Castalia Capital Advisory - Strategic · PDF fileUBS Concession for a second runway Colombia...

Castalia Capital Advisory Catalysts for investment success

Lenders, investors, and developers seek independent

assessments of critical project, regulatory and commercial

risk to assure investment returns or craft their divestment

strategies.

Castalia’s transport, water, telecoms and energy expertise

helps investors identify good deals, make sound

investment or divestment decisions, and manage risk.

Mission

3

Who We Are

• Castalia is an independent, international economic and financial

advisory firm with broad experience in transport, energy, telecoms

and water

• Our mobile team of 40 professionals is based out of our offices in

New York, Washington, D.C., Sydney (Australia), Wellington (New

Zealand), Paris (France), and Bogotá (Colombia)

• Castalia’s mission is to apply our real world, practical, market-

tested knowledge of project risk and return in the context of

competitive, regulatory, cost, and demand drivers

• We are a global firm with local presence and knowledge. We offer

unbiased, objective advice without the influence of outside

shareholders or interests.

www.castaliacapitaladvisory.com

4

Castalia Track Record

• Advised on privately financed infrastructure projects worldwide totaling more than

US$70 billion across the transport, energy, and water sectors

• Advised on assignments in more than 60 countries in the Americas, Africa, Asia,

Europe, Oceania, and the Caribbean

• Worked on successful transactions for private investors, developers, governments,

utilities, and multilateral banks.

Many of our engagements are from repeat clients, demonstrating our dedication and the

quality, commitment and value of our work product.


5

Our Work Has


• Enabled our clients achieve successful, closed financings

• Better positioned our clients’ investments for long-term financial

viability

• Provided assurance to lenders and investors

• Provided unbiased assessments of project, environmental and

regulatory risk and return profiles

• Identified opportunities for capturing or creating value, and

assisted our clients shape their hold or divestment strategies

• Featured global best practices, combined with local and sector

knowledge.

6

Feasibility

analysis

Project risk

Regulatory risk

Value for money

Services During the Entire Project Lifecycle

Castalia’s expertise helps our clients identify good deals, make sound

investment decisions, and manage project, regulatory, and government risk at

every phase of the development lifecycle.


Due diligence

Valuation support

Lenders’ reports

Transaction

support

Idea generation

Project sourcing

Deal origination

Due diligence

Valuation

Lenders’ reports

Business case

Commercial case

Negotiation

Transaction

Launch and

Execution

Post-transaction

close

Operational

Performance and

Monitoring

Optimizing

revenue

Managing risk

Investment

Decision

Screening

Operations CASTALIA’S EXPERTISE

- Project economic drivers and financial analysis

- Regulatory and contract analysis, risk register

- Market analysis

- Global knowledge

Divestment

Advice

Commercial

Assessment

7

Full Suite of Services

CLIENT TRANSACTION TEAM Legal

Accounting

Financial Advisor/ Investment Bank

Risk OpEx/OM&R CapEx Environmental

Pricing/ Tariffs

Demand/ Revenue

Operations Competition/

Regulation CASTALIA VALUE ADDED

Castalia global and sectoral expertise Source &

Manage

Best of breed asset specialists


8

Selected Clients


9

Broad Asset Coverage


• Transportation Roads, airports, railways, ports

• Utilities and Pipelines Power transmission and distribution, oil and gas

pipelines, water systems, waste collection and

treatment

• Generation Thermal and renewable, long term contract and

merchant generation

• Communications Telecommunication towers, cable networks, satellite

systems

• Social infrastructure Hospitals, schools, stadiums, prisons, courts,

subsidized housing

10

Energy Sector Experience of Our Senior Professionals


$3.4 billion AES Corporation

Coal and gas-fired generation assets acquisition Philippines

Market and Strategy Advisor 2007

Ilijan and St. Rita Power Plants

$1 billion Queensland Investment Corporation

Purchase of 50% stake of electricity distribution utility

New Zealand

Market Advisor 2008

Powerco Power Utility

$1.2 billion Hastings Fund Management

Purchase of 41% of electricity

transmission company Australia

Regulatory Advisor

2012

Electranet

$3.2 billion

Origin Energy

Purchase of 2880 MW power station plus retail assets of Integral Energy

and Country Energy Australia

Competition Advisor 2011

Eraring Power Station and Retail Assets

$630 million Genesis Energy

Acquisition of the 185MW Tekapo A&B hydropower stations

New Zealand

Market and Financial Advisor 2010

Tekapo Hydropower Plant

$3 billion Indonesia Infrastructure Guarantee

Fund

1,800MW IPP sale Indonesia

Risk Appraisal 2012

1,800MW Coal-Fired Power Plant

11

Port Experience of Our Senior Professionals


$250 million Port of New Orleans

Napoleon Avenue container terminal P3

US

Concession Advisor 2010

Port of New Orleans Container Terminal

$150 million Manatee County Port Authority

Options for capital improvement and terminal expansion

US

Financial and Concession Advisor 2012

Port of Manatee

$2.4 billion Ontario Teachers’ Pension Plan

Container terminal acquisition Canada, US

Transaction Advisor 2007

North American Container Terminals, NY/NJ/Vancouver

$600 million Advent International

Acquisition of an active concession Brazil

Equity Advisor 2011

Port of Paranaguá Container Terminal

$800 million Lyttelton Port of Christchurch

P3 Port Merger New Zealand

Economic Advisor 2009

Port of Otago and Lyttelton Port

$2 billion QIC, CPPIB & AimCo

Port privatization Australia

Regulatory Advisor 2013

Port Botany and Port Kembla

12

Airport Experience of Our Senior Professionals


$1 billion Advent International

International airport concession Brazil

Equity Advisor 2012

Guarulhos International Airport

$250 million International Finance Corporation

Options for concessioning four airports Jamaica

Concession Advisor 2010

Norman Manley Airport

$600 million Highstar Capital/Asur Consortium

P3 airport concession Puerto Rico

Equity and Lenders Advisor 2013

Luis Muñoz Marin International Airport

$300 million UBS

Concession for a second runway Colombia


El Dorado International Airport

$187 million Christchurch International Airport

Commercial Strategy for airport pricing New Zealand

Commercial Advisor 2010

Christchurch International Airport

$135 million National Investment Bank of Jamaica (Now Development Bank of Jamaica Ltd.)

International airport privatization Jamaica


Sangster International Airport

13

Surface Transport Experience of Our Senior Professionals


$900 million Transurban & Fluor

Highway P3 transaction US

Lenders’ Due Diligence Advisor 2012

I-95 High Occupancy Express, Managed Lanes (HOT/HOV)

$900 million Inter-American Development Bank

160km toll road development Brazil

Technical, Market, and Financial Advisor

2002

Sistema Anchieta-Imigrantes Toll Road (Lot 22)

$2.1 billion Macquarie & Skanska

Extension of MLK Freeway US

Lenders’ Technical and Traffic Advisor 2012

Midtown/Downtown Tunnel, MLK Freeway

$2.5 billion

Indonesia Infrastructure Guarantee Fund

Preparation of a coal hauling railway Indonesia

Financial Advisor 2012

Central Kalimantan Coal Railway

$2.6 billion Government of Victoria

Franchise reorganization and concession retender

Australia

Contract Advisor 2002

Australian Rail and Tram Franchises

$500 million Inter-American Development Bank,

Financial Security Assurance, & Dexia

P3 toll road development Chile


Santiago-Valparaíso-Viña del Mar Toll Road

14

Water Sector Experience of Our Senior Professionals


$250 million

Multilateral Investment Guarantee Agency

Evaluation of a water supply project Jamaica

Financial and Economic Advisor 2010

Jamaican Water Supply Project

$100 million Indonesia Infrastructure

Guarantee Fund

Bulk water P3 project appraisal Indonesia

Financial Advisor 2012

$2.3 billion Ontario Teachers’ Pension Plan &

Hastings Funds Management

Desalination plant asset acquisition Australia


Sydney Desalination Plant

$300 million Inter-American Development Bank,

Obrascon Huarte Lain Group

Reverse osmosis desalination plant Chile

Technical and Market Due Diligence Advisor 2002

Antofagasta Seawater Desalination Plant

Bandar Lampung Bulk Water Supply Project

$197 million

Hawke’s Bay Regional Council

Demand forecast for irrigation project New Zealand

Strategic Advisor 2012

Ruataniwha Plains Water Storage Project

$750 million International Finance Corporation

Wastewater treatment P3 Egypt

P3 Advisor 2008

New Cairo Wastewater Treatment Plant PPP Project

15

Why Engage Us?


You can rely on a Castalia report.

Our commercial and technical insights help clients assess value, mitigate risks, and structure workable procurement and financing strategies leading to acquisitions, divestments, and Public Private Partnerships

We step in quickly and work to the pace and granularity required by the investor and lender community

We have the bandwidth for a full diligence effort given our global reach and access to best of breed, independent asset specialists

We’re independent, objective, and have global best practice experience

We have a track record of helping our clients take projects to market

16 www.castaliacapitaladvisory.com

Yuval Cohen, Managing Director

Dr. Yuval Cohen is a project financial and economic advisor with over 27 years of experience in built

infrastructure throughout North, Central and South America, Central Europe, and the Middle East. With hands on

experience advising on closed transactions on projects currently in operation, his financial, economic, technical,

business case assessments have supported over US$15 billion in closed capital raised for roads, airports, rail,

water/wastewater treatment and ports/container terminal acquisitions in North and South America and Europe,

with an enterprise value several times that amount.

Yuval played a key role in many of the largest privately financed infrastructure transactions that have recently

achieved financial close in the Americas. He was lead equity advisor to the Highstar Capital/Asur consortium

awarded the 40-year concession for the Luis Marín Muñoz, San Juan Airport in Puerto Rico that reached financial

close in February 2013, the first US-regulated airport to undergo a P3.

He was lead technical and traffic advisor for the US$2.1 billion Midtown Tunnel P3, and on the US$0.9 billion I-95

Express Lanes P3, both in Virginia, both achieving financial close in 2012. He led the equity advisory team for

the largest (US$2.4 billion) syndicated North American port financing in 2007, Ontario Teachers’ acquisition of

four container terminals in NY/NJ and Vancouver. He also served on other award winning transactions in South

America, including the transport deal of the year in Chile, the Santiago-Valparaíso-Viña del Mar toll road, and the

Rodoanel, Colinas, Tiete and Nascentes Toll Roads in Brazil. More recently, he led the equity advisory team to

the winning bidder for the Goethals Bridge P3 in New York/New Jersey.

David Ehrhardt, Managing Partner and Chief Executive

Mr. David Ehrhardt is CEO of Castalia, a firm specializing in policy, economic, and strategic business consulting.

With 30 years of advisory work in more than 60 countries worldwide, Castalia is a leading expert on P3

transactions in infrastructure and has worked on a wide variety of P3 programs and projects. We have

determined effective P3 structures, risk allocation arrangements, and policies for managing financial obligations

associated with P3 transactions.

David is a recognized expert on P3 with more than 20 years of experience with P3s. He has designed,

implemented or advised on P3s and privatizations in Australia, New Zealand, Europe and many other countries.

In the transportation sector he has designed or managed five P3 projects totaling US$4.4 billion in value. In water

he has advised on ten P3 projects worth over US$1 billion in total. In energy and telecommunications he has

designed or managed more than eight P3 transactions with a value in excess of US$11.6 billion.

Our Senior Team

17

Our Senior Team


Alex Sundakov, Managing Partner and Executive Director

Mr. Alex Sundakov is Executive Director of Castalia. He joined Castalia after a career spanning the New

Zealand Treasury, the International Monetary Fund and serving as the Director of the New Zealand Institute

of Economic Research. Alex is based in Sydney, Australia.

Alex brings a unique combination of public policy leadership and commercial experience. Since 2003, he

has advised on numerous transactions for private clients, national and municipal governments, and

international institutions. In the water sector, he recently led a team that provided regulatory advice to

Hastings Fund Management and the Ontario Teachers’ Pension Plan, the successful bidder for the US$2.4

billion Sydney Desalination Plant. Alex also recently advised the Indonesia Infrastructure Guarantee Fund on

the appraisal of a US$100 million guarantee to a prospective Build-Operate-Transfer (BOT) contractor of a

bulk water supply project in Lampung.

In energy in the last five years alone, Alex has advised on deals totaling over US$13 billion for some of the

biggest private sector clients in Australia and New Zealand.

Gary Conway, Director

Mr. Conway is an experienced corporate finance professional with 20 years of experience advising large

corporations, governments and investors on strategies reviewing, developing, financing, and restructuring

large infrastructure and resource related projects across a number of jurisdictions. He has a strong focus on

providing business strategy and operations advisory leadership and implementing high impact strategic

initiatives. Gary has a sound understanding of risk management frameworks, methodologies and risk

allocation practices.

Gary is a resilient, outcome focused negotiator with a strong commercial acumen. He is experienced in

contract management including developing, structuring and negotiating large, complex contracts and

transactions with multiple stakeholders. Gary is proficient at leading numerous transactions simultaneously

and able to galvanize multi-disciplinary teams to deliver superior results, often within tight time frames and

budget.

18

Castalia Staff Deal Experience


Name Transaction Value

(US$ billion) Country Role Work Tasks Status

Midtown / Downtown Tunnel 2.1 USA Buy-side Lenders' technical and traffic advisor for Macquarie and Skanska consortium for the extension of the MLK Freeway. Achieved financial close in April 2012

Closed

I-95 High Occupancy Express 0.9 USA Buy-side Lenders' due diligence advisor to Transurban and Fluor for PPP for I-95 highway. Achieved financial close in July, 2012

Closed

Denver Eagle Fastracks P3 Rail Concession - Rail Transit Denver

1.6 USA Buy-side Lenders' technical advisor to RTD (Macquarie and Fluor), equity investors Lloyds Banking Group and John Laing

Closed

I-495 Capital Beltway HOT Lanes 2.2 USA Buy-side Lenders' due diligence advisor, construction oversight provider during post-close period to Transurban and Fluor for PPP for I-495 highway

Closed

Development of Ruzizi III Hydropower Plant

0.6 Burundi, Rwanda,

DR Congo Sell-side

Financial advisor on a consortium engaged by Energie des Grands Lacs (EGL) to structure and procure a 147MW hydropower plant. Scheduled financial close in 2013

Imminent Close

Eraring Power Station and Retail Assets 3.3 Australia Buy-side Competition Advisor for Origin Energy on bid packages for state-owned electricity retail and generation businesses. Transaction closed in March, 2011

Closed

Powerco Acquisition 1 Australia, New

Zealand Buy-side

Market advisor for Queensland Investment Corporation (QIC) for the purchase of 50% of Powerco from Babcock and Brown Infrastructure. Achieved financial close in 2008.

Closed

Sydney Desalination Plant Privatization 2.4 Australia Buy-side

Advisor to Hastings Fund Management (HFM) and the Ontario Teachers’ Pension Plan (OTPP), the successful bidder for the Sydney Desalination Plant (2011)

Closed

Ninh Binh - Bai Vot Expressway Concession 2.6 Vietnam Sell-side

Financial Advisor to the Ministry of Transport on the design of a Build-Operate-Transfer transaction for a 220km greenfield expressway (2013). Financial close scheduled for 2018

Pending Close

Corredor Pacifico Highway Concession 2.6 Central America Sell-side

Financial advisor to Inter-American Development Bank for the design of the financing structure for a 2,300 km road in 2011. Deal did not reach financial close

Did not reach financial close

19





Tekapo Hydropower Plant 0.6 New Zealand Buy-side

Financial advisor to Genesis Energy on the acquisition of the 185MW Tekapo A&B hydropower stations from Meridian Energy. The negotiations were concluded successfully in 2011

Closed

North American Container Terminals 2.4 USA, Canada Buy-side

Transaction advisor to Ontario Teachers' Pension Plan for the acquisition of container terminals in Canada and the US from OOIL, North America. Largest syndicated deal in North America, overall North American Deal of the Year 2007 (Project Finance Magazine)

Closed

Port of Paranagua Container Terminal 0.6 Brazil Buy-side Equity advisor to Advent International for the acquisition of concession for container terminal at Brazil's third largest port. Achieved financial close in 2011

Closed

Luis Munoz Marin International Airport 0.6 Puerto Rico Buy-side Equity and lenders advisor to the Highstar Capital and Asur Consortium for successful P3 airport concession. Achieved financial close in February, 2013

Closed

Guarulhos International Airport 1 Brazil Buy-side Equity advisor to Advent International for the acquisition of concession for Guarulhos International Airport. Advent was not awarded the bid

Unsuccessful Bid

El Dorado International Airport 0.3 Colombia Buy-side Transaction advisor to UBS for a concession for a second runway in El Dorado international airport. Achieved financial close in 1993

Closed

Sangster International Airport 0.1 Jamaica Buy-side Advisor to the National Bank of Jamaica (NIBJ) for successful concession of Sangster International Airport to MBJ Airports Limited in 2000

Closed

Central Kalimantan Coal Railway 2.5 Indonesia Buy-side Financial advisor to the Indonesia Infrastructure Guarantee Fund (IIGF) in the preparation of a coal hauling railway transaction in 2012

Pending Close

Sistema Anchieta-Imigrantes Toll Road 0.9 Brazil Buy-side Advisor to IDB and other senior lenders on a bid to develop a 160km toll road in Sao Paulo (Lot 22). Reached financial close in 2002

Closed

Santiago-Valparaiso-Vina del Mar Toll Road

0.5 Chile Buy-side

Advisor to IDB, FSA, and Dexia for toll facility involving new tunnels, refurbishment of existing tunnels, major viaducts and so on. 2002 Project Finance Magazine Transport Deal of the Year

Closed

20





Lot 12 Castello-Raposo Toll Road, Viaoeste 0.7 Brazil Buy-side

Transaction advisor to IDB and senior lenders, all services leading up to and following financial close including monitoring ongoing construction, maintenance and operations of the 170-km long toll road

Closed

Madden Trans-Isthmus Corredor Norte with extension to Madden

0.3 Panama Buy-side Transaction advisor (financial, T&R and technical) to Citigroup arranging financing, and to Odebrecht for this major 58-km toll road refinancing

Closed

Linha Amarela Toll Road, Rio de Janeiro 0.5 Brazil Buy-side

Transaction advisor to OAS Construtora concessionaire seeking to develop concession for major new start-up toll road in the Municipality, performing T&R, technical and financial services

Closed

Rosario-Victoria Bridge 0.5 Argentina Buy-side

Transaction advisor to IDB and senior lenders on behalf of Impregilo, all services leading up to and following financial close for this 60-km wide new bridge, including key environmental services

Closed

Development of Rail and Tram Franchises 2.6 Australia Buy-side

Contract Advisor to Government of Victoria on Melbourne's train and tram development through franchises reorganization or concession retender in 2002. Government awarded Yarra Trams with a new concession

Closed

Development of 360MW Power Plant Tender

0.6 Jamaica Buy-side Transaction advisor to Armorview Holdings in bid to develop a 360MW power under contract with Jamaica OUR

Pending Close

Strategy for Development of Lignite-to-Liquids Plant

8 New Zealand Buy-side Economic and strategic advisor to Solid Energy NZ (largest state-owned coal company) on the development of lignite-to-liquids plant in 2008.

Pending Close

Acquisition of Ilijan and St. Rita Power Plants

3.4 Philippines Buy-side

Market and strategy advisor to AES for the acquisition of Mirant Global's 2.2GW of coal and gas-fired generation assets in the Philippines. Plants were sold to a Marubeni-led consortium in 2007

Closed

Acquisition of Masinloc Power Plant 0.9 Philippines Buy-side

Market advisor to AES for the successful acquisition of the Masinloc 600MW coal-fired plant from the Power Sector Assets and Liabilities Company (PSALM) in 2007

Closed

Acquisition of Ambuklao and Binga Power Plants

0.2 Philippines Buy-side

Market advisor to AES for the successful acquisition of the Ambuklao and Binga 200MW hydropower plant from PSALM. Plants were sold to SN Aboitiz Power in 2007

Closed

Acquisition of Calaca Power Plant 0.4 Philippines Buy-side Market advisor to AES for the acquisition of the Calaca 400MW coal-fired power plant from PSALM. Plant was sold to Suez-Tractebel in 2007

Closed

21



Valuation of Jamaica Public Service Company Limited (JPS)

0.6 Jamaica Buy-side

Valuation advisor to DB&G—largest investment bank in Jamaica—in possible acquisition of 80% interest in JPS, the country’s national electricity utility. DB&G ultimately chose not to bid

Unsuccessful Bid

BOT Lampung Bulk Water Supply Project 0.1 Indonesia Sell-side

Financial advisor to the Indonesia Infrastructure Guarantee Fund (IIGF) on the appraisal of a guarantee to prospective Build-Operate-Transfer (BOT) contractor of a bulk water supply project in 2012

Pending Close

Antofagasta Seawater Desalination Plant 0.3 Chile Buy-side Advisor to IDB, Obrascon Huarte Lain Group on major new seawater reverse osmosis plant construction. Achieved financial close in 2002

Closed

Concession Contract for Water Supply in Metro Iloilo

0.3 Philippines Sell-side Transaction advisor to the Board of the Metro Iloilo Water District (MIWD) on its attempt to introduce a concession contract in 2009

Pending close

Development of Salto Y-Y Power Plant 0.5 Nicaragua Buy-side Market and financial advisor to sponsor of a 25MW hydropower plant in Nicaragua in 2007. Work included advice on capital raising

Pending Close

Acquisition of Duracom Power Barge 0.2 Philippines Buy-side Technical and market advisor to Deustche Bank for the acquisition of a 242MW heavy fuel oil (HFO) power barge in 2007

Pending Close

Acquisition of New South Wales Ports 2 Australia Buy-side

Advisor to QIC, CPPIB & Aimco bidding for the privatization of the Ports of Botany and Kembla in New South Wales in 2012. Consortium failed to win the bid

Unsuccessful Bid



22

New York T +1 (646) 632 3770

200 Park Avenue, Suite 1744

New York, New York 10166

Washington T +1 (202) 466 6790

1747 Pennsylvania Avenue NW

Suite 1200

Washington, D.C. 20006

Sydney T +61 (2) 9231 6862

36-38 Young Street

Sydney, NSW 2000

Australia

Wellington T +64 (4) 913 2800

Level 2, 88 The Terrace

PO Box 10-225

Wellington

New Zealand

Paris T: +33 (1) 45 27 24 55

7 Rue Claude Chahu

Paris 75116

France

Bogotá T: +571 6466626

Carrera 7 No. 99-53

Torre 1, Oficina 1424

Bogotá, Colombia

[email protected]

Sydney, Australia

[email protected]

Wellington, New Zealand

[email protected]

Paris, France

[email protected]

New York, USA

[email protected]

Washington, D.C., USA

[email protected]

Bogotá, Colombia

For more information please contact:

[email protected]

Castalia Capital Advisory - Strategic · PDF fileUBS Concession for a second runway Colombia...

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