PF Archive

DEAL ANALYSIS: E18 Koskenkylä–Kotka

03 02 2012

The Eu300 million ($380 million) E18 KoskenkylaKotka motorway in Finland in not only the countrys largest road PPP to date but also the fastest to close its financing: Documents were signed just over three months after the contract was awarded. While the deal is not particularly novel, the basis for its success is less about complex structuring and more about utilising experience from previous pathfinder projects. The Tieyhtio Valtatie 7 consortium (Meridiam Infrastructure, YIT, Destia and Ilmarinen) won the KoskenkylaKotka contract on 25 August 2011 with financial close on 8 December 2011, which, according to Aapo Nikunen, vice-president and group treasurer at YIT, is certainly a record in Finland. The project for the construction and maintenance of 53km of motorway over a 15-year period was backed with a Eu240 million package from the European Investment Bank (EIB), the Nordic Investment Bank (NIB) and local lender Pohjola Bank. The three lent Eu134 million, Eu91 million and Eu44 million, respectively. Nikunen points out that the project is the third...