www.mannheimerswartling.se legal#1894150v1 public private partnership in the baltics and europe...
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www.mannheimerswartling.se
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Public Private Partnership in the Baltics and EuropeAlternative means of financing public energy and infrastructure projects
The Arlanda Link Project
Vilnius, Lithuania
23 November 2006
Jan Kansmark
www.mannheimerswartling.se
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Arlanda Link Project
• The only infrastructure project imple-mented on a PPP and project finance basis in Sweden
• Important connection between Stockholm Central Station and Stockholm-Arlanda Airport and for the traffic on the regional as well as on the national railway net-work
• Efficient implementation and operation of an infrastructure project
• Attractive solution for the travellers • Government budget relieved from
substantial costs
www.mannheimerswartling.se
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Project Scope
• 22 km new railway integrated into the national network
• 3 stations at the Stockholm-Arlanda Airport
• New terminal at Stockholm Central Station
• 7 trains
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Project Structure
Project SponsorsSwedish
Government
A-Banan Projekt AB
the SPC
Equity Gov. GrantSubord.Loan
Design, Construction,Operation andFinancing
Gov. CommitmentGrant of land rightsand other rights
Lease of Arlanda LinkGrant of land rights, traffic rights and other necessary rights
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www.mannheimerswartling.se
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Contract StructureSwedish Rail
Administration50 %
Civil Aviation Administation
50 %
(Swedish Government)
A-Banan Projekt AB
(the SPC)A-Train AB
MEIF Stockholm AB
(orig. GEC Alstom, NCC and Siab,
Vattenfall, Mowlem)
Swedish National Debt Office
Loan providersInternational Banks
Nordbanken Finans
Insurance Companies
Consortium Agreement / Arlanda Link Consortium
BanbrytarnaConstruction
MowlemSupplier
rail
AlstomSupplier
trains, signal, tele
EPC Contract(design, construction, delivery)
Project Sponsors Agreement
Government Commitment
Insu
rance
Agre
emen
t
Shareholders Agreement
Project Agreement
Gov. Subordinated
Loan Agreement
Lease Agreement
Loan Agreements
Security Agreements
Insurance Agreement
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Financing
Costs 4,203 MSEK Available Funds 4,975 MSEK
Turnkey Contract
3,838 MSEK
Other Costs
365 MSEK
Capital from Shareholders
600 + 200 = 800 MSEK
Lease and Loans
2,325 MSEK
Government Grant
850 MSEK
Gov. Subordinated Loan
1,000 MSEK
www.mannheimerswartling.se
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Time Schedule
• 1989 – 93 Government studies, political discussions
• 1993 – 95 Competitive bids, negotiations, legal arrangements and financing
• 3 July 1995 Financial Close
• 1995 – 99 Construction, build-up of organisation, marketing
• 25 Nov.1999 Start of Commercial Operation
• 2000 – 40 Contract Period
• 2004 Macquarie acquires the shares of A-Train
www.mannheimerswartling.se
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Important Experiences Gained& Lessons Learned
• Clarify the respective roles of the Government and the SPC in relation to implementation and operation
• Secure the powers of SPC in relation to the EPC Contactor and the O&M Contractor (sufficient human and financial resources)
• Input from the operator during the tendering stage
• Develop a Swedish model to reduce transaction costs
• Important to consider principles and procedures for handling unforeseeable changes in legislation etc.
• Third party access to railway infrastructure (EC; Third Railway Package)
www.mannheimerswartling.se
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The Arlanda Link Project
23 November 2006
Jan Kansmark