Supporting the modernization of the French prison system
Our Group has supported Spie Batignolles and GDF Suez in a €350 million public-private partnership (PPP) with the French Justice Ministry for the construction and maintenance of three new prisons which will eventually house 1,740 prisoners.
This project forms part of the initiative to modernise the French justice system, one element of which involves building new prisons and renovating older ones. The improvement of working conditions for prison staff and living conditions for prisoners are the primary objectives for the construction of new prisons. The three establishments built in Valence in southeastern France, Riom in central France and Lutterbach in eastern France will replace more run-down buildings.
As Mandated Lead Arranger and Hedge Provider, our Group has an important role in the financial structuring and contract management of this project, supported by our long experience in construction PPPs and our knowledge of the public sector. We have recently participated in the structuring and financing of the Tribunal de Grande Instance (district court) in Paris. And we had previously supported the Justice ministry as financial advisor for the building of 10 other prisons.
This project strengthens the bank's relationship with two important clients, construction company Spie Batignolles and GDF Suez, which will provide maintenance for the prisons via its specialised penitential establishment subsidiary Gepsa.
• PPP: Public Private Partnership, a venture by which a government or local authority gives a private company or companies, for a specific period, a global mission to finance, build, maintain, operate or manage structures and equipment necessary for public service.
• Mandated Lead Arranger: Bank chosen by a company which is raising a loan from several banks to structure the operation.
• Hedge Provider: Bank in charge of interest rate hedging ("insurance" against interest rate changes).