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Bina-Istra and BIOM - Ekonomski Fakultet

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  • pg 1
									    Ekonomski Fakultet

 Inovativno projektno
     financiranje



BINA ISTRA slučaj
    dr. sc. Dario Silić



                          1
Project description

                PROJECT DATA                   2010         2011

      End of Construction                      2012         2011

      End of Concession                        2027         2027


      Length under Tunnel                      5200         5200

      Total length in Operation                145 km       145 km
      Length with 4 lane cross profile         30 km        100 km



      Number of civil engineering structures   83           83
      without 2A

      Number of Interchanges                   18           18

      Number of Toll plaza                     5            17

      Number of Tunnels                        1            1

                                                        2
                    Ownership structure

                                     Ina Industrija
Bouygues T.P.   Hrvatske Autoceste                     ICI Participations
                                       Nafte d.d.
    45%                44%                                    6%
                                          5%



                           BINA Fincom       Bouygues T.P.    Hrvatske Autoceste Istarska Autocesta
                             d.d. 67%            16%                14.8%               2.2%



                                                       Bina Istra d.d
                                                          100%


                                                  Bina Istra Operation and
                                                     Maintenance d.o.o.
                                                            100%




                                                                                              3
Organization Chart : Bina-Istra and BIOM




                                   4
Traffic




          5
          Toll revenues

Ø Učka




                              Phase 
                               2A4




Ø Mirna




                          6
                     Toll Revenues

Ø   Učka




                                         Phase 
                                          2A4




Ø    Kanfanar-Pula




                                     7
                              Toll Revenues
ØSATURN suite of transportation modelling programs
ØForecasting scenarios determined by the following:
    • GDP growth
    • Future toll levels
    • Assumption of the willingness to pay tolls (Value of Time, “VoT”)
    • Motorway bonus
ØMVA reviewed the model forecasting to produce 2 scenarios:
    • A base case (the “Base Case”) representing the most likely forecasting
    scenario; and
    • A low case (the “Banking Base Case”), the P95 forecast.
                                                                                                 Phase 
ØSummer-time traffic is significantly greater than traffic during other times of the year.        2A4



                                       Closed Toll System
                                       Scheduled Start Date




                                                                                             8
                               Financial key dates
 UBS : 87 m€       1997   Financial closing phase 1A

  Commercial
 loans : 33 m€     1998   First payment of FC
                   1999   Phase 1A opened to traffic
                   2000   First dividends 1A


                   2003   Financial closing 1B and Refinancing phase 1A
Bonds : 210 m€
                   2006   Phase 1B opened to traffic
  Term loan :
    58m€
                   2007   Financial closing 2A and Refinancing phase 1
                   2010   Phase 2A1 Kanfanar Pula opened to traffic
Synidicated loan
                   2011   First dividends 1B
  : 617.5 m€
                   2011   Other sections 2A to be opened to traffic
                   2012   Swap to be renewed and dvlp of Phase 2B


                   2027   End of concession


                                                                          9
                                Organization of Concession


                                    Grantor
                                    Republic of Croatia

                                                     Concession
                                                     contract
                                                                  Tolls        Toll
                                                                               Users

Shareholders                        Bina Istra d.d.                            Financing
     Equity
                                                                      Facility Lenders
                                                                      agreement




                                                                  OPERATION
               DESIGN                     CONSTRUCTION            AND
                                                                  MAINTENANCE
                                          Contractor              BIOM doo
               Croatian designers
                                          BOUYGUES T.P.




                                                                                           10
Phase 2A project parties scheme




                          11
                                           Contracts
                         Project and finance contracts

                 Finance contracts:                          Project contracts :
 1. Facility agreement                     1.  Amendment  Agreement  n°4  relating  to  the  Concession 
                                           Agreement  including  the  Financial  Contribution  Direct 
2. DSRF standy ba contractt
                                           Agreement
3. Equity shareholders agreement
                                           2. Construction Contract
4. Paying Agency Agreement
                                           3. Construction Contract Direct Agreement
5. Direct agreements
                                           4. Amendment Agreement relating to the O&M Agreement
6. Security Trust and Intercreditor Deed
                                           5. O&M Direct Agreement
7. Account Agreement
                                           6. Shareholders undertaking agreement
8. Fiduciary Transfer of Shares
                                           7. Independent Engineer’s Consulting Agreement
9. Control Account Pledge
                                           8. Extension Letter to Technical Assistance Contract
10. Pledge of Contractual Claims
                                           9. Insurances agreements
11. Pledge of Insurance Claims 
                                           10.  Performance  Bond  of  Bina-Istra  Operation  & 
12. Seizure of Account Consent             Maintenance
13. Security Agreement                     11. Grantor assignement agreement etc
14. Fee Letters etc
                                                                                                    12
       Financial Contribution
            mechanism
¨   Subsidy as difference beetwen tolls and costs
¨   Paid by Grantor
¨   Deficits to be covered from dividends, WCA and DSRA or DSRF




                                                                      Financial
         DSRA                                                        Contribution
         DSRF
                                     Bina Istra
                                                                     Toll revenues

                      O&M costs +                   Standard costs
                                     Debt service
                       Renewal                        +Dividends
                                                                               13
                        BFC, ABFC and FCA
Ø   BFC
      - Technical assumptions to be proposed by Bina
      - Technical assumptions to be approved by Grantor (10 bd)
      - Technical assumptions to be approved by Agents (5 bd)
      - KMPG on behalf of facility agents to updated the model
      - Bina to propose 4 tariffs policy proposals (before 15.09)
      - Grantor to approve it (10 bd)
      - KMPG on behalf of facility agents to run the model to calculate the FC
      - FC amount to be sent to Grantor before 31.10


Ø   ABFC
      Before 31 Janaury to be sent to Grantor and agents
      (DSRA or DSRF to match a max od DS until 2027)


Ø   FCA
      Adjustement of BFC done before 31 of January and sent to Grantor.
      Bina has to finish the year with 0 excess.
             Finance structure



  €302m                    Bouygues
Tranche B                 (Contractor)

            Refinancing
  €316m
Tranche A                                 Republic of
                                            Croatia
                           Bina Istra      (Grantor)
                                           Financial
 €75m                                     Contribution
 DSRF       DSRA or
            DSRF

 €28m                     Toll revenues
 DSRA

                                                   15
Finance structure




                    16
RISK ANALYSIS




                17
                           Limited Cash Shortfall Risks

                Ä   The financial contribution guarantees a minimum revenue level
                    irrespective of toll revenues
 Traffic        Ä   This revenue guarantee is subject to a one year catch-up mechanism
                    (with DSRA or DSRF providing intra-year protection against cash
                    shortfall)
                Ä   The Croatian government assumes traffic risk



Permit / land   Ä   The financial contribution guarantees a minimum revenue level
acquisition         irrespective of whether permits have been awarded, land acquired, or
                    construction begun
                Ä   The Croatian government assumes land acquisition risk and ultimately
                    permitting risk



                Ä   The financial contribution guarantees a revenue level based on
                    expected debt service costs
    FX or
interest rate   Ä   If debt service costs are higher than expected, guaranteed revenues
                    are increased in the following year through the catch-up mechanism
                    (with DSRA or DSRF intra-year protection)
                Ä   The Croatian government assumes FX and interest rate risk
                                                                                           18
                             Limited Cash Shortfall Risks

                Ä Construction contract is a fixed price turnkey contract with Bouygues
                Ä Penalties for delays include liquidated damages and performance bond
                Ä €10 million cost overrun facility included in the financial contribution mechanism
Construction
                Ä Bouygues constructed Phase 1 on time and on budget, with no cost overruns
                Ä An independent advisor has reviewed and opined on the construction budget
                Ä Mobilisation and performance guarantees


                Ä Operating and maintenance costs are agreed and fixed four years in advance.
                   The agreed costs are fully covered by the Financial Contribution
                Ä If any cash shortfall causes DSRA to be drawn or equity return to be deferred,
                   financial contribution is increased in next year, “injecting” cash permanently into Bina Istra
 Operation      Ä Annual non-debt service costs are only around 15–20% of DSRA + equity return
and liquidity
                Ä Bina Istra has been operating Phase 1 successfully since 1999
                Ä A 12-month DSRA and €2.5 million working capital facility are in place
                Ä Bina has insurance coverage

                                                                                                       19
 USES and SOURCES
during Construction 2A




                         20
                                            Financing conditions


 TERM LOAN


Amount :        M 693,5 €
Maturity : 2027 
Interest rate : 5.38% Tr. B and 5.9% Tr A
Tail 6 months
Grace period : 3 years
MLAs : RBS, SG and ZABA
DSRA : Replaced by DSRF for 75.5 m€
Fees : Arranging 1%, commitment : 40% 
         of margin
Swap : 4.53%  Tr B and  4.96% Tr A




    Syndicated, Step up margins, grace period 3 y + SWAP
                                                     21
     CONSTRUCTION
        UPDATE

 CONSTRUCTION
WORKS INVESTMENT




                    22
                       2011 Targets




        -Swap breackage and new swap
        -Swap breackage and new swap
    -New Toll system (100 new employees)
    -New Toll system (100 new employees)
          -Internal control procedures 
          -Internal control procedures 
- Share capital reduction and Subordinated debt
- Share capital reduction and Subordinated debt
                   - IFRIC 12
                   - IFRIC 12
                    - SAP B1
                    - SAP B1
    - Sub-phases 2A4 and 2A5 investments
    - Sub-phases 2A4 and 2A5 investments
          - Phase 2B model financing
          - Phase 2B model financing



                                                  23
                             2012 Targets
-Optimize Dividends and other revenues
-Optimize
- Complete phase 2A construction works and start operation
- Secure the Financial Equilibrium/optimize toll revenues

                              Phase 2B
- Obtain the Environmental impact study for 2B
- Start phase 2B design and obtain first location permits
- Start land acquisition process for 2B
- Find a financial structure avoiding to refinance existing loan
 (the big subject is how the security package will be shared)



                                                               24
Pictures of the year




                       25
Pictures of the year




                       26
Pictures of the year




                       27
                  Educational Campaign for
                       young drivers

"Shift Caution Into Gear“




                                             28
                  Supporting the local community



Donation of  Bouygues 
And Bina-Istra used to
 arrange the Car Park 
of the Pula General 
Hospital




                                             29
                   Supporting the local community




Donation of the 
ambulance to 
the Pazin
Health Centre




                                              30
                     Supporting the local community




The equestrian 
competition called
“Trka na prstenac”




                                                31
                   Supporting the local community




Association of Families 
of Road Traffic
Victims


Mobile training ground 
project for children


                                              32
                  Supporting the local community




Charity Association “Oaza”



The purchase of the
equipment necessary to
 furbish the Family home

                                             33
                    Supporting the local community




Safe House Istria




                                               34
              CONCLUSION
PHASE 1A :   Announced  as « project  of  the  year » 
             by Project Finance Magazine


PHASE 1B :   Benchmark for  region  for  amount  and 
             maturity


PHASE 2A :   Benchmark for  region  for  amount, 
             maturity  and  innovative  finance 
                                                         35
             solution
                 QUESTIONS AND ANSWERS




d.silic@bina-istra.hr
                                   36

								
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