1. MRT – 7 Project Presentation
June, 2007

2. The MRT – 7 Project Multi-purpose Transportation Solution with
Real Estate Development Component
A lead Infrastructure Project
Metro Manila, Philippines
June 2007

3. Enhancing infrastructure priority development project thru partnership between the private and public sectors

4. MRT - 7 Project Elevated MRT 12.11Km At-Grade MRT 6.655 Km
Open-Cut MRT
1.445 Km
Tunnel MRT
0.785 Km
6 Lane Road
22.0 Km

5. MRT-7 Stations Elevated At-Grade Depressed 8 Stations 3 Stations

6. Project Costs
In Million US Dollars
$1.235 B

7. MRT -7 Project Mission
Transportation - not only providing reliable connection for Commonwealth, Fairview and Bulacan commuters, but uniquely addressing decongestion of EDSA by providing an alternative route for the provincial buses from the North.
Decongestion - of Metro Manila thru obligation for the construction of the satellite town in San Jose del Monte.
Ridership Risk - Uniquely and first time undertaking of private sector to assume full responsibility for the ridership risk and the O&M cost.

8. MRT -7 Project Mission
Energy Savings – NEDA study indicates project causes $2.4Billion in Forex savings over the concession period base on crude oil price of $50 per barrel.
Employment – the project and the satellite township undertaking will create over 20,000 new jobs throughout the concession period.
Housing – uniquely creating for the low and middle class income group an affordable housing linked by transportation arteries to their work destinations.

9. MRT -7 Project Mission
Air Pollution – Significantly reducing air pollution over the Metropolis
Investment – opening opportunities in the project and its real estate development for $3Billion foreign and local investment pump priming of the economy.

10. Financial Overview PROJECT COST $1.235B SOURCES USES
EQUITY $ 309 Million
PROJ. CONSTRUCTION
& EPC CONTRACT (about)$ 1,000 Million
ECA LOANS $ 800 Million
OTHER LOANS $ 126 Million
OTHER PROJ. COST (about)$235 Million
Total $ Billion
Total $ Billion

11. FINANCIAL & ECONOMIC VIABILITY (BASIC)
Project EIRR %*
Project FIRR %
Investors FIRR %
Government FIRR Deficit Neutral
* Excluding Road and Real Estate Development

12. Fund Source DEBT EQUITY US$309M US$926M $100 M $126 M $800M $109 M
of EPC = $1,000 M
DEBT
EQUITY
$100 M

13. Intermodal Terminal
Sixty (60) slots for simultaneously bus loading / unloading.
Train underground
Second floor providing facilities for up to 3,000 waiting passengers for their rides
Complex provide eleven (11) sets of escalators for rapid movement of commuters.

14. Real Estate Development Opportunities
Private investors to develop 2 Million sq. meters residential space
900,000 sq. meters commercial space, malls, and community development facilities throughout the concession period.

15. Investors Recovery
US$ 108 Million per year capacity fee payment for 20 years
70% Sharing of net passenger revenue after O&M
80% Sharing in advertising and commercial development over the stations.
Real Estate Development Income
Capacity fee of US$100,000 from year 2032 to 2037
Government commits to fare adjustments

16. Government Recovery of Amortization Payment
30% Sharing of net passenger revenue after O&M
20% Sharing in advertising and commercial development over the stations.
20% Sharing on Real Estate Development
Project and real estate development projected taxes
Increase ridership to Government operated rail system.
NPV (10%) of total Government undertaking $620 Million.
Mere payment for gradual transfer of the assets worth US$1.2Billion.
Government to recover its entire exposure thru tax benefits from the various activities generated by the project and the real estate development

17. Passenger Fare
Unified fare is assumed per km for all existing Mass Transit project
Fare is based on LRT-1 and MRT-3, 2003 per km and adjusted to reflect inflation and foreign exchange fluctuation.
Agreed formula for incremental fare adjustment
Per agreed concession agreement, if actual fare is not adjusted to agreed fare, Government shall pay the difference thru deduction from other government revenues resulting from the project.
Extra ordinary fare adjustment is provided for in the concession agreement when circumstances require.

18. Philippine Macro Economics
Balanced deficit is consistently reduced
Balanced budget projected by 2008 – two years ahead of schedule
Continuously reduced foreign debt
Inflation much restrained
(from Double Digit in the 90’s to around 3% at present)
Larger inflow of stable foreign remittances (OFW)
Larger tax collection
Economic growth in the first quarter of 2007 reached 6.9%, best in 17 years
Credit rating is improving and expected to rise next quarter.
Overall economic outlook best since 1978 much better than 2001 when proposal was made.

19. Project Risks Country risk Philippine Outlook much improved
Sovereign risk and risk of repatriation can be insured thru OPIC/MIGA and the like
Construction cost is mitigated thru single point of responsibility contract with an EPC contractor at fixed price.
Cost overruns due to delays and inflation (ROP faults) adjustment provided in the contract
O & M Cost
Agreements with maintenance and project engineering management groups
In-house Experienced Team
Market risk thru conservative ridership assumption and agreed fare structure (Metro Manila traffic is overwhelming).

20. Project Schedule TARGET DATES: Complete Swiss Challenge - June 2007
Project Awarding - October 2007
Contract Signing - December 2007
Financial Closing - December 2008
Start of Construction of Rail - July 2010
Start of Real Estate
Construction - July 2011
Rail Project Completion - July 2012

21. Project Task Completed
ACHIEVEMENTS
(February 2001 – February 2007):
Ridership studies
Endorsement by DOTC of ULC (BVI) as the Original Proponent
NEDA-ICC first and second pass approvals
NEDA Board approval for publication of Swiss Challenge
Department of Justice clearance of the Terms of Reference for Swiss Challenge
Publication of Swiss Challenge bid closing date on June 2007

22. Project Task PENDING (April 2007 – December 2007):
Finalize pending negotiations for the following agreements:
Engineering and Procurement Contract
Operations and Maintenance Contract
Project Engineering Management Contract
Financial Services Contract
Matching, if necessary, of possible Swiss Challenger
Negotiate details of the Concession Agreement
Performance Bond on Real Estate Development

23. Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development) BASIC ASSUMPTION
Cash Flows from Capacity Fees and Net Passenger Revenues
with 300,000 initial ridership (in million US$)
Year
Equity
Infusion
Projected Gross Pax Rev.
GOP Share in Pax Rev.
Capacity Fees
O&M
Loan
Repayment
Income
Tax
Net Flow
to ULC -3
(120.0) - -2
(100.0) -1
(88.9) 1
44.0
(2.7)
108.0
(35.0)
(100.1)
14.2 2
52.5
(4.7)
(36.8)
19.0 3
61.5
(6.9)
(38.6)
24.0 4
70.9
(9.1)
(40.5)
29.2 5
80.8
(11.8)
(41.3)
35.6 10
137.1
(27.4)
(45.6)
(115.7)
(27.0)
29.4 12
163.3
(34.7)
(47.5)
(37.5)
(34.6)
116.9 15
175.8
(37.6)
(50.4)
(39.2)
119.1 20
198.9
(43.0)
107.9
(55.6)
(21.9)
(58.0)
128.3 25
225.0
(49.1)
0.1
(61.4)
(32.3)
82.4
@ 12 years
@ 15 years
@ 20 years
@ 25 years
IRR
4.6%
8.6%
11.2%
11.8%

24. Project Sensitivities
Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development)
Project Sensitivities
Project Cost
O & M
(initial year, escalating at 5% every year)
Investors’ FIRR
at US$ B
at US$ 35 M
11.8%
10% decrease
at US$ 31.5 M
12.2%
at US$ B
14.0%
10% decrease at US$ 31.5 M
14.4%

25. Project Sensitivities
Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development)
Project Sensitivities
Project Cost
O & M
(initial year, escalating at 5% every year)
Investors’ FIRR
at US$ B
at US$ 35 M
11.8%
10% increase
at US$ 38.5 M
11.4%
at US$ B
10.0%
10% increase at US$ 38.5 M
9.6%

26. Project Proponents Universal LRT Corporation
(with 15 local and international investors)
A consortium of Alstom and Bouygues of France
O&M service provider, SMRT Singapore
Subsequent to Swiss Challenge price matching mechanism as provided by the BOT Law, several institutional investors including the IFC are expected to join.

27. Universal LRT (BVI) Corporation
Board of Directors
Mr. Antonio A. Henson Chairman of the Board
President, SM Investment Corporation
Mr. Eli Levin Managing Director (CEO)
Chairman, E.L. International Holdings (BVI) Ltd.
Mr. Vicente V. de Villa Executive Director
Executive Director, E.L. Enterprise, Inc.
Mr. George Y. Uy Executive Director
Executive Director, E.L. Enterprise, Inc.
Ms. Imelda D. Bautista Director
Chairwoman & CEO, Premier Gold Group Ltd.
Mr. Roberto F. de Ocampo Director
Former President, Asian Institute of Management
Mr. Roberto Jose L. Castillo Director
President and COO, EEI Corporation
Mr. Sergio Ortiz – Luis Director
Former Chairman, Export and Industry Bank

28. Universal LRT (BVI) Corporation
Board of Directors
Mr. Geronimo F. Velasco, Jr. Director
President, Hollington Management Ltd.
Mr. Claudio B. Altura Director
Chairman of the Board, TCGI Engineers
Mr. Jovencio F. Cinco Director
President and CEO, Penta Capital Investment Corporation
Mr. Geronimo Velasco, Sr. Director
Chairman, Hollington Management Ltd.
Mr. Jose Tan Sio Director
Exec. Vice President & CFO, SM Investment Corporation
Mr. Wellington Y. Tong Director
Representative, Merlin Capital, Inc.
Mr. George Go Director

29. Intermodal Animation

30. THANK YOU