Belgrade PPP Parking Project April 207
Executive summary Project CarBox Belgrade PPP Parking Project The Project includes four planned underground garages in the centre of Belgrade ( City ). The Project should satisfy high demand for parking in the City centre and insufficient capacity of parking especially after planned introduction of a pedestrian zone in the City centre. Investment proposition overview Contract type Contracting authority Expected contractual timeline Expected horizon for construction Investment object Capacity of garages Permitting Missing parking in the catchment area Indicative required investment Other structuring aspects Potential multilateral lenders Design, build, finance, operate, maintain and transfer underground garages City of Belgrade 25-35 years Gradual, over a 3 year period Four underground garages located in the City center in vicinity of the new pedestrian zone,850 parking space (+/- 0% flexibility) One location with construction permit (ca. 700 parking places) and three locations in planning stage 3,000 5,000 parking EUR 35-45 million (considering the flexibility in design, solution and capacity to be constructed) Concession, with potential/limited one-off City support EBRD and other international financial institutions
In millions of inhabitants/units City of Belgrade Development and Projections Expansion of current pedestrian zone New approved strategy by the City to expand the current pedestrian zone. Developed in 4 phases, planned to be fully implemented by 2020. Eventually loss of approximately,000 parking currently used. Three out of four analyzed garages located at the new pedestrian area border, with the fourth (Vlajkovićeva) being close to its borders. Future pedestrian zone, by phases Almost /6 share of Serbian population Expected population and car usage development in Belgrade Source: Serbian statistical office 3 2 2 0 Economic and cultural center of Serbia resulting in continuous rise in population,68,73 0,5 0,57 Close to 40% increase of registered vehicles within the last 5 years and constant growth currently,84 Renewed growth in number of passenger cars per household 205A 202F 203F 204F Population of Belgrade 0,67 Number of passenger cars Increase from 0.3 in 205 to 0.5 cars per capita in 204,98 reflecting the growth in GDP and purchase power of citizens 0,79 Belgrade Moody's Public Sector Europe (MPSE) rating: Ba3 (stable) Rating recently upgraded from B to Ba3. The rating upgrade is underpinned by Belgrade s sound fiscal performances. National economic growth and favorable medium-term prospects should translate into rising receipts from shared taxes and own-source revenues and thus contribute to an improved credit profile. Thus, by far Belgrade has the greatest capacity among Serbian cities to generate ownsource revenues, accounting for additional 45% of its operating revenues. 3 2 Blue Existing pedestrian zone; Orange First phase; Red Second phase; Green Third phase; Purple Fourth phase Studentski trg; 2 Trg Republike; 3 Fruškogorska; 4 Vlajkovićeva 4 2
of Garages Locations Studentski trg Trg Republike Capacity: 697 parking floors: 3 (sqm): 68,535 Construction permit Capacity: 368 parking floors: 2 (sqm): 39,232 Conceptual Solution Fruškogorska Vlajkovićeva Capacity: 430 parking floors: 5 (sqm): 29,8 Conceptual Solution Legend: Garage site Future pedestrian zone Capacity: 335 parking floors: 3 (sqm): 32,582 Conceptual Solution 3
% Occupancy Current average performance of underground garage in the city center Fee for st hour: EUR 0.6 Current demand in Belgrade New residents, together with strong economic development and industrialization, have led to a significant rise in the number of registered vehicles in the City, almost 40% in the period 2000-205. The current garages, even prior to the introduction of the pedestrian zone, are operated at very high occupancy rates (average daily occupancy of 57.%). Belgrade City center garage average daily occupancy 00% 90% 80% 70% 60% 50% 40% 30% 20% 0% 0% 0 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 20 2 22 Reference: Charts depict 24 hour average occupancy over certain period per parking lot. Graph is based on occupancies of garages Obilicev venac and Pionirski park. Legend: Planned garages site Current garage site Fee for subsequent hours: EUR 0.73 Monthly subscription for full day (not dedicated space): EUR 98 38 Monthly subscription for full day (reserved place): EUR 54-95 Monthly subscription on weekdays (6:30-7:30): EUR 49 Monthly subscription weekend (weekdays 7:00-08:00 & weekends): Average daily occupancy*: (working day 6:00-8:00) Share of short-term (hourly) revenues on total revenues*: Average hours duration per car daily*: EUR 32 57.% 85.6% 2.86 Notes: *Values are based on prices of garages Obilicev venac and Pionirski park FX rate used: EUR = 23 RSD Prices include VAT 4
Expected Timeline of the Project April 207 Financial, technical and legal feasibility study completed May 207 Pre tender (investors ) conference November / December 207 Signing of the PPP contract Start of the procurement procedure June 207 Award of the PPP contract to the selected partner October / November 207 Start of the construction / finalization of approval process of the four garages 208 5
David Zlámal Executive Director Transaction Advisory Services T +420 225 335 84 M +420 73 627 00 E david.zlamal@cz.ey.com Maja Sahbaz Senior Manager Transaction Advisory Services T +38 2095 734 M +38 63 49 40 E Maja.Sahbaz@rs.ey.com DISCLAIMER This Presentation is confidential and is not to be reproduced or distributed. The Presentation contains non-public information and no subject involved in the Presentation takes responsibility and assumes any liability for the authenticity, volatility, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this Presentation. The information contained herein, while obtained from sources which we believe to be reliable, has not been independently verified and no representation, expressed or implied, is given as to its accuracy or completeness. You should not act or refrain from acting in reliance on this Investor Presentation. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this Presentation. 6