LONDON (14 August 2007) – The international law firm of McDermott Will & Emery has advised on the Thessaloniki Submerged Tunnel Project, the first of the Greek Government’s current €7 billion programme of infrastructure PPP Projects to reach its Concession Commencement Date. The project reached financial close on 1 August 2007.
The total project costs will be approximately €477 million of which €314 million will be provided through commercial, EIB and junior debt. Eurobank Telesis Finance, UniCredit and Millennium Investment Banking have fully underwritten the debt facilities and are acting as Mandated Lead Arrangers.
The project consists of the design, construction, maintenance, financing and operation of a by-pass to the central business district of Thessaloniki, including an immersed tunnel running parallel to the sea front together with sections of cut and cover tunnels at each end of the submerged tunnel. 3.4 kilometres of the by-pass is tunnel with 1.24 kilometres of the tunnel being immersed below the sea bed. The tunnel will carry six lanes of traffic in total.
McDermott's projects team, led by project finance partner Andrew Watson, acted for the project's sponsors, Elliniki Technodomiki TEB A.E., Boskalis International B.V. and Archirodon Group N.V., from the bid stage which commenced in 2004. Mr. Watson was assisted by a multi-disciplinary team including partner Cam Brockie and associates Rashpaul Bahia and Charlotte Doerr.