Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Alstom Experience in Rail Project Structuring & Funding
Semaine de la France – Dar Es Salam – 04/2017
Pierre SCHWING
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 2
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 3
Tram, metro, suburban/regional, high speed,very high speed, locomotive
Components: traction, bogie, motor45%
Maintenance Modernisation Spare parts, repairs & overhaul Support services
23%
A leading position in rail transport
Signalling solutions portfolio for:- Main lines- Urban- Control and security
Sold as products or solutions
20%
Integrated solutions Infrastructure 12%
A group with annual sales of over €6 billionNote: all figures including the signalling activity recently acquired from General Electric
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 4
32,000 employees working on 105 sites in 60 countriesserving 200 customers
An organisation around 7 Regions
Being a reference player in each Region
NORTH AMERICA
1,900EMPLOYEES
9%OF SALES
LATIN AMERICA
2,800EMPLOYEES
9%OF SALES
EUROPE
13,600EMPLOYÉS
40%OF SALES
FRANCE
9,200EMPLOYEES
18%OF SALES
CIS
300EMPLOYEES
1%OF SALES
ASIA PACIFIC
2,700EMPLOYEES
11%OF SALES
MIDDLE EAST
1,500EMPLOYEES
12%OF SALES
AFRICA
Note: all figures including the signalling activity acquired from General Electric
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 5
Alstom Transport: A global leader in the rail industry
Four activitiesTRAINS SYSTEMS*
SERVICES SIGNALLING
*Including Infrastructure
For 2 operating modesUrban Mainlines
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 6
Integrated urban system to enhance efficiency
Global approach• Comprehensive solutions for
optimised costs, reduced delivery times, optimal performance…
• Attractis: new integrated tramway system
• Axonis: 1st economical and quick-to-build metro system
Infrastructure• Track laying: Appitrack• Electrification: APS, SRS, Hesop,
Citadis Ecopack• Electromechanical: stations & depots
Dubai Citadis, 100% catenary-free line (UAE)
Metro system, Panama
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 7
Rabat
Casablanca
Oran
Annaba
Algiers
Tunis
Cairo
Istanbul/Ankara
Johannesburg
Mostaganem
OuarglaConstantineSetif
Lagos
Head office / Business officeIndustrial site
Project
Rolling Stock activityJoint venture/ partnership
Components activityServices activitySignalling activity
Infrastructure activityLaboratory
Main JVs
Cabliance (Morocco), Cital (Algeria),
Gibela (SA) , Riyadh Track JV (Saudi)
Riyadh
Dubai
Baghdad
AlgeriaNCASouthern AfricaMiddle East
Tel Aviv/ Jerusalem/ Haifa
Lusail
Fes
MEA Presence: More than 2,500 employees
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 8
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 9
Project Planning of a typical Urban Rail Project
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
• Feasibility Studies• Prepare RFQ• Stakeholder Engagement• Political GO
1
2
3 4
1
• Tendering• Evaluation• Contract Signature2
• Design & Engineering• First Turn Soil• Construction• Commissioning
• Start of Commercial Service• Operation
4
3
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 10
Pre-tendering phases
FEA
SIB
ILIT
Y ST
UD
Y PH
ASE
STAT
US
QU
O
AN
ALY
SIS
Ridership study Land use assessment Social, economic and land use planning strategy Route identificationPR
E-PL
AN
NIN
GPH
ASE
Identification of public transport strategic corridors Operations conditions and performance Arbitration between transportation modes Technical feasibility Economic viability
Transportation master plan Road network operations Origin & destination for existing buses, candongueiros, railways Passenger demand and demographic analysis
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 11
CAPEX are about equal to OPEX over Lifetime
Investment vs Operational Costs
Investment(Design, Engineering, Construction, Manufacturing, Testing, Commissioning)
Operation(Maintenance, Labour, Energy)
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 12
Ratio depends on:• Ridership• Urban traffic policy
(tolling, parking, preference given to public transport,...)
• Tariffs’ policy(social context, affordability,...)
Revenues from trafic do not cover full OPEX costs and can not repay at all CAPEX costs
Fare-box Recovery Ratio
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 13
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 14
Highlight on strategic projects with structured financing won by Alstom Transport in the recent years
Dubai Al Safooh Tramway : Multisourced ECAs coupled with an islamic facility
Kazakhstan KTZ locomotives : To date the largest ECA single ECA for Kazakhstan to date
Egypt Cairo Metro L1, L2, L3 : French Agency for Development (“AFD”)
Egypt Beni Suef Modernization of railway signalling : Project financed by IBRD/WB
India Delhi Metro signalling : JICA loan
India Kochi Metro : DMRC has awarded the Contrats for Rolling Stock, Signaling and Electrification to Alstom. Project partially financed by AFD (facility 180MUSD)
India Dedicated Freight Corridor between Bhaupur et Khurja : World Bank
Morocco 1st High speed train of Africa : French Soft Loan
Morocco Tramway de Casablanca : French soft loan
Panama Metro L1 : COFACE and CESCE financings coupled with a 250 MUSD MIGA guaranteed financing
Santo Domingo Metro : ONDD (Belgium) Buyer’s Credit
Venezuela Metro Los Teques Linea 2 : COFACE Buyer’s Credit
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 15
Developing tailor-made financing approaches to support our customers
Alstom has a centralized and highly skilled team of professionals at the forefront of financial engineering, whose mission is to secure the best financing solutions for our
Customers.4 deals awarded « deal of the year » by the finance community (Trade Finance Magazine).
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 16
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 17
Tied financing vs. untied financing
Tied Financing Untied financing (IFI)
Typical source
ECA backed financing:• COFACE for French sourcing• SACE for Italian sourcing• CESCE for Spanish sourcing• DD for Belgian sourcing• KUKE for Polish sourcing
Soft Loans:• French Protocol• Credito del Rey (Spain)
Multilateral agencies:• World Bank / EBRD• Asian Development Bank• European Development Bank• African Development Bank (ADB)
Bilateral agencies:• Agence Française de Développement• KFW
Constraints• Ruled by OECD consensus• Minimum ECA national content
requirement
• Strict agencies’ rules• Does not allow direct negotiation procurement• Contract often awarded to the lowest priced offer
Advantages
• Tied to our offer• Allows direct negotiation without
RFP• Up to 14 years repayment• Includes security of payment
scheme• Can be politically supported
• « Free » PIO• Better transparency in procurement process
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 18
Solution 1 : Buyer’s creditHow does it work?
Buyer’s Credits are ruled by an OECD gentlemen agreement :
• Allows long reimbursement periods, up to 14 years for railway projects
• Can finance up to 85% of imported/offshore part
• Can finance the local part for an amount up to 30% of the imported part
• Can finance the ECA’s premium and the Interest During Construction
• Minimum interest rates are defined by the OECD
• Fixed or floating rates are possible
• Reimbursements usually start at provisional acceptance of the equipment
• Environmental & social impacts must be considered
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 19
Solution 1 : Buyer’s creditHow does it work?
Contractual structure reflected in financing
documents
Financing documentation largely
standardised
Direct payments from the lending bank hence
quicker collection of cash
Loan can be disbursed directly to exporter as
work is performed under contract and/or to
borrower in reimbursement of
amounts already paid to exporter
As an example , the French Export Credit Agency is named COFACE(Compagnie Française d‘Assurance pour le Commerce Extérieur).Support from Coface can be obtained subject to s sufficient Frencheligible content. Each file will require the approval by the FrenchMinistry of Finance.
Commercial BankExport credit Agency
(e.g. COFACE or Other)
Tanzania
Ministry of Finance
Delivery contract
Loan agreement
Guarantee
GuaranteeOr borrower
Tanzanian transport authority
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 20
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 21
Solution 2 : International Financial Institutions
Abidjan
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 22
22
Egypt: Beni Suyef- ENR - Modernization of railway signalling- TIS – 120 MEURCustomer : Egyptian National Railways (ENR)Project financed by IBRD/WB.
India : Kochi Metro: DMRC has awarded the Contrats for Rolling Stock, Signaling and Electrification to Alstom. Project partially financed by AFD (facility 180MUSD)
Vietnam: Hanoi Line 3 metro project estimated to 1.2billion Euro. It will be financed by EIB, AFD, ADB and RPE
Greece: Several projects (revamping of electrification Acharnae – Tithorea 9 ME, electrification of the extension of Metro line 3, 30 ME, etc...) all financed by European Cohesion Fund and own funds of the governement, but this latter being also financed by EIB.
22
Examples of contracts financed by IFIs
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 23
Export Credit IFI Loan Local Market
Lender Banks(with ECA guarantee)
International Financial Institutions Local banks
Borrower Client(Government guarantee) Local public Authorities Client
Repayment period
14 years maximum
10 / 15 years
Short
Cost of financing
OECD framework
Expensive
Process & timing
Buyer’s credit, versus IFI loans : what’s the difference ?
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 24
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 25
PPP : Generic Contractual Structure
Construction Consortium (EPC)
Shareholders
Project Company(SPC)
Operation & MaintenanceCompany (O&M)
Concession
contract
Capital subsidy
Availability-based payments
Fare
Passengers
Lenders
EPC Contract (turnkey) O & M
contractInterfacecontract
PublicAuthority
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 26
Nottingham LRTPPP SPV : Tramlink
Contract type : Concession contract with public support- 660 million euros- Length : 30 years- CAPEX : Private financing : 60 %; Public financing: 40%- Operating subsidy
17 km lines 2 & 3 including Rolling Stock:- 22 LRVs- Civil Work - Power supply, signalling, track- System engineering- Operation & Maintenance
Project history :> 12 months between award and financial close
Main milestones : - Contract signature : December 2011- Financial Close: December 2011- Revenue service phase for new lines: June 2015
ALSTOM’s roles in the project : - Co-sponsor and minority shareholder of the SPV- Member of the EPC and O&M subcontractor
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 27
Prerequisites to reach PPP bankability
• Strong support of gov/public authorities− major public subsidies upfront− no traffic risks for the concessionaire company− availability payments based on performance
• Legal concession frame with international standards, including:− adequate compensation in case of early termination− possibility for banks to step-in prior to termination
• Strong experienced international partners for construction, operation & finance
• New lines / greenfield scope of works
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 28
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 29
Conclusions and Way Forward
• A mix of various financial solutions is usually required for largeinfrastructure projects
• A bilateral financing is faster and easier to implement vsInternational Financial Institutions
• The Sovereign guarantee is a prerequisite to cover the projectfinancial feasibility
• Government should also strongly support the Project with statefunding
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 30
Agenda
Alstom presentation
Prerequisites for Rail Transportation Project Development
Alstom Project and Export Finance Experience
Financial solution 1 : Buyer credits with Export credit agencies
Financial solution 2 : International Financial Institutions
Financial solution 3 : Public Private Partnerships
Conclusion
Questions and Answers
© ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authorisation, is strictly prohibited.
ALSTOM - 12/04/2017 – P 31
Disclaimer
This document is provided on the express understanding that the information containedherein will be regarded and treated as strictly confidential. By retaining it the recipientundertakes that it is not to be delivered and nor shall its contents be disclosed to anyoneother than the intended recipient, and nor shall it be reproduced or used, in whole or in part,for any purpose other than for the purpose described herein, without the prior writtenconsent of Alstom.Whilst every effort has been made to ensure the accuracy and completeness of theinformation contained in this document, no responsibility is accepted by the Alstom or thetreatment by any court of law, tax, banking or other authorities in any jurisdiction of anytransaction based on the information contained herein.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted,on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise,without the prior written permission of Alstom.
www.alstom.com