Dutch pension manager PGGM has joined a consortium tasked with reinforcing the Afsluitdijk, the large dam and causeway closing off the former Dutch Zuiderzee from the Wadden Sea.
PGGM is participating through its joint venture with construction company BAM, known as BAM PPP PGGM Infrastructure Coöperatie.
The €921m project has a duration of 25 years and is and aimed at constructing, maintaining and financing the Afsluitdijk. It is to be carried out by Levvel, a consortium including the BAM-PGGM tie-up as well as Van Oord Aberdeen Infrastructure Partners and consultancy RebelValley.
According to Rijkswaterstaat, the government department for waterways and public works which commissioned the project, three consortia had tendered for the job.
Levvel’s responsibilities include strengthening of the 32-kilometer dam – completed in 1932 – and install pumps to drain away water to the Wadden Sea.
The consortium will also construct a new cycle path along the Wadden Sea.
The Afsluitdijk reconstruction is a public private partnership project, including a government contribution and bank financing.
PGGM said that it would contribute 40% of the assets required for the project, comprising “dozens of millions of euros”.
It said the investment would provide “stable and long-term returns against a modest risk”.
Earlier this month, the joint venture of PGGM – the asset manager of the €197bn healthcare scheme PFZW – and BAM was commissioned to widen the motorway A10-A24, north-west of Berlin, Germany.
The €650m reconstruction also comprised financing, maintaining and managing the motorway. PGGM and BAM have been granted a 70% stake in the project
The joint venture was also involved in the €600m construction of new sea locks in IJmuiden, which has turned out to be much more expensive than planned.
However, this mainly came at the expense of BAM, which has made a provision of almost €70m for setbacks. PGGM has said that, as financier and future operator of the project, it would not suffer from delays and higher construction costs.