Bilfinger Berger wrote off a total of US$84M of equity investment in two toll tunnel schemes in 2006.
In reporting its results for last year, the German contractor did not break out the tunnelling performance and declined to give details. However, it said that stakes in two struggling toll tunnels, both opened in late 2005, had been written off – the Cross City project in Sydney and the Herren tunnel in Lubeck, Germany.
Most of the write off concerns Cross City, in which Bilfinger still holds a 20% equity stake. The tunnel concessionaire went into receivership at the end of last year, and insolvency specialist KordaMentha is trying to rescue the business (T&TI, January 2007, p10).
In Germany, the 800m long twin bore Herren tunnel under the river Trave has also been struggling with low driver usage. A common feature in both cases has been the alteration in nearby road networks in relation to the tunnels, which has angered drivers.
The contractor continues to hold a 50% stake in the 30-year Herren tunnel concession alongside its JV partner Hochtief, which stated separately last year its stake was US$14.7M. The twin tube project has tunnel diameters of 10.4m and cost about US$240M.
Bilfinger has shifted its strategy on equity involvement in privately financed transport projects to limit risks on traffic volumes. The strategy does not impact its involvement in the Brisbane bypass.
At group level, Bilfinger posted earnings before interest, taxes and amortisation (EBITDA) up 57% to US$240M. Output was 12% up at just over US$10.53bn, and the order backlog was a quarter higher at US$2.67bn.
