1. Private – Public Collaboration in Water Management

2. index 1.Ownership Model. Ostrava (Czech Republic) 2.BOT Model. New Cairo (Egypt) 3.Performance Based O&M. Al Ain Wastewater System (Abu Dhabi, UAE) 2

3. - Datos principals de la actividad técnica del CYII - Mercado nacional - Mercado internacional Ownership Model. Ostrava (Czech Republic) 1 3

4. 4 1. Ownership Model. Ostrava (Czech Republic ) Severomoravské vodovody a kanalizace Ostrava a.s. (SmVaK), is one of the four biggest water companies of the Czech Republic. It owns and operates the entire water and wastewater system in its geographical area. Ostrava Region Ostrava Prague Ostrava

5. 5 Main WTPs Reservoirs Transport Pipelines 1. Ownership Model. Ostrava (Czech Republic )

6. 6 Population served:1,267,532 House Connections:120,764 Network pipeline length (km):4,820 WTP´s:49 Reservoirs:388 WWTP´s:68 Sewer length (km):1,565 Potable Network Efficiency (%): 88.9-90 1. Ownership Model. Ostrava (Czech Republic )

7. 7 16.7 17.0 19.4 19.3 20.8 CAGR = 5.61% Investment on infrastructure (million )

8. Average Potable Water Tariff In Czech ():1.30 Average Wastewater Tariff In Czech (): 1.13 SmVaK Potable Water Tariff ():1.21 SmVaK Wastewater Tariff ():1.07 SmVaK Water Tariffs are below the average values in Czech Republic 1. Ownership Model. Ostrava (Czech Republic )

9. Web Portal and Call Center 1. Ownership Model. Ostrava (Czech Republic )

10. From October 2006, SmVaK s Quality Assurance System is certified (ISO 9001, 14001 y OHSAS 18001) 1. Ownership Model. Ostrava (Czech Republic )

11. - Datos principals de la actividad técnica del CYII - Mercado nacional - Mercado internacional BOT Model. New Cairo (Egypt) 2 11

12. 2. BOT Model. New Cairo (Egypt) aqualia - SPV company founded by OCI and aqualia on a 50%-50% basis - First PPP in Egypt - 250,000 m3/d waste water treatment plant - Reuse of treated Effluent and sludge is Orasqualias obligation - Investment of MEGP 786 (102 Million USD) - Awards : · Best PPP in Project Finance in the world year 2010 by Global Water Intelligence · Received from HM Queen Noor of Jordan the award of best PPP project of the year 2010 in Paris. · Best African PPP in Project Finance year 2010 by EUROMONEY

13. 2. BOT Model. New Cairo (Egypt) Arab Republic of Egypt CAPW – Tech. Regulator Ministry of Housing – NUCA. New Cairo Ministry of Finance – PPP Unit PPP AGREEMENT aqualia infraestructuras OCI aqualia 5% 50% 45% DIRECT AGREEMENT NSGB CIB Arab Africa Ahli United Backer and McKenzie Lawyer FACILITY AGREEMENT Orasqualia for Operation O&M AGREEMENT Orasqualia for Construction EPC AGREEMENT Zulficar / Lawyers Enviro-Civec= Independent Technical Advisor Cairo Consult – Engineering Subcontractor OCI aqualia 50%

14. 2. BOT Model. New Cairo (Egypt) Project Key Dates: - PPP Contract effectiveness : 28-3-2010 - Initial Scheduled Plant Operational Date : 28-3-2012 - Extended Scheduled Plant Operational Date (Due to the Revolution FM): 28-5-2012 - First invoice for Capacity Charge (on a quarterly basis) : 28-6-2012 - First Payment of Capacity Charge: before 28-7-2012 (as per Contract terms) - First Loan Installment (on a biannual basis): 30-9-2012 - Start Commissioning: End of May 2012

15. - Datos principals de la actividad técnica del CYII - Mercado nacional - Mercado internacional Performance Based O&M. Al Ain Wastewater System (Abu Dhabi, UAE) 3 15

16. 3. Performance Based O&M. Al Ain Wastewater System (Abu Dhabi, UAE)

17. Project Main figures ItemUnitsValue Area of sewerage districtkm211,106 Resident PopulationNo.470,255 Residential Customer ConnectionsNo.52,800 Commercial Customer ConnectionsNo.7,340 Industrial (Trade) Customer ConnectionsNo.816 Total Lenght of sewerKm2,301 Total Lenght of sewer >400mmKm262 Total lenght of sewerage pumping mainKm147 Total number of pumping stationsNo.77 Total capacity of pumping stationsl/s2,140 Total number of terminal pumping stationsNo.42 Total capacity of terminal pumping stationsl/s900 Average daily flow handled by NetworkMl/d137 Daily peak flow handled by NetworkMl/d155 Process electricity consumption Collection NetworksM Wh/yr5,492

18. 3. Performance Based O&M. Al Ain Wastewater System (Abu Dhabi, UAE) Sewer flooding events TSE Quality TSE Delivery Asset availability Energy use Odour Complaints Health & Safety Performance measurement through KPI´s. Payment is modified according to performance through a pain-gain system

19. 3. Performance Based O&M. Al Ain Wastewater System (Abu Dhabi, UAE) Example of KPI: Energy use

20. ConclusionsConclusions 1.There are many different PPP schemes, all of which are applicable in the Kingdom. 2.Key to the success of a PPP is the correct allocation of risks between public and private partners. 3.Capital investment can be included in the private side through ownership or capital return, or it can be supplied exclusively by the public side.

21. ConclusionsConclusions If capital is supplied by the private sector: -The public budget has more financial capability for other uses. -In the case of the Kingdom, the cost of finance will be slightly higher. -When a PPP model is implemented where there is a good balance between contractor-operator and investors, then the overall balance of pricing is very beneficial due to internal synergies. -The project must be bankable and correct international risk allocation is critical.

22. Private – Public Collaboration in Water Management