Contractual Structure Alain François September 10 th, 2012

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 2 Agenda Our input:some specifics re the Belgian tolling contract Your input: (foreign) tolling contract experience

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 3 Type of contract DBFMO Design, Build, Finance, Maintain and Operate equipment and technical infrastructure for the provision of services in accordance with the requirements of the Regions/Sofico

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 4 Parties On the one hand : SSP On the other hand : Interregional Entity, Flemish Region, Brussels-Capital Region, Walloon-Region and Sofico (+ other concessionaires)

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 5 Contract matter Both Road Charge System and Road Vignette System Equipment and infrastructure for application and enforcement of the two systems Application –For both: CRM (call center …) –For Road Charge System:  Service points and logistics  OBU’s  Back office IT system for registration, verification, processing and billing –For Road Vignette System:  Sales channels foreign vehicles Enforcement –Stationary and flexible roadside equipment –Infrastructure Mobile teams –Infrastructure back office

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 6 Terms of payment No payments during design and construction period (ESA 95 requirements) Availability payments during operational period Fixed and variable component Deductions based on KPI performance

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 7 Availability fee Fixed component: Repayment and remuneration of financing facilities used to fund the capital expenditures Fixed costs associated with project management, maintenance and operation Costs associated with enforcement Variable component: Cost of vignettes and active OBU’s (including a/o data communication costs)

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 8 Time frame 1 to 1,5 years design and construction Fixed operational period of 12 years counting from availability Possible extension by 3 periods of 1 year each

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 9 ESA 95 requirements ESA 95 neutrality of the tolling project: need for a sector classification of the PPP assets and related financial flows off the government’s balance sheet Possible impact on a/o: –Risk allocation –Clauses re liability, penalties, liquidated damages and deductions –Clauses re early termination Advice INR-ICN and possibly Eurostat

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 10 Liability of the SSP Basic principles of Belgian law Unlimited liability covering direct and indirect damages Freedom of contract limited by mandatory rules, rules of public order and the general principles of good faith and fair dealing Possible limitations of liability Remediation period Qualification of errors Penalties Liquidated damages Deductions

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 11 Early termination of contract Breach by the Regions/IE/concessionaire Breach by the SSP Force majeure

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 12 Risks allocated to the SSP re allocation contractual obligations design, construction and planning, completion, maintenance, availability, interfaces, financial risk re performance of the contract: a/o misconduct under the contract, violation of legislation, technical defect, security problems, loss of data, unpaid registered kilometers, miscalculation of toll amounts, delays and unavailability, creditor risk, vandalism

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 13 Warranties Delay and liquidated damages Design and construction defects Default (warranty not exceeding the average monthly toll transaction amount paid by the SSP: see Decision 2009/750/EC, Annex I.1) Final maintenance and renewal audit

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 14 Agenda Your input!

Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA, Eubelius burg. CVBA en Collis BV 15 Important disclosure This presentation is intended for market consultation purposes only and its content may be subject to change. This presentation does not provide technical, financial, nor legal advice and does not intend to grant any rights to its addressees and readers.