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• FROM THE IDEA TO THE FINANCING
• Case Study Hungarian Municipal Infrastructure
  Investment Project
• Peter E. Gumpel
• Chairman of Management Board
• Meinl Capital Advisors AG, Vienna

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Meinl Bank AG

• Leading private merchant and investment bank in
  Austria
• Focus  Central and Eastern Europe
• Private banking private asset management
• Institutional asset management
• Equity banking venture funds managment
• Emerging market debt trading and forfaiting
• Corporate finance advisory services

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Meinl Capital Advisors AG Corporate finance
advisory services in Central andEastern Europe

• Government privatization and restructuring
  advisory services
• Macedonia  Restructuring and Privatization of
  Electricity Sector
• Serbia  Restructuring and Privatization of
  Metalworking and Engineering companies
• Serbia  Privatization of companies in Food
  Processing and Textile Sectors

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Meinl Capital Advisors AG Corporate finance
advisory services in Central and Eastern Europe

• Merger and acquisition advisory services for
  private strategic investors
• Bulgaria  Advised Carlsberg A/S on acquisition
  of Breweries
• Moldova  Advised owners on sale of Moldcell GSM
  provider
• Arrangement of finance for governments,
  municipalities and quangos
• Hungary  Advisor to Heves County (Eger Region)
  on implementing and arranging finance for
  Regional Waste Management System

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CASE STUDY HEVES COUNTY HUNGARY (1)

• MCA is advisor to 93 municipalities in Heves
  County for preparation and implementation of
  Regional Waste Management System
• Euro 65 million project, of which 50 will be
  provided by the EU Cohesion Fund, 40 by the
  Hungarian Government, and 10 by private
  investors
• Similar projects have been planned and are
  underway in Bulgaria

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CASE STUDY HEVES COUNTY HUNGARY (2)

• Step 1 Defining the Project
• Public Sector defined the need for
  modernization
• Private sector specific technological and
  financial proposals
• Regional policy of European Union strategy for
  applicants to reach EU standards (acquis
  communitaire) in environmental area
• Strong political support on all levels

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CASE STUDY   HEVES COUNTY HUNGARY (3)

• Step 2 Identification of Financing Sources
• Multilateral FinancingEuropean Union Cohesion
  Fund / ISPA / PHARE EBRD / EIB / IFC
• Bilateral Financing - Hungarian Government
• Commercial FinancingSuppliers / Commercial Banks
  /  EGA Structured FinancingPrivate Financial
  Investors Special Purpose Fund

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CASE STUDY HEVES COUNTY HUNGARY (4)

• Step 3   Key milestones in the project
• Establishment of Municipal Association 2003
• Detailed project planning 2003
• Government permitting / impact studies 2003-04
• Submission to EU Cohesion Fund of feasibility
  study 2004
• Establishment of operating company 2004
• Tendering for equipment 2005
• Public-private partnership partial
  privatization of opco 2005
• Realization of project 2006-08

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Key success factors

• Planning and analysis assurance of adequate
  returns over investment period under conservative
  assumptions
• Government support municipal, central
  government, multilateral levels
• Thorough review of technical, legal, financial
  issues (due diligence)
• Flexibility and opportunism in sources and
  structure of financing
• Appropriate legal and contractual framework
• Competent project management to drive project and
  assure success