infrastructure investment world europe 2013

8/13/2019 Infrastructure Investment World Europe 2013

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Infrastructure Investment World 2013Building for 22ndcentury London

Mike Gerrard

Managing Director, Thames Tideway Tunnel


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A major UK infrastructure project with an

estimated cost of 4.1bn

Vital to Londons future and a priority for the

Government and Ofwat

Financed by private sector investors and

benefiting from an enhanced regulatory

framework and Government support

Competition to launch 2014


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Population increase in

London in the last century...

... has created 2 problems:

Overloaded sewage

treatment works;

discharging directly

into the river afterrainfall

Overloaded sewer

network; discharging into

the river via CombinedSewer Overflows (CSOs)


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Acton Storm Tanks


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West

Bam Nuttal, Balfour Beatty, Morgan Sindal JV

Costain, Vinci, Bachy JV

Dragados, Samsung JV

Ferrovial Agroman, Laing ORourke JV

Central

Bam Nuttal, Balfour Beatty, Morgan Sindal JV


Ferrovial Agroman, Laing ORourke JV

Skanska, Bilfinger, Razel Bec JV

East Bam Nuttal, Balfour Beatty, Morgan Sindal JV


Bechtel, Strabag JV

Bouyges Travaux Publics

Hochtief, Murphy JV


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A new dedicated perpetual utility company

(Infrastructure Provider IP)

Flood and Water Management Act 2010

Regulated by Ofwat

Supported by Government

Established by competition


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Sponsored by Thames Water

Project manager CH2M Hill

Planning application submitted

Close cooperation with Lee Tunnel and Crossrail

Development of IP resources


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Land assembly

Tender manager construction and IP

Interface works

Billing customers

Precluded from bidding for the IP


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A unique opportunity to invest in a new UK regulated utility

company

~1bn equity opportunity

Familiar regulatory framework but enhanced in certain key areas

cost of capital bid by investors and fixed up until project

acceptance

investment remunerated during constructiondividend yield

during construction

Government support will further protect investors

sharing of certain risks mitigation of exceptional events,

including where this offers customer better value for money

total investor funding requirement capped

Investors do not need project delivery expertise the IP will

already have this


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Planningapplication

submitted

Start

construction

procurement

IP market

engagement

Start IPprocurement

Planningdecision

Binding bids

due before end

2014

IP financial closeand licence

award

Construction

contracts award

Start early

works/

mobilisation


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infrastructure investment world europe 2013

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