Autovie Venete SpA CDP and EIB financing under the Juncker Plan - PowerPoint PPT Presentation

Autovie Venete SpA CDP and EIB financing under the Juncker Plan framework April 27th, 2018

The Concession ▪ SpA Autovie Venete is the concessionaire of several motoways sections in the North-east of Italy (incl. A4 Venezia- Trieste, A28 Portogruaro-Pordenone-Conegliano and A34 Villesse Gorizia) for a total network length of 210 km ▪ SpA Autovie Venete is controlled by the Friuli Venezia Giulia Region (72.9%), minority shares are held by the Veneto Region and private sector investors ▪ The concession is based on a “ Regulatory Asset Based ” (‘RAB’) tariff, updated from time to time and aimed at ensuring a defined return on invested capital ▪ The concession agreement expired on March 31st, 2017 ▪ In January 2016 the Ministry of Infrastructure and local authorities (Regione FVG and Regione Veneto) signed an MoU aiming at awarding the new concession - under terms and conditions to be defined - to an In-House entity to be selected Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 2

The Project ▪ A4 Venezia-Trieste is part of the Trans-European Networks – Transport ( TEN-T ) - Corridor 5 (Barcellona-Kiev, incl. Venezia, Trieste, Lubiana and Budapest) ▪ Starting from 2008, SpA Autovie Venete operates in the context of an emergency status declared by the Italian Government with respect to the traffic congestion and road practicability in the axis “Corridor V” of the A4 motorway. ▪ Main investment: A4 (Venezia-Trieste) widening – 3 rd Lane, a 95 km section included in the list of strategic infrastructures of national interest. ▪ Total Investments of € 1.6 bn; of which € 0.64 bn completed and € 0.96 bn under construction / to be procured . Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 3

The Project TEN-T Corridors 14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 4

The Project Historical Traffic performances Vehicles/Km 1997-2016 [ Source: SpA Autovie Venete ] 2015 AADT [ Source: SDG ] 5

The Project The A4 widening 14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 6

Challenges ▪ Need to ensure sources of funding for the completion of the urgent investments (€0.96) to be completed within 2022 ▪ Long term funding needs ▪ Concession agreement close to expiry ▪ Uncertain timing, terms and conditions of the awarding of the new concession Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 7

CDP / EIB Solution The Investment Plan for Europe: main goals and pillars 3 «Pillars» and 3 instruments Main goals Credit enhancement • The first political economy instrument – coordinated at Mobilising finance to EIB Group through European level – designed to sustain growth from 1 1 for investment EFSI 1 the demand side (Infrastructures& Innovation and SMEs) • Boosting investments , sustaining economic growth and creating new jobs Improving project Visibility and technical 2 2 preparation assistance through the «Advisory hub» and • More efficient use of EU funds and coordination the «Project Portal» between the EIB Group and NPBIs • Public contributions to the Plan do not increase Improving the Structural reforms and 3 3 Member States ’ public debt investment removal of regulatory environment barriers EFSI Regulation expressely foresees NPBs to play a prominent role in pursuit of EFSI objectives, to act as catalysts for private finance and address market failures 1 European Fund for Strategic Investments: guarantee to the EIB Group for the initiatives related to the Investment Plan for Europe 8

CDP / EIB Solution The European Fund for Strategic Investments - EFSI Target: mobilizing at least € 315 bn of additional finance at market conditions at European level in order to invest in strategic, solid and substainable projects through EFSI Same Leverage effect EFSI 1.0 EFSI 2.0 Data in €/ bn ▪ EC: € 26 bn ▪ EC: € 16 bn ▪ EIB: € 7.5 bn ▪ EIB: € 5 bn 21 33 3x € 42 bn: internal multiplier € 67 bn: same multiplier additional resources EIB additional resources EIB Group Group 100 63 5x € 252 bn: external multiplier € 402 bn: same multiplier ▪ € 43 bn: NPBIs ( CDP ▪ € 252 bn from EFSI 1.0 contribution ca . € 8 bn 15x 315 500 including ca. € 5 bn ▪ € 150 bn crowding-in of already approved) additional resources from both public and ▪ € 209 bn: other capital 345 IIW 240 IIW private sector from the private sector 157 SMEW 75 SMEW From July 2015 to June 2018 Up to 2020 9

CDP / EIB Solution The Large Strategic Infrastructure Investment Platform Large Infrastructure Investment Platform Main features ▪ CDP and EIB jointly evaluate the Project with the aim of Investment Platform identifying the most suitable financial structure to finalize the operation Guarantees Private EFSI MoF sector Financing ▪ CDP and EIB finance the Project in parallel: the Platform allows maximum degree of freedom, with respect to the procedures of engagement and position of relative seniority Equity Debt ▪ The private sector will contribute with the equity component of the project and with a further component of debt through Large (> € 250 m) infrastructure projects in Ten-T, Ten-E, financial intermediaries Broad Band and Social Infrastructure New Investment Platform under development dedicated to small infrastructure projects (€ 20-200 m) 10

EIB/CDP Solution ▪ Negotiation with the Granting Authority of satisfactory terms and conditions for the operation during the «interim period» (i.e. from the current concession term until the effective date of the new concession) ▪ Long term financing (maturity up to December 2031) ▪ Adequate repaiment mechanisms to manage future project evolution ▪ Management of the Termination amount’s payment risk PRESERVED INVESTMENT CAPACITY DESPITE REGULATION UNCERTAINTIES Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 11

Contractual framework Ministry of New Infrastructure Concession (Grantor) Agreement Potential Guarantee Concession Agreement € 600 m Financing Termination NewCo Payment Autovie Intercreditor Financing New Agreement Agreement Venete SpA Concessionaire 50% CDP 50% EIB Toll Revenues under new Toll Revenues concession Guarantee EFSI Users Users European Fund for Strategic Investments Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 12

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