Meridiam Infrastructure is pleased to announce that a Meridiam consortium has reached financial close on the Nottingham Express Transit Phase Two project (“NET Phase 2”) in Nottingham, UK. This project represents one of four major UK Private Finance Initiative (“PFI”) schemes which have been given government approval following cost saving programmes and demonstrates the resilience of the PPP market and the ongoing requirement for key infrastructure projects.

Under the project agreement, Meridiam and its partners will design, build, finance, operate and maintain the tramway which consists of the lines from Nottingham to Clifton and Chilwell. The project will also include the operation and maintenance of the existing Line One from Financial Close followed by the integration of the operation and maintenance of new Lines Two and Three (Phase Two). Post construction, Meridiam and its partners will operate and maintain the entire system over the remaining life of the concession.

The project is structured as a 22 years and 3 months concession with a design and construction period of 36 months. The project will require a funding of approximately £590m. Meridiam will contribute £38.5m, representing a ~30% stake in the company equity and 60% of the mezzanine. The Project Revenues will be primarily availability based, with some low risk traffic revenues through fares collected on different lines, including Line One which is in operation since 2004

Alstom and VINCI Construction will deliver both the civil works and electrical and mechanical equipment (including Rolling Stock). Operations and maintenance will be performed by Trent Barton and Keolis.