Financial advisor to preferred bidder on A15 road PPP (NL)

Helping a consortium win the procurement contract for the A15 motorway presented a unique combination of technical and financial challenges.

A big project in times of crisis
The A15 motorway cuts through a densely populated and highly industrialised area between Rotterdam and the Maas plain. When it needed an upgrade, a consortium consisting of Ballast Nedam, Strukton, John Lane and Strabag wanted the job. Rebel was asked to advise on the consortium’s bid for the A15 DBFM contract. Apart from the problems connected with work on this scale on one of the Netherlands’ busiest motorways, the project faced an additional challenge: the financial crisis. It was up to Rebel to come up with some answers.

Rebel and BNP Parisbas
We invited BNP Paribas to partner with us in a joint advisory mandate. We developed the tender strategy using a special model. Then we carried out a trade-off analysis, developing not only alternatives in relation to life-cycle posts but penalty mechanisms as well. This was followed by tender optimisations, such as smart construction planning whereby road users experience less traffic overload during and after construction work. We looked after the financial structuring side of the project and helped attract funding. We also took care of financial modelling and made a major contribution towards a tax ruling agreement with the tax authorities. Finally, we prepared and managed the financial close procedure.

Rebel link-up
The consortium was awarded the contract which made us enormously proud. We had been able to link up the technical and financial aspects of the project successfully. And not only that: the consortium achieved the maximum criteria score set by Rijkswaterstaat for its annual award. We think our excellent understanding of the public side of the enterprise definitely had something to do with that.

A15: good PPP practice
This contract enabled us to put PPPs on the map in the Netherlands. The cooperation with the consortium generated the maximum added value, which is good news for the taxpayer. For us it was a treat to be able to help contractors whose experience with this side of the business is limited. It’s called having your cake and eating it. This project and this consortium demonstrate that the government needs market creativity in order to execute large-scale projects more cheaply and effectively.