As the European infrastructure market – road and rail – wallows in the doldrums, it seems to be the same things keeping everyone busy, and that’s refinance opportunities. However, when it comes to greenfield, few markets are stagnating as much as France.

Now that’s a tad unfair as the French government is currently wading its way through a three-month review of transport sector with no direction expected until the new year – at which time we can expect to see an update to the law on transport infrastructure and freeing up of projects in procurement.

Taking a look first at the road projects, any of the five bidders – Vinci, Bouygues, Eiffage, Spie Batignoles and NGE (picking up a Gallic theme here?) – expecting to see any developments on the Route Centre Europe Atlantique (RCEA) will be sorely disappointed.

Those who regularly use RCEA will be disappointed at delays to the €420 million widening of the east-west highway and, hopefully, moving on from its moniker route de la mort.

Meanwhile, a decision will be made in the new year on the €1.5 billion A45 Lyon-St Etienne toll road. This is, however, not a project finance deal but is being largely paid for by government subsidies and support from local authorities with Vinci stepping in with a wedge of corporate finance.

And then you have the tolled A355 ring road circling Strasbourg with Vinci in place with a banking team with a curious group of banks including the inevitable EIB; Credit Agricole (wouldn’t be the same without it); Intesa Sanpaolo; Czech bank CSOB; CaixaBank and KBC.

Sources say they are awaiting EU approval on this project, but you can bet your bottom dollar the on-going review has a lot more impact on it.

And so we come to the refi projects:

• A19
• A150
• A65

Refi on Vinci’s A19 that connects Artenay and Courtenay has signed with four lenders – Allianz, AXA, La Banque Postale Asset Management and MEAG – is not far off a happy conclusion.

NGE’s A150 refi had been touted for close before the end of November, but that’s not leaving them much wiggle room. Finally, the A65 – the 150km real toll connecting Langon and Pau in Gascony that entered operations in December 2010 – won’t see any significant developments until the new year.

Heavy rail

During the global financial crisis, France impressed the whole world by getting its three major high-speed rail projects over the line. They were superbly brought back to life by a private sector that truly understood how to deliver major projects.

They, of course, are:

• Nimes-Montpellier
• Tours-Bordeaux
• Bretagne-Pays de la Loire
  

 Nimes-Montpellier is working its way through refi at the moment with sponsors – Meridiam (53%), FIDEPPP (27%), Bouygues (8%), Colas (5%), Spie Batignolles (2.8%) and Alstom (2.4%) – expecting this to be finalised in spring 2018.

People on the ground expect Tours-Bordeaux to be the next HSR project to launch into refi

Not a lot on the cards

The jury’s well-and-truly out on the future pipeline of project finance deals in France and only the new year will bring clarity on that front.

There aren’t that many roads in procurement at the moment, and there is a fear that these could be scrapped… though perhaps the thought of irking the French construction giants is enough to make

HSR seems to have had its day and there is no special desire – or requirement – to push forward any deals in this space.

If there is to be an opportunity on the greenfield side, it is likely to lean more towards maintenance of the existing network which RFF and SNCF have been seeking for many a long year. Outside of the HSR network, the French have been complaining for years about the state of its rail system.

If there is to be a programme of any scale in France it is likely to fall to the snail rail rather than HSR.

It’s not sexy, but it’s deal flow.

And as every single deal in France seems magically to fall to French companies, it’s a good way to prop up your own economy.