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European PPP Center

Diamond Sponsors

The M5 Motorway Project in Hungary: A Successful Public-Private Partnership

The 173 km (108 mile) long M5 motorway connects Budapest, the capital city of Hungary with the south-eastern region of the country, the cities of Kecskemét, Szeged and finally Röszke at the Sebian border. The motorway reached the city of Szeged in December 2005, while the remaining 15 km ( 9 mile) portion of the motorway (between Szeged and Röszke) was completed in March 2006.

Following a successful winning of an international tender launched in 1992 to finance, build and operate the M5 Motorway a French-Austrian-Hungarian consortium lead by Bouygues and Bau Holding duly registered the concession company: AKA Alföld Koncessziós Autópálya Rt. in December 1994.

Changing from real toll to availability mechanism: In March 2004 the modification of the project took place by the sale of 39,48 % of shares to ÁAK Rt. (State Motorway Management Company); Parallel the motorway tolls cancelled with the introduction of an availability payment mechanism as well the parties signed the Construction Contract of Phase 2. (Kiskunfélegyháza-Szeged).

In September 2004, after the Hungarian Parliament’s approval, the Minister of Economy and Transport signed with AKA Rt an amendment to their Concession Contract for the M5 Motorway. The main change relates to the availability fee - introduced in March when toll collection was abolished. Negotiations about construction of phase 3 between Szeged and the border in Röszke also had been concluded.

In 2004 the restructuring the M5 motorway project received the award of “Infrastructure Deal of the Year” from leading British economic magazine, PFI (Project Finance International). Also AKA received in the same year the “European transport refinancing deal of the year” awarded by Project Finance magazine.  EBRD – which undertook a part of the syndicated credit, taken up by AKA – named the deal as a “turning-point in the course of the realization of an operable co-operative structure between the private and the state sector”.

For more information visit AKA Zrt. website: http://www.aka.hu/


http://www.bilfingerberger-bot.deBilfinger Berger BOT GmbH

  • Wholly owned subsidiary of the Bilfinger Berger Group and headquartered in Wiesbaden; responsible for all of the Group's worldwide development and investment activities in long-term concessions.
  • BB BOT has developed into a group of its own with subsidiaries in Wiesbaden, Sydney, Toronto and London in addition to the various project companies.  Those subsidiaries act as developers and managers on behalf of Bilfinger Berger BOT in their respective regions.
  • BB BOT manages all phases of the project cycle: planning and design, feasibility studies, financing, construction and operation, whether for BOT, PFI or PPP schemes.  Depending on project size, risk profile and required expertise, BB BOT joins forces with experienced, strong partners from all over the world.
    As of February 2007, the overall portfolio amounts to 17 active projects with an committed equity volume of €154 million and an overall project volume of €3.1 billion.
  • Please also refer to www.bilfingerberger-bot.de

http://www.porr.atPorr AG

PORR Allgemeine Baugesellschaft (“PORR”) is the second largest construction group in Austria, with a turnover of €2.3 billion in 2006 and some 10,600 employees.

  • Since its foundation in 1869 the company has successfully developed and executed a large number of construction projects in Austria and internationally.  PORR is also active in designing, financing, operating and maintaining infrastructure projects under PPP and BOT models in co-operation with both the public and private sectors.
  • PORR Solutions Immobilien- und Infrastrukturprojekte GmbH concentrates the Group’s project development expertise, having significant experience in the field of PPP infrastructure projects with wastewater treatment plants in Austria and Eastern Europe, power plants for alternative and renewable energy, and intelligent and flexible transport and traffic solutions.
  • Please also refer to www.porr.at

http://www.vinci-concessions.comVinci Concessions

  • VINCI Concessions is a wholly owned subsidiary of VINCI S.A., an integrated world leader in concessions and construction. Alongside VINCI Construction, Eurovia and VINCI Energies, it is one of the four major divisions of VINCI S.A.
  • VINCI Concessions specialises in the construction of major public infrastructure within the framework of innovative contracts such as concessions, PPP, BOT, and PFI contracts. The company also operates outsourced public services under long-term contracts. This dual capability is applied mainly in the field of transport infrastructure: motorways, roads, bridges, car parks and airports and is extended to large facilities such as the Stade de France stadium.
  • This business activity originated in France, where ASF, Cofiroute and ESCOTA now operate a network of 4,316 km of motorways and VINCI Park some 480,000 car park spaces.
  • The international portfolio currently includes 370 km of motorways, four major bridges, three airports and over 380,000 car park spaces.
    Ratings: Standard & Poor’s BBB+; Moody’s Baa1; Fitch BBB+
  • Please also refer to www.vinci-concessions.com

http://www.egis-projects.com


EGIS PROJECTS is a French private limited company part of EGIS, one of the largest infrastructure engineering firm world wide, 100 % subsidiary of Caisse des Dépôts, the largest French financial institution enjoying an AAA rating, which manages more than €180bn assets.

Within EGIS, EGIS PROJECTS is in charge of developing and implementing concession/BOT/PPP/turnkey projects of roads, motorways and other types of infrastructure (airports, ports, mass transit systems,…). In these projects EGIS PROJECTS plays 3 main roles:

  • developer and concessionaire,
  • operator (though its 100% subsidiary Egis Road Operation),
  • integrator of operating equipment.

EGIS PROJECTS has closed 16 projects in 10 different countries and operates today 950 km of motorways thanks to an operating staff over 2800.

Please also refer to www.egis-projects.com


http://www.mota.huMota-Engil Group holds interests in four principal business areas: Civil Engineering and Building Construction, Environment & Services, Transport Concessions and Industry & Energy. Its Construction arm, Mota-Engil Engenharia e Construção (MEEC) is the largest construction company in Portugal and has significant international operations in Africa, South America, USA and particularly in Central Europe, including Hungary. The concession companies in which Mota-Engil is the main shareholder represent over 600 km of motorways and investments of approximately  €4,0 billion. Financing in excess of € 3 billion was raised to fund the projects, which together constitute one of the largest privately-managed integrated networks in Europe. Additional PPP involvement is seen in the areas of light rail, ports and environment (water distribution, treatment and urban waste collection).

Please also refer to www.mota.hu

http://www.hochtief.deHOCHTIEF is one of the leading international construction companies and a strong provider of construction-related services. With a turnover of more than  € 16 billion in 2006 and around 50,000 employees, the company is represented in all the world’s major markets. In an international comparison, the company takes first place in the Top 225 International Contractors ranking (Engineering News-Record, Sourcebook 2005).

HOCHTIEF has a significant PPP infrastructure project portfolio with more than 800 km of roads, rail links and airports (Budapest, Düsseldorf, Tirana, Athens, Sydney, Hamburg). HOCHTIEF PPP Solutions strives to offer its partners premium-quality, tailor-made and all-inclusive solutions with an integrated financing, design and planning, construction and operation approach– all from one source.

Please also refer to www.hochtief.de

http://www.macquarie.com/euThe Macquarie Group manages over € 36 billion of equity in a range of listed and unlisted funds invested in more than 100 assets across 25 countries. For more than 13 years, infrastructure funds management has been a key focus the Macquarie Group.
The Macquarie Group is a leader in advising on, financing and managing toll road assets in particular. Through the listed investment vehicle Macquarie Infrastructure Group (“MIG”) and various unlisted funds the Macquarie Group is one of the largest developers and operators of toll roads in the world. Macquarie Group managed funds hold stakes in more than 30 road projects worldwide, with assets such as APRR in France, the M6 toll in the UK, the Indiana Toll Road and Chicago Skyway in the US.  As part of our investment management activities, we have been involved in all aspects of motorway activities, including operations and maintenance, construction management, widening of existing motorways, installation of tolling systems, etc.

Please also refer to www.macquarie.com/eu

http://www.betonut.huThe BETONUT Group is a Hungarian based and Hungarian owned entity providing construction works and services for over 50 years now. It is one of the leading construction companies in Hungary with a focus on infrastructure work, i.e. roads, rail, airport etc.

Besides the center in Budapest four regional directorates and eleven affiliated companies with different profiles make the required construction capacity always and everywhere available to the contracted building works.

The recent successful activities in the field of road construction in Hungary include M7 motorway Balatonszárszó-Ordacsehi section, M7 motorway (between Budapest and Zamárdi), M1 motorway (between Budapest and Hegyeshalom), M5 motorway (between Budapest and Kiskunfélegyháza), M3 motorway (between Budapest and Polgár) and the M30 motorway.

Please also refer to www.betonut.hu

Platinum Sponsor

https://www.ing.hu/static/online3/hu/vallalati_bank.jspEstablished in September 1991, ING Bank Zrt. started its business as the first 100% foreign-owned bank in Hungary.

ING Bank Zrt.'s corporate and investment banking business lines provide integrated financial products and services primarily to subsidiaries of multinational companies, leading large Hungarian companies and dynamically growing developing medium sized companies.

Main services include lending in forints and foreign currency, trade finance, corporate financial advisory services, cash management and payment services, a full range of treasury transactions, stock brokerage and custody services.

As regards of several products and services by today ING Bank has achieved a leading position on the field of corporate and investment banking. It is a market leader in foreign exchange transactions and attained outstanding results in trading in government bonds. Its Equity Markets has an important role in the Hungarian investment market and it occupies a determining position in foreign equity trading.

In the past few years project financing and the related advisory were taking an increasing role among the bank's activities. M5 Motorway Project, one of the first successfully closed PPP projects in Hungary, has been awarded by Project Finance International (PFI) “Infrastructure Deal of the Year (2004) in Europe, Middle East and Africa”. Recently M6 Motorway project has been awarded the Project Finance Deal of the Year 2005 by Euromoney, In both projects ING advised the Hungarian government.

For more information visit ING Bank Zrt. website: https://www.ing.hu/static/online3/hu/vallalati_bank.jsp

Gold Sponsor

http://www.id.skanska.com/Skanska Infrastructure Development is a world leader in Public Private Partnerships (PPP).

The Infrastructure Development team invests in, develops and operates roads, power plants, hospitals, schools and  other social infrastructure in partnership with the public sector, with the objective of improving the lives of users.

PPP is taking hold in many parts of the world where the need for infrastructure outstrips available public sector  resources. By investing in the companies set up to deliver these facilities, Skanska ID provides the finance and expertise for development, design, construction and operations.

Our success relies on our enabling excellent integration and collaboration across the Skanska businesses,harnessing the full knowledge and capability of a truly unique team - the Skanska team.

We're more hands on to make sure that our investments grow in value, while delivering long-term benefits to the communities we serve. It's a very different way of doing business to Skanska's traditional construction role.

For more information please refer to SKANSKA website: www.id.skanska.com  

Silver Sponsors

http://www.mkb.huMKB Bank, as a skilled and prudent institution - having been present on the market for fifty-seven years - offers the full range of modern universal banking services.

These services to corporate, institutional and retail customers cover the widest possible range and most advanced products, including the increasingly popular electronic services, which are more and more in demand. On corporate side the target customers include major Hungarian and international companies and successful small and medium enterprises, whilst the Bank continues to be one of the leading players in project financing in the Hungarian market for more than 12 years.

As the regional bridge-head of BayernLB, MKB Bank represents the banking group in implementing its expansion strategy in Central and Eastern Europe. In 2006 MKB Bank acquired majority ownership in Unionbank in Bulgaria and Romexterra Bank in Romania.

Please also refer to www.mkb.hu

 Deloitte Central Europe is a regional organization of entities devoted to excellence in providing professional services and advice. We are focused on client service through a global and regional strategy executed locally in 17 countries in Central Europe. With access to the deep intellectual capital of approximately 150,000 people worldwide, including more than 3,400 in Central Europe, our affiliates deliver services in four professional areas: audit, tax, consulting, and financial advisory services.

Deloitte has a broad knowledge of PPP and extensive experience with these types of projects. We support governments, private enterprises and coalitions of these parties concerning all aspects of PPP. Our interdisciplinary teams offer an integrated approach to PPP questions.
Our multidimensional capabilities and collaborative culture enable a versatile approach that helps us deliver more comprehensive solutions and greater value to our clients. We believe it is the Deloitte difference.

Please also refer to www.deloitte.com

www.echarris.com/infrastructureEC Harris is a professional services consultancy. We deliver better business results for leading organisations through the management of the planning, creation and operation of built assets. Our clients tell us that we have an enviable track record in delivering value through the application of knowledge, professional skills and technology.

A workforce of over 2,500 operating in over 20 countries combines market leading operational experience with cutting edge sector knowledge across our Infrastructure, Public, Property and Industrial sectors.

EC Harris has significant experience and capability across all facets of the Infrastructure Industry including Highways, Rail, Aviation and Water. We provide strategic commercial advice throughout the whole asset life cycle, as well as expertise on industry restructuring, acquisitions, regulation and contract operation. Working with Governments, Operators, Contractors and Investors, our team of dedicated professionals provide the leadership, skills and expertise to deliver the right solutions.

We understand the challenges that all stages of a PPP deal presents to our clients. We provide advice on selecting the right schemes to pursue, the structuring and transacting of deals, through completing construction and commissioning, to successfully operating concessions, and in reversion or selling-on of assets.

To find out how please contact: Mark Elliott, Partner
Email mark.elliott@echarris.com , Tel: +44 (0) 20 7812 2696

Please also refer to www.echarris.com/infrastructure

http://www.freshfields.comFreshfields Bruckhaus Deringer is a leading international law firm, with 27 offices in 18 countries across Asia, Europe and the US. Our objective is to provide legal advice - domestically and internationally - in the practice areas of key importance to our clients.

Our Budapest office was founded in 1989. The office comprises almost 30 lawyers and legal experts who provide advice on all areas of Hungarian business law, including mergers and acquisitions, privatisations, banking and general finance, project finance, general company law, real estate law, labour law, IP/IT, competition law, contentious matters before national courts and in arbitration proceedings.

Please also visit www.freshfields.com.

http://www.allenovery.comBeringer Allen & Overy Iroda
Allen & Overy has provided legal services in Hungary since 1993. Our Budapest office consists of 25 lawyers including two resident partners. Many of our lawyers have completed postgraduate studies either in Hungary, the U.S. or the U.K. and all are fluent, both orally and in writing, in business English. We acted on the highest profile corporate, banking and capital markets transactions of the recent years.
Languages spoken by the Budapest team: Hungarian, English, German and French.
Our practice in Budapest has for many years been highly rated by independent legal directories such as "European Legal 500", "PLC Which Lawyer?" (formerly known as "Global Counsel 3000"), "IFLR 1000" and "Chambers Global, The World's Leading Lawyers".
The latest 2005 edition of IFLR 1000 rates the office in the top tier in the category of Capital Markets.
The 2005 edition of PLC Which Lawyer? rates the office as a Highly Recommended Firm in the Banking & Finance and Mergers & Acquisitions categories.

Our office was awarded Hungarian Law Firm of the Year at IFLR Awards 2006.

For more information please also visit: www.allenovery.com

http://www.mfb.huThe Hungarian Development Bank Ltd (MFB) is a state owned financial institution. The banks mission is described by the relevant law (MFB Act), its important pillars are the following:

  • promoting the development and modernisation of the Hungarian economy in order to achieve sustainable economic growth and a socio economic structure meeting the requirements of a modern, competitive market economy,
  • deepening Hungary’s integration with the EU.

These objectives are achieved by providing long term development purpose funds.

MFB operates in accordance with the strategy approved by the Government. The strategy sets out the major financing objectives:

  • to strengthen the competitiveness of the SME sector,
  • to eliminate differences in the level of regional development by financing or refinancing national and municipal infrastructural investments,
  • to channel additional funds into the Hungarian economy.

In order to realise its strategic objectives MFB

  • provides direct financing (lending), respectively development purpose equity financing through its subsidiaries,
  • offers funds through closely co-operating on-lending credit institutions in the framework of refinancing loan programmes approved by the government,
  • plays an active role in raising funds on the international capital markets and maintains a close co-operation with international financial institutions,
  • through its ownership and memberships in international financial institutions organizations contributes to the further deepening of Hungary’s EU integration (e.g. EAPB, EIF, NEFI, ISLTC, ICMA.).

For more information please also refer to www.mfb.hu

http://www.intertoll.hu


Intertoll-Europe is an independent toll and motorway infrastructure developer and operator.

The core business of Intertoll Europe is the efficient operations and maintenance of concession motorway infrastructure.

Over the past twenty years the management team of Intertoll-Europe has accumulated a wealth of international experience in BoT and PPP concession project development including:

  • leading and managing projects from conception through to financial close as scheme developers,
  • structuring project documentation relating to concessions and operations and maintenance,
  • the selection, appointment and management of specialist advisers,
  • advice on risk identification, allocation and mitigation,
  • specialist advice on traffic management, toll and road pricing systems and infrastructure.

The mission of Intertoll-Europe

  • successfully develop and manage motorway infrastructure projects,
  • pursue road user charging, tolling and allied activities as a specialist integrator and operator,
  • effectively manage the diverse activities necessary for the operation and maintenance of concession motorways.

Bronze Sponsor

http://www.epem.grEPEM S.A. covers a wide range of services for environmental protection and management. Our services range from research programs to waste, environmental and resources management studies, and reach up to licensing support and preparation of public and private projects. Furthermore, we provide all the input, from the initial concept, up to the construction details and the operational support of environmental projects, including project management and training.

Moreover, EPEM is a pioneer in the construction and operation of waste and wastewater treatment infrastructure under PPP schemes in Greece. EPEM is closely working with the regional/prefectural/municipal authorities and is in constant collaboration with the Central authorities for the preparation of several projects in the field of waste and wastewater treatment to be procured as PPPs.

The high quality of the services that we provide to our clients is among our main goals. EPEM is certified for its Quality Management System according to the international standard EN ISO 9001:2000.

For more information visit EPEM’s website at: www.epem.gr

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