Dublin Amsterdam Chicago Copenhagen Frankfurt Hong Kong London Madrid Milan Mumbai New York Nicosia Paris Rome San Francisco Sao Paulo Tokyo Warsaw Airport Privatization – A Look Back, a Look Ahead TRB Washington, D.C. January 14, 2008 Conor Kelly Managing Director & Head of Infrastructure Finance – Americas, DEPFA BANK plc

2 This information is boring and utterly useless. This indicative presentation does not constitute any element of meaning whatsoever and any such element would hopefully at least be shown at a later date subject to the presenters mind returning to reason. The number of brain cells employed to produce these slides was strictly limited and was indicative only and was subject to change at any time without notice. Numerous assumptions have been made in the preparation of this presentation regarding your sense of humour and as usual no assurance can be given as to your intellectual capacity to understand the jokes and allusions made. Nothing herein should be construed as providing any projection, prediction or guarantee of performance of the presenter and nobody is accepting any duty to advise you as to the suitability or otherwise of this presentation and I am talking to you exclusively on the basis that you are actually awake. I have no direct control over the factors that may affect my mental health but may have taken drugs or medication, which might have an effect on the state of the underlying reference brain tissue. Neither I nor anyone I know is authorised to say or do anything meaningful. Disclaimer

3 Raising investment for future airport development; Private sector innovation in design, construction, operation, maintenance and financing; Acceleration of project delivery; Through a competitive process better value for money can be achieved (higher upfront payment, lower construction costs, better terms); Performance based management with performance penalties; Improved airports lead to an increase in capacity and throughput; Improved revenue generating capacity (revenue share, IRR cap): Long term efficiencies (operation & maintenance and lifecycle costs); and Depoliticizes airport decision making (within regulatory approvals). How can privatizations assist in capital development, project construction & management?

4 Clearly defined public sector / authority objectives; Equitable and transparent risk allocation; Minimum political risk; Clear and concise documentation; Transparent and relatively short procurement processes; Strong contractual parties; Long term contracts; Attractive airport tariff escalation formula; Ancillary airport facilities (e.g. airport parking facilities); and Hire good advisors. How do you maximise the value derived from an airport privatization?

5 RiskPublic SectorPrivate Sector Legal & Change in LawYesShared within defined parameters Tariff settingYes Permitting & PlanningYesOften shared Design & Construction (includes cost overruns and delays) Yes Operation & Maintenance (including major maintenance) Yes FinancingYes TerminationYes, unless caused by public sector / authority InsuranceOften shared when insurance is unavailable at commercial rates Yes Force MajeureShared depending on event and availability of insurance shared An example of risk allocation in a privatized deal:

6 Recent DEPFA Awards No. 1 in Transportation Mandated Lead Arranger Roles and No. 4 in PPP Mandated Lead Arranger Roles by Infrastructure Journal for 2006 No. 1 among North American Transportation Mandated Lead Arrangers by Project Finance Magazine for the first half of 2006 Gold Award for Project Financing for Golden Ears Bridge from the Canadian Council for Public Private Partnerships, 2006 North America PPP Deal of the Year for Golden Ears Bridge from Project Finance Magazine, 2006 Infrastructure Journal Deal of the Year for Golden Ears Bridge from Infrastructure Journal, 2006 North American Transport and Overall Deal of the Year for the Indiana Toll Road from Project Finance Magazine, 2006 Most Innovative Non-Traditional Public Finance Transaction for the Indiana Toll Road from The Bond Buyer, 2006 US Road Deal of the Year for the Indiana Toll Road from Janes Transport Finance Deal of the Year for Pocahontas Parkway from ARTBA, 2006 Bank of the Year, Global PPP Debt Arranger from Infrastructure Journal, 2005