LIEFKENSHOEK RAIL CONNECTION FINANCIAL CLOSING OF THE PUBLIC PRIVATE PARTNERSHIP 5 November 2008 LUC LALLEMAND CEO 20081105_Liefkenshoek Rail Connection

CONTENT Infrabel strategy for the port of Antwerp The Liefkenshoek rail connection Public Private Partnership Project company LOCORAIL NV Conclusion & questions 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

STEP-BY-STEP INFRABEL STRATEGY (I) 1. INFRABEL STRATEGY FOR THE PORT OF ANTWERP STEP-BY-STEP INFRABEL STRATEGY (I) Infrabel invests heavily in competitive and adapted rail infrastructure in the port of Antwerp according to the strategy of CONCENTRIC CIRCLES: 1st circle: enhance efficiency of freight traffic in the ports ex. rail infrastructure around Deurganck Dock and the Rail Link Liefkenshoek 2nd circle: improve access to Belgian ports ex. Ghent Curve, Bifurcation Schijn and Krijgsbaan, Second Railway Access 3th circle: create new access axes ex. Iron Rhine (complementary to the Montzen axis) Bifurcation Schijn Rail Link Liefkenshoek Deurganck Dock Second Railway Access Ghent Curve Iron Rhine Bifurcation Krijgsbaan 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

SITUATION & DESCRIPTION 2. THE LIEFKENSHOEK RAIL CONNECTION SITUATION & DESCRIPTION 16.2 km direct rail connection between: Antwerp Left Bank (Waasland Port) and Antwerp Right Bank (shunting yard Antwerp North) Route: Siding South Beveren Tunnel Scheldt Channel Dock B1-B2 Antwerp North SIDING- SOUTH BEVEREN TUNNEL SCHELDT CHANNEL DOCK B1-B2 ANTWERP- NORTH FAISCEAU- SUD TUNNEL BEVEREN ESCAUT DOCK CANAL B1-B2 ANVERS- NORD 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

2. THE LIEFKENSHOEK RAIL CONNECTION OBJECTIVE Optimal rail connection of the Deurganck Dock AND improvement of the traffic flows in the port of Antwerp Step 1: Deurganck Dock (1st phase: 2004 – 2008 ) (2nd phase: 2008 – horizon 2020 ) Construction of new tracks and sets of tracks (+/- 153 km extra tracks) Expansion and modernisation of rail infrastructure on Left Bank Step 2: Liefkenshoek rail connection (2008 – 2014 ) Faster and more efficient rail traffic between Deurganck Dock and Antwerp North Avoid detour over busy intersections (Kennedy Tunnel, Berchem) Scheldt 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

STRATEGIC CONNECTION (-) SIMULATION 2. THE LIEFKENSHOEK RAIL CONNECTION STRATEGIC CONNECTION (-) SIMULATION Situation in 2020 WITHOUT the Liefkenshoek rail connection Saturation of the Kennedy Tunnel and the axis Antwerp-Berchem – Antwerp-Schijnpoort Right Bank Scheldt Left Bank Future Liefkenshoek rail connection Antwerp-North Antwerp- Schijnpoort 189 trains/day 109 trains/day 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

STRATEGIC CONNECTION (+) SIMULATION 2. THE LIEFKENSHOEK RAIL CONNECTION STRATEGIC CONNECTION (+) SIMULATION Situation in 2020 WITH the Liefkenshoek rail connection Difference of approx. 100 trains which no longer have to pass through the Kennedy Tunnel  A new impulse for the Deurganck Dock and Antwerp Right Bank! Right Bank Left Bank Scheldt Future Liefkenshoek rail connection 109 trains/day Antwerp-North Antwerp- Schijnpoort 81 trains/day 0 trains/day 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

Structured cooperation between 3. PARTENARIAT PUBLIC-PRIVÉ DESCRIPTION OF PPP Structured cooperation between Government Infrabel Private entity LOCORAIL NV Purpose = financing and accelerated execution of a key project (Liefkenshoek rail connection) creating added value for both parties DBFM agreement (Design, Build, Finance et Maintain)  Creative financing mechanism for key mobility project! 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

Public Private Partnership ADVANTAGES OF PPP Public Private Partnership Detailed specifications for the design and the construction of the entire project Transparency and optimisation of the costs Better compliance with the imposed construction periods and the cost of construction Transfer of risks from the public to the private sector In this case: building risk and availability risk 20081105_Liefkenshoek Rail Connection

EVOLUTION & TIMING PPP LIAISON FERROVIAIRE LIEFKENSHOEK 3. PUBLIC PRIVATE PARTNERSHIP EVOLUTION & TIMING PPP LIAISON FERROVIAIRE LIEFKENSHOEK 18/04/06 Call for tenders for financing and construction May '06 – Juin '08 Negotiations and refining of the project during talks with three candidate consortia 26/05/08 Candidate consortia submit Best and Final Offer (technical aspects) 19/06/08 Candidate consortia submit Best and Final Offer (financial aspects) Juin – Oct. ‘08 Talks between Infrabel and candidate consortia with best price offer 06/10/08 Signing of agreements on environmental measures and transfer of ownership of land with Flemish Region and port authorities 09/10/08 Establishment of LOCORAIL NV 5/11/08 Contract closing + assignment of construction contract Financial closing of the PPP Liefkenshoek rail connection! 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

3. PUBLIC PRIVATE PARTNERSHIP PLAN OF THE WORKS 20/10/08  Start nature compensation works (Rietveld Kallo) 12/11/08  Start construction works Liefkenshoek rail connection Mid 2013  End of construction works 2012-2014  Works on tracks, signalling infrastructure and overhead wiring (Infrabel) Spring '14  Testing of new rail infrastructure + homologation Mid 2014  Putting the Liefkenshoek rail connection into operation 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

INVESTMENT LIEFKENSHOEK RAIL CONNECTION 3. PUBLIC PRIVATE PARTNERSHIP INVESTMENT LIEFKENSHOEK RAIL CONNECTION Total investment: approx. 765 million (current) euros Infrabel: approx. 75 million (current) euros (construction of rail infrastructure) PPS: approx. 690 million (current) euros (CAPEX) Flemish Region: co-financing of 107 million euros * In annex you'll find a view of the different railway projects and Infrabel investments in and around the Port of Antwerp 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

PRIVATE INVESTMENT GROUP LOCORAIL NV (I) 4. PROJECT COMPANY LOCORAIL NV PRIVATE INVESTMENT GROUP LOCORAIL NV (I) Includes: CFE NV, VINCI Consession SA, BAM PPP Investments Belgium Financing resources provided by (actors LOCORAIL) 50 % 50 % Europese Investeringsbank (EIB) ING Fortis Banco Santander Société Générale BNG (Bank Nederlandse Gemeenten) Bayerische Landesbank 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

4. PROJECT COMPANY LOCORAIL NV LOCORAIL NV (II) responsible for financing and construction of the infrastructure (partly civil engineering) responsible for the costs of maintenance of the infrastructure during 38 years puts the infrastructure at Infrabel’s disposal during this period transfers the ownership of the infrastructure to Infrabel after 38 years (2051)  Locorail NV receipts: availability fee of approx. 50 million euros/year from Infrabel during 38 years! 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

4. PROJECT COMPANY LOCORAIL NV LOCORAIL NV HAS OUTSOURCED CONTRUCTION ACTIVITIES TO CONSTRUCTION CONSORTIUM LOCOBOUW NV (I) THV LOCOBOUW includes: MBG VINCI Construction Grands Projets CEI-De Meyer Wayss & Freytag (actors LOCOBOUW) THV LOCOBOUW is also responsible for: - the realisation - the maintenance during 38 years 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

CONSTRUCTION CONSORTIUM THV LOCOBOUW (II) 4. PROJECT COMPANY LOCORAIL NV CONSTRUCTION CONSORTIUM THV LOCOBOUW (II) Construction of railway bed from Bundel South to the Beveren railway tunnel (1-3) Construction of two single-track bored tunnels under the Scheldt and channel dock B1-B2 (5-6) Renovation and adaptation of the existing Beveren Tunnel (3-4) Construction of closed tunnel construction and open access ramp on Right Bank (6-7) Adaptation of existing railway tunnel under the R2 (7) Construction of an access tunnel between the Beveren railway tunnel and the tunnels to be bored (4-5) 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

5. CONCLUSIE CONCLUSION The Liefkenshoek rail link is the 2nd successful PPP project for Infrabel (* Diabolo and Liefkenshoek rail link projects) The investment world places tremendous trust in Infrabel The private sector is injecting around 1 billion euros* into our railway infrastructure 20081105_Liefkenshoek Rail Connection 20081105_Liefkenshoek Rail Connection

QUESTIONS? 20081105_Liefkenshoek Rail Connection