Stibbe advises on the Zaanstad penitentiary PPP
Acting as lenders' counsel to the Pi2 Consortium. The consortium is a joint venture between Ballast Nedam and Royal Imtech and has achieved financial close with respect to the Zaanstad Penitentiary Project, a project procured by the State of the Netherlands (RGD) on the basis of a DBFMO Agreement.
Under the DBFMO Agreement, Pi2 is responsible for the design, construction, financing and maintenance of the new building and will also carry out a major part of the facility services for a 25 year period.
The financing for the project (in the amount of approximately € 195million) is based on the Pebble–Commute structure developed by ING and NIBC. The application of this structure is new and facilitates the direct financing of public infrastructure by institutional investors such as insurance companies and pension funds. In brief, this structure allows ING and NIBC to provide short term funding for the project during the construction phase, with the long term funding provided by institutional investors.
Stibbe has acted as legal counsel to the banks and institutional investors in connection with all legal aspects of the transaction, including the intercreditor arrangements.
