New highways to improve Austria's connections

A massive highway project will boost Austria's international links. The €933 million Ostergion PPP motorway project is one of the largest PPP projects currently in operation in Europe.

The financers of the project are 3645 AMBAC and 1054 European Investment Bank (EIB), while the routine maintenance activities are headed by 2643 Egis. The project intends to ease congestion Austria's capital, Vienna, improve commuter traffic, enhance road connections between Austria and the Czech Republic and increase safety on congested B roads around the country.

The PPP Ostregion Package comprises four road expansion projects for 113km of new road construction, representing a network of urban and inter-urban highways in the vicinity of Austria's capital. The project is part of the Austrian Transport Infrastructure Master Plan, as well as being part of the Trans European Network. In December 2006, Asfinag, the Austrian highway agency, awarded Project Y to Bonaventura, a Special Purpose Vehicle sponsored by 981 Hochtief PPP Solutions, 2859 Alpine Mayreder and 2376 EGIS Projects.

Under the agreement, Bonaventura will plan, construct, finance and operate the project for 32 years. While the total project cost is €933 million, it has a capital expenditure of €776 million. The revenues will be a mix of availability and shadow toll payments by Asfinag. International consultancy 3449 EC Harris will provide long term control and risk monitoring on the highway project. Under the terms of its deal, EC Harris will monitor the operational performance of the motorway to ensure that the project remains financially stable and generates the predicted revenues over the next 28 years. During the operation and maintenance phase EC Harris will provide regular advice to the lenders on topics including compliance matters, performance levels, income generation and maintenance activities.