November.22.2013
Orrick Rambaud Martel has advised the French State (the Department of Ecology, Sustainable Development and Energy) in signing a partnership contract with the Société de la Rocade L2 de Marseille, formed by Bouygues Construction (Bouygues Travaux Publics, the lead company, Bouygues Travaux Publics Régions France, DTP Terrassement and Bouygues Energies & Services), Colas Midi- Méditerranée, Spie batignolles, Egis, Meridiam Infrastructure and CDC Infrastructure, for the new Marseille bypass, known as the L2 or the A507. The €620 million public-private partnership is the largest infrastructure project awarded in France in 2013.
The 30-year deal covers the financing, design, construction, maintenance and renewal of the engineering structures and equipment of the infrastructure.
The L2 will take traffic away from the centre of Marseille and decongest the city thanks to the creation of a toll-free urban expressway approximately 10 kilometres long, which will link the A7 motorway (leading north to Aix-en-Provence) and the A50 (an eastbound motorway towards Aubagne and Toulon). It will also allow the urban regeneration of neighbourhoods served by the road. The L2 will make it possible for a number of projects to be carried out which will encourage the development of public transport services.
The project will be jointly financed by Project bonds subscribed by the Allianz group and by public subsidies (granted by local public authorities) during the construction period. When the L2 East section comes into service, the French Government will pay a rent, which will primarily allow the reimbursement of the projects bond of approximately €165 million, as well as covering the cost of maintenance and renewal of the infrastructure.
Commenting on the transaction, Jean-Luc Champy said: "We are very pleased to have worked on such an innovative infrastructure project; it is only the first PPP financed using securitization in France during both the construction and operational phases."
The Orrick team included energy and infrastructure senior counsel Noël Chahid-Nouraï, energy and infrastructure of counsel Jean-Luc Champy, banking & debt capital markets of counsel Amaury de Feydeau, energy and infrastructure associate Geoffroy Berthon, banking & debt capital markets associate Pierre de Boutiny, energy and infrastructure legal specialist Constance Boillot, and corporate associate Emmanuelle Surre.