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					Transportation and Infrastructure Panel
  PRESENTATION BY MR. JUAN VILLAR-MIR DE
                 FUENTES
         DEPUTY-CHAIRMAN OF OHL
      CHAIRMAN OF OHL CONCESIONES

                    New York, March 17 2009




     Transportation and Infrastructure Panel
                                                 1
        Talk by Mr. Juan Villar-Mir de Fuentes
Contents


  1. Transportation infrastructures as an engine for sustainable
    growth.
  2. Framework for the development of infrastructures with
    private financing models.
  3. The public-private partnership transportation infrastructure
    market in the United States.
  4. The OHL Group in the United States.




                    Transportation and Infrastructure Panel
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                       Talk by Mr. Juan Villar-Mir de Fuentes
1. INFRASTRUCTURE AS AN ENGINE FOR SUSTAINABLE
   GROWTH

      1.INTERNAL LEVERS (internal effectiveness)
          • EDUCATION
                  Application of appropriate training policies
          • SCIENTIFIC/TECHNOLOGICAL DEVELOPMENT
                  R&D&I actions

      2.EXTERNAL LEVERS (external economies)
          • Effective provision of INFRASTRUCTURES
          • Appropriate LAND USE PLANNING


             INFRASTRUCTURE IS A DEVELOPMENT ASSET,
                             A DRIVING AGENT

                       Transportation and Infrastructure Panel
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                          Talk by Mr. Juan Villar-Mir de Fuentes
1. INFRASTRUCTURE AS AN ENGINE FOR SUSTAINABLE
   GROWTH

 The sustainable growth of infrastructure.

 •   The policy of sustainable infrastructures for sustainable growth.
 •   Sustainability refers to continuity and feasibility in the long term.
 •   Simultaneous conditions necessary for sustainable infrastructures :
        –   Economic conditions: continuing availability of economic resources; public
            financing supplemented by private financing.
        –   Social recognition. Criteria of consensus and regional balance. Respect for the
            population.
        –   Environmental conditions: maximum respect for the environment during all the
            stages of the projects.
        –   Physical endurance: proper maintenance of infrastructures.



                            Transportation and Infrastructure Panel
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                               Talk by Mr. Juan Villar-Mir de Fuentes
2. FRAMEWORK FOR THE DEVELOPMENT OF
    INFRASTRUCTURES WITH PRIVATE FINANCING MODELS


   The limited public funds available need to be supplemented by private
   resources.
    Prerequisites for the effective development of private initiatives in the financing of
    infrastructures:
     • Appropriate legal and regulatory framework.
     • Infrastructure plans.
     • Independence in the management of infrastructure plans.
     • Global market rules.
     • Appropriate economic compensation to promoters.
     • Stable institutional framework.

  In order to benefit society, infrastructure policy should be considered a
  national policy, with durability, regardless of the government in power.

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                                 Talk by Mr. Juan Villar-Mir de Fuentes
3. THE PUBLIC-PRIVATE-PARTNERSHIP TRANSPORTATION
   INFRASTRUCTURE MARKET IN THE UNITED STATES


  3.1. Current situation

  •   USDOT: More PPP projects have been carried out since 2005 than in its
      entire previous history.
  •   A number of states have adopted the PPP option as the ideal solution for
      starting up new projects.
  •   25 states have legislation in place for the implementation of PPP projects.
  •   Federal support. TFIA and PAB programs.
  •   Many of the bodies responsible for the development of infrastructure have
      not yet taken a position favorable to the PPP solution.
  •   The current crisis has accelerated budget cuts.



                           Transportation and Infrastructure Panel
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                              Talk by Mr. Juan Villar-Mir de Fuentes
3. THE PUBLIC-PRIVATE-PARTNERSHIP TRANSPORTATION
INFRASTRUCTURE MARKET IN THE UNITED STATES

 3.2. PPP market trends
 •   The financial crisis has had a strong impact on investment funds and banks. As a result,
     private finance has dropped significantly.
 •   It is expected that the basis for the recovery of the market will be established in 2009.
 •   The new U.S. President’s economic policy will be a key factor.
 •   The stimulus package bill, described as a “historic landmark” by President Obama, was
     signed into law on February 17, providing 787 billion dollars for the reactivation of the
     U.S. economy.
 •   In this plan, 126 billion dollars are to be used for infrastructures in general and, of that
     amount, 49 billion will go to transportation infrastructures.
 •   Creation of the National Infrastructure Reinvestment Bank, with 60 billion dollars.
 •   The experience of the private sector in PPP project initiatives has not been very
     encouraging, with a somewhat disappointing effect.
 •   A certain degree of administrative and financial rigidity in the bids for tenders that have
     been launched.
 •   The bonding provided by insurance companies can also become an added difficulty for
     concession companies in their access to PPP projects.

                               Transportation and Infrastructure Panel
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                                  Talk by Mr. Juan Villar-Mir de Fuentes
3. THE PUBLIC-PRIVATE-PARTNERSHIP TRANSPORTATION
INFRASTRUCTURE MARKET IN THE UNITED STATES

  3.3. Opportunities in the U.S. PPP market
   •   Very high potential.
   •   The U.S. has the most extended road system in the world.
   •   At the present time the road network presents serious problems of
       obsolescence and incapacity in order to respond to the demands of users.
   •   At least 16,000 km of new infrastructures are needed, in addition to the
       upgrading of 32,000 km.
   •   The ASCE indicates that the investment necessary for the repair and
       upgrading of infrastructures would total 2.2 billon dollars in 2009 only.
   •   The existence of a series of projects to be developed by means of PPP
       formulas. Several states are considering this alternative.
   •   The major Spanish construction groups, with their technology and experience,
       can contribute to the development of concession projects in this new stage
       that is opening up thanks to President Obama’s stimulus package.

                              Transportation and Infrastructure Panel
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                                 Talk by Mr. Juan Villar-Mir de Fuentes
4. THE OHL GROUP IN THE UNITED STATES (I)

 INTERNATIONALIZATION IS A KEY STRATEGY OF THE OHL GROUP
                             Sales                                    Staff


                                                                           31%
                       51%           49%
                                                                69%




     Tangible fixed Assets                 Backlog                                EBITDA


                                                      17%                              20%
                 34%

         66%
                                           83%                                   80%



                                     International            Domestic


                         Transportation and Infrastructure Panel
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                               Talk by Mr. Juan Villar-Mir de Fuentes
4. THE OHL GROUP IN THE UNITED STATES (and II)
OHL’s turnover in the USA in 2008 accounted for 9% of the Group’s sales (5,900 million
dollars), which represents almost one-fourth of its international construction business.
OHL INTERNATIONAL CONSTRUCTION
 Established in the State of Florida since 2006. It has 3 construction subsidiaries: Community Asphalt (roads), The
  Tower Group (building) and Arellano Construction (hospital building).
 Sales worth 500 million dollars in 2008 and 800 million in current backlog.
 First company to be awarded railway works in the United States (Metrorail):
      First phase includes 3.8 km and a Miami Metrorail station (to the airport, for 360 million dollars).
 Other major projects:
      Four to six lane expansion on 29 km of I-95, totaling 196 million dollars.
      Expansion of US-1, on a 17 km section. With a budget of 111 million dollars, it was the first project awarded
         under the unsolicited tender offer formula and with payment deferred following performance of the project.
OHL Environment, Inima
 Inima USA Corp., subsidiary 100% owned by OHL Environment, operates the first desalination plant in the State of
  Massachusetts on the Taunton River, unique in its adaptation to the cycles of variable salinity of the water.
OHL CONCESSIONS
 OHL Infrastructure, Inc., incorporated in 2006, with headquarters in Austin, Texas. Pre-selected or finalist in
  several highway concession projects.
 In Latin America, the Group is the number-one world investor in private financing of transportation
  infrastructures (total investment managed, 16,1 billion dollars), with 20 concession companies, 18 of which are
  toll roads, with a total of 4,332 km, 96% in operation.

                                    Transportation and Infrastructure Panel
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                                         Talk by Mr. Juan Villar-Mir de Fuentes
4. THE OHL GROUP IN LATIN AMERICA
• In Brazil, OHL Concesiones is the leading company in the
  management of highway concessions, with a 25% market share
  and a total of 3,226 km in operation through nine concession
  companies:
      Four in the State of Sao Paulo, and
      five new federal highways.
• In Mexico, OHL is the number-one investor in transportation
  infrastructures, among which the following major concessions
  stand out:
      Circuito Exterior Mexiquense, a 155-km beltway around the
       federal capital where 30% of Mexico’s GDP is generated.
      Autopista Amozoc-Perote, 123 km, highway connecting
       Mexico City with the Port of Veracruz.
      Bicentennial Viaduct, 32-km-long urban section in Mexico.             OHL Brasil is the only listed subsidiary of the
                                                                             Group that quotes on the Novo Mercado of the
      Toluca International Airport, the capital city’s second largest,
                                                                            Sao Paulo Stock Exchange (Bovespa) since 2005
       with an expected 24 million passengers in the long term.
•   In Peru, OHL started its activity in 2008 and recently won the concession contract for the Red Vial nº 4, a 362-km
    road network.
•   In Chile, the Group manages three highway concessionaires with a total length of 343 km in the Metropolitan Region
    and Region V - Valparaíso.
•   In Argentina, concession of the highway connecting Buenos Aires with its airport, with 215,000 vehicles daily.


                                         Transportation and Infrastructure Panel
                                                                                                                               11
                                              Talk by Mr. Juan Villar-Mir de Fuentes
Transportation and Infrastructure Panel
  PRESENTATION BY MR. JUAN VILLAR-MIR DE
                 FUENTES
         DEPUTY-CHAIRMAN OF OHL
      CHAIRMAN OF OHL CONCESIONES

                    New York, March 17 2009




     Transportation and Infrastructure Panel
                                                 12
        Talk by Mr. Juan Villar-Mir de Fuentes

				
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