Public Private Partnership in the Baltics and Europe Alternative means of financing public energy and infrastructure projects The Arlanda Link Project

1
Public Private Partnership in the Baltics and
EuropeAlternative means of financing public
energy and infrastructure projectsThe Arlanda
Link Project

• Vilnius, Lithuania
• 23 November 2006
• Jan Kansmark

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Arlanda Link Project

• The only infrastructure project imple-mented on a
  PPP and project finance basis in Sweden
• Important connection between Stockholm Central
  Station and Stockholm-Arlanda Airport and for the
  traffic on the regional as well as on the
  national railway net-work
• Efficient implementation and operation of an
  infrastructure project
• Attractive solution for the travellers
• Government budget relieved from substantial costs
  

3
Project Scope

• 22 km new railway integrated into the national
  network
• 3 stations at the Stockholm-Arlanda Airport
• New terminal at Stockholm Central Station
• 7 trains

4
Project Structure
Lease of Arlanda Link Grant of land rights,
traffic rights and other necessary rights
Design, Construction, Operation and Financing
Gov. Commitment Grant of land rights and other
rights
Equity
Gov. Grant Subord.Loan
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Contract Structure
Swedish Rail Administration 50
Civil Aviation Administation 50
Swedish National Debt Office
Government Commitment
(Swedish Government) A-Banan Projekt AB
Gov. Subordinated Loan Agreement
MEIF Stockholm AB (orig. GEC Alstom, NCC and
Siab, Vattenfall, Mowlem)
Project Sponsors Agreement
Nordbanken Finans
Project Agreement
Shareholders Agreement
Lease Agreement
(the SPC) A-Train AB
Loan providers International Banks
Loan Agreements Security Agreements
EPC Contract (design, construction, delivery)
Insurance Agreement
Consortium Agreement / Arlanda Link Consortium
Insurance Companies
Banbrytarna Construction
Mowlem Supplier rail
Alstom Supplier trains, signal, tele
Insurance Agreement
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Financing

• Costs 4,203 MSEK

• Available Funds 4,975 MSEK

Capital from Shareholders 600 200 800
MSEK Lease and Loans 2,325 MSEK Government
Grant 850 MSEK Gov. Subordinated Loan 1,000 MSEK
Turnkey Contract 3,838 MSEK Other Costs 365 MSEK
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Time Schedule

• 1989 93 Government studies, political
  discussions
• 1993 95 Competitive bids, negotiations, legal
  arrangements and financing
• 3 July 1995 Financial Close
• 1995 99 Construction, build-up of
  organisation, marketing
• 25 Nov.1999 Start of Commercial Operation
• 2000 40 Contract Period
• 2004 Macquarie acquires the shares of A-Train

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Important Experiences Gained Lessons Learned

• Clarify the respective roles of the Government
  and the SPC in relation to implementation and
  operation
• Secure the powers of SPC in relation to the EPC
  Contactor and the OM Contractor (sufficient
  human and financial resources)
• Input from the operator during the tendering
  stage
• Develop a Swedish model to reduce transaction
  costs
• Important to consider principles and procedures
  for handling unforeseeable changes in legislation
  etc.
• Third party access to railway infrastructure (EC
  Third Railway Package)

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The Arlanda Link Project

• 23 November 2006
• Jan Kansmark