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From tolling to From tolling to availability availability

payments.payments. PPP in PPP in the Hungarian the Hungarian

motorway motorway developmentdevelopment

Ferenc TóthFerenc TóthConcession Concession director director

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ContentContent

History of the Hungarian tollingHistory of the Hungarian tolling Status of the motorway networkStatus of the motorway network Development PlansDevelopment Plans Ongoing worksOngoing works PPP sectionsPPP sections PPP modelPPP model Legal backgroundLegal background

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History of Hungarian History of Hungarian tollingtolling

1994, M1 the first tolled motorway, 1994, M1 the first tolled motorway, ELMKAELMKA

1996, M5 motorway a concession road 1996, M5 motorway a concession road toward Yugoslaviatoward Yugoslavia

1996, State owned toll company : ÉKMA1996, State owned toll company : ÉKMA 1999 vignette system1999 vignette system 2003 development program in Act2003 development program in Act 2004 destruction of the last toll system2004 destruction of the last toll system 2005 motorway development with PPP 2005 motorway development with PPP

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Status of the motorway Status of the motorway networknetwork

The length of the network is ~650 km in The length of the network is ~650 km in totaltotal ~540 km motorway~540 km motorway ~110 km expressway~110 km expressway

Density is ~7 km/1000 kmDensity is ~7 km/1000 km22

Radius (capitol centralized) networkRadius (capitol centralized) network M5 motorway is operated in PPP schemeM5 motorway is operated in PPP scheme

Budapest-Budapest- National border (Röszke) National border (Röszke) 1 15656 km km concessionaire is AKA Rt.concessionaire is AKA Rt.

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Motorway development planof Hungary

SKSK

AA

SLOSLO

HRHRYUYU

RORO

UAUA

RábafüzesRábafüzes

ParassapusztaParassapuszta

VácVác

TornyosnémeTornyosnémetiti

RöszkeRöszke

IlocskaIlocska

LetenyeLetenye

DunaújvárosDunaújváros

EgerEger

VeszprémVeszprém

GyőrGyőr

TatabányaTatabánya

KaposvárKaposvár

PécsPécs

BoglárlelleBoglárlelle

SzekszárdSzekszárd

SopronSopron

MohácsMohács

KecskemétKecskemét

BékéscsabaBékéscsaba

NyíregyházaNyíregyháza

MiskolcMiskolc

DebrecenDebrecen

FüzesabonyFüzesabony

BajaBaja

PolgárPolgár

SzolnokSzolnok

Existing motorway,March 2006Existing motorway,March 2006Motorway (2003-2006)Motorway (2003-2006)Motorway (200872015)Motorway (200872015)Expressway (2003-2007)Expressway (2003-2007)Expressway (2008-2015) Expressway (2008-2015) Expressway under construction (2008-2015)Expressway under construction (2008-2015)

NagylakNagylak

DunaDuna

TiszaTiszaM30M30

M3M3

M3M3

M3535

M4M4

M8M8

M4M4

M0M0

M2M2

M8M8

M15M15

M1M1

M9M9

M7070

M7M7 M6M6

M9M9

M6M6

M43M43

M44M44 ZalaegerszegZalaegerszegBkeresztúrBkeresztúr

NagykanizsaNagykanizsa

M25M25

M86M86 SzombathelySzombathely

BUDAPESTBUDAPEST

EmődEmőd

SzegedSzeged

KiskunfélegyházaKiskunfélegyháza

M5M5

SzékesfehérvárSzékesfehérvár

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Works in progressWorks in progress Ongoing constructions:Ongoing constructions:

M3 Görbeháza-Nyíregyháza (39 km)M3 Görbeháza-Nyíregyháza (39 km) M3 Nyíregyháza bypass (8+16 km)M3 Nyíregyháza bypass (8+16 km) M35 Görbeháza-Debrecen (35 km)M35 Görbeháza-Debrecen (35 km) M35 Debrecen bypass (9+4 km)M35 Debrecen bypass (9+4 km) M6 Between M0-Érd (9 km)M6 Between M0-Érd (9 km) M7 ZamáM7 Zamárrdi-Balatonszárszó (14 km)di-Balatonszárszó (14 km) M7 Balatonszárszó-Ordacsehi (20 M7 Balatonszárszó-Ordacsehi (20

km)km) M7 Nagykanizsa-Balatonkeresztúr M7 Nagykanizsa-Balatonkeresztúr

(35km)(35km) M7 Ordacsehi-Balatonkeresztúr (26 M7 Ordacsehi-Balatonkeresztúr (26

km)km) M8 between M6-Rd51 (5 km)M8 between M6-Rd51 (5 km)

PPP projectsPPP projects M5 Kiskunfélegyháza-Szeged (46 M5 Kiskunfélegyháza-Szeged (46

km)km) M5 Szeged-Röszke (15 km)M5 Szeged-Röszke (15 km) M6 Érd-Dunaújváros (59 km)M6 Érd-Dunaújváros (59 km)

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PPP motorwayPPP motorwayss M5 motorwayM5 motorway

Concession contract signed in 1994Concession contract signed in 1994 concession rights for 35 yearsconcession rights for 35 years design, build, operate and finance tasksdesign, build, operate and finance tasks AKA Rt. is the ConcessionaireAKA Rt. is the Concessionaire M5 used to be real tollM5 used to be real toll motorwaymotorway from March 2004 the vignette system has been appliedfrom March 2004 the vignette system has been applied toll booths are being demolishedtoll booths are being demolished In December 2005 the Phase 2 section opened (46 km)In December 2005 the Phase 2 section opened (46 km) In March 11th 2006 the Phase 3 section opened (15 In March 11th 2006 the Phase 3 section opened (15

km)km)

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PPP motorwaysPPP motorways

M6 motorwayM6 motorway invitation for Tender under concession invitation for Tender under concession

published in February 2004published in February 2004 concession rights for 22 yearsconcession rights for 22 years design, build, operate and finance tasksdesign, build, operate and finance tasks Tender was open to domestic and international Tender was open to domestic and international

biddersbidders Three Tenderers were short-listedThree Tenderers were short-listed Contract has been endorsed with M6 Duna Contract has been endorsed with M6 Duna

Autópálya KonzorciumAutópálya Konzorcium Planned opening for operation : 2006Planned opening for operation : 2006

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PPP modelPPP model

Payment mechanismPayment mechanism revenues from vignette revenues from vignette are are collected by the collected by the

StateState monthly availability fee to be paid to the monthly availability fee to be paid to the

Concessionaire with possible deduction ofConcessionaire with possible deduction of temporary unavailabilitytemporary unavailability safety related problemssafety related problems failure to meet of operational requirementsfailure to meet of operational requirements

further payments can be madefurther payments can be made linked to the volume of HGVlinked to the volume of HGV

payments being indexed to inflation and payments being indexed to inflation and exchange rateexchange rate

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PPP modelPPP model

Risk allocationRisk allocation Risk Allocation Matrix is provided to TenderersRisk Allocation Matrix is provided to Tenderers

Design RisksDesign Risks Construction and Development RisksConstruction and Development Risks Availability and Performance RisksAvailability and Performance Risks Maintenance/Life Cycle RisksMaintenance/Life Cycle Risks Variability of Revenue RisksVariability of Revenue Risks Residual Condition on Hand-backResidual Condition on Hand-back Other RisksOther Risks

Risks are distributed between Public and Risks are distributed between Public and Private sector with the alternative to share Private sector with the alternative to share themthem

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Legal backgroundLegal background

Act of 1991. XVI ( „about concession”)Act of 1991. XVI ( „about concession”) Act of 2003. CXXVIII („about public Act of 2003. CXXVIII („about public

interest and development of interest and development of expressway network”)expressway network”)

Act of 2005. LXV ( supplement to Act Act of 2005. LXV ( supplement to Act 2003. CXXVIII)2003. CXXVIII)

317/2005 Government Decree „about 317/2005 Government Decree „about Program roads” (expressways to be Program roads” (expressways to be financed from private sources)financed from private sources)

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Thank you for Thank you for the attention!the attention!

Contact info:Contact info:

toth.ferenctoth.ferenc@nart.hu@nart.huTel: +36 1 436-8171Tel: +36 1 436-8171Fax: +36 1 436-8055Fax: +36 1 436-8055

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