Fayat awarded Lyon ring road PPP

A Fayat-led consortium has been awarded a 20-year PPP contract to complete safety upgrades and maintain the northern Lyon ring road (Boulevard Peripherique Nord de Lyon) - a 10km toll road that includes 4 tunnels and a bridge.

The €132 million (£103m $165m) project, on which Fayat is partnered with Sanef and BPCE, is due for formal signing in late November.

Greater Lyon is providing €70 million (£55m $88m) and the Fayat-Sanef partnership €62 million (£49m $78m) to finance the project.

Fayat-Sanef will earn instalments of €5 million (£4m $6m) annually over 17 years, in addition to a one-time €14-million (£11m $18m) payment to cover various fees for maintenance, operation, insurance and taxation.

The Fayat subsidiaries involved are Razel-Bec and Satelec.

Construction is scheduled to start in January 2016 and finish in April 2018.