© OECD A joint initiative of the OECD and the European Union, principally financed by the EU by Mary Dunne Head of Projects BCM Hanby Wallace 88 Harcourt Street Dublin 2 Highways Sector Regional Workshop on Concessions / Public-Private Partnerships Tirana, December 2007

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU THE FIGURES l 11 Motorway Schemes since 2000 l Total value of the 11 is €1.5B l All Design Build Finance Operate and Maintain Contracts for a minimum of a 30 year term l All hard toll contracts, some with a government subsidy where the 30 year projected tolls does not return the necessary investment to the private sector

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU KEY ELEMENTS PPP KEY ELEMENTS PPP l PPP must deliver more quickly than traditional procurement l An alternative toll-free route must be available for road users l Toll roads must be geographically dispersed so that no one area is subjected to hard tolling alone l Must be of a minimum size of approximately €65million l Necessity for a government subsidy not a barrier to PPP procurement

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU PROCUREMENT PROCESS

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU STATUTORY PROCESS Motorway Scheme l Planning Permission/Appeal l Compulsory Purchase Order Toll Scheme Bye-laws All completed before Project brought to the market

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU CASE STUDY N1/M1 Dundalk Western By-Pass l Design Build Operate Maintain and Finance 11 Km of new motorway l DBFOM 8km of associated side roads and tie-ins l DBFOM 13 bridge structures l Upgrade, operate and maintain 42 km of existing motorway recently built by way of traditional procurement together with the toll plazas l Timed to coincide with the upgrade of the road on the other side of the border in Northern Ireland

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Consortium Celtic Roads Group (Dundalk) Ltd. comprising: l Dragados Concesiones de Infraestructuras SA l Edmund Nutall Ltd. l HBG Ascon Limited (part of Royal BAM Group) l NTR plc

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU CONSORTIUM

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU FUNDERS Non-Recourse Debt Financing;75% - €109m Societe Generale KBC/IIB Depfa Bank plc AIB plc Instituto de Credito Oficial Sponsor Equity; 25% - €36m Consortium Total Funding €145m

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU KEY TERMS

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU KEY TERMS l Design, Build, Operate, Maintain and Finance all new road l Upgrade, operate and maintain existing motorway l 30 year Concession l Hard Tolls l Full transfer of design and build risk l Transfer of archaelogical, geological and human remains risk l Transfer of unforeseen ground condition and environmental risk l Transfer of protestor and trespasser risk l Transfer of unforeseen failure or delay by owners of utilities l Major upgrade at end of 30 year Concession period l Transfer of demand and availability risk l 50% share on refinancing l No compensation for termination due to contractor default

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Financing terms l No subsidy from Government l 95% of toll revenue collected during design and build period given to State l Undisclosed revenue sharing arrangement during Operation phase designed to ensure no “superprofits” for private sector

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU DELIVERED 5 MONTHS AHEAD OF SCHEDULE!!