BUILD OPERATE AND TRANSFER SCHEME IN CHILE A SUCCESSFULL CASE OF IMPREGILO: COSTANERA NORTE

Transcription

1 BUILD OPERATE AND TRANSFER SCHEME IN CHILE A SUCCESSFULL CASE OF IMPREGILO: COSTANERA NORTE

2 PROJECT DETAILS AND PROJECT FINANCING

3 Project s physical layout

4 The road to Costanera Norte New tender s kick-off Opening of the technical economical Offer Project awarded to a SPV of Impregilo, Tecsa and Fe Grande COREMA approves the EIA of the project, excluding the Cerro San Cristobal tunnel, suggesting a variation of the layout Meeting with the private sector in order to improve the project s appeal Agreement upon the presentation of an Environmental Impact Assessment (EIA) Kick-off of the tender Request to suspend the Ministry of Public Works Mr. R. Lagos, rejected by the Court of Appeal Following the analysis of the Environmental Impact Assessment, COREMA rejected the study MOP decides to postpone the tender. Meeting between all the Municipalities to agree upon the layout of the highway and the works to be performed. Third party claim to avoid the tender. The MOP deferred the tender. Chilean President announces the concessions program and Government gives notice of the transportation plan in Santiago. The MOP (Ministry of Public Work) organises a meeting about projects in concession scheme. Approval of Concession Law (ley( de concesiones) April 20th: publication of the law decree for the awarding The MOP accepts modifications to the layout of the project, subject to a new EIA by COREMA The construction started through a special authorization. COREMA approved the EIA of the new layout, with the extension to the road Ruta 68. Financial closing of the project April: temporary opening of Costanera Norte Taking over of the SPV by a new Italian group integrated by Autostrade (45%) SIAS (45%) Mediobanca (10%) October: kick-off of the operational phase through the opening of all parts of the highway Technical Completion of Costanera Norte

5 Sources and Uses of Funds Sources of Funds 12% 3% 52% 28% 5% Equity MOP Compensations for Complementary Agreements Bond Subordinated Debt Financial Incomes and Other 8% Uses of Funds 6% 4% 5% 77% EPC Contract and Equipment Operating and Maintenance costs Others Other Construction Costs Reserves

6 Project Finance structure and Bonds issuance Institutional Investors Bondholders Institutional Investors Bondholders Assuming IADB/AMBAC Risk Assuming IADB/AMBAC Risk USD ths UF Bond Proceeds UF Coupon Payments IADB Guaranty IADB Guaranty Lender of Record Lender of Record assuming credit risk assuming credit risk Issues: Complex construction works Local currency revenue stream Need for long tenor financing to match cash flow profile MRG URB B. Case Debt Service Solution: Local currency bond (UF) Bond Amortized based on the profile of the Minimum Revenue Guarantee ensured by the Government Issuer: Costanera Issuer: Costanera Norte S.A. Norte S.A. Concession Contract and Guaranteed Revenues MOP MOP Back-to-Back Guarantee Agreement AMBAC AMBAC Monoline Insurer Monoline Insurer EPC Contractor EPC Contractor Turn-key lump sum Turn-key lump sum

7 Project Finance structure and Bonds issuance Issuer Nominal Amount Guarantor Co-guarantor Risk Rating Amount (UF) Interest rates Maturity Duration Repayment schedule Repayment from Interests payment Interests paym. From Sociedad Concesionaria Costanera Norte UF 9,5 million Inter American Dvlp. Bank (IADB) AMBAC AAA Series A1/A2 Series B1/B ,00% 5,50% 12 years + 7 months 21 years + 1 months 8 12 Half-yearly Half-yearly June 2006 June 2010 Half-yearly Half-yearly June 2005 June 2005 Grace period 31 months 67 months Bonds Total Emission UF 9,500,000 (USD approx) AAA Feller Rate AAA Humphreys Deal of the Year Project Finance International Latin American Transportation Deal of the Year Euromoney

8 RISKS DISTRIBUTION AND STRUCTURE OF THE CONCESSION CONTRACT

9 Public-Private trade-off and risk distribution RISKS Engineering phase Construction phase Expropriations Construction Operation Traffic and revenues Maintenance Exchange rate risk Inflation Financing New investments Environment and territory Force Majeure Events RESPONSIBLE Government SPV Government SPV Government SPV SPV Government SPV Government SPV Government Government SPV Government

10 Structure of the concession contract (BOT scheme) CONTRACTUAL SCOPE Long-term ( ) contract between the Government and a Private Corporation to provide a public infrastructure and appropriate services, under certain technical specifications and quality standard to be observed. At the end of the Concession period, the assets will be returned to the Government in good state and conditions MAIN RIGHTS AND OBLIGATIONS OF THE SPV Accept the project design Responsibility for financing of the capital expenditures (under project financing scheme) Responsibility for construction, procurement and commissioning, operation and maintenance Right to collect toll revenues from the users JURIDICAL FRAMEWORK Frame Law of Concessions ( Ley de Concesiones ) Law and Regulation on Public Works Bidding documents and any circulars providing further information Technical and financial Offer of the awarded Bidder (Concession Holder) Tender award decree (signed by the President of the Republic, the Treasury Minister and the Minister of Public Works)

11 THE PECULIARITIES: MULTI LANE FREE FLOW TOLLING SYSTEM AND TARIFF STRUCTURE

12 Multi-lane free flow system: layout

13 Multi-lane free flow system: layout emergency TRX VR sensor VDC sensor lane 1. MOTORWAY USER 2. TRANSIT 3. VR TRIG ZONE DATA COMMUNICATION 5. VEHICLE CLASSIFICATION 6. TERMINATION VR illumination VDC sensor Toll gantry TRX VR sensor Tag number plate

14 Tariff structure Three tariff categories: normal, peak, saturation. The peak rate is applied for speeds between 50 km/h and 70 km/h, congestion rate for speeds below 50 km/h. Maximum rates are adjusted by Chilean inflation growth parameter (IPC) The Concession Holder may manage the tariff system (in any case limited the maximum tariffs provided by the Concession Contract) US$ per Kilometre T 2T 3T Type of rate Off-peak period Peak period Congestion period