www.epppc.hu

A-Z Guidelines to Successful Public Private Partnership

27th - 29th November 2006, Corinthia Aquincum Hotel, Budapest

Training Workshop

Meet Your Workshop Leaders

Dr. Péter Köves, Managing Dr. András Timár, Professor Peter Snelson, Director Project Partner Pécs University, Pollack Mihály Development Köves Clifford Chance Faculty Atkins

György Gáldi, Head of Large Dr. Fruzsina Biró, Former Dr. Károly Léderer, Managing Corporate & Director General Director, Structured Finance Directorate Ministry of Economy & Transinvest-Budapest Kft. K&H Bank Rt. Transport Kálmán Seregélyes, Deputy Béla Kilyénfalvi, Head of Rachael Bailey, Senior Director General, Department Structured Finance Environmental Consultant for Sectoral Development and ING Hungary Scott Wilson Finance Ministry of Finance Workshop Highlights

Learn the essentials of : through first hand case studies of: • project appraisal and analysis for PPP Projects • Hungarian M1/ M15 project, the first toll • the Tender Process motorway in CEE • contracting opportunities to mitigate risk • the concession structure of the M5 Motorway • project restructuring and how it was refinanced and restructured into • application of the risk matrix a real PPP project after 10 years • negotiation techniques between the public and • the shortest time during which a motorway private sector project procurement (M6) was managed and • financial modeling for PPP completed

EARLY BIRD DISCOUNTS, GROUP DISCOUNTS & GOVERNMENT RATES AVAILABLE

Past Delegates Include: Council of European Development Bank, European Investment Bank, Ministry of Finance Croatia, Mota-Engil Hungary, PricewaterhouseCoopers Czech republic 4 easy ways to register: • Email: [email protected] • call: +36 30 812 4067 • fax: +36 1 310 2211 • online: www.epppc.hu EARLY BIRD DISCOUNTS, GROUP DISCOUNTS & GOVERNMENT RATES AVAILABLE

Peter Snelson, Director Mr. Seregélyes is member of the PPP Interministerial About the Workshop Leaders: Project Development, Committee, which is set for coordinating, and controlling Atkins of PPP’s within the public administration. Dr. András Timár, Professor, University Peter Snelson has been Director Béla Kilyénfalvi, Head of of Pecs, Pollack Mihály Project Development with Structured Finance, ING Faculty of Engineering Atkins since 1997. He holds Hungary specific responsibility for Dr. András Timár is a Professor the development of PPP/PFI consultancy for highway Béla Kilyénfalvi joined at the University of Pécs, infrastructure internationally. As to the CEE Region he the Structured Products Department of Infrastructure was directly involved in the Development of National Department in ING Bank Rt. since 2003 and Senior Lecturer at the Budapest University PPP Strategy (Romania), Technical Advisor to SMMC, in 1997, where he is currently of Technology and Economics since 2001. Between Operation Performance Evaluation M1/M15 Motorway Head of Department. Previously he worked at CIB Bank 1996 and 2000 he was Senior Motorway Specialist in the (Hungary), Development PPP in the Georgian Road Rt. as project finance manager for 3 years. Transport Team of EBRD, London. Prior to this he lead the Sector, Manager of the Second Generation of Motorway Mr. Kilyénfalvi has been involved in a number of PPP Bureau for Motorways in Concession of the Transport Development (Croatia), Prague City Ring Road PPP Projects as financial advisor. He was a financial advisor Ministry for 5 years. Starting in 1980 he spent 10 years Strategy (Czech republic), Warsaw Transport Node to AKA on refinancing of the M5 motorway project, with the Institute for Transport Sciences (KTI) in Budapest (Poland), Private Road Maintenance (Slovenia), etc. financial advisor to the State on the State Motorway as Deputy Director and then Director. He first joined the Management Company (SMMC) bond issue project, Transport Ministry in 1971 working as Head of Service at György Gáldi, Head financial advisor to the State on Phase II-III of the M5 the Road Department and subsequently as Deputy Head of Large Corporate & motorway project and financial advisor to the State on of the International Department. Structured Finance Phase I of the M6 motorway project. Directorate, K&H Bank Dr. Károly Léderer, Dr. Péter Köves, Managing Director, György Gáldi has joined Managing Partner, Köves Transinvest-Budapest Kft. the Structured & Project Clifford Chance Dr. Károly Léderer is Managing Finance Department of K&H Director of Transinvest Ltd. Bank in 1993. Having held different responsibilities Dr. Péter Köves is Managing since 1982, where besides in the same department he was promoted to Senior Partner of Köves & Partners numerous international large Executive Director in 2005. Prior to this he was EU Clifford Chance, Head of scale projects, he was directly Expert of the International Department in the Transport Finance Group since 1993. involved in the execution of M1, M5, M6 Motorways, Ministry. Between 1987-92 he was Assistant Professor During his professional career he was team leader of the which were major steps in the development of the at the Department of Transport Operations, Budapest M5 PPP motorway transaction acting for the Ministry of Hungarian road infrastructure. In the period of 1993-98 University of Technology. Economy and Transport in Hungary (2004-2005), team he was the Chairman of the First Hungarian Concession co-leader acting for a consortium of banks in connection Motorway Co. He started his career with UVATERV State Kálmán Seregélyes, with the financing of the M6 PPP motorway project Design Office of Transport as Design Engineer and Deputy Director General (2004, 2005-) and team co-leader advising a syndicate subsequently as Head of Design Department for Airports. in the Department for of banks in connection with the re-structuring and re- Sectoral Development and financing of the M1/M15 motorway (1997-1998). Finance, Dr. Fruzsina Biró, Former Ministry of Finance Rachael Bailey, Director General, Ministry Senior Environmental of Economy & Transport After finishing the Budapest Consultant, Scott Wilson University of Economics and Dr. Biró had been with the Public Administration, Kálmán Seregélyes started to Rachael Bailey has over Ministry of Economy and work in the Ministry of Finance in the Directorate for seven years experiance in Transport of Hungary for 2 Fiscal Policy and Financial Affairs. During the three and a undertaking Environmental years until recently where half years spent here, he was responsible for monitoring Impact Assessments and she headed the PPP task force unit. She was Chief and analysing of fiscal risks mainly related to contingent Environmental and Social Due Diligence for PPP and Negotiator of Hungary during the M5 concession liabilities. At the same time he also gathered his first PFI projects in the UK and Europe. Rachael has had agreement modification and the M6 concession experiences with PPP projects here. He was involved in numerous advisory roles for financial institutions agreement, which was awarded in 10 months. Before the value for money, and the statistical assessment of advising on compliance with World Bank and IFC that she was Chief Executive Officer of KA-VOSZ Financial PPP projects. guidelines, EBRD policies and proceedures, and EIB Services Rt. where she developed the so called Szechenyi In January 2006 he moved within the ministry, and policies. She has particular experience of managing and Card, a commercial bank product for SMEs subsidized now he works as Deputy Director General in the preparing transport infrastructure Environmental Impact and guaranteed by the state. Prior to this she had Department for Sectoral Development and Finance. Assessments both in the UK and overseas. She was the worked for seven years in various financial positions for His responsibilities still consist of analysing various environmental advisor to the lenders on Phase II and III BANKÁR HOLDING RT. a private company holding capital aspects of PPP’s, especially the financing side. He was of the M5 Motorway PPP in Hungary, the Milot-Rreshen investments of HUF 50 billion. involved in the restructuring of the motorway financing EIA for the World Bank in Albania, the Novi Sad Road/Rail system, which was aimed at setting up a PPP structure. Bridge in Serbia and the M25 London Orbital in the UK.

If you have any further queries please call the Events Team on tel: +36 30 812 4067 or you can email them at [email protected] 4 easy ways to register: • Email: [email protected] • call: +36 30 812 4067 • fax: +36 1 310 2211 • online: www.epppc.hu EARLY BIRD DISCOUNTS, GROUP DISCOUNTS & GOVERNMENT RATES AVAILABLE

th environmental and social risk th • Defining targets, negotiation DAY 1 - 27 November management, health and safety and DAY 2 - 28 November strategies labour standards. 9:00 Opening from the Chair 9:00 Session I: Legal Perspectives of 15:30 Budgetary implications of PPP’s Managing Director, EPPPC Case Studies of Environmental and PPP Kálmán Seregélyes, Deputy Director Social Risk Management for PPP Dr. Péter Köves, Managing Partner, Köves General in the Department for Sectoral Projects – M5 Motorway Hungary and Clifford Chance Development and Finance, Dalaman Airport Ministry of Finance 9:10 Understanding the Economic Regulatory environment • priorities of the Ministry of Finance in Implications of PPPs 13:00 Lunch • Technical preparatory review and connenction with PPP’s Dr. András Timár, Professor, University of harmonization of the available legal • fiscal risks associated with PPP’s Pécs, Pollack Mihály Faculty of Engineering framework • controlling of fiscal risks 13:45 The Development of PPPs • Minimizing the legislation • statistical issues related to PPP’s Project Appraisal & Analyses for PPP Peter Snelson, Director Project • Coordinating the authorities and the Projects Development, Atkins local administration 16:30 Discussion • Project identification • Toll, availability fee, service fee • Technical preparation Feasibility 17:00 Closing Remarks from the Chair • Traffic forecasting & modelling • Need and Justification of the Project Legal process • Public Sector Evaluation • Demand risk analysis • Bid preparation process • Private Sector Evaluation th • Feasibility studies • Reasonable timeline for procurement DAY 3 - 29 November • Commercial Viability • Cost-benefit analysis process • Financial and Economic Viability • Financial, social, legal/regulatory and • Techniques for keeping the • Legal Framework technical criteria competition 9:00: INTERACTIVE SESSION: Financial • Identification & analysis of project risk • Prequalification, final bid Preparation and the Tender Process • Setting up a consortium for BOT or Prequalification • Techniques to avoid disputes Béla Kilyénfalvi, Head of Structured concession infrastructure project • Soft Market Testing Finance, ING Hungary • Security packages for project • Publication 11:00 Morning Coffee György Gáldi, Head of Large Corporate & agreements • Evaluation Structured Finance Directorate, K&H Bank Basics of PPPs & Implementation Procurement 11:15 Contracting technique Project Preparation Alternatives • Notification • Concession agreement, services • Identification of the project • Reasons of selecting a private partner • Bidding Process agreement • Preliminary PSC • Place of PPP in economic policy • Evaluation Process • Supervising and controlling the • Financing structure • Types of PPP Alternatives: • Negotiations service level • Technical specifications concession, BOT, service contracts • Agreement • Quick and fair dispute resolution • Planning • Applicability of PPP in industrial fields • Termination and compensation • Building-in flexibility • Permits, legislation, administrative issues 16:00 Understanding the Economic Methods to Select Appropriate PPP Implications of PPPs Tender – pre-qualification phase Alternatives Application of the risk matrix Dr. Károly Léderer, Managing Director, • Define the maximum risk taking • Identification of the project • Determining regional, governmental Transinvest-Budapest Kft. • Tender documentation and/or municipal level priorities • Risk matrix - contracts matrix • Setting the consortium • Analyzing the feasibility of PPP • Insurance questions Case study – what can go wrong? • Preliminary financial structure opportunities • Harmonization of risk in the project • The experiences with a successful of the bid • PPP screening process and finance documents project • Back-to-back techniques in the • What can go wrong? construction and operation 10:30 Morning Coffee 11:00 Morning Coffee • How the public and private interest can agreements change as time goes? • Change in control 10:45 Tender – bid phase 11:30 Environmental and Social Issues • Risk allocation matrix for PPPs Policy issues 12:15 Lunch • Fee formula Racheal Bailey, Senior Environmental • Networking Concepts • Draft service contract Consultant, Scott Wilson • Transportations Corridors • Financial structure of the bid 13:00 Session II: From the State’s Point • Modelling of View The need for environmental and Public Relations Management • Financing – selection of the arrangers Dr. Fruzsina Biró, Former Director social risk management for PPP • Public awereness of regional, • Review of the draft service contract General, Ministry of Economy & Transport Projects governmental or municipal • Preparation of bids development • Update of the preliminary PSC • To secure confidence in the deal and • Public hearing in the project Financiers’ wish list • Evaluation of bids improve credit ratings developing and approving process • Harmonization of indemnities given by • To meet lenders environmental and • The role and impact of investors and the state/local government social risk management requirements 12:15 Lunch public representatives in PRM • Direct agreement and a secure a greater choice of • Communication requirements to • Control right of the financier lenders; mitigate public resistance • Step-in, replacement, substitution 13:00 Documentation and Closing of • To achieve compliance with • Consultation techniques with the international conventions, European the Tender media and the public Union Directives, national legislation Institutional Framework for PPP and regulations; and Projects Documentation phase • To manage reputational risks and 16:30 Discussion • Legal background and process of the • Risk allocation matrix demonstrate good corporate decision making • Service contract governance, in recognition of the 17:00 Closing Remarks from the Chair • PPP Task Force Unit • Financing agreement requirements of shareholders and high • Interdepartmental Committee • Other documents calibre employees. • Activity of the PPP Unit in structuring • Project finance transactions, Closing Update on Environmental and Social managing • Final PSC Risk Management Guidelines and • Procurement processes • Necessary approvals (e.g. Parliament) Techniques • Communication & relationship • Due diligence management • Model audit • Syndication (info memo) • The revised Equator Principles (released • The reason of outsourcing: analysis of • Hedging 6 July 2006). capacity constraints to deliver • Conditions precedents • The New IFC Environmental and Social Performance Standards (released 30 Restructuring Projects - M5 Case April 2006) and World Bank guidelines. Study 15:30 Closing Remarks from the Chair • International Conventions, European • Requirements for restructuring Directives and National legislation and • Renegotiation techniques regulations. • Agreements and financial model • International Best Practice for restructuring

If you have any further queries please call the Events Team on tel: +36 30 812 4067 or you can email them at [email protected] A - Z GUIDELINES TO SUCCESSFUL PUBLIC PRIVATE PARTNERSHIP 27th - 29th October 2006, Corinthia Aquincum Hotel, Budapest 4 easy ways to register: • Email: [email protected] • call: +36 30 812 4067 • fax: +36 1 310 2211 • online: www.epppc.hu

EARLY BIRD DISCOUNT

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