Lower Thames Crossing FA sought
The Department for Transport and National Highways is seeking a financial adviser to work on the £10bn Lower Thames Crossing project financing.
EY is already advising but the government is seeking investment banking-style advice on selling the project company that will undertake the scheme and take over the Dartford Crossing down the river and its revenues. The scheme is being proposed on regulated asset base model in which a new economically regulated company, LTC Co, will undertake the main construction work, as well as maintain and operate both Lower Thames Crossing and Dartford Crossing. The deal will combine an RAB structure with market risk on the tolls. The advisory role includes capital markets advisory, market engagement and investor outreach, credit rating process, equity sale execution and transaction finalisation. Contract value is initially put at £24m. Bids are due on November 25 and a decision is expected on December 19.
