1. Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil www.martinezechevarria.com Martinez-Echevarria (MEPF) Law Offices, Eastern Europe PUBLIC-PRIVATE PARTNERSHIPS (PPP) EXPERIENCE IN SPAIN MEPF is YOUR PARTNER!

2. Bulgaria needs to perform an upgrade of infrastructures, urban development, environment in a sustainable way. ♦ A strategic geographical position. Five Pan-European corridors cross Bulgaria(IV, VII,VIII,IX and X). ♦ Financially supported by several institutions: EC and EIB, EBRD, World Bank,etc. ♦ Public financing of the projects and economical situation of the region (reduction on Gov.revenues, investments, limits imposed by the Stability and Growth Pact). ♦ Lack of experience in some areas. ♦ A complicated law framework that is improving(Law for the Public Procurement amended in July 2010, Law on Concessions amended in June 2009 and the Draft of the new Law) ♦ Public Private Partnerships (PPP) as an interesting mechanism to develop those projects in a sustainable way. 1. INTRODUCTION DIFFICULTIES OPPORTUNITY Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

3. SPANISH MODEL, A SUCCESSFUL ONE: 2. EXPERIENCE IN PPP Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil ♦ Efficient. ♦ Proper management of the risks and costs associated to the projects ♦ Planning structure► Stock of projects. Key factor of success. ♦ Popular Party (PP) sympathizes with PPP as the most efficient vehicle to deliver high quality public services at lower cost. ♦From 70% in 1986 the GDP per capita and the average salary increased considerably to reach nowadays the average EU standard ♦ From 1990, construction of 10.000 Km of roads. ♦ 47.000 Million € investments in concessions from 2003.

4. Concessionaries in the world (by number of Concessions since 1985 ) PositionCompany Country (International presence) 1ACS Angola, Brazil, China, India, USA(more than 40 countries 2Globalvia Portugal, Chile, Mexico, USA 3Abertis South Africa,EEUU, France, UK 4Ferrovial Bulgaria, Poland, Uk, Italy, USA 5Macquarie ---- 6Vinci ---- 7OHL Bulgaria, Mexico, USA, Canada 8NWS Holding ---- 9Acciona Bulgaria,USA, Poland, Brazil, 10Sacyr V. Angola, Mexico, Brazil, Libia Source: Public Works Financing, 2010 LEADERSHIP OF SPANISH COMPANIES 2. EXPERIENCE IN PPP * Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

5. Greenhouse gas emissions (CO2) will be reduced progressively from a 35,000 tons drop in 2007 to 64,800 tons in 2037. Accident rate will fall (aprox 45%). Fuel consumption will reduce by 2.5 million liters per year. 708 million hours of travel time will be saved over the next 30 years EXPECTED BENEFITS 2. EXPERIENCE IN PPP Road surface refurbishment. Tunnels under the city areas Allow the surface areas to be redeveloped into green park areas The largest financial transaction made by a public authority in Spain, amounting to 2,500 M€. Awarded MADRID CALLE 30 (MC-30) Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

6. 2. EXPERIENCE IN PPP MC-30. COMPANY STRUCTURE Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil Public/private capital company (indirect management) ♦ General agreement between MC30 and Madrid City Council. ♦ Service Agreement between MC30 and the privately- owned company EMESA ♦ Construction & Design Contracts between the MC30 and the Contractors ♦ Shareholders agreement between Madrid City Council and the EMESA (private partner) on regards the equity participation on MC30. ♦ Financing agreements between the banks and MC30. Additional interest rate coverage contracts. ♦ Subordinated debt from EMESA to MC30.

7. OTHER PPP PROJECTS IN SPAIN 2. EXPERIENCE IN PPP HIGH SPEED TRAIN NETWORK (AVE) ♦ The fastest in the world, an average of 222 km/h putting him a head of Japan, France, Uk or Germany. ♦ Spain's AVE network will also be the largest in Europe when the18th December put into service the 391 miles that link Madrid to Albacete, Cuenca and Valencia. ♦ the most punctual, (98.5% )of the high- speed trains arrive at their destination on time. ♦ Global reference. Visits of delegations from different countries (USA, China, Sweden and Egypt among others). ♦Spain exports high speed train technology(Brazil, USA, Saudi Arabia, etc) Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

8. OTHER PPP PROJECTS IN SPAIN 2. EXPERIENCE IN PPP HOSPITALS IN MADRID ♦ Legal Structure: Concession ( An agreement between the administration and the private company. The company completes the work and as a consideration has the right to develop it for a period of time). ♦ The Administration hire the design, construction and the development of it for a period of time( 30 years). ♦ Public management of health services. ♦Outsourcing of non-care services (Building maintenance, cleaning, management of staff) Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

9. INTERMODAL STATIONS MADRID. SPORT FACILITIES VALENCIA CULTURAL BUILDINGS.VALENCIA T4.BARAJAS.MADRID OTHER PPP PROJECTS IN SPAIN 2. EXPERIENCE IN PPP Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

10. SERVICE (PAYMENT BY USERS AND/OR THE ADMINISTRATION ) CONCESSION HOLDER INFRASTRUCTURES ADMINISTRATION (Member State) EU FUNDS CONCESSIONAL FINANCING SCHEME WITH EU FUNDS 2. EXPERIENCE IN PPP Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil 1.EU provides funds to the Government in order to cofinance projects. 2.Agreement between Government and private company. 3.Company completes the work and has the right to manage it for a period of time. 4.The company receives payments from the users of the services(example a Toll)

11. 3. CONCLUSIONS PPP PROJECTS HAS ENABLED TO: ♦Develop infrastructure that otherwise would have been impossible. ♦ Adequate funding to specific projects. ♦ Achieve more efficient financial management of the public sector(costs and outcomes). ♦ Comply with the transparency requirements to attract private partnerships. ♦ Safe of energy, reduce of CO2, safe water waste, create a better environment.  All these achievements allow to talk about a sustainability as a results of the PPP Projects Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

12. 3. CONCLUSIONS A unique opportunity for the private sector to invest in PPP projects in terms of sustainability, as the country has: 1.political support (Invest in Bulgaria Agency, Eu Funds Ministry, Commitment to Brussels,etc.) 2.desire to create a new regulatory framework 3.financial solutions (structural funds and IFI´s) Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil

13. www.martinezechevarria.com THANK YOU! MEPF is YOUR PARTNER! Madrid-Marbella-Málaga-Almería-Murcia-Alicante-Londres-Francia-Bulgaria-Rumanía-Alemania-Italia-Marruecos-Turquía-Portugal-Brasil