German infrastructure group Hochtief, through its North American subsidiary Hochtief PPP Solutions, has reached financial close on a new contract to design, build, finance and operate 18 police facilities in Ontario, Canada, the company said in a press release. The project will be built on a public-private partnership basis.
The total cost of the project has been estimated at C$412 million (€306 million; $400 million) with a concession period of 30 years, according to the press release. The project has an investment volume of C$117 million.
According to the press release, Hochtief PPP Solutions has a 50 percent stake in project company Shield Infrastructure Partnership. Upon completion, the project company will assume responsibility for maintaining the facilities for a period of 30 years.
The construction work on the police facilities is due to commence shortly and is expected to be completed in November 2012. The facilities will include seven police detachments, eight forensic identification units and three regional headquarters.
With the financial closure of this project, Hochtief Concessions currently has a portfolio of six airport holdings and 29 projects in roads and social infrastructure.
Last week it emerged that Hochtief was the subject of a takeover bid from Spanish construction firm ACS, which already owns 30 percent of Hochtief. Based on Hochtief’s closing share price on the day the bid was announced, the remaining 70 percent stake is valued at around €2.75 billion.