Hyderabad Metro Rail in PPP Mode Presentation to the 6th Global Infrastructure Leadership Forum NVS Reddy Managing Director Hyderabad Metro Rail Ltd.

Hyderabad Metro Rail Project A completely elevated MRT project in Hyderabad, Southern India 3 Corridors/Lines (72 km) taken up in Phase I UMT sector - World’s largest Metro Rail project in PPP mode Main project cost : USD 2.66 b + Property Devpt. ph.I (USD 0.41b) + Land + other costs (USD 0.37 b) = USD 3.44 b Implementing Entity: Concessioning Authority: Hyderabad Metro Rail Limited (Govt. of AP)  Concessionaire (Pvt. Sector): L&T Metro Rail (Hyderabad) Limited, an SPV of USD 12 b L&T 1

Hyderabad city – geographical location India India Hyderabad 2

Traffic & Transportation Scenario in Hyderabad Hyderabad, a city of 8m pop Capital of the Southern State of Telangana Historical City – now hub of pharma industry, research institutes, IT/ITES Service Sector Economy Severe traffic congestion & increasing pollution levels Lack of efficient, reliable & comfortable PTS  increase in personal vehicles: 3.0 million vehs + addition of 0.3 m p.a Total motorized trips: 7 m per day – Bus + local rail: 44%; Two wheelers: 30%; Autos: 16%; cars: 10% 3

Hyderabad Metro Rail as “ Transit + ” Phase I: 3 corridors; 72 km; 66 stations & 3 Depots Integration/Interchange with Main rail terminals & Bus Depots ‘Transit +’ concept: Last mile connectivity with Feeder Buses, NMT, Pedestrian Facilities & Street Furniture Not a simple Metro, but an urban redesign & rejuvenation effort to transform Hyderabad into a people friendly green city Eco-friendly stations with natural ventilation, skywalks, bicycle stations & tracks and other commuter friendly facilities Expected to generate about INR 500 b (USD 8.06 b) investments in Hyderabad & it’s surroundings 4

PPP Format 35 yr concession, extendable by another 25 yrs World’s largest Metro in ppp mode Main project cost : USD 2.28 b (INR 14,132 Cr.) + Property Devpt. ph.I USD 0.36b (INR 2,243 Cr.) + Land & other costs USD 0.32 b (INR 1,980 Cr.) = USD 2.96 b (INR 18,355 Cr.) Commercial risk by Concessionaire & no traffic guarantees Well balanced & bankable Concession Agreement; transparent global bid process Technology–neutral & performance based ‘output’ oriented MSS (tech specs) RfQ & RfP stages – DCA; MSS & SHA 5

PPP Format Scope for design innovation & reduction in life cycle costs 269 acres (109 Ha) land; commercial exploitation of air space to create 18.5 m SFT – lease rentals Prefixed tariff & fare escalation formula; differential tariff (peak vs off peak hours) Stations as hubs of activity – shopping malls, multiplexes & leisure; hotels & eateries; hospitals, clinics, office space etc Ridership & property development boosting each other  financial viability 6

Funding Pattern & Financial model Project cost : USD 2.73 b (INR 16,375 Cr.) (MRT : 2.36 b (INR 14,132 Cr.) + Property Devpt : 0.37 b (INR 2,243 Cr.)) Senior Debt : USD 1.91 b (INR 11,478 Cr.) Subordinate Debt : USD 0.17 b (INR 1,000 Cr. ) Equity : USD 0.41 b (INR 2,439 Cr.) Other Sources (VGF) : USD 0.24 b (INR 1,458 Cr.) Total : USD 2.73 b (INR 16,375 Cr.) Financial Closure achieved in March 2011 Revenue Model: 50% from Fare box; 45% from Property devpt; 5% Misc (Ads + Parking fee) IRR Project IRR : 13.89% Equity IRR : 17.50%

The Team (Authority, Concessionaire, Consultants etc.,) Authority : Hyderabad Metro Rail Limited (GoT) Concessionaire : L&TMRHL Independent Engineer : Louis Berger, USA Safety Consultant : Eptisa, Spain Concessionaire’s Engineer(CE) Programme Manager Lenders’ Engineer Independent Safety and RAM Assessor Consultants for Carbon Credits Lenders Insurance Consultant-Marsh India Pvt. Ltd. Operation & Maintenance Contractor 8

Engineering, Procurement & Construction contractors Packages Vendors Viaduct, Stations & Depots L&T Construction Rolling Stock Hyundai Rotem, South Korea Power supply + SCADA Traction Signaling & Train Control Thales, Canada (French company) Communication Thales, Portugal (French company) Track works (Turnouts / Rails / Fastening system) L&T Construction along with (Voest Alpine, Austria + Tata Corus, France + Vossloh, Germany) O&M Operator Keolis France Automatic Fare Collection (AFC) Samsung, South Korea 9

Contact Information Name : Mr N.V.S.Reddy Company : Hyderabad Metro Rail Ltd. Role in Project : Managing Director Phone : +91 40 2338 8580 / 81 (Fax 82) Email : nvsreddyiras@gmail.com Website : www.hmr.gov. in : Mr V.B.Gadgil : L&T Metro Rail (Hyderabad) Ltd. : Managing Director : +91 40 67295500 | Fax: +91 40 23123015 : vbg@ltmetro.com : www.ltmetro.in 10

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N.V.S.Reddy Thank you