Dexia: France MoD insisted on protection in Balard

Author: Gemma Varriale | Published: 11 Aug 2011

The French Ministry of Defence (MoD) made some unusual demands to ensure protection of its interests in the largest availability-backed deal of 2011.

The deal, a 30-year design-build-finance-operate concession for a new French Ministry of Defence (MoD) headquarters in Balard, totals €800 million (£707 million) in commercial debt.

The public-private partnership (PPP) closed on May 30.

According to Guillaume Hintzy, director and co-head of PPP, infrastructure at Dexia’s global project finance group, the project contained the biggest real estate program ever included in a French PPP contract to generate additional revenues.

MoD protection

The French MoD wanted its interests to be protected against decisions that could have been taken by the project sponsors.

“The tendering authority (French MoD) stipulated that, from the start, each consortia include in the special purpose...