1. WORKSHOP ON INVESTMENT, FINANCIAL AND TECHNOLOGICAL ISSUES OF MODEL HIGHWAY INITIATIVE (MHI) IMPLEMENTATION 6-8 March 2012, Thessaloniki, Greece SESSION 3: PUBLIC-PRIVATE PARTNERSHIP IN CREATION OF MHI – TECHNOLOGICAL ASPECTS The development of Attica Tollway (Attiki Odos) in Athens, Greece: Is this a successful PPP example? Bill M. Halkias, PE, F.ASCE, F.ITE CEO, Attica Tollway Operations Authority President, Hellenic Institute of Transportation Engineers

2. What is a PPP in road transport? A cooperation between the public and private sectors for the financing, development and operation of road infrastructure. PPP or PFI or BOT or BOOT Hybrid PPP's PPP’s combined with EU funding are termed “hybrid” PPP’s. Usually EU Grants are part of the State’s Financial Contribution.

3. Attributes for successful PPP’s Strong partnerships through agreed common goals. Adequate and sustained financing. Effective organization and management. Long term commitments of the Partners. Timely development that incorporates results into the transportation infrastructure.

4. OMC TB OMC: Operation and Maintenance Center TB: Technical Base TB

5. The Project In numbers  65 km Urban Toll Motorway  Fully Access Controlled  3 lanes per direction  Link of 2 major National Roads  Link to 3 Ports (Piraeus, Rafina, Lavrio)  AADT(2009): 307.300  AADT(2010): 281.329  AADT(2011): 250.491  Toll Stations/Toll Gates: 39/195

7. 22 Who is Who in Attiki Odos S.A.? When started: 14 small firms. Today: market leaders. 22 PANTECHNIKI AKTOR CONCESSIONS

8. Financing structure of Attica Tollway: A Typical Hybrid PPP MCP Project Cost – 1,300 million Euros Project Finance: EIB Loan Guaranteed by International and Greek Banks until final completion; then guaranteed by the State. Commercial Loans (Greek Banks) Project Owner Contribution Equity & Revenues (Greek Contractors) Standby Facility (Greek & International Banks)

9. Construction Joint Venture Operator Project Owner EYDE/LSEP (a Special Service) Main Contracting Parties Concession Company Project’s Owner Representative MINISTRY OF INFRASTRUCTURE TRANSPORT & NETWORKS

10. Project History The need was identified in the early 1960s Issuing of Tender Documents 14/02/1992 Tenders submitted(3 bids) 28/02/1995 Concession awarded 23/05/1996 Ratification of Contract 16/12/1996 Full Financial Close 06/03/2000 First Drawdown 04/08/2000 First section in operation 19/03/2001 Completion of the project 24/06/2004

11. Main Project Contracts Project Owner Greek State PO Attiki Odos JV ΕΙΒ Commercial Banks Independent Engineer Attikes Diadromes Shareholders of S.A. Sub-contractors Suppliers IBI GroupMembersSub-contractorsSuppliers Design – Build Contract Operation – Maintenance Contract Concession Contract I.E. Agreement Shareholders’ Agreements Shareholders of A.D. CJV Agreement Execution of works / Supplies Agreements ITTMS Consultancy Agreement Provision of Services Agreements Supplies Agreements Know – How Agreement Shareholders’ Agreements Finance Documents

12. Issues faced during Project Development Financial close took longer than expected. Environmental design changed since tender documents were issued. Risk allocation problems were not reflected in the concession contract. Lack of legal framework in Greece created difficulties.

13. Risk allocation problems Mechanism for partial delivery of the project with partial release of Commercial Banks guarantees was missing. In case of PO instructed variations, no mechanism for EoT was foreseen. Financial security structure was missing. As a result the Commercial Banks could not participate in the project financing, unless the risk allocation was better balanced.

14. Construction problems Construction problems occurred due to: ArchaeologyExpropriations Relocation of public utilities Design variations for environmental reasons

15. Consequences Delays Impossibility of achieving deadlines Impact on finalization of documents and starting of drawdowns Concern of lenders

16. The success story Problems were solved through contract amendments. Financial close was reached in 2000 and money drawdown started. Construction completed within budget and on time for the 2004 Athens Olympic Games. Support to Greek construction industry and competitiveness.

17. Attica Tollway Operation: The Key elements Excellent road safety records: one of the safest roads in Europe. Incidents management plan and response. Active traffic management. Customer service policy and “customer” treatment of users.

18. Annual Average Daily Transactions (March 2001-December 2011) +38.6% +22.0% +25.6% +34.5% +34.0%+33.9% +19.9% +4.4% avg.= 250.491

19. Anticipation versus reality The traffic forecasts for Attica Tollway during the bid phase have been surpassed. Actual annual average daily traffic is higher than the traffic levels initially foreseen. Reality permitted Actual Toll Rates to be substantially lower than the contractual Upper Toll Rate. Actual toll revenue in line with what was anticipated.

20. 1 st Prize European Road Safety Award International Road Federation (IRF) European Road Federation (ERF) Amsterdam, Netherlands 1 st Prize Special Achievement in GIS Environmental Systems Research Institute (ESRI) San Diego, CA, USA Global Road Achievement Award in Environmental Mitigation International Road Federation (IRF), Washington DC, USA Prize Décibel d’ Or Conseil National de Bruit (CNB) Paris, France. Awards from International Organizations

21. 1 st Campaign Prize CEO & CSR Convention, Athens, Greece Mega Ilios Award as the Top Brand in Greece Corporate Superbrands, Athens, Greece “Green Leader – Carbon footprint Assessment and Mitigation” Award Centre for Sustainability and Excellence (CSE), Athens, Greece 1 st Back Office Award Hellenic Institute of Customer Service (EIEP), Athens, Greece Recognition of Excellence

22. Toll Excellence Award in the Category of Administration International Bridge Tunnel Turnpike Association (IΒΤΤΑ) Chicago, IL, USA International recognition

23. April 2011 99,0% 95,4% 97,4% 96,4% 63,5% Very satisfied/ Satisfied The success of Attica Tollway What do the users think?

24. User satisfaction regarding Attica Tollway Safety (%) Satisfaction level 2011: 95,6% very satisfied/ satisfied (vs. 95,1% in 2010).

25. User satisfaction regarding Customer Care (%) 97,6% of users are either very satisfied or satisfied (vs 95,3% in 2010)

26. Thank you! Contact: Bill M. Halkias, PE, F.ASCE, F.ITE CEO, Attica Tollway Operations Authority President, Hellenic Institute of Transportation Engineers Email: bhalkias@attikesdiadromes.grbhalkias@attikesdiadromes.gr