M5 PHASE II

Location:

Hungary

Project number:

35047

Business sector:

Transport

Notice type:

Private

Environmental category:

A

Target board date:

20 Jul 2004

Status:

Repaying

PSD disclosed:

18 Jun 2004

Project Description

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).

Transition Impact

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.

The Client

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.

EBRD Finance

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.  

Project Cost

EUR 1,120 million.

Environmental Impact

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 and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact

Mr. Thomas Hoefner, Chief Financial Officer
Alföld Koncessziós Autópálya Részénytársaság
Phone: (36-1) 3260555/206 (ext.)
Fax:   (36-1) 326-0545
Website: www.aka.hu
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.