MOTORWAYS: Pension Funds Join Motorways Concession Bidding Consortiums

According to local media sources, Croatian mandatory pension funds AZ (Allianz-Zagrebacka Bank), PBZ-Croatia Osiguranje and Erste, have chosen to join the motorways concession consortium led by the global investment company Goldman Sachs, while the Raiffeisen pension fund decided to join the consortium led by the Australian investment group Macquaire; the bidding process is for the rights to operate a concession for the Croatian Motorways (HAC) and Rijeka-Zagreb Motorway (ARZ).

Other possible bidders that have been publicly speculated include: French Antin and American J.P.Morgan.  The submission deadline for non-binding offers is 15 December. The funds are reported to be prepared to invest up to €500 million.

The motorways will be leased for a period of 30-50 years (the exact duration of the concession to be determined in the final negotiations with the awarded consortium, expected by mid-2014).  According to the concession model, the investor will manage, operate and maintain the motorway network…

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