A consortium led by French construction group Bouygues has won a PPP contract to develop a tram system on the island of Réunion. The total contract value of the project is around €1.6 billion ($2.29 billion).
The Tram-Tiss consortium, which also includes Veolia, Axa, Méridiam, Société Générale and Bombardier, was named preferred bidder for the project in the French overseas département earlier this week.
Construction work on the 42-kilometre tram-train system linking the towns of Saint-Paul and Sainte-Marie is expected to begin early next year. The special purpose vehicle will also be responsible for the operation and maintenance of the system over a 38-year concession period. The first segment of line is targeted to be open by the end of 2013, with the entire system earmarked to be up and running by the end of 2016.
Tram-Tiss saw off competition for the project from a rival consortium led by fellow French construction and concessions group Vinci.
Last month another Bouygues special purpose vehicle, named Sophi, reached financial close on an €87 million PPP scheme to redevelop the Centre de Clignancourt campus of Paris-Sorbonne University.