Applicability of Spanish PPP experience to Russian market

Transcription

1 Applicability of Spanish PPP experience to Russian market Fernando Gutiérrez de Vera Chairman of SEOPAN Concessions Commission 21 October

2 What is SEOPAN? The Association of Major Spanish Contractors Founded in member companies Turnover of member companies equivalent to 5% of GDP (Gross Domestic Product) ( M ), 73% in national market, 27% in foreign markets SEOPAN represents 95% of Spanish Construction exports ( M ) SEOPAN Contractors export activity in 2006 represents 1,5% of GDP including diversification activities Diversification activities reach 46% of major companies turnover

3 About EIC - Statistics With an aggregated international turnover in 2006 of almost 112 billion, European international contractors are the most important players in the international construction business 3

4 1967 Toll highways km 4

5 2007 Toll highways km 5

6 TOP TRANSPORTATION DEVELOPERS 2007 Company ACS/Irídium (Spain) Ferrovial/Cintra (Spain) Macquarie group (Australia) Sacyr/Itinere (Spain) Gobal Vía (FCC-Caja Madrid) (Spain) NWS Holdings (China) Road King (China) OHL (Spain) Hochtief (Germany) Cheung Kong Infrastructure (China) Acciona (Spain) Vinci/Cofiroute (France) EGIS Projects (France) Alstom (France) John Laing (UK) Bouygues (France) Andrade Gutierrez (Brazil) Bilfinger Berger (Germany) AMEC (UK) Balfour Beatty (UK) Transurban (Australia) No. of Concession/P3 Projects Const./Operating* Active Proposals * road, bridge, tunnel, rail, port, airport concessions + public-private partnerships over $50m put under const./oper. since Source PWF database

7 TRANSPORT DEVELOPERS Ranked by Invested Capital 2007 Company Macquarie group (Australia) Ferrovial/Cintra (Spain) ACS/Irídium (Spain) Vinci/Cofiroute (France) Hochtief (Germany) Alstom (France) Siemens (Germany) Sacyr/Itinere (Spain) Gobal Vía (FCC-Caja Madrid) (Spain) Bouygues (France) Concession/P3 Projects Total Invested* $ millions $44,283 $37,900 $33,000 $24,140 $22,322 $21,900 $20,750 $18,320 $11,030 $9,200 Const./Operating* Total $242,845 * <Aggregate value (in nominal currencies converted to dollars) of all of a firm s transportation project concessions and asset leases signed since The number does not represent a firm s equity commitment, but rather the total of all funds invested in the projects it has been involved in, i.e. the public infrastructure improvements it has helped to create or enhance. Source PWF database 275

8 EIC White Book on BOT/PPP Basic Features Published in April 2003 Based on the broad experience of EIC member companies as concessionaires in preparing for PPP projects in the transport sector Advise to Governments, Contr. Acting Authorities and International (Financial) Organisations in structuring PPP projects Comprises 21 recommendations for the technical and financial implementation of PPP projects 8

9 EIC White Book on BOT/PPP 21 Recommendations 1 GENERAL PRECONDITIONS Ensure true Government Support Create a PPP Task Force Enhance Country Legal Framework (Accounting, Taxes, Procurement) 2 PROJECT PREPARATION Put in place sound procurement strategy Present comprehensive, reliable project documentation Provide for a steady and secure payment mechanism Agree on affordable level of tariffs 3 TENDER PROCESS Use Pre-qualification of bidders Ensure Transparency & Confidentiality throughout process Present clear award criteria Reimburse Bidding Costs Unsolicited Bids??? (outside EU ) 4 RISK MITIGATION Provide for optimal risk identification & allocation Invite financial risk mitigation through IFIs, ECAs, etc 9

10 The financial structure of a typical Greenfield concession US$m nominal (200) year of concession (400) (600) (800) Opex Senior debt interest & fees Dividends Equity subscribed Total Revenues Capex Senior debt repayment Tax Debt drawdown 10

11 Provide for optimal risk identification & allocation. Mitigation of major risks -1 Currency risk Government Guarantee of exchange rate (In first Spanish Highways) Long term loans Involve Multilateral Banks in first projects Cooperation of Russian Banks with Multilaterals (in Spain, Government last resource guarantee) 11

12 Provide for optimal risk identification & allocation. Mitigation of major risks -2 Political risk Partnership with Russian Partners and Banks Step-in rights in favor of financial institutions Land occupation Guaranteed by Concedent 12 12

13 3 Provide for optimal risk identification & allocation. Mitigation of major risks -3 Traffic and operations risks, including Force Majeur In Spain Concession Law provides for reestablishment of economic balance under certain circumstances In case of debt default without misbehavior of the Concessionaire, Concedent rescues the concession and compensate lenders 13

14 THE PUBLIC/PRIVATE PARTNERSHIP FOR LONG TERM PROJECTS IN THE INFRASTRUCTURE AND PUBLIC SERVICES SECTORS: A REALITY CONSOLIDATED IN THE LAST DECADE SINCE 1985 UNTIL 2007, A TOTAL OF US$ 1,197,279 MILLION HAVE BEEN PROPOSED FOR INVESTMENT FOLLOWING THIS DISTRIBUTION: ROADS.. 573,205 MILLION RAILWAYS 383,754 MILLION WATER SEWAGE AND TREATMENT 135,635 MILLION ADMINISTRATIVE BUILDINGS, HOSPITALS, OFFICES AND OTHER 104,685 MILLION But only 579,460M $ have reached a financing Source: PWF

15 3 CONCLUSION The success of PPP is to obtain finance for the projects Lenders like to believe that they will be paid back The assurances that Spain provided for the first projects cost less than the income received by taxes generated for those projects A wise structure of the initial tenders is basic for the success of the future projects 15

16 Thank you for your attention 16