Slovak first for EBRD

The European Bank of Reconstruction and Development (EBRD) has lent € 200 million towards the construction of the R1 motorway in Slovakia. It is the first time the EBRD has lent to a concession project in Slovakia.

The total cost of the R1 scheme is € 1,3 billion, and the contract to build and operate it under a public private partnership (PPP) model has been won by a Vinci-led consortium called Granvia.

The scheme comprises a 52 km section of the R1, and forms part of an east-west transport corridor in the southwest of the country.

EBRD first vice president Varel Freeman said, "This project is an important step for the modernisation of the Slovak transport infrastructure with the participation of the private sector. The successful closing of the transaction in the current economic downturn and liquidity crisis provides a strong market signal that well-structured PPP projects remain a viable alternative for developing public infrastructure, even under adverse market conditions."