Bologna People Mover PPP reaches financial close

The EUR 103 million Bologna light rail PPP scheme reached financial close on 30th September 2016.

The sponsors secured EUR 68 million of facilities, including 19-year EUR 48 million of senior debt, as well as a three-year EUR 13 million bridge loan and a three-year EUR 7.5 million VAT facility.

Lenders comprise UniCredit, which provided 40% of the debt, Unipol Banca (20%), BPER (20%); and local lenders Banca di Bologna, Emilbanca, Interprovinciale di Modena and Cassa di Risparmio di Rimini (Carim), providing the remaining 20%.

Bologna People Mover, which started being built in October 2015, is a monorail shuttle that will link Marconi Airport to Bologna's Centrale Railway Station in about 7 minutes. The project’s concessionaire is Marconi Express, a consortium comprising Integra (previously Consorzio Cooperative Costruzioni CCC) with 75% and Public Transport Operator TPER (25%). The innovative rolling stock is being provided by the Swiss manufacturer Intamin.

Steer Davies Gleave has been involved throughout the project working with both the concessionaire and the lenders, carrying out Traffic and Revenue forecasts as well as Technical Due Diligence services. 

To date, the EPC contractor Integra has completed over the 20% of the civil and technological works (33% in the critical area of the Airport) and the total construction progress is aligned to the work schedule. The light rail system is expected to be completed in October 2018 and Commercial Operation will start in mid-March 2019. 

You can read more about our work in the project here.