1. ||Titel der PräsentationUntertitel der Präsentation02.12.20091 Financing of Road Infrastructure PPPs with Electronic Toll Schemes III Astana Economic Forum Crisis Lessons and Post-Crisis Models of Economic Development in Globalization Conditions July 1 st – 2 nd, 2010 Insert photo: 9.64 mm high x 25.4 mm wide

2. Agenda Overview KapschPPP PrinciplesTolling and PPPCase StudiesConclusions 02.07.20102 Financing PPP with Electronic Tolling Schemes

3. ||Titel der PräsentationUntertitel der Präsentation02.12.20093 What does Kapsch actually do? 02.07.20103 Financing PPP with Electronic Tolling Schemes

4. Kapsch TrafficCom - Experience 80% of Multi Lane Free Flow (MLFF) Systems worldwide are supplied by Kapsch TrafficCom 100 cars per second are passing through Kapsch TrafficCom’s MLFF tolling points 12 Million drivers that use our OBUs (On Board Units) as a means of payment 3 of 5 National truck tolling schemes in Europe use Kapsch TrafficCom’s technology and services 12 Months (average) to deliver complete national truck tolling schemes (for the Czech Republic and Austria) 250 Projects in 36 countries 02.07.20104 Financing PPP with Electronic Tolling Schemes

5. Kapsch TrafficCom: Road Traffic Telematics Portfolio  Highway tolling  Area tolling  E-Vignette  Plaza tolling  Toll enforcement Tolling Solutions  City tolling  Access restriction  Low emission zones  Open zone parking Urban Traffic Solutions Road Safety & Security Solutions  Speed monitoring  Weigh in motion  Incident detection  Traffic surveillance Add-on Applications  02.07.2010 5 Financing PPP with Electronic Tolling Schemes

6. ||Titel der PräsentationUntertitel der Präsentation02.12.20096 PPP Models, Financial Crisis 02.07.20106 Financing PPP with Electronic Tolling Schemes

7. Credit crisis impact on the PPP market  Reduced Liquidity & increased Bank margins  The collapse of the inter-bank lending market has drastically reduced liquidity. Bank margins have increased substantially  Competing capital allocation  Project finance and PPP lending is competing for scarce regulatory capital allocations with more attractive corporate opportunities. This is testing the viability of the current PPP model  Shrinking international Project Finance market & Relationship banking  Some banks have partially or totally withdrawn from the Project Finance market. Active international players have become more orientated to their domestic markets. “Relationship banking” is back in force  Wrapped bond market  No viable capital market solution has emerged to replace the wrapped bond market However, the PPP market has not collapsed. Deals are still being brought to market and closing, albeit more slowly. There is a high degree of selectivity on the part of banks and a general lack of consistency in the terms and conditions required by funders. * Source: EPEC (European PPP Expertise Centre), The financial crisis and the PPP market, August 2009 7  02.07.2010 7 Financing PPP with Electronic Tolling Schemes

8. Why PPP / BOT / PFI / … ?  Mobilize (additional) financing of infrastructure  Risk-sharing between public and private sectors  Using private sector skills  Cost Saving Source: Wordl Bank Tollokit for PPP in Highways 02.07.20108 Financing PPP with Electronic Tolling Schemes

9. Financing Models  Public Funding  Risk of design, but full control of process  Operations contract  Limited influence, but no upfront investments  Concessions  Lower risk, but loss of control?  Revenue sharing models  Lower level of investment, but smaller share of income  PPP’s  Shared responsibility between the Public & the Private?  Risk sharing?  Economic, legal, political obstacles?  02.07.2010 9 Financing PPP with Electronic Tolling Schemes

10. What Tolling Model ? Build Finance TransferOperate Design  Shadow Toll  Availability Payments  User Pays 02.07.201010 Financing PPP with Electronic Tolling Schemes

11. Why PPPs for Road Infrastructure Projects Reduce financial bottlenecks to build new or maintain existing infrastructure Create synergies Utilise innovations Increase planning security early implementation maintain roads quality on high levels include industry in state duties 02.07.201011 Financing PPP with Electronic Tolling Schemes

12. Public-Private Partnerships are very common in Europe and Asia 02.07.201012 Financing PPP with Electronic Tolling Schemes

13. Toll Modes Public Spending Private Spending Efficiency Shadow Tolls Low Avalibility Payments Low User Tolls High 02.07.201013 Financing PPP with Electronic Tolling Schemes

14. ||Titel der PräsentationUntertitel der Präsentation02.12.200914 Tolling Schemes as Part of PPPs 02.07.201014 Financing PPP with Electronic Tolling Schemes

15. Investors in PPP schemes are rewarded through revenues from toll schemes The tolls are collected from the road users (the „User Pays“ Principle) Toll scheme must not obstruct traffic flow (high user acceptance) Toll tariffs help to optimise road use, and environmental impacts The toll scheme may serve also as a traffic management tool Toll Scheme to suit all PPP kinds: concessions, operations contract, etc. Risks of modern toll schemes are very low Toll Financed Mechanisms and Requirements 02.07.201015 Financing PPP with Electronic Tolling Schemes

16. Questions for Toll Schemes Political Goals? Tariff ? Traffic Management impacts Legal Framework for Enforcement Tax or Toll? Risks? Scaleability and Integration Technology ?  02.07.2010 16 Financing PPP with Electronic Tolling Schemes

17. Integrated approach and design required Road Users Politics Government Road Authorities Police Media Professionals Scientific Banks Industry Organizations Standardization  02.07.2010 17 Financing PPP with Electronic Tolling Schemes

18. Players for PPP - Tolling Projects Toll Regulatory Board Department of Public Works and Highways National Economic and Development Authority Department of Finance Department of Budget and Management Department of Trade and Industry  02.07.2010 18 Financing PPP with Electronic Tolling Schemes

19. Mode of Operations in Tolling  Toll Plaza - vehicles need to stop  High Cost CAPEX and OPEX  Multi-Lane Free-Flow / ORT vehicles drive with normal speed  No obstruction of traffic  Convenient for road users  Lowest cost  Avoid accidents because of stopping  02.07.2010 19 Financing PPP with Electronic Tolling Schemes

20. Typical Toll System Overview On Board Unit in Car Tolling Stations Enforcement Stations Call Center Mobile Enforcement CRM Central System Enforce- ment Processing Points of Sale (POS) Self Service Terminals 02.07.201020 Financing PPP with Electronic Tolling Schemes

21.  Easy to Use  Lowest cost for erection and operation, incl. management, contracting and billing  High scalability, high automation, and no fraud  High charging and enforcement quotas  Support of flexible charging schemes & tariff structures  Best technologies (proven, standards) Toll Performance Key Factors  02.07.2010 21 Financing PPP with Electronic Tolling Schemes

22. Toll based PPP Projects with Kapsch TraffiCom Toll Schemes Austria - Truck Tolling System Melbourne City Link Czech Republic Nationwide Truck Tolling Scheme Santiago de Chile - Urban Scheme  02.07.2010 22 Financing PPP with Electronic Tolling Schemes

23. Toll based PPP Projects with Kapsch TraffiCom Toll Schemes  Attica Tollway, Greece  02.07.2010 23 Financing PPP with Electronic Tolling Schemes

24. ||Titel der PräsentationUntertitel der Präsentation02.12.200924 Summary & Conclusions 02.07.201024 Financing PPP with Electronic Tolling Schemes

25. Summary & Recommendations for Tolling  Tolling is an efficient financing tool for PPPs Finance new infrastructure, or upgrade existing  Make scheme simple Mandatory On Board Unit, no cash payment  Tolling Scheme must generate maximum revenues Business oriented tariffs, no fraud  Ensure best performance low cost, proven technologies, standards, experienced partners, low risk,...  Must not cause congestion Free-Flow mode of operation,  Must be sustainable Scalable, environment, interoperable, inter-urban and urban,... 02.07.201025 Financing PPP with Electronic Tolling Schemes

26. IRF PPP activities, and Working Groups 02.07.201 0 26 Financing PPP with Electronic Tolling Schemes

27. IRF Publications 02.07.201 0 27 Financing PPP with Electronic Tolling Schemes

28. ||Titel der PräsentationUntertitel der Präsentation02.12.200928 Thank you for your attention! Insert photo: 6.48 mm high x 25.4 mm wide Josef A. Czako Group Director, International Business Development Kapsch TrafficCom AG Am Europlatz 2 | A-1120 Vienna | Austria Phone +43 50 811 2150 Mobile +43 664 628 2150 Email josef.czako@kapsch.net www.kapsch.net 02.07.201028 Financing PPP with Electronic Tolling Schemes