Linklaters advises the Lenders on the financing of the R4 West and East ringway reconstruction around Ghent, the largest ever infrastructure PPP in Belgium
We have successfully advised a group of 18 lenders to the BRAVO4 consortium consisting of BESIX Group, EPICo, I4B, RID PPP (Rebel and Abrdn) and Stadsbader on the > EUR 1bn project financing of the R4WO project, a public private partnership (PPP) tendered by De Werkvennootschap (the Flemish region's agency for major infrastructure projects) aimed at rejuvenating Ghent’s ringway. This vital transportation link connects the city with its port, an essential hub for regional economic activity.
The R4WO project, Belgium’s biggest ever PPP, involves a 7.5-year construction period, followed by a 30-year availability period, procured under a Design Build Finance Maintain (DBFM) model to upgrade the R4 West and East ringway in Ghent to primary roads, removing intersections and constructing and maintaining, amongst other things, over 22km of bicycle infrastructure (cycle highways), eight new bicycle bridges, new rail infrastructure, bus lanes, greenery and noise barriers. The construction price and periodic maintenance cost are paid by De Werkvennootschap through periodic availability payments spread over 30 years, guaranteed by the Flemish Region.
The reconstruction of the ringway will vastly improve access to one of the country’s largest ports and is set to boost local traffic safety, promote green mobility, and significantly enhance the environment and liveability of the adjacent residential areas. The particularly long construction and availability periods (and consequently long tenors required) asked for an innovative financing structure, combining fixed rate notes with floating rate facilities, all provided by an international group of lenders (banks and institutional investors).
The Linklaters team was spearheaded by Pieter Puelinckx and Lothar Van Driessche on the project side, and David Ballegeer, Emma De Koster and Henri Boone on the finance side. The core team was supported by Tom Cobbaert, Laura Van Outryve, Seline Akdeniz and Corneel Debusscher. Our Tax team consisting of Abdelmajid Roughou, Sören Vandeweyer and Matthieu Possoz was also involved.
