Financial advice to consortium procurement A15

Helping a consortium win the procurement contract for the A15 motorway was a gigantic project with a unique combination of technical and financial challenges.

A15 procurement a challenging infrastructure project
A consortium consisting of Ballast Nedam, Strukton, John Lane and Strabag asked Rebel to act as financial advisor for the submitting of a bid for the A15 DBFM contract. This was an upgrade of the A15 motorway Rotterdam-Maas plain: a huge infrastructure project in a densely populated and industrialised area. Moreover, the start of the connection to one of the busiest motorways in the Netherlands took place in the middle of a financial crisis. This represented more than enough financial challenges. Indeed, how do you shape an enormous project like this in such a context?

Rebel worked with BNP Paribas
We asked BNP Paribas to partner with us in a joined advisory mandate. We developed the tender strategy via a special model. Then, we carried out a trade-off analysis: we developed alternatives in relation to life-cycle posts, but also penalty mechanisms. This was followed by tender optimisations, such as smart construction planning, whereby road users would experience less traffic overload during and after the construction works. We took care of the financial structuring of the project and helped attract funding. We also took care of financial modelling, and made a major contribution towards agreeing on a tax ruling with the Inland Revenue. Finally, we prepared and guided the Financial close procedure.

Rebel linked up the technical and financial aspects
The consortium was awarded the contract, which we are extremely proud of. We were able to link up the technical and financial aspects of the project. In addition, we helped the consortium achieve the maximum score on the award criteria from Rijkswaterstaat. Our excellent understanding of the public side certainly was a big help.

A15, an example of a successful PPP
The good thing is that, with such a contract, we gave PPP’s a real chance of success in the Netherlands, and in cooperation with such a consortium, we were able to release the expected added value to the maximum. That is a good thing for the taxpayer, and it’s a real treat to help a contractor with a side of the business that is not really his second nature. That is how you can truly have your cake and eat it. With this project and this consortium, we demonstrated that, with the help of market creativity, you can really achieve such a large-scale project better and cheaper than the government alone.

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