PPP Project - D4 Motorway CZE. ARI PPP conference. November 27 th,

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1 CZE ARI PPP conference November 27 th, 2018

2 Introduction to Project 32 km greenfield part (DBFOM) 16 km brownfield part (O&M) Public Authority Ministry of Transport of the Czech Republic (MoT) State Fund for Transport Infrastructure (SFDI) Dan Ťok Minister of Transport

3 Project Preparation Team Legal Advisors White & Case Public authority Ministry of Transport State Fund for Transport Infrastructure Road and Motorway Directorate of the Czech Republic Financial Advisors Česká spořitelna (Member of Erste Group) Technical Advisors Obermeyer Group Zoning & Building permit, Land acquisition Advisory team

4 Public Authority - Project Management Tomáš Čoček 1st Deputy Section Ministry of Transport Luděk Sosna Martin Janeček Head of Strategy PPP D4 Project Manager Ministry of Transport Ministry of Transport Zbyněk Hořelica Director of State Fund for Transport Infrastructure Tomáš Blecha Deputy Director State Fund for Transport Infrastructure Zdeněk Svoboda PPP D4 Financial Manager State Fund for Transport Infrastructure

5 Financial Advisors Česká spořitelna (Member of Erste Group) Christoph Lang International PPP / Project Finance Expert Stephen Uhlig International PPP Expert Pavel Čech Jan Ornst Local Project Finance Expert Local PPP Expert Jan Šnajdr Local PPP Expert

6 Framework 1. Project Organisation Contracting authority MoT CZE, separate direct agreement between SPV and SFTI as the SFTI is the body who will pay the AVP Contract agreement based on Standardization for PFI contracts (the same legal advisor as for Slovak D4/R7) 2. Transport Strategy, Traffic and Economics Transport policy and Transport sector strategies approved and periodacaly updated by MoT D4 is in line with this strategy (indicate as a potential pilot PPP in them) Toll and vignettes policy will be the same as in the rest of the state CBA approved for D4, includes main benefits indicated

7 Timeline for Project Technical Preparation New EIA binding statement issued 9th November 2018 Zoning permit documentation Done Zoning permit Valid Actualization of building permit documentation December 2018 Land acquisition completed (include expropriation) October 2019 Building permit Second half of 2019

8 D4 Sections O&M #1 Skalka Intersection II/118 DBFO #1 Intersection II/118 Milín DBFO #2 Milín Lety DBFO #3 Lety Čimelice DBFO #4 Čimelice Mirotice DBFO #5 Mirotice extension O&M #2 Mirotice Třebkov O&M #3 Intersection I/20 Nová Hospoda O&M #4 I/20 N.H. Písek (Krašovice)

9 Tender Procedure Concessionaire to be selected in a tender procedure with competitive dialogue in accordance with Section 60 et seq. of Czech Act No. 134/2016 Coll., on the Public Procurement Process, as amended (the PPA ), and in accordance with Czech Act No. 13/1997 Coll., on Roads, as amended Four pre-qualified bidders shortlisted to participate in competitive dialogue

10 Shortlisting procedure Rank Name of the bidder (bidding consortium) Number of accepted reference projects 1. PPP D4 DAJL (DIF Infra 5 Participations 1 B.V., Acciona Concesiones S.L. and John Laing Investments Ltd.) DIVia (VINCI Highways SAS, VINCI 27 Concessions SAS a Meridiam Investments SAS) 3. HO-ST South Bohemian Link (HOCHTIEF PPP Solutions GmbH a STRABAG AG) Via 4 south connection (PORR 24 Beteiligungen und Management GmbH, Macquarie Corporate Holdings Pty Limited (UK Branch), Obrascon Huarte Lain, S.A. a Egis Projects S.A.) 5. IC Içtaş Inşaat Sanayi ve Ticaret A.Ş., 20 ASTALDI S.p.A, Intertoll Infrastructure Developments B.V., BBGI PPP Investment S.à.r.l. a TIIC 2 S.C.A., SICAR 6. FCC Concesiones, S.L PAN MEDITERRANEAN 5 ENGINEERING COMPANY LTD

11 Indicative Timeline of Competitive Dialogue Publishing of Prior Information Notice 22nd of March 2018 Commencement of Tender Procedure (PQ) 9th of May 2018 Deadline for Submission of Request to Participate in Competitive Dialogue 2nd July 2018 Invitation from Contracting Authority to Participants Not Excluded in Qualification Stage to Participate in Competitive Dialogue End of January 2018 Start of Competitive Dialogue Q1/2019

12 Financing Structure (1) Main bid selection criterion Expected general financing structure for bidding and FC Public Authority s Share of Overall Construction Cost Multilateral involvement Required level of committed financing at bid submission Changes of debt pricing between BAFO and FC Requirement for off-balance sheet treatment (ESA 2010) The lowest present value of availability payments Bank debt & Equity (90/10) None EIB participation is being considered Debt: 100% minus expected EIB part Equity: 100% All material lenders and investors due diligence completed by BAFO Non-exclusivity under consideration Basis rates Public Authority Margins Concessionaire Highly preferable

13 Thank you for your attention. Martin Janeček

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