Presentation - Investments in Transport Infrastructure Projects

Investments in Transport InfrastructureProjectsSiniša Hajdaš Dončić, PhDMinister of Maritime Affairs, Transport and InfrastructureLondon, October 24, 2013

Strategy of TransportDevelopmentKey facts• Draft of Strategy of TransportDevelopment expected at thebeginning of November• Final Strategy deadline in February2014• Based on 6 sectoral strategies(railway, road, maritime, air, inlandwaterways, urban transport)• Defines development and projects inkey modes of transport and indifferent areas of Croatia inaccordance with TEN-T EuropeanNetwork• Basis for structural funds and privateinvestmentsVision behind the Starategy• Development of modern infrastructurethat serves economy, tourism andcitizens and integrates Croatia inEuropean territory• Enhancement of transport services in allmodes of transport• Defining railway sector, sea and riverports and road bottlenecks as priorities• Increasing standards in infrastructure andservices• Adopting Strategy that will be the basisfor comprehensive, integrative,intermodal, developing and sociallyresponsible transport system

Monetization of theCroatian highwaycompanies HAC and ARZProject overviewProject scope:Toll collection, operation and maintenance ofthe HAC and ARZ motorway networks wouldbe leased out to a concessionaire.• The Project will include the full tollmotorway infrastructure of HAC Ltd. andARZ which consists of total 1,024 km• Motorway parts currently underconstruction will also be included in theProject with the total of 51.5 km.Expected timetable• The tender was launched in October 2013and is open until November 15, 2013• Public procurement process is expected tolast until June 30, 2014• Commercial close: July 2014• Financial close: September 2014Concession period: 30 – 50 yearsConcession fee: estimated t at EUR 3 billionThe total concessionaire’s investment is estimated at EUR 3 billionTender for investors: open until November 15, 2013

Cargo Airport OsijekOverview• Project Cargo scope: terminal is located on the area sizeToll of collection, 1,500 m² and operation separated and on maintenancethree parts:of the truck HAC disposition, and ARZ direct motorway access to networks the apronwouldfor trucksbe leasedand coolersout to a concessionaire.• Passenger terminal area is 1,500 m²;• capacity The Project of 200 will – 400 include pax per the hour full toll• Vicinity motorway of developed infrastructure road infrastructure of HAC Ltd. andDanube and ARZ corridor which consists of total 1,024km• Close to Hungarian and Serbian borderMotorway parts currently under• Two construction and half hours will from also the be included capital of in theCroatia Project with the total of 51.5 km.Concession period: 30 – 50 yearsConcession fee: estimated at EUR 3billionStatus and outlook• Marketing study and New Business Plan indevelopment• New investment expected in cargo,warehouse facilities and passenger building• Investment in departing gate is the priority tokeep the status of international airport andincrease safety of traffic, passengers andgoods in the near future.• The future concessionaire / strategic partnerwould be expected to participate inmodernisation of existing and construction ofnew capacities.• Three options: recapitalization repurchase of existing stockholders concession with the features of theproject public-private partnership orconcession contracttThe company has already initiated discussions with foreign partners and decided toThe company has already initiated discussions with foreign partners and decided tofocus its core activity as a cargo centre.

Airport RijekaOverview• Project 200,000 scope: passengers annually• Toll Fast collection, access to operation Central and and Eastern maintenance Europeof the as well HAC as and other ARZ EU countries motorway networkswould be leased out to a concessionaire.• The best location for Adriatic destinations• The Top resort Project area will with include over 100 the hotels full toll andmotorway resorts in 50 infrastructure km radius of HAC Ltd.• and Operational ARZ which airport consists throughout of the total whole 1,024year kmMotorway parts currently under• Vicinity to Port of Rijeka and its containerconstruction will also be included in theterminalProject with the total of 51.5 km.• Well developed infrastructure• Concession Vicinity to Rijeka period: – Zagreb 30 – 50 highway yearsandRijeka railway nodeConcession fee: estimated at EUR 3• Well developed business zones networkbillion and infrastructure• Outstanding service of logistics sectorStatus and outlookProjects in pipeline:• Reconstruction and expansion of thepassenger building and airplane parkingplatform• Construction of storage and manipulationfacilities for management of goods• Addition and reconstruction of the existingairplane taxiway• The future concessionaire / strategic partnerwould be expected to participate in theinvestment of reconstruction, modernizationand development• Transaction currently envisages 3 options: Option one: recapitalization Option two: repurchase of existingstockholders Option three: (concession with thefeatures of the project public-privatepartnership or concession contract)The Company is looking for equity investment, PPP or concessionaireTotal investment of EUR 16 million

Zagreb ContainerTerminal – Port ofRijekaOverview• Project Increase scope: of capacity: 250 KTEU• Toll Planned collection, capacity operation with existing: and maintenance350 KTEUof the per HAC year and ARZ motorway networkswould be leased out to a concessionaire.• Expected start of construction: 2014• The Project will will allow include the Port the of full Rijeka toll tomotorway attract 5th and infrastructure 6th generation of HAC vessels Ltd. andand supplement ARZ which the extended consists container of total 1,024kmhandling capacity of the Brajdica Terminal• Motorway parts currently underconstruction will also be included in theProject with the total of 51.5 km.Concession period: 30 – 50 yearsConcession fee: estimated at EUR 3billionStatus and outlook• Initial Phase 1 length of 400m, expandingultimately up to the projected maximumlength of 680m• The PRA shall construct Phase 1 of theTerminal under the Design & Build Contractand shall create, in terms of permitting anddesigning• The PRA has contracted the construction ofthe quay wall of 400 m in length with theassociated landfill• The future concessionaire/strategic partnerwould be expected to prepare Phase 1works for commercial operations anddevelop, if deemed necessary, Phase 1Aand Phase 2 of the TerminalThe total concessionaire’s investment is estimated at EUR 60 millionThe total concessionaire s investment is estimated at EUR 60 millionTender for investors: expected Q4 / 2013

New Passenger, Busand Cruise Terminal –Port of DubrovnikOverview• Project Length scope: for cruise/ferry: 1,350 m• Toll Water collection, depth alongside operation wharfs: and maintenance8 - 11 mof the HAC and ARZ motorway networkswould• Passengerbe leasedoperativeout toarea:a concessionaire.88,000 sq. m• Total GBA in port separated in few zones is• The about Project 120,000 will sq. include m the full toll• motorway Future marine infrastructure terminal is to of become HAC Ltd. theand main ARZ passenger, which shopping consists and of total transport 1,024facility km in Dubrovnik which will be able to• Motorway accommodate parts approximately currently under 12,000passengers, construction customers, will also be service included usersin theProject with the total of 51.5 km.Concession period: 30 – 50 yearsStatus and outlook• Current spatial development plan envisages3 zones with specific facilities necessary forfunctioning of the port: new passenger, busand cruise terminal with additional facilitiesserving city, citizens and tourists.• Preliminary project design and feasibilitystudy finished• Space - traffic study in preparation• The future concessionaire / strategic partnerwould be expected to participate in theinvestment of ‘’New Passenger Marine, Busand Cruise Terminal” for its commercialoperations.Concession fee: estimated at EUR 3billionThe total concessionaire’s or strategic partnerThe total concessionaire s or strategic partnerinvestment is estimated at EUR 40 million.

New Passenger, Ferryand Cruise Terminal –Port of ZadarOverview• Project Total investment scope: of EUR 190 million• Toll Phase collection, one – LOT operation I has already and maintenancebeenof the developed HAC and – EUR ARZ 45 motorway millionnetworkswould be leased out to a concessionaire.• Phase II – LOT II and LOT IIIa are inconstruction and currently 80% of the• The Project will include the full tollphase is finished - EUR 110 millionmotorway infrastructure of HAC Ltd.• and Phase ARZ III – which construction consists of the of Passenger, total 1,024kmCruise and Ferry Terminal is to bedeveloped by the potential investor• Motorway parts currently underconstruction will also be included in theProject with the total of 51.5 km.Concession period: 30 – 50 yearsConcession fee: estimated at EUR 3billionStatus and outlook• The construction of the new portinfrastructure has started in May 2009 and isexpected to be completed in June 2014• The basic task for years 2013 and 2014 is tofind a partner – concessioner byinternational tender procurement who will,based on a long-term concessionagreement, develop port superstructure.• The Transaction currently envisages twooptions: Option 1: Build to suit under current adoptedand prepared ddocuments by the Port ofZadar Authority for the Terminal building Option 2: Construction of a new buildingaccording to operators/investorspreferences (preparation of this optionwould take at least 2 years)The total concessionaire’s or strategic partnerThe total concessionaire s or strategic partnerinvestment is estimated at EUR 35 million under option 1.

New Container andDry Bulk CargoTerminal – Port ofPločeOverview• Project Container scope: Terminal• Toll First collection, phase finished operation and maintenanceof the HAC and ARZ motorway networkswould• Lengthbeofleased280 moutandto27amconcessionaire.width• Annual capacity of 66,000 TEUThe Project will include the full toll• Dry Bulk Cargo Terminalmotorway infrastructure of HAC Ltd.• and The works ARZ commenced which consists in the of May total of 1,024 2012kmand the Terminal will be completed by 2015• Motorway Potential area parts for currently development underconstruction will also be included in the• 500,000 m2 of unconcessioned spaceseparated Project with in more the total parcels of 51.5 km.Concession period: 30 – 50 yearsConcession fee: estimated at EUR 3billionStatus and outlook• At the final stage the terminal will occupy 23ha and have annual capacity for 500,000TEU• Dry Bulk Cargo Terminal will be built on thearea of 240,000 m2.• The whole terminal will have a final capacityof 6.2 million tons per year.• Whole area has the regime of free(customs) zone where the special incentivesand treatment may be applied especially to“non-EU” goods• Possible options for a Concessionaire or aStrategic t partner• Opportunity for strategic partner toconstruct the terminal on the remainingwaterfront area, or to ask for the concessionfor the construction of the specialized multipurpose structures (warehouses and plantfacilities) in the port inland area for theirgoods.The terminal will be completed by 2015

New Port East Project– Port of VukovarOverview• Project The port scope: has capacity for manipulating withToll 1.500.000 collection, metric operation tons of and cargo maintenanceper yearof • the The HAC project and encompasses ARZ motorway the construction networkswould of infrastructural be leased out port to facilities, a concessionaire.road and railas well as communal infrastructure, port• The loading Project and unloading will include equipment, the full toll and theconstruction motorway infrastructure and purchase of HAC terminalrelatedand ARZ equipment which consists for: of total 1,024Ltd. bulk km cargo terminal including cereals• Motorway parts currently under multipurpose terminalconstruction will also be included in the general Project and with palletized the total cargo of 51.5 terminal km. ship supply ppy management and collection ofConcession waste liquids period: from the 30 vessels – 50 years• Construction costs estimated: 24 mil €Concession fee: estimated at EUR 3billion • Invested costs: 6 mil € (land propertyissues, project documentation to buildingpermit)• Expected start of construction: 2014Status and outlook• The feasibility study for the project wasdeveloped in 2005• The preliminary design and theenvironmental impact analysis for theproject was completed in 2009 and hasbeen modified during process of issuinglocation permit in June 2010.• This project is being put forward by the PortAuthority in Vukovar as the beneficiary,under the Transport Operational ProgrammePriority 2 - upgrading Croatia's inlandwaterway system.• The future concessionaire / strategic partnerwould be expected to participate in theinvestment of ‘’Reconstruction of the Port ofVukovar - New Port East” for its commercialoperations and to develop, if deemednecessary, further development phases ofthe port.The total concessionaire’s investment is estimated at EUR 24 mil

THANK YOU!Ministry of Maritime Affairs, Transportand Infrastructure