties involved.
Bam added that it was also able to continue to work at providing the most advantageous offers to clients by implementing initiatives for the streamlining of the bid process and all associated bidding costs.
There was said to be a positive pipeline of PPP project opportunities going forward and the objective of the joint venture was said to continue to be providing a long-term partnership to invest in the developing social and transport PPP markets in the Netherlands, Belgium, the UK, Ireland, Germany and Switzerland.
BAM PPP retains full responsibility for bid management for new projects and the provision of asset management services to the joint venture. It also represents the joint venture in its transactions.
PGGM is described as a supportive investor, generally providing 80% of the required capital for projects. The board of the joint venture is formed on an equal basis between the parties.