Milan awards €1.7bn metro PPP

A consortium comprised of Astaldi, Ansaldo and Impregilo has been selected to construct Line 4 of the Milan metro. The project has a 30-year concession, with expected revenues of €2.7bn.

Milan has chosen a consortium including construction firms Impregilo and Astaldi, and rail technology company Ansaldo STS as preferred bidder for a 30-year concession to construct and operate a new metro line.

The project involves the construction of a 15-kilometre metro line connecting Linate Airport to San Cristoforo rail station, according to Ansaldo.

The total investment cost of the project is about €1.7 billion, according to a statement from Impregilo. The Milan City Council and the Italian government will finance two thirds of the project costs. Ansaldo said its portion of the contract was valued at about €255 million, while Impregilo said it would be responsible for €870 million in project costs jointly with Astaldi.

The consortium expects to generate revenues of €2.7 billion, based on the Milan City Council’s guarantee of 86 million passengers per year.

Impregilo said it expected construction on the project to last 6.5 years.

Ansaldo, which is affiliated with Italian industrial conglomerate Finmeccanica, is also part of a consortium that Milan chose to construct Line 5 of the metro in 2006.