2 October 2004 LAWFUEL – Best law news, legal, attorney, law firm,…

2 October 2004 LAWFUEL - Best law news, legal, attorney, law firm, PPP deals news Clifford Chance brings the first Motorway PPP in Hungary to a happy ending Clifford Chance has been instrumental in bringing the EUR 750 million M5 PPP motorway project to a successful financial close in Budapest on 22 September. A team of finance and corporate lawyers led by Péter Köves, managing partner of the Budapest office, have been advising the Ministry of Economy and Transport of Hungary extensively since the beginning of the year on what is understood to be a landmark transaction. The first phase of the transaction, which included the acquisition of a shareholding by the Hungarian State through the state-owned motorway operator (ÁAK Rt.) in the Concession Company (AKA Alföld Koncessziós Autópálya Rt.), was closed in March 2004. The first phase also saw the M5 toll motorway brought into the national vignette system of the Hungarian motorways. Following the relevant amendments to the concession agreement, the first Hungarian PPP structure was implemented on the basis of the availability fee model. The second phase of the Project included the refinancing of equity and debt; the provision of a construction project loan for Phase 2 of the motorway; the ongoing restructuring of the concession agreement-based contractual system and the refinancing of the existing debt of the Concession Company. Gavin Teague, a partner at Clifford Chance London office contributed international PPP expertise to the first phase of the transaction, which is regarded as setting a precedent by both government and the business community in Hungary and in Central Europe. Istvan Csillag, Hungarian Minister of Economy and Transport, said: "This is a truly ground-breaking transaction, the first of its kind in Hungary, and the professional advisers have contributed significantly to the success of the project. I am convinced that the success of the M5 will give a boost to the smooth implementation of the M6 motorway project currently taking place, as well as underlining the importance of the PPP structure in the rapid development of infrastructure sectors in Hungary and the whole CEE region".

2 October 2004 LAWFUEL – Best law news, legal, attorney, law firm,…

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