Autovie Venete SpA. CDP and EIB financing under the Juncker Plan framework. April 27th, 2018

Transcription

1 Autovie Venete SpA CDP and EIB financing under the Juncker Plan framework April 27th, 2018

2 The Concession SpA Autovie Venete is the concessionaire of several motoways sections in the North-east of Italy (incl. A4 Venezia- Trieste, A28 Portogruaro-Pordenone-Conegliano anda34 Villesse Gorizia) for a total network length of 210 km SpA Autovie Venete is controlled by the Friuli Venezia Giulia Region (72.9%), minority shares are held by the Veneto Region and private sector investors The concession is based on a Regulatory Asset Based ( RAB ) tariff, updated from time to time and aimed at ensuring a defined return on invested capital The concession agreement expired on March 31st, 2017 In January 2016 the Ministry of Infrastructure and local authorities (Regione FVG and Regione Veneto) signed an MoU aiming at awarding the new concession - under terms and conditions to be defined - to an In-House entity to be selected Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 2

3 The Project A4 Venezia-Trieste is part of the Trans-European Networks Transport (TEN-T) - Corridor 5 (Barcellona-Kiev, incl. Venezia, Trieste, Lubiana and Budapest) Starting from 2008, SpA Autovie Venete operates in the context of an emergency status declared by the Italian Government with respect to the traffic congestion and road practicability in the axis Corridor V of the A4 motorway. Main investment: A4 (Venezia-Trieste) widening 3 rd Lane, a 95 km section included in the list of strategic infrastructures of national interest. Total Investments of 1.6 bn; of which 0.64 bn completed and 0.96 bn under construction / to be procured. Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 3

4 The Project TEN-T Corridors 14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 4

5 The Project Historical Traffic performances Vehicles/Km [Source: SpA Autovie Venete] 2015 AADT [Source: SDG] 5

6 The Project The A4 widening 14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 6

7 Challenges Need to ensure sources of funding for the completion of the urgent investments ( 0.96) to be completed within 2022 Long term funding needs Concession agreement close to expiry Uncertain timing, terms and conditions of the awarding of the new concession Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 7

8 CDP / EIB Solution The Investment Plan for Europe: main goals and pillars Main goals The first political economy instrument coordinated at European level designed to sustain growth from the demand side Boosting investments, sustaining economic growth and creating new jobs More efficient use of EU funds and coordination between the EIB Group and NPBIs «Pillars» and 3 instruments Mobilising finance for investment Improving project preparation 1 2 Credit enhancement to EIB Group through EFSI 1 (Infrastructures& Innovation and SMEs) Visibility and technical assistance through the «Advisory hub» and the «Project Portal» Public contributions to the Plan do not increase Member States public debt 3 Improving the investment environment 3 Structural reforms and removal of regulatory barriers EFSI Regulation expressely foresees NPBs to play a prominent role in pursuit of EFSI objectives, to act as catalysts for private finance and address market failures 1 European Fund for Strategic Investments: guarantee to the EIB Group for the initiatives related to the Investment Plan for Europe 8

9 CDP / EIB Solution The European Fund for Strategic Investments - EFSI Target: mobilizing at least 315 bn of additional finance at market conditions at European level in order to EFSI 1.0 EC: 16 bn EIB: 5 bn 42 bn: internal multiplier additional resources EIB Group 252 bn: external multiplier 43 bn: NPBIs (CDP contribution ca. 8 bn including ca. 5 bn already approved) 209 bn: other capital from the private sector invest in strategic, solid and substainable projects through EFSI IIW 75 SMEW IIW 157 SMEW EFSI 2.0 EC: 26 bn EIB: 7.5 bn 67 bn: same multiplier additional resources EIB Group 402 bn: same multiplier 252 bn from EFSI bn crowding-in of additional resources from both public and private sector Same Leverage effect Data in /bn 3x 5x 15x From July 2015 to June 2018 Up to

10 CDP / EIB Solution The Large Strategic Infrastructure Investment Platform Large Infrastructure Investment Platform Main features Private sector Investment Platform EFSI MoF Guarantees CDP and EIB jointly evaluate the Project with the aim of identifying the most suitable financial structure to finalize the operation Equity Debt Financing CDP and EIB finance the Project in parallel: the Platform allows maximum degree of freedom, with respect to the procedures of engagement and position of relative seniority Large (> 250 m) infrastructure projects in Ten-T, Ten-E, Broad Band and Social Infrastructure The private sector will contribute with the equity component of the project and with a further component of debt through financial intermediaries New Investment Platform under development dedicated to small infrastructure projects ( m) 10

11 EIB/CDP Solution Negotiation with the Granting Authority of satisfactory terms and conditions for the operation during the «interim period» (i.e. from the current concession term until the effective date of the new concession) Long term financing (maturity up to December 2031) Adequate repaiment mechanisms to manage future project evolution Management of the Termination amount s payment risk PRESERVED INVESTMENT CAPACITY DESPITE REGULATION UNCERTAINTIES Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 11

12 Contractual framework Potential Guarantee Ministry of Infrastructure (Grantor) New Concession Agreement 600 m Financing 50% CDP 50% EIB Intercreditor Agreement Financing Agreement Concession Agreement Autovie Venete SpA Toll Revenues Termination Payment NewCo New Concessionaire Toll Revenues under new concession EFSI European Fund for Strategic Investments Guarantee Users Users Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 12

13 Thanks for your kind attention