1. 43 RD ASECAP STUDY & INFORMATION DAYS 2015 A Multimodal, Smart and Safe European Transport System: The Key Role of Motorways Epic Sana Hotel 27-29 May 2015 www.asecapdays.com

2. THE APPLICATION OF THE HYBRID PPP CONCEPT IN THE MODERNIZATION OF THE GREEK TOLL ROAD NETWORK Session “Investing in the future mobility across Europe: building, managing and connecting motorways with other transport modes” Bill M. Halkias, PE, F.ASCE, F.ITE HELLASTRON, President Attikes Diadromes SA, CEO

3. PUBLIC PROCUREMENT ALTERNATIVES DesignBuildIdeaOperate Public Entity Private Entity Outsourcing BOOT/ BOT/ PFI/Concession Design & Build Service Contract Finance All In-house

4. WHAT ARE PPP’S?  The term “PPP” stands for P ublic P rivate P artnership and as such presents an innovative contractual approach, where the private sector undertakes to deliver a public project or to offer a public service.  Concession-based transport and utilities projects have existed in many countries for many years, with revenues derived from payments by end-users, e.g. road tolls.  The UK’s Private Finance Initiative (“PFI”) expanded this concept to a broader range of public infrastructure and combined it with the introduction of services being paid either directly by the public sector or by the end-users.  The duration of PPP contracts ranges from relatively short term management contracts, through long term concession contracts. In general, a road concession is a kind of public–private partnership (PPP) under which a public authority (Concession Authority) grants specific long term rights to a private or semi-public organisation (Concessionaire), to construct, overhaul, maintain and operate an infrastructure (*). (*) Evaluation and future of road toll concession, Pricewaterhouse Coopers for ASECAP, November 2014

5. WHY PPP’S?  PPP’s have developed in part due to financial shortages in the public sector.  PPPs make projects affordable.  PPP’s have demonstrated the ability to harness additional financial resources and operating efficiencies inherent to the private sector.  The private sector takes life cycle cost risk.  Risks are allocated to the party best able to manage or absorb each particular risk.  Provision of budgetary certainty.  PPPs force the public sector to focus on outputs and benefits from the start.  The quality of service has to be maintained for the life of the PPP. The concession model represents the most flexible tool for constructing, maintaining and operating a motorway network, since it can be adapted to different local conditions in terms of regulation, traffic and operational conditions (*). (*) Evaluation and future of road toll concession, Pricewaterhouse Coopers for ASECAP, November 2014

6. THE DEVELOPMENT OF THE GREEK BACKBONE TOLL ROADWAY NETWORK 2ND GENERATION CONCESSIONS MOREAS OLYMPIA ODOS ΝEA ODOS CENTRAL GREECE (Ε65) AEGEAN MOTORWAY 1 ST GENERATION CONCESSIONS ΑTTIKI ODOS RION ANTIRION BRIDGE (GEFYRA) STATE FUNDED EGNATIA ODOS

7. THE GREEK ROADWAY NETWORK IN THE 80’S AND THE 90’S 1.After Greece’s adhesion in the EU in 1981, and further adhesion of Portugal and Spain in 1986, the EU has decided to implement a common regional policy with the aim to reduce existing disparities and to prevent further regional imbalances in the EU. This was carried out by transferring European resources to problem regions, using the financial instruments of the EU known as the Structural Funds. 2.State companies were created for the construction and management of big infrastructure projects, such as Egnatia Odos Motorway and the Athens Metro. 3.During the same period, the Greek State launched two concessions on road infrastructures, Attica Tollway (Attiki Odos) and the Rion – Antirion Bridge. Financing of both projects used European Structural Funds as part of the State financing, as well as Equity and Loans borne by the private investors (the Concessionaires).

8. THE TRANS-EUROPEAN NETWORKS TEN-T: EU has a transport infrastructure policy that connects the continent between East and West, North and South. This policy aims to close the gaps between Member States' transport networks, remove bottlenecks that still hamper the smooth functioning of the internal market and overcome technical barriers such as incompatible standards for railway traffic. It promotes and strengthens seamless transport chains for passenger and freight, while keeping up with future technological trends. Charging for the use of infrastructure, “user pays principle” and “polluter pays principle” is the basic priority in the EU multimodal transport framework.

9. THE STEPS FOR THE DEVELOPMENT OF THE GREEK ROAD NETWORK  The 1 st Generation of Concessions included the development of Attiki Odos and Rion-Antirrion Bridge (cost 2,1 billion €).  Egnatia Odos (cost 4,5 billion €) was constructed by sections with traditional public procurement methods.  The completion the Greek Road Network seemed difficult, as the State does did not have the necessary funding available (8,5 billion €).  In 2007 and 2009, the 2 nd Generation of Road Concessions was launched and five new concessions started.  Despite the recent economic crisis, the 2 nd Generation Projects have survived and the implementation of the backbone of the Greek Road Network is feasible in the near future. Note. Expropriations and archaeological investigations are not included in the costs presented above.

10. FINANCING OF GREEK ROAD CONCESSIONS 2 ND GENERATION ROAD CONCESSIONS 1 ST GENERATION ROAD CONCESSIONS

11. CONFIGURATION TO A SINGLE OPERATIONAL PLATFORM FOR THE GREEK MOTORWAYS  The value added provided by the development of the Motorway Network includes socio-economic impacts on local and regional areas, such as the creation of new jobs, reduction of travel time, increased productivity and improvement on road safety.  The value added by the road toll concessions includes the development of the network and the contribution to the development of operation and maintenance practices, with reduced state contribution.  Despite the differences in the contractual arrangements of each Motorway, there is a requirement for a convergence of operational practices, in order to provide a uniform Level of Service to the User.  Users often wonder why they have to remember different emergency numbers (for example 1024, 1077, etc.) and which is the right number for the right place.  Why can’t they use the same transponder in all Motorways?

12. A NEW ASSOCIATION IS BORN The association of the Greek toll road infrastructure was created to promote:  The application, to the extent possible, of similar procedures and their modernisation for the benefit of the users of the toll road infrastructure and the society.  The improvement of the operation of toll road infrastructures and the interoperability of various Automatic Toll Collection Systems. HELL ENIC AS SOCIATION T OLL RO AD N ETWORK

13. A civil not-for-profit Organization is incorporated between the participating entities, which are the following:  ATTIKI ODOS  RION ANTIRRION BRIDGE (GEFYRA)  EGNATIA ODOS  NEA ODOS  MOREAS  AEGEAN MOTORWAY  OLYMPIA ODOS  MOTORWAY OF CENTRAL GREECE MEMBERS

14. ATTIKI ODOS RION ANTIRRION BRIDGE EGNATIA ODOSNEA ODOS

15. MOREAS OLYMPIA ODOS AEGEAN MOTORWAY MOTORWAY OF CENTRAL GREECE

16. OBJECTS AND GOALS OF HELLASTRON HELLASTRON is a professional, scientific, educational and research association and shall operate on a non for profit basis. Indicative the object is:  In relation to the users: the continuous improvement of the services provided to the users of toll road infrastructures.  In relation to the research and public benefit: the investigation, promotion and development of the scientific aspects related to road transportation, road pavement, construction and maintenance of roads and networks.  In relation to the promotion of road transportation: the participation in similar associations, worldwide.  In relation to the interests of the members of the Company: the protection and promotion of the interests of the toll road infrastructures sector. (Excerpts from the Association’s Bylaws)

17. KEY FIGURES MOTORWAY LENGTH (Km) (INCL. UNDER CONSTRUCTION SECTIONS) TOTAL NUMBER OF PERSONNEL 2014 (INCL.CONS TRUCTION) NUMBER OF PERSONNEL O&M 2014 ANNUAL NUMBER OF WORKING HOURS O&M 2014 VEHICLE FLEET O&M 2014 VEHICLE-KM OF PATROLS 2014 ATTIKI ODOS 70 950 1.745.1501503.560.000 GEFYRA 4 100 183.70012275.000 NEA ODOS 377 2.327299549.263742.000.000 CENTRAL GREECE M/W 248 66995174.51526270.000 OLYMPIA ODOS 202 2.645445817.465643.670.000 MOREAS 205 330286525.38237372.800.000 AEGEAN M/W 230 1.500500918.500542.715.200 EGNATIA ODOS AND VERICAL AXES 1.000 550550400734.8002405.000.000 TOTAL 2.336 9.0713.0755.648.77565720.290.200 The vehicle-km travelled yearly by the patrols equals 507 times the perimeter of the Earth.

18. ANNUAL INTEROPERABILITY DATA CALENDAR YEAR 2014 * Moreas is not a tag issuer. Today: 5 projects, 50.000.000 transactions in year 2014. Tomorrow: All the country, 100.000.000 transactions? Why not?

19. INTEROPERABILITY DATA TRANSACTIONS IN YEAR 2014

20. CHARGING FOR THE USE OF INFRASTRUCTURE: “USER PAYS PRINCIPLE” The Joint Tolling Declaration of 27/5/2013 between ASECAP and IBTTA Tolling is one of the most powerful and effective tools to finance, build, maintain, and improve road infrastructure for the benefit of road users and citizens … … ASECAP and IBTTA think that a wider application of tolling policies, based on the user pays principle, will be highly beneficial for governments – especially those that face severe economic pressure and may not have enough funds either to support new infrastructure or improve existing ones – and the users, who can immediately see the benefits they receive for the fees they pay on the road infrastructure they use.

21. THE IMPACT OF THE RECESSION IN GREECE  The recession in Greece became evident in 2010 and since then it has affected heavily traffic and revenue of all Concessions.  For the completed projects of the 1st Generation Concessions, the revenue reduction has not affected the viability of the projects although the Concessionaire returns have been reduced.  For the projects of the 2nd Generation, which were under development, a reset was necessary, in order to restart construction that was stopped for 3 years due to doubts on their economic viability.

22. INVESTING IN THE FUTURE MOBILITY  It is important to learn from the “financial turmoil” experience and investigate new ways and sources of funding in order to develop a sustainable roadway network, such as:  Project Bonds with State or EU Guarantees.  EU funds per the Juncker Investment Plan.  Trans-European networks investments.  Infrastructure Development Bank.

23. THANK YOU! BILL M. HALKIAS HELLASTRON E-MAIL: PRESIDENT@HELLASTRON.COM