Bam Construction has reached financial close on a $657m PPP contract to build a hospital in Germany. It will be undertaken alongside Austrian healthcare provider Vamed and Dutch fund management company Dif.Â
Bam and Vamed will be equally responsible for the planning, construction and renovation of the University Hospital Schleswig-Holstein at its locations in Kiel and LÃ¼beck in northern Germany.Â
About 75% of the project’s finance debt will be provided by the hospital as milestone payments. The consortium partners and commercial funders will provide the remaining 25% of the debt as equity and long-term funding.Â
Construction will commence early next year and will be completed in 2021. The operational phase will include hard facilities management and technical management services and will run until 2044.Â
Earlier this year Bam was awarded a $366m PPP contract to revamp a Dutch government complex in the The Haig.