MINISTERIO DE TRANSPORTES GOBIERNO DE CHILE MINISTERIO DE TRANSPORTES Y TELECOMUNICACIONES Transport and Support Services Biding Conditions in Transantiago Road Show Jan/Feb 2004 Rodrigo Urzúa A.

Bided Business Characteristics Transport and Support Services Biding Conditions in Transantiago Contents Bided Business Characteristics Biding Conditions for Public Transport Services Public Transport Business View Schedule

Bided Business Characteristics Transport and Support Services Biding Conditions in Transantiago Bided Business Characteristics

Bided Services Characteristics Business Types Prioritized Trunk Business Units (2 and 4): Has Specialized Segregated Infrastructure for Buses Exigency of Transantiago Standard Buses (new) There are bided for long term

Bided Services Characteristics Business Types Trunk Business Units (1, 3 and 5): Allow the use of present time standard Buses with Small Investment Bided for Short Term Allow the Term Extension in Case of Fleet Renovation

Bided Services Characteristics Business Types 8 1 7 Local – Feeders Business Units (1 to 9): Allow the use of present time standard Buses Bided for 5 years 2 6 9 3 5 4

Bided Services Characteristics Business Types Local – Feeder Business Unit 10 (Central Santiago): Exigency of Transantiago Standard Buses and Use of Clean Technology (low pollution) Bided for Long Term 10

Biding Conditions for Public Transport Services Transport and Support Services Biding Conditions in Transantiago Biding Conditions for Public Transport Services

Biding Conditions for Public transport Services Offer Presentation Requirements Type of Companies: Close or open anonymous societies under the regulations of open anonymous societies , with exclusive object: “Public transport services on bided ways of metropolitan region and related activities”. Minimum Capital Exigency: Trunk Units 2 y 4  US$ 12.8 Million Trunk Units 1, 3 y 5  US$ 2.3 Million Local – Feeders 1 to 9  US$ 2.3 Million Local - Feeder 10  US$ 0.8 Million Serious Offer Warranty : Depending on the number and type of business unit bided.

Biding Conditions for public transport Services Fleet Exigencies Business Unit Present Day Standard 12 meter 15 meter 18 meter Total Trunk 1 818 220 128 203 818 (551) Trunk 2 120 176 300 596 Trunk 3 834 225 48 232 834 (505) Trunk 4 80 112 421 613 Trunk 5 756 84 56 296 756 (436) * If the offer consider new buses Business Unit 12 meter 8.5 meter Total Feeder 1 199 103 302 Feeder 2 77 96 173 Feeder 3 243 141 384 Feeder 4 184 Feeder 5 263 49 312 Feeder 6 202 81 283 Feeder 7 98 32 130 Feeder 8 120 67 187 Feeder 9 53 55 108 Feeder 10

Biding Conditions for Public transport Services Fleet and Equipment Invest Business Unit Investment US$ Million Trunk 1 30.2 Trunk 2 80.3 Trunk 3 28.0 Trunk 4 88.0 Trunk 5 Feeder 1 13.5 Feeder 2 8.6 Feeder 3 17.4 Feeder 4 11.0 Feeder 5 12.6 Feeder 6 12.4 Feeder 7 5.5 Feeder 8 8.4 Feeder 9 5.3 Feeder 10 1.1 Trunk Business Units (2 and 4) : Invest between US$80 and US$90 Million. Trunk Business Units 1, 3 and 5: Investment around US$30 Million (considering offers with present time standard buses). Local – Feeder Business Units 1 to 9: Invest between US$5 and US$18 Million. Local – Feeder Business Unit 10: Invest US$ 1 Million.

Biding Conditions for Public Transport Services Concession Term Business Units Concession Term (years) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Trunk Units 2 & 4 Trunk Units 1, 3 & 5 Feeder Units 1 to 9 Feeder Unit 10 Base concession term (exigencies accomplish) Term extension for fleet renovation Term extension for clean technology offers The term extension for fleet renovation requires that a full renovation during the first to years of contract. The term extension for clean technology offers depends on the pollution reduction produced by each technology.

Biding Conditions for Public Transport Services Income Sources Direct Incomes for Transport Services: Payments associated to kilometer – bus rolled under the operational program for the Trunk Business Units and associated to the transported passengers for the Local – Feeders Business Units. Incomes for Complementary Services: Zones available for publicity on buses other than the zones disposed for transport system information . Commercialization of the operational information different than the information provided to the Information and Management Centre (information related to his own operation). . Possibility to participate of the Pollution Commercialization System associated to the Kyoto protocol.

Biding Conditions for Public Transport Services Offers Presentation Scheme and Adjudication Mechanism Each bidder could present an offer for all the business units and has to establish the maximum number and kind of business units in which he was able to provide services. The adjudication criteria will be the minimum payment requested by the bidder. In case of tied offers the bid will be adjudicated to the offer with the minimum pollution level associated to the fleet. If the tie remains the bid will be solved by the minimum age of the offered fleet. Trunk Feeders A B C D E 4 X 3 2 1

Public Transport Business View Transport and Support Services Biding Conditions in Transantiago Public Transport Business View

Public Transport Business View Operational Cost Structure for Transport Services

Income – Cost Structure Public Transport Business View Business Economic Conditions Income – Cost Structure 70% - 80% of credit. Equity Operational Cost Debt Service Taxes Financial Structure Return Over Equity : 15% Expected Economic Equilibrium Point Maximum Offer Value Minimum Offer Value

Public Transport Business View Transport Services Income – Cost Relation

Public Transport Business View System Adjust Mechanism Fare Scheme System Fare Income = Cost Income Variation Automatic adjust of Bus-Km contracts Direct Effect on Costs (feeders) Fare modification for new balance Cost Variation Indexed Payments for Services Providers Deficit Control System Technical Reserve Credit Line provided by the Financial Administrator State Warranty

Public Transport Business View System's Economic Operation Current System Resources System Cost Transport Services Support Services UF 1.000.000 System Technical Reserve UF 1.200.000 Variable depending on Technical Reserve Amount Deficits are covered by the Technical Reserve Financial Administrator Technical Reserve covered by Credit Line Short Term Credit Line Max. UF 2.000.000 Long Term Credits Max. UF 2.000.000 If adjust mechanism don’t solve deficit the system return to balance using the Long Term Credits Warranty UF 2.000.000 MOPTT

Transport and Support Services Biding Conditions in Transantiago Schedule

Schedule February 2004 Sell of Biding Conditions for Transport Services March 2004 Sell of Biding Conditions for Financial Administrator and Information & Management Centre May 2004 Offer Reception for Financial Administrator Financial Administrator Adjudication. Offer Reception for Information & Management Centre. June 2004 Information & Management Centre Adjudication. Offer Reception for Transport Services. Operation Start for Financial Administrator August 2004 Public Transport Business Units Adjudication. February 2005 Operation Start for Information & Management Centre. 28 May 2005 Operation Start for Transport Services.

MINISTERIO DE TRANSPORTES GOBIERNO DE CHILE MINISTERIO DE TRANSPORTES Y TELECOMUNICACIONES Transport and Support Services Biding Conditions Road Show Jan/Feb 2004 Rodrigo Urzúa A.