BBGI seals financial close on $192m Canadian PPP

The London-listed fund is part of a consortium that will replace a bridge in Saskatoon under a project that has also received $50m from a state-backed vehicle.

Bilfinger Berger Global Infrastructure (BBGI), the listed vehicle of German developer Bilfinger Berger, has reached financial close on the North Commuter Parkway public-private partnership (PPP) project.

Located in Saskatoon, in the Canadian province of Saskatchewan, the scheme involves the replacement of the 107-year-old Traffic Bridge in the city centre, as well as the development of a new six-lane bridge crossing the South Saskatchewan River and 8.3 kilometres of new arterial roadways.

BBGI is a 50 percent equity investor in the consortium that was chosen last September to design, build, finance, operate and maintain the structure for a period of 30 years.

The company did not disclose how much it is contributing or the project’s total cost but the City of Saskatoon’s website budgets it at CAD$252.6 million (€174.0 million; $192.2 million), comprising CAD$211.4 million for the parkway and CAD$41.2 million for the bridge itself.

The government of Canada last June said it would invest up to CAD$66 million in North Commuter Parkway through its P3 Canada Fund. Payments under the project will all be availability based, and BBGI expects to receive distributions throughout the concession period once it becomes operational.

Recent assets acquired by the company include two educational PPPs in Northern Ireland, which it bought from UK developer John Graham Holdings for £11.7 million (€16.2 million; $18.0 million) in July. It now has 37 assets in its portfolio.