financing ppps project finance：融资ppp项目融资

FinancingPPPs:ProjectFinanceOctober2007IndexSectionI. BriefProjectFinanceIntroductionSectionII. RiskMatrixSectionIII. Casestudy:CuencaRoadNetworkProgram2SectionI

BriefProjectFinanceIntroductionDefinitionofProjectFinanceDefinition:Aformoffinancingprojects,primarilybasedonclaimsagainstthefinancedassetorprojectratherthanonthesponsoroftheproject.However,therearevaryingdegreesofrecoursepossible.Repaymentisbasedonthefuturecashflowsoftheproject.

SecciónIProjectFinanceIntroduction4FinancingStructureShareholdersConstructionJointVentureOperatingCompanyCapitalDividends+interestPrincipal

+InterestPaymentPayment

CV+CFInsurancecompanyServicesupplier1Servicesupplier3Servicesupplier3ServicesuppliernServiceContractsProjectCompany(SPV)AdministrationBanksConcessionAgreementFinancialcontractsConstructionContractOperating&Maint.ContractSecciónIProjectFinanceIntroduction5Calendar:Processduration:4monthsFeasibilityStudyContracts&RiskmanagementEconomicanalysisandFinancingstructureFinancialAdvisor:BanksFinancialStructurePhaseIRiskanalysisPhaseIIFinancialclosingPhaseIIITermSheet&IMArrangers:TermSheet&ContractsnegotiationFinancialclosingParticipants:SyndicationSecciónIProjectFinanceIntroduction6BBVAProjectFinanceExperienceSecciónIProjectFinanceIntroductionLeadingProjectFinanceBankinSpainBBVAenjoysaleadingpositioninprojectfinancinginSpain:#1Arrangerin2006#1Arrangerin2005#1Arrangerin2004#1Providerin2003#1FinancialAdvisorin2003

LeadingProjectFinanceBankintheWorldBBVAhasplayedatoplevelroleintheprojectfinancingintheworld:#2TransportMandatedLeadArrangerin2006#3WindMandatedLeadArrangerin2006#4Water&SewageMandatedLead

Arrangerin2006#10PowerMandatedLead

Arrangerin2006#1FinancedAdvisorin2006#2WesternEuropeMandatedLeadArrangerin

2006#6EasternEuropeMandatedLeadArrangerin2006#10NorthAmericaMandatedLeadArrangerin20067BBVAProjectFinanceExperienceSecciónIProjectFinanceIntroductionRoadsBBVAhasextensiveexperiencefinancingtheconstructionofnewbuildmotorwaysandtheacquisitionofexistingroads.Forexample:BBVAhasactedasMandatedLeadArrangerontheacquisitionofmostofthemajorrecentmotorwayprivatisationsincludingtheEUR370millionIoniaOdosRoadProject(2007),theEUR1.06billionVarianteSurMetropolitana(2006),Euro8.3billionAPRRprivatisationinFrance(2006),theUSD3.8billionIndianaTollRoad(2006),theUSD1.8billionChicagoSkyway(2004),theEuro1.6billionENAprivatisationinSpain(2003)andtheCAD2.3billionETR-407acquisitionfinancinginCanada(1999)BBVAhasactedonsomeofthemostinnovativenewbuildfinancingsinNorthAmericaandEuropeincludingtheEuro232millionEurolinkN4/N6-thefirstPPPtollroadinIreland(2003),theNOK3.2billionE18motorwayinNorway(2006)andtheUSD400millionSR-125(2003)inSanDiego,thefirstprivatetollroadintheUSinvolvingTIFIAfundingBBVA’sexperienceincludesrealtollroads,shadowtollroadsandavailabilitybasedroadsBBVAhasextensiveexperienceinLatinAmerica.PortfolioincludesprojectsinArgentina,Chile,ColombiaandMexico.BBVAisoneoftheworld’sleadingarrangersofinfrastructurefinancings.OtherTransportationBBVAhasactedasMandatedLeadArrangeronthefinancingoftransportationinfrastructureprojectsincludinghighspeedrail(TPFerrohighspeedraillinkbetweenSpanandFrance),lightrail(MetrodeTenerifeandWoolwichArsenalDocklandsLightRailway),containerports(PuertodeMálaga),airports(BAA),parkings(IconParkings)andpassengerinterchangestations(IntercambiadordeCastilla).8SectionII

RiskMatrixMainrisksRiskMatrixBuilding&OperationalRisk:BuildingriskDemandriskOperatingriskFinancial&EconomicRisk:SectionIIInterestratesriskInflationriskSyndicationrisk

10RiskmitigationCostConstructionContract FixedpriceDelay ConstructionContract PenaltyclauseTechnicalperformance ConstructionContract PenaltyclauseOperating OperationContract TechnicaladvisorwillcontroltheoperationTraffic Concessioncontract FixtariffTariff/LawConcessioncontract TariffwillcompensatetrafficandlawchangesForceMajeure Concessioncontract ConcessionagreementwillcovertheseriskPoliticalrisk Concessioncontract ConcessionagreementwillcovertheseriskContractswillprovidemechanismstomitigatetherisk:MitigationmechanismContractContractualstructure&riskmitigationRisk:SectionIIRiskMatrix11OtherriskmitigationsSponsorsTechnical&Financialsolvency.EPCContract.Longwarrantyperiods.Penaltyclauses.Operating&Maint.Contract.Extensiondefinition.Length.Costlimits.Duediligence.Externaladvisors

InsuranceprogramSectionIIRiskMatrix12Advisors&InsuranceProgramInsuranceprogramExternalAdvisorsTrafficAdvisorInsuranceAdvisorLegalAdvisorTechnicalAdvisorModelAuditorConstructionOperatingDamagesALOPCivilliabilityALOPCivilliabilityForceMajeure

SectionIIRiskMatrix13SectionIII

Casestudy:CuencaProvinceRoadNetworkProjectDescriptionSecciónIIIConstructionandmaintenanceof458kmofroadsinCuencaprovince.Concessionterm:17years.Investments:Constructionperiod:Eur45millioninvestmentOperationalperiod:Eur30millionCAPEXShadowtollscheme.Concessioncompany:“ConquensedeInfraestructurasS.A.”Fiveshareholderswhoarethemainconstructioncompaniesintheprovince.Concessioncontractwiththelocalauthority.CaseStudy15Principalparticipants&contractsExcelentísima

DiputaciónProvincialdeCuencaBBVA Arranger

Eptisa TechnicaladvisorCuatrecasas/DLA LegaladvisorHeathLambert InsuranceadvisorToolUlle DemandadvisorPWC ModelauditorOther/AdvisorsSponsors/Shareholders5ConstructioncompaniesConstructioncontractwith

aJointVentureofallconcessioncompanyshareholders.Maintenancecontractwitha

companyformedbythefiveshareholdersoftheconcessioncompany.Administrativecontracts:concessioncontract,etc.InsurancecontractsFinancialcontracts:SeniorLoan,VATLoan,Swaps,etc.ContractstructureSecciónIIICaseStudy16StructureSecciónIIIConcessionContractCuencaLocalAuthorityConquensedeInfraestructurasS.A.ConstructionJointVentureConquensedeConservaciónS.L.ConstructionContractMaintenanceContractBanksFinancingContractsCaseStudy17RisksandGuaranteesConstructionperiodAnyconstructionriskCivilliabilityMaintenanceperiodMaterialDamageCivilliabilityEnvironmentliabilityTerrorismConstructionRiskContingency

DelaysinprojectopeningOvercostduetodelaysGuarantiesSponsorsguarantiesandpenaltiesConstructionInsuranceMaintenanceRiskContingency

UnabletofacedebtserviceMaintenanceovercostGuarantiesSponsorsguaranteesandpenaltiesCAPEXreserveaccountsNewbankmaintenancebudgetsContractorguaranteesSponsorsexperienceProventechnologyTechnologicalRiskInsuranceRiskSecciónIIICaseStudy18Financial

RiskCreditriskoftheproject100%IRSofoutstandingdebtduringtheconcessionperiod.