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Vilnius, Lithuania 23 November 2006 Jan Kansmark

Public Private Partnership in the Baltics and Europe Alternative means of financing public energy and infrastructure projects The Arlanda Link Project. Vilnius, Lithuania 23 November 2006 Jan Kansmark. Arlanda Link Project.

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Vilnius, Lithuania 23 November 2006 Jan Kansmark

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  1. Public Private Partnership in the Baltics and EuropeAlternative means of financing public energy and infrastructure projectsThe Arlanda Link Project Vilnius, Lithuania 23 November 2006 Jan Kansmark LEGAL#1894150v1

  2. Arlanda Link Project • The only infrastructure project imple-mented on a PPP and project finance basis in Sweden • Important connection between Stockholm Central Station and Stockholm-Arlanda Airport and for the traffic on the regional as well as on the national railway net-work • Efficient implementation and operation of an infrastructure project • Attractive solution for the travellers • Government budget relieved from substantial costs LEGAL#1894150v1

  3. Project Scope • 22 km new railway integrated into the national network • 3 stations at the Stockholm-Arlanda Airport • New terminal at Stockholm Central Station • 7 trains LEGAL#1894150v1

  4. Project Structure Lease of Arlanda Link Grant of land rights, traffic rights and other necessary rights Design, Construction, Operation and Financing Gov. Commitment Grant of land rights and other rights LEGAL#1894150v1 Equity Gov. Grant Subord.Loan

  5. Contract Structure Swedish Rail Administration 50 % Civil Aviation Administation 50 % Swedish National Debt Office Government Commitment (Swedish Government) A-Banan Projekt AB Gov. Subordinated Loan Agreement MEIF Stockholm AB (orig. GEC Alstom, NCC and Siab, Vattenfall, Mowlem) Project Sponsors Agreement Nordbanken Finans Project Agreement Shareholders Agreement Lease Agreement (the SPC) A-Train AB Loan providers International Banks Loan Agreements Security Agreements EPC Contract (design, construction, delivery) Insurance Agreement Consortium Agreement / Arlanda Link Consortium Insurance Companies Banbrytarna Construction Mowlem Supplier rail Alstom Supplier trains, signal, tele Insurance Agreement

  6. Costs 4,203 MSEK Available Funds 4,975 MSEK Financing Capital from Shareholders 600 + 200 = 800 MSEK Lease and Loans 2,325 MSEK Government Grant 850 MSEK Gov. Subordinated Loan 1,000 MSEK Turnkey Contract 3,838 MSEK Other Costs 365 MSEK LEGAL#1894150v1

  7. Time Schedule • 1989 – 93 Government studies, political discussions • 1993 – 95 Competitive bids, negotiations, legal arrangements and financing • 3 July 1995 Financial Close • 1995 – 99 Construction, build-up of organisation, marketing • 25 Nov.1999 Start of Commercial Operation • 2000 – 40 Contract Period • 2004 Macquarie acquires the shares of A-Train LEGAL#1894150v1

  8. Important Experiences Gained& Lessons Learned • Clarify the respective roles of the Government and the SPC in relation to implementation and operation • Secure the powers of SPC in relation to the EPC Contactor and the O&M Contractor (sufficient human and financial resources) • Input from the operator during the tendering stage • Develop a Swedish model to reduce transaction costs • Important to consider principles and procedures for handling unforeseeable changes in legislation etc. • Third party access to railway infrastructure (EC; Third Railway Package) LEGAL#1894150v1

  9. The Arlanda Link Project 23 November 2006 Jan Kansmark LEGAL#1894150v1

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