Development of the Prison Facility Rimavská Sobota – Sabová

1. Development of thePrisonFacility Rimavská Sobota – Sabová throughPublic-PrivatePartnership(PPP) Investors‘ day February 2019

2. Agenda • Project presentation • Current status and plan • PPP Project • Allocationofrisks and distributionofcompetencies • Process andtimeschedule Note: Anaudio recordingwillbe made oftheentireprojectpresentation in order to demonstratecompliancewiththeprinciplesoftransparency and equaltreatment.

3. Project Presentation

4. Project Presentation1/2 • PPP project – project design, construction, financing, operation and maintenance of a new prison facility on the premises of the current facility of the Open Prison Department Sabová - ÚstavnavýkontrestuodňatiaslobodyŽeliezovce • Contracting authority: Directorate-General of the Corps of Prison and Court Guard (GenerálneriaditeľstvoZboruväzenskej a justičnejstráže), budgetary organization established by the Ministry of Justice of the Slovak Republic • Up-dated concept of the prison system approved by Regulation of the Slovak Government No. 392 of 10 July 2013

5. Project Presentation2/2 • The work plan of the Slovak Government for 2014 was approved by the Slovak Government by Resolution No. 22 of 18 December 2013, task B1 – to submit to the Slovak Government for discussion the “Feasibility Study regarding the development of the prison facility RimavskáSobota – Sabová through public-private partnership“ • Up-dated feasibility study regarding the development of a prison facility RimavskáSobota – Sabová through public-private partnership of 18 September 2017 • Proposal to implement the project for development of the prison facility RimavskáSobota – Sabová through public-private partnership was approved by the Slovak Government by Resolution No. 97 of 26 February 2018 • Presentation of the project on the premises of the District Court in RimavskáSobota in the presence of media and representatives of the town of RimavskáSobota and surrounding municipalities on 11 February 2018. Open discussion with thelocal public at the City Hall of Hnúšťa focused on security, employment and operation of the new prison facility on 26 February 2018. • Notification of the result of the public tender for the provision of advisory services published on 8 November 2018

6. Project Team Advisory team Contracting authority CMS Slovakia • Directorate-General of the Corps of Prison and Court Guard Milan Ivan General Director Legaladvisor Deloitte Advisory Financialadvisors LimerockAdvisory BUNG Slovensko Technicaladvisor

7. GroundsforDevelopment of a new PrisonFacility • Long-term unfavourable development in the number of people imprisoned – approx. 10,400 individuals in Slovakia are currently staying at institutions for service of custody (custodialfacility) or forservice of a term of imprisonment (prison) • Critical occupancy rateof prisons– at the end of 2016 the occupancy ratewas 97.7 % when calculating the accommodation area 3.5 m2 per prisoner (when recalculated to 4 m2 – the occupancy rate was 102.1 %) • Classification criteria for differentiation, based on the European prison rules, envisage placing convicts so as to disturb family relations as little as possible; in this respect, based on an analysis, the project solves lack of capacity for service of a term of imprisonment and service of custody in the south of the Central and Eastern Slovakia. • Existingfunctionalopen department for prisonersservinga sentence withina relatively large state-controlledfacility withstate-ownedassets. • Unfavourable technical condition and age structure of buildings – out of 18 prison facilities 13 are over 30 years old. Investment debt and other form of financing to coverthe needs of the prison system

8. Dislocation of PrisonFacilities in Slovakia Institutionsforservice of custody and institutionsforservice of a term of imprisonment (custodial and prisonfacilities): Institutionsforservice of a term of imprisonment (prisons): Hrnčiarovce nad Parnou Dubnica nad Váhom Sučany Košice-Šaca Nitra-Chrenová Banská Bystrica-Kráľová Želiezovce Ružomberok Levoča ÚVTOS Rimavská Sobota - Sabová Legend: General Directorate Trenčín hospital Institutionsforservice of a term of imprisonment Institutionsforservice of custodyand service of a term of imprisonment

9. Benefitsof a newPrisonFacility - the Public • Increased population income – in connection with the project implementation, we expect the creation of 298 functional positions of members of the Corps of Prison and Court Guard and 42 functional positions of employees of the Corps of Prison and Court Guard and associated income for their families • Positive impact on the employment and business environment of the region –new business opportunities for local firms are anticipated in connection with the construction and refurbishment of the prison facility as well as during the stage of its operation • Reduced expenses – addressed to the needs of theprisoners‘ families in connection with keepingtheprisonersclose to their place of permanent residence as well as to the needs of public administration bodies ensuring post-penitentiary care

10. Benefitsof a newPrisonFacility- Prisoners • Creatingjob positions for at least 60 % of prisoners who are fit to work, out of the total capacity of the prison facility (assumed obligation of the concession holder) • Improvingthelong-term unfavourable situation in ensuring accommodation capacity for prisonersservinga sentence associated with a permanent increase in the number of convictedpersons • Improved accessibility in termsoffamily relations of theconvicted and their relatives, improved post-penitentiary care • Ensuring development of accommodation for theaccused and convicted in compliance with theexpected needs of the prison system and withtherequirements of the European Committee for Prevention of Torture and Inhuman or Degrading Treatment or Punishment

11. Current Status and Plan Current status ofthe Open Department SabováoftheŽeliezovcePrisonInstitution

12. Current Status 1/3

13. CurrentStatus 2/3

14. CurrentStatus 3/3 Facilityarea: 134,775 m2 Number of buildings: 20 Most of theoriginalbuildings, exceptfortheadministrativebuilding, are planned to beremoved

15. PlannedPrisonFacility • Ensuring service of a term of imprisonment at minimum security level, normalsecuritylevel as well as maximum securitylevel (including life sentences), while preserving service of a term of imprisonment also in the open department. Ensuring service of custody. • The total plannedaccommodation capacity of the facility is 832 places, of which 648 places are designedformales in standard service of a sentence + 36 places as open department + 76 places as specialized units, and 72 places for service of a sentence for catchment districts of RimavskáSobota, Lučenec, Revúca and VeľkýKrtíš. • Accommodation area per one person at least 4 m2 • Expected creation of 298 functional positions of corpsmembers and 42 functional staffpositions • Buildings with nearly zero energy consumption, determined by the upper limit of energy class A0 (Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings and Act No. 555/2005 Coll., on energy efficiency certification of buildings)

16. VisualizationofthenewPrisonFacility • Verification study September 2014, TEPLAN ARCHITEKT, spol. s. r. o., BanskáBystrica • The verification study will serve as recommendation, representing a benchmark based on the Corps of Prison and Court Guard best practice. • Nevertheless, the layout of the entire facility and buildings must comply with safety requirements, internal directives and generally binding legal regulations.

17. VisualizationofthenewPrisonFacility Source: Verification study September 2014

18. VisualizationofthenewPrisonFacility Source: Verification study September 2014

19. VisualizationofthenewPrisonFacility Source: Verification study September 2014

20. VisualizationofthenewPrisonFacility Source: Verification study September 2014

21. PPP Project

22. PPP Project 1/2 • The project assessment of the Updated Feasibility Study of development of the prison facility RimavskáSobota – Sabová through public-private partnership (2017) implies that the PPP model will benefit the public sector with higher money value, with the concession holder assuming a greater part of theproject risks. • A DBFO contract(contract to design, build, finance and operate) – the concession holder will provide for the design, development, financing, operation and maintenance. • The public sector will pay for accessibility of the service, from the start of the project operation throughout the concession period. In case of inaccessibility or low performance, deductions will be applied to the concession holder‘s payments. • Throughout the development and operation periods, the structures (buildings) and infrastructure will beproperty of the Slovak Republic administered by the Directorate-General of the Corps of Court and Justice Guard and the Želiezovce Prison Facility.

23. PPP Project 2/2 Investment costs: • Approx. EUR 55 mil. (VAT excl., 2017 prices) Development period: • 18 – 24 months Operation and maintenance period: • 20 years • The project will be kept off the public finance balance sheets (ESA 2010). Source: Updated Feasibility Study

24. Allocation of Risks and Responsibilities

25. AllocationofRisks- Preliminary Source: UpdatedFeasibility Study

26. AllocationofResponsibilities - Preliminary • The allocation of responsibilities is being analysed and will be part of the competitive dialogue. • PUBLIC SECTOR: • Responsibilities in the areas of surveillance and supervision of service of prison terms pursuant to legal regulations • Prison facility management, quality control regarding the concession holder services • Operation of security and other IT systems • Education, religious care, prisoners daily routine and work assignment • Health care for prisoners • Health care for staff • CONCESSION HOLDER: • Major part of responsibilities covering development, administration, operation and maintenance of thefacilities and prison equipment (including repairs, security and other IT system installation, cleaning, catering and fleet parkservices) • Requalification, supplying equipment and purchase of education and requalification tools • Providing job opportunities for prisoners Source: UpdatedFeasibility Study

27. Process and Time Schedule

28. ProjectReadiness • Both lands and buildings are property of the Slovak Republic administered by the Corps of Prison and Court Guard. • Zoning plan of the town of RimavskáSobota allows for construction of the prison facility. • EIA: Contractor preparing the objective has been selected, relevant documentation to be supplied by 04/2019; estimated end of assessment process: 09-10/2019 • Zoning proceedings: Contractorpreparingthe development plan and associated documentation has been selected; release of the zoning decision expected in the course of the competitive dialogue.

29. PublicProcurementProcess • A defence and security contract • Competitive dialogue: • Notice announcing the public procurement • Submission of applications for participation • Assessment of compliancewithqualification criteria • Invitation to participate in the dialogue • Dialogueprocess • Submission of final bids • Assessment of final bids • Signing of the contract

30. PlannedTime Schedule oftheCompetitiveDialogue

31. EstimatedTime Schedule ofthe Project

32. Questions and Answers • The concession holder must obtain a Confidential security clearance from the National Security Authority. • Procurement of job positions – creatingcapacity vs. responsibility for attracting employers/contractors

33. Public Project Information • UpdatedFeasibility Study: www.zvjs.sk/dokumenty/GRZVJS-aktualizacia_studie_usk_.pdf • Verification study September2014 – recommended http://www.zvjs.sk/files/field/overovacia_studia_vazenske_zariadenie_rimavska_sobota_2014_akt.rozpoctu_2016.pdf • Thepresentationwillbepublishedat http://www.zvjs.sk/node/534356

34. Thankyouforyourattention