The document outlines the European Bank for Reconstruction and Development's (EBRD) role in promoting market economies and supporting transport sector development across 34 countries, showcasing a portfolio of €11.4 billion across various projects. Case studies highlight key projects such as the R1 Motorway in Slovakia and the Eurasia Tunnel in Turkey, illustrating EBRD's financial contributions and impacts on local economies and infrastructure. The document also discusses public-private partnerships (PPP) and the importance of private sector involvement in financing and managing infrastructure projects.

1. OECD EU Conference – River Nile Transport
Cairo, 17th of September 2014
Philip ter Woort, EBRD Director Egypt

2. What is the EBRD?
• IFI: Promotes transition to market
economies in 34 countries
• Owned by 64 countries and two inter-
governmental institutions
• AAA rated - capital base of €30 billion
• Invested EUR 85 billion through 3945
projects

3. Projects in all key business sectors
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Transport
Industry, Commerce
& Agribusiness
Financial Institutions
Manufacturing &
Services
Municipal & Environmental
Infrastructure
Power & Energy
Natural Resources
Property & Tourism
Telecommunications,
Informatics & Media

4. Transport Team at EBRD
• Transport Team is part of EBRD Infrastructure Business
Group with over 30 banking and sector professionals
• Deep experience: Executed 240 projects for a total project
value of EUR 43.6 billion
• Headquartered in London with dedicated sector coverage
bankers in Astana, Istanbul, Kiev and Moscow
• Transport Team can mobilize dedicated in-house specialists to
support project needs, including procurement, improvement of
environmental standards and energy efficient solutions
• EBRD offers banking services (debt and equity) to clients
across every transport mode: railways, maritime, aviation and
roads
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5. EBRD’s presence in Transport Sector
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Portfolio by Region Portfolio by Sector
The Bank supports the development of efficient multimodal networks,
investing a total of EUR 11.4 billion as of end June 2014
across all sectors and regions to support 245 projects
Central Asia 9%
27 projects/
€ 1.0 bn
Central Europe and
Baltics 20%
56 projects/
€2.2 bn
Eastern Europe and
Caucasus 18%
51 projects/
€2.1 bn
Regional 2%
4 projects/
€0.2 bn
Russia 21%
41 projects/
€2.5 bn
SEMED 1%
1 project/
€0.1 bn
South-Eastern
Europe 26%
58 projects/
€3.0 bn
Turkey, 3%
7 projects/
€0.3 bn
Aviation 6%
38 projects/
€0.7 bn Intermodal 4%
10 projects/
€0.4 bn
Ports and Shipping 6%
47 projects/
€0.7 bn
Rail 34%
73 projects/
€3.9 bn
Road 50%
77 projects/
€5.7 bn

6. 6
6
PPP: What are the models?
Degree of Private Sector Involvement
DegreeofPrivateSectorRisk
Public Sector
Service Contracts
Management Contracts
Design-Build
Operational Concession
Design-Build-Operate-Maintain
Design-Build-Finance-Operate
Build-Operate-Transfer
Build-Operate-Own
Privatisation
Realm of PPPs
Adapted from P. Livesly

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PPP: Issues to consider
Project
essential ?
Political will may endure over long-term for essential
infrastructure and related services
Value for
Money ?
Risk-adjusted cost of the proposed PPP project should be lower
than by traditional public procurement means
Does private
sector has
expertise?
Private sector should be able to deliver the PPP and is willing to
come to the market
Size matters
PPP transition costs are relatively high so that a project must be
of a certain size to off-set the preparation costs (i.e. legal,
technical, financial)
Contract
designs
Allow a level of flexibility through ‘reference designs’ allowing
private sector the creative ‘space’ to come up with new solutions

8. EBRD support to PPPs
With public authorities
• General advice on acceptable
process
• EBRD Policy for procurement
• Grant funded technical assistance
• General letter of interest to finance
With bidders
• Pre-bidding dialogue with interested players
• Review of financing instruments (equity,
debt) and indicative financing terms
• EBRD cannot commit to exclusivity (‘open
support’) – general letter of interest
• After award, negotiation of detailed terms
and conditions with the preferred bidder

9. Case Studies
9

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Case Study
R1 Motorway Refinancing, Slovakia
Client: Granvia, a special purpose vehicle owned by VINCI Concessions
SA and Meridiam Infrastructure Fund
EBRD finance: EUR 200 million
Type of finance: Project Bond
Total Project cost: EUR 1,243 million
Year: 2013
Project description: Refinancing of the R1 Motorway PPP project
Impact: Optimising the long-term financing of newly constructed sections
on the R1 Motorway PPP between Nitra and Tekovske Nemce
and the Banska Bystrica Northern Bypass, totalling 51.6 km
Fostering economic development in central Slovakia through
provision of private sector engagement in road sector financing
The project demonstrates EBRD engagement as a long term partner in support of the
Slovakian Government’s PPP programme, following on from the successful construction
and operational start of the R1 Motorway.
Industry Recognition 2013
PFI Award 2013 - Bond Deal of the Year –
Europe

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Case Study
Eurasia Tunnel, Turkey
Client: ATAS, a joint stock company incorporated in Turkey
EBRD finance: USD 150.0 million
Type of finance: Senior Loan
Total Project cost: USD 1.2 billion
Year: 2012
Project description: Design, finance, build, operate and transfer concession for the
road tunnel under the Bosphorus (Istanbul Strait Road Tube
Impact:  Fostering expansion of private sector participation in the
development, management and operation in the transportation
sector in Turkey
 Relieving traffic congestion within the city of Istanbul and
region by reducing journey time and distance between
and Göztepe significantly, with the subsequent positive impact
the climate change and local environment
The project forms part of a larger PPP transport sector programme under consideration
by the Turkish authorities aimed at upgrading and modernising the transport network
using private sector funding.
Industry Recognition 2012
Project Finance International – Turkish Infra Deal of the Year
Euromoney Project Finance – European Deal of the Year

12. a
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Case Study
WHSD Central Section Road PPP, Russian Federation
Client: Northern Capital Highway, a special purpose company selected
develop and operate the WHSD road PPP in St. Petersburg
EBRD finance: EUR 200.0 million
Type of finance: Senior Loan
Total Project cost: EUR 3,128.0 million
Year: 2012
Project description: Construction of the central section of WHSD road and tolling,
operation and management of the full length of the road (46 km)
under a 30 year concession agreement
EBRD non-financial
contribution:
 Environmental due diligence gap analysis
 Active Lender participation
Impact:  Supporting the development of the first large road PPP
awarded to a private sector concessionaire under a regional
framework in Russia
 The project will relieve pressure on the road network;
the main transportation hub to the national motorway network,
improving road access to the port and as such supporting
increasing cargo traffic in and out of the country
The project supports the continuation of the PPP road programme planned by the City of
St. Petersburg Authorities to develop and expand the road transportation network. The
investment is a priority national infrastructure investment in Russia.

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Case Study
Istanbul Ferries Privatisation, Turkey
Client: TASS, a special purpose company, established by three Turkish
companies (Tepe, Akfen, Sera) and the UK’s Souter Investments
acquire IDO, the world largest municipal ferry operator,
50 million passengers p.a.
EBRD finance: USD 150 million
Type of finance: Limited recourse; mandatory cash sweep;
USD 100 million - long term senior loan, sculptured repayments
USD 50 million - mid-term junior loan, bullet repayment
Total Project cost: USD 860 million
Year: 2011
Project description: Financing acquisition of IDO by TASS
EBRD non-financial
contribution:
 Upfront environmental due diligence
 Active Lender participation on the structuring
Impact:  Demonstration effect of the private sector value-added:
introduction of new demand-driven ticket tariffs, creation of
routes and intermodal passenger transportation services
 Flexible financing structure with a sufficient grace period which
allowed the sponsors to introduce measures to turnaround the
company
 Introduction of a gender action plan as a tool for inclusiveness
The project assists in increasing private sector participation in the public transport sector
in Turkey.

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Client: TAV Ege Terminal Yatirim, a special purpose company established
TAV Havalimanlari Holding A.Ş, to design, build, finance and
new domestic terminal for the Izmir Adnan Menderes Airport
EBRD finance: EUR 70 million
Type of finance: Senior loan
Total Project cost: EUR 430 million
Year: 2012
Project Construction of a new domestic terminal at Izmir airport, and
of this domestic terminal together with the international terminal
Impact:  Demonstration effect of successful restructuring with the
of the latest airport operations policies, passenger screening
security arrangements
 Expansion of private sector participation in terms of provision of
capital as well as project management, construction and
expertise
The project supports the involvement of the private sector in the provision of public
services, in particular where the Bank is additional to fill funding gaps for infrastructure
projects and including active participation in financing PPP projects.
Case Study
TAV Ege Terminal, Turkey

15. Concluding remarks
Contact: Philip ter Woort: terwoorp@ebrd.com