Flemish Government renews
non-movable bridges with innovative PPP approach

Our Flemish regional roads have about 3,000 bridges combined, many of which date back to the 1960s and 1970s. With many of these structures approaching their technical lifespan, the Department of Mobility and Public Works (MOW), together with the Agency for Roads and Traffic and Vlaamse Waterweg nv, faced an important challenge: how do we renew this important infrastructure in a cost- and time-efficient manner? 

Yanis Ingelberts, public procurement legal advisor and contract manager for the PPP Kunstwerken programme, explains how BDO is supporting the Department in this complex task. What approach did they develop together? And how will they ensure that different contractors can compete fairly for this massive project?

Renovation by 2030 

The PPP Kunstwerken programme focuses specifically on non-movable bridges in urgent need of renovation. Yanis explains, ‘We shortlisted about fifty bridges, ranging from smaller spans to complex structures. This is a very diverse group of bridges over canals, railways, and motorways, spread all over Flanders.’ In 2021, the Government of Flanders launched the programme to renew as many of the shortlisted bridges as possible by 2030 with the available budget. An ambitious deadline that required a totally new approach.

Not a traditional public-private partnership (PPP)

Whereas a ‘classic’ PPP project around similar infrastructure often works with a predefined object and elaborate reference designs, MOW chose a different path in this project. ‘In a previous PPP project to raise bridges over the Albert Canal, for example, we had one reference design that could be used for each bridge’, says Yanis. ‘In this case, this was impossible given the speed of the project and the huge variation in type, location, and size of the bridges.’ 

The solution? An innovative structure within a framework agreement combined with a two-stage approach. Instead of directly entering into DBFM (Design, Build, Finance, Maintain) contracts, MOW works with other parties from the beginning in a construction team form. DBFM contracts are only concluded on a bridge-by-bridge basis once the design, price, and all other preconditions for a specific bridge are fixed and funding has been raised. 

‘We wanted to involve all the contractors’ technical knowledge in the process as early as possible’, explains Yanis. ‘After all, they know best how to build a bridge efficiently – in terms of time, cost, method, and materials. By combining their expertise with that of our own study firms, we strengthen the whole project.’

Tailored financial advice

This different approach brought another challenge with it: how do you compare quotes from different contractors when there are no concrete designs yet? This is where the expertise of BDO’s Deal & Valuation Advisory team came in handy. 

BDO experts Michael Van Berkel and Wim Duchateau supported the Department of Mobility and Public Works in developing a theoretical financial model. Yanis explains, ‘We first identified which price elements we could capture, such as overhead and profit rates, risk commissions, and central project organisation costs, among others. Then we developed procedures to determine a market-based price later for those elements we couldn’t capture.’ 

The first result was a model for eight bridges, each with their own schedule, construction cost, and maintenance cost. By adding the bidders’ fixed price elements to this, the Department was able to objectively compare the bids based on the theoretical net present value. 

We were immediately on the same wavelength with BDO. They thought pragmatically based on our new approach and came up with solutions to our unique problems.

Yanis Ingelberts Legal advisor – Department of Mobility and Public Works

Future-proof procedures 

In addition to the financial model, BDO also developed procedures for future tenders within the programme. ‘There will be a debt funding competition to raise external capital to finance the innovations’, explains Yanis. ‘BDO has worked out the procedures that determine how these competitions will run.’ 

How has this thorough preparation been received so far? ‘All parties responded positively during the dialogue phase with potential contractors. Everyone is on board with the story and understands our approach. We received a few comments on the comparability of the bids, indicating that we had laid a good foundation.’

Developing the tender structure was seamlessly executed. We tweaked the financial model here and there during the dialogues, which eventually led to good, comparable bids.

Yanis Ingelberts Legal advisor – Department of Mobility and Public Works

From plan to execution

With the contractual basis established, the project is now quietly moving towards the next phase. 
After the environmental permits for a first cluster of bridges are granted, the first debt funding competition will be organised in 2026. 

The collaboration between MOW and BDO illustrates how public organisations can tackle complex infrastructure projects with the right expertise. By abandoning traditional PPP models and adopting a flexible, collaborative approach, MOW is creating a model that could also be of interest to other governments in the future. 

For Yanis, BDO’s support was incredibly important. “So far, the project has gone very well, and I am more than satisfied with the support we have received. The colleagues at BDO worked constructively with us from the beginning and provided solutions to our not-so-ordinary challenges.”

Working on complex financial models for PPP projects yourself? 

Feel free to contact our BDO Deal & Valuation experts for personal and pragmatic advice on your public-private partnerships. 

Photo credits: Agentschap Wegen en Verkeer