DLA Piper advises the lenders on the financing of the Rv. 3/Rv. 25 projects in Norway
DLA Piper has advised the lenders in connection with the financing of the Rv. 3/Rv. 25 project in Norway, worth NOK2.6 billion, about EUR270 million.
Skanska, a leading development and construction company in the Nordics, has signed the project agreement and reached financial close with the Norwegian Public Roads Administration (NPRA) for the financing, design, construction, operation and maintenance of a new 25 kilometre national road, the Rv. 3/Rv. 25 between Løten and Elverum, in the county of Hedmark, Norway.
The new roads, that will improve the road connection between Oslo and Trondheim, will be the first PPP-project in Norway in more than ten years and is one of Norway’s biggest road projects ever.
The PPP-contract will be worth about NOK5.5 billion, about EUR578 million, whereof NOK2.6 billion, about EUR270 million, relates to the construction contract and will be included in the Nordic order bookings for the second quarter 2018. The concession length is 20 years.
Construction will begin in the second quarter of 2018 and is estimated to be completed in late 2020.
DLA Piper 's cross-sector, cross-border specialist Public Private Partnership (PPP) and project finance team was led by Finance, Projects and Restructuring partners Erik Ramm and Fredrik Lindblom in Oslo, and Liam Cowell in Manchester.
DLA Piper's Head of Finance and Projects in Norway, Fredrik Lindblom, commented: "We are delighted to have advised on this landmark transaction,, which is the first in a new chapter for the infrastructure and PPP sector in Norway. Our involvement is a testament to our recognition in the PPP market in terms and our ability to combine local legal excellence and global capability."
DLA Piper is recognised as a market leader in the roads sector, and has been at the forefront of advising on highways projects for many years. The firm has been instrumental in developing sector specific approaches and solutions, working closely with the public sector, private sector and funders.