DG Infra completes Belgium’s first prison PPP

The fund manager, in partnership with construction group Eiffage, will provide maintenance and support services to the facility for a period of 25 years.

A consortium comprised of DG Infra and Eiffage has completed construction of a prison facility in Marche-en-Famenne, Belgium.

Awarded by the Ministry of Justice and the Building Agency in June 2011, the project is the first penitentiary public-private partnership (PPP) in the country. It is part of the government-led Penitentiary Master Plan 2008-2012, which aims to relieve overcrowding in Belgian prisons.

Construction work started at the end of October 2011 and lasted less than two years. It was completed on time and on budget, according to DG Infra and Eiffage. The consortium will now provide maintenance and support services to the facilities for a period of 25 years.

“Beyond the construction, we will stay in place with Fexim, for the maintenance, and our partner Sodexo for the facility services,” said Olivier de Guinaumont, director of operations and asset management at Eiffage, in a statement.

The news follows the financial closes reached by similar deals over recent weeks, including a €124 million, Fiera Axium Infrastructure-led prison PPP in Quebec and a €300 million penitentiary facility in the Netherlands.

It comes as DG Infra deploys capital from its Infra Yield fund, which it launched in 2011 with a target of €200 million. The vehicle reached a second close on €163 million in July 2012.

DG Infra is a joint venture between financial services group Belfius – formerly known as Dexia – and Brussels-listed investment company Gimv. It is the manager of unlisted funds DG Infra + and DG Infra Yield, which focus on regulated or long-term contract activities in the energy, transport, waste, communication and healthcare sectors.