PPP Project in Canada: KfW IPEX-Bank funds bypass for city of Regina
OREANDA-NEWS. August 10, 2015. KfW IPEX-Bank, along with four other commercial banks and bond creditors, is funding a bypass for the city of Regina in the Canadian province of Saskatchewan. The project involves the planning, construction, funding, operation and maintenance of a 58-km, 4-lane ring road to bypass the city, as well as the extension and reconstruction of 18 km of the existing highway. The total investment for this major project amounts to around CAD 1.9 billion, which translates to around EUR 1.3 billion. As part of a complex PPP financing structure, KfW IPEX-Bank is providing borrowed funds of around CAD 85 million (approx. EUR 60 million) for the project, as consortium partner in a commercial bank club. The loan will be repaid upon completion of the new highway, after 4.5 years; the project bond has a tenor of of 30 years.
KfW IPEX-Bank is agreeing to commit funding to the Regina Bypass Project on the basis of an international bidding process instigated by the Canadian province of Saskatchewan, in which a consortium was established led by the global concession and construction group Vinci and Graham, which is one of the largest construction companies in Canada.
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