A consortium lead by HOCHTIEF Solutions subsidiary HOCHTIEF PPP Solutions North America and the infrastructure fund Meridiam has reached financial close for the Presidio Parkway project in San Francisco. The two partners will plan, build, operate and partially finance the public-private partnership (PPP) which has a volume of EUR 800 million (approximately $1 billion US) and will run for 33.5 years.
HOCHTIEF has a 50 percent share in the concession company, Golden Link Concessionaire. The Group’s US subsidiary Flatiron is the lead in the construction joint venture, in which it has a 65 percent stake. The volume of the construction contract is EUR 197 million (approximately $247 million US). It was only in May that HOCHTIEF PPP Solutions North America reached financial close for another major PPP project in Canada, Northeast Anthony Henday Drive.
Presidio Parkway is to be a new southern access route to the Golden Gate Bridge. Following completion in 2015 the road will run for around 2.5 kilometers along the northern coast of San Francisco, extending from the toll station on the Golden Gate Bridge on the west, to Broderick Street in the east, giving access to historical and cultural landmarks. The existing access road which was built in the 1930s is structurally and seismically unsafe. It is therefore being replaced by the Presidio Parkway which, once completed, will serve approximately 120,000 trips per day. The project also includes various tunnels, major interchanges and a landscaping component.
The HOCHTIEF consortium submitted a bid in mid-2010 and was awarded the contract on December 27, 2010. The PPP project is an availability model in which no traffic demand risks are taken on. Project financing is by means of short-term bank loans and a long-term state-financed TIFIA (Transportation Infrastructure Finance and Innovation Act) loan.