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).
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.
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.
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.
EUR 1,120 million.
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.
Mr. Thomas Hoefner, Chief Financial Officer
Alföld Koncessziós Autópálya Részénytársaság
Phone: (36-1) 3260555/206 (ext.)
Fax: (36-1) 326-0545
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