Project description
and objectives:
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The project is intended to provide long-term debt finance for the M5 motorway
(from Budapest Ring Road to the Serbian border) in its entirety, taking into
account the revised market perception of the borrower’s risk profile as
construction works near completion (the Project ID for the refinancing is
36565).
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Transition impact:
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The project will strengthen Hungary’s attractiveness to foreign investors in
the infrastructure sector and have powerful demonstration effect by promoting
private sector involvement in the road sector through a PPP structure based on
Availability Payments. This project will clearly demonstrate that the
Hungarian Government is committed to implement a PPP Programme promoting
private sector involvement in provision of infrastructure.
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The client:
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AKA Alföld Koncessziós Autópálya Részvénytársaság (“AKA”), a single purpose
company to undertake the finance, construction and operation of the M5
motorway after a successful tender for the concession by the consortium led by
Bouygues. Phase I was operated as a tolled Motorway until 12 March 2004 when
tolls were abolished to be substituted by a mechanism of Availability Payments
based on performance criteria.
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EBRD finance:
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A EUR 1,120 million facility to refinance the cost of construction of the M5
motorway, finance the payment of a dividend to shareholders and refinancing
gain to the government, and cover transaction costs, of which EUR 150 million
will be for the account of the EBRD and the remaining will be provided by
other commercial lenders.
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Total project cost:
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EUR 1,120 million.
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Environmental impact:
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Screened C/0 – financial restructuring of an existing project does not raise
any new environmental issues and, therefore, no further due diligence was
required. The original motorway construction project was screened as A/0. An
EIA was prepared, public consultation, inclusive public meetings, was carried
out to the satisfaction of the Bank and the agreed environmental mitigation
programme is being implemented and closely monitored by the Bank.
There is an Environmental Impact Assesment available for this project.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Thomas Hoefner, Chief Financial Officer
Alföld Koncessziós
Autópálya Részénytársaság
Phone: (36-1) 3260555/206 (ext.)
Fax: (36-1) 326-0545
Email: thomas.hoefner@aka.hu
Website: www.aka.hu
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EBRD contact:
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Elena Kiseleva, Operation Leader: kiseleve@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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