Global experience, where it's neededwww.altracapital.com

Altra Capital is a high level independent advisory group established to review, design, implement, and finance strategic and complex projects.

Altra Capital is predominantly active in infrastructure and public-private partnerships.

Altra Capital specialises in the provision of procurement, management, capacity building, financial and legal advisory services for the financing of infrastructure in all sectors; and especially to support public sector clients in the international market. The team was created to bring together global PPP experts, all of whom have been active in the evolution of PPP since its inception. Altra Capital offers a full range of transaction advisory services.

Altra Capital makes the best case for any good project. One of its skills is in developing ‘bankable’ project feasibility studies, business cases and financial models; supporting projects that are able to attract debt or equity finance.

Our team has extensive experience in all stages of the project cycle and understands the priorities of each stage. We will work closely with our clients throughout, and by preference in an integrated team. The Altra Capital team comprises of very senior experts that know each other well and can interact as a single entity, bringing together the entire set of skills to provide seamless, high-quality services wherever you are located around the world.

Our companyGlobal

experience, world-class expertise

Altra Capital is committed to encouraging social improvement by placing an ethical approach to business at the core of its activities. From our work in developing infrastructure programmes and strategies internationally, we recognise the challenges facing emerging economies, from the unlocking of economic growth by closing the infrastructure gap in Latin America and Africa to the benefits of building a robust private sector in the rapidly expanding economies of the GCC. There is global competition for the strategy, structuring and financing skills to deliver successful projects. Altra Capital is committed to bringing world-class expertise and the best global experience wherever it is needed, to deliver projects that will have positive social impacts and bring economic growth.

Altra Capital was formed to apply the skills and experiences that its principals have built up over thirty years. At the centre of Altra Capital’s approach is the transfer and exchange of knowledge and best practice on account of our expertise, innovation and partnerships. By preference we work closely with our clients using integrated delivery methods to develop skills and build capacity within our clients’ organisations.

Altra Capital’s team also works with and teaches at London School of Business and Finance, London Guildhall Faculty of Business and Law, Birmingham University, Bristol University, Brunel University, Moscow School of Economics and Universidad de Los Andes, Bogota.

“Altra Capital is committed to bringing global experience wherever it is needed, with the skills required to deliver the strategy, structuring and financing for projects that will have positive social impacts and bring economic growth”

John Davie, Chairman John Davie, our chairman, is a visiting professor at the London Guildhall Faculty of Business and Law. He served as chairman of the UK Government's Advisory Group on Public Private Partnerships for two 3 year terms and as a member of the UK Financial Services Sector Advisory Board. He is a past Chairman of British Expertise and a founder member of UK Islamic Finance (UKIFS).

Geoff Maynard, Managing Director Geoff Maynard has held leading senior positions in both the private and public sectors. He is an expert in privatisations and operational management and has undertaken a wide range of business consultancy and strategic planning commissions in the transportation and infrastructure sectors.

Geoff is very experienced in all aspects of the railway industry, having held senior director positions within the UK’s rail industry and has led a number of strategic projects advising the British Rail Chairman. He is Chairman of Greener by Design, the Aviation Industry’s environmental and economic sustainability think tank.

Tony Smith, Director Legal Services Tony is a UK qualified lawyer with over 20 years of practice during which he has been a partner in a number of major international laws firms. He is a specialist in infrastructure, construction and PPP projects and has advised on many major PPPs in transport, health, education, defence, accommodation, energy and waste to energy in Europe, the Middle East, the Far East and Africa. Tony is a member of the United Nations PPP Team of Specialists, and has served as the Head of the UN PPP Readiness Task Force.

Lloyd Schultz Bolívar, Head of Investment Banking Lloyd Schultz is Altra Capital’s Head of Investment Banking and principal adviser on Private Equity. He is a director of Syntaxis Capital, a private equity mezzanine firm with circa €250 million under management. Lloyd trained as a

lawyer and was admitted to the New York Bar, but has spent much of his professional career as an investment banker in London. He has over 25 years’ experience in capital markets and corporate finance.

Stephen Harris, Director PPP Stephen Harris is a director of Altra Capital and an internationally recognised expert in PPP. He is the chairman of TheCityUK Public Private Partnerships and Projects Group and an advisor to the UK government on large international infrastructure projects; specialising in PPP in emerging markets. He has worked with over 60 countries around the world in developing their PPP agendas.

Amongst Stephen’s published work is a paper for the Inter- American Development Bank which is widely quoted and was used as the principal training document by the government of Brazil when starting their PPP programme He is also a co- founder of the Turkish PPP Association (Istanbul).

James Davie, Associate Director LatAm After reading architecture in London James studied finance at the Association of Chartered Treasurers. He joined Altra Capital as a Project Manager, where he has worked in the UK, the Middle East and Latin America. James oversees many of Altra Capital’s financial modelling activities and has worked on PPP Readiness programs for the Saudi Arabian government, and feasibility studies in Spain and Libya. He is based in Santiago de Chile, developing LatAm business opportunities for the company.

Cristobal Pollman Loosli, Associate Director LatAm Cris is an engineer with a masters in business and finance. He is one of our experienced project and programme managers who has been involved with international rail projects in several countries. This has focused in transport operators in Sao Paulo, Rio de Janeiro and Santiago de Chile including an “over-station” development programme for Metro de Santiago. He has also managed multi-disciplinary teams for projects for Transport for London.

Our senior team

Specialising in infrastructure

Altra Capital was created on the back of the United Kingdom being the first country to commercialise and privatise its essential infrastructure. At the very heart of Altra Capital’s international mission lies an ambition to enable emerging economies to be able to provide good infrastructure and reliable public services.

The single most important thing that government must do to attract investment in essential services and infrastructure is commission very high quality project development work. Altra Capital provides the quality required using its highly experienced advisers.

Attracting investment

“Altra provides business plans and investment material that meets the standards that international investors expect. We are familiar with the specific needs of major projects in expanding economies”

Our senior team has been involved in many aspects of international infrastructure developments for several decades. Our extensive experience encompasses both government and the private sector in developing medium and long term investment plans and then helping to deliver them.

Altra Capital has a multi-skilled and multi-sectoral team that specialises in transportation and aviation infrastructure. This team has been providing advisory services to government agencies, banks, investors and infrastructure investment companies,

Cardiff Airport

Access Study The Welsh Assembly required an integrated transport Strategic Master Plan for the South Wales region. The existing Cardiff Airport was to be a core element of the transport plan identifying the opportunities that better transport connectivity of the airport would present to the region. The associated costs were to be carefully assessed.

A hand-picked team was assembled to consider the transport aspects of the development combining improvements to Cardiff Airport and better access to the rail network.

Initially our transport consultants analysed the airport’s growth potential and developed a land use plan and associated commercial development potential together with surface access infrastructure improvements.

To meet the development plans, a wide variety of transport options to improve access were considered. These included new road links, alternative locations for the passenger terminal, new bus services, a new railhead station on a reopened freight line, and a new direct rail link. This comprised extending Inter-City train services, which currently terminated at the main Cardiff station to the airport, by re-opening a freight railway

and laying 1.5 km of new track to create a new station within the airport. Various alignments for the route into the airport were considered, influenced strongly by the challenging topography of the site close to the sea.

The costs, revenues and impact of the various options were considered, including the impact on the local rail network. Firm recommendations were made, together with the likely impact on the airport catchment area and its anticipated growth. The recommendations were accepted and the new railhead station on the re-opened freight line is now in operation.

Case study

Airports and aviation Altra Capital’s senior management team has been involved in advising on the financing of airports in many countries, such as UK, Belgium, India, Hungary and Jordan. We have advised on other major aviation projects in Bahrain, Abu Dhabi, China, Macau and Bulgaria. In addition to airport projects our clients include airlines, civil aviation authorities and governments.

Among the more specialist projects in the civil aviation sector, our people provided the leadership of the privatisation of UK NATS, the development of the national en-route centre in Bulgaria, and setting up the CAA of Swaziland including drafting the new CAA law. Our managers were involved with the development of Beijing International Capital Airport’s 43 million passengers Terminal 3, the world’s biggest airport terminal, and Heathrow’s 35 million passengers Terminal 5, the world’s most advanced airport terminal.

Our managing director is the chairman of the Aviation Industry Greener by Design aviation think tank and lectures on aviation matters at Brunel University.

Rail Altra Capital’s senior management has significant experience in the rail sector including passenger, freight and metro projects in China, North Africa, Central Europe and the UK.

Our Managing Director, Geoff Maynard, has extensive experience of specifying and designing new lines, having led the British Rail team specifying Crossrail, the new cross-London route, and the new Thameslink services, both under construction. He also led teams examining operation and design issues on the now completed Channel Tunnel Rail Link, and the proposed southern link to Terminal 5 at London Heathrow’s airport. He also has extensive experience of heavy freight transport in the United Kingdom, having led the rail teams moving coal in the North of England and Scotland, and also the Iron and Steel operations nationally. Geoff is recognised as an expert in the sale and acquisition of infrastructure assets.

infrastructure owners and operators, regulators, and others.

Our experience covers social development and public services programmes, airports, air traffic control systems, roads, railways, bridges, hydroelectric dams, power plants, water projects, gas pipelines, aluminium smelters, mobile phone networks, hospitals, schools and housing; identification of financially viable projects in many regions of the world, and structuring of these projects as PPPs, concessions, etc.

Our team is accomplished at devising and refining financing structures for major projects and where appropriate helping in the development of funding sources. Our people understand the modelling techniques and key parameters used to assess viability, create sustainability and measure performance, particularly under adverse market conditions. We have developed financing structures to source available funds that can be applied to unusual and demanding situations.

Public Private Partnerships (PPP)

Altra Capital’s team has been involved in modern PPP since its introduction over 20 years ago, and has been proactive in the internationalisation of the concept. PPP has seen many changes and our team benefits from an intimate involvement in that evolution. Altra Capital is experienced at assisting governments to build their PPP strategy and in structuring projects to international standards, thus ensuring optimum value for money and high standards of service delivery.

Our team has worked with over 75 countries around the world taking forward their PPP agendas; writing numerous papers on PPP; and delivering high-quality training on PPP in many countries. We have extensive experience of devising and implementing PPP and infrastructure projects in Africa, Asia, the Americas and the Middle East, as well as in Europe. Projects our consultants have organised range in size from $1million to $5000 million, and include social and services projects, airports, air traffic control systems, roads, railways, hydroelectric dams, power plants,

Liberating innovation

water projects, waste and waste water projects, gas pipelines, aluminium smelters, mobile phone networks, hospitals, schools and hotels. Altra Capital is uniquely placed to offer this advice in emerging economies, bringing its global experience wherever it is needed.

PPP can bring real and tangible benefits to countries with infrastructure deficits. One of the key principles behind PPP is that they transform Government departments from being owners and operators of assets into regulators and purchasers of services from the private sector. This has important implications and often requires work culture and mind-set change; altered work ethics and new corporate governance models. The introduction of transparency and competitiveness is essential.

A key part of a PPP project is ascertaining the most appropriate structure for a PPP project. Expert advice is essential to get the best out of this concept. Altra Capital, with its wealth of international experience of the investable options for PPP, has the expertise to deliver expert advice.

“PPP can bring real and tangible benefits to countries with infrastructure requirements”

Members of the Altra Capital team have worked with the UK Treasury, Partnerships UK, World Bank, EBRD, UNESCAP, UNDP, UNECE, USAID, Asian Development Bank, the PPS Unit in Mexico, South Africa, Jordan, the Turkish Privatisation Unit, the Malaysian Prime Minister’s Office, the Department of Economic Affairs in India, the Ministry of Labour in Saudi Arabia and many others.

Altra Capital is proficient in the interfaces between the public and the private sectors; interfacing with private sector investors, financiers and operator; and in managing bidding teams.

Altra Capital is at the forefront of PPP development and promotion of the knowledge required by those involved in them. Altra Capital’s PPP programmes have formed a vital part in building capacity within the many countries. They are based on international best practice and draw on our experience devising and implementing PPP strategies internationally, providing insight into reasoning behind the theory and exploring ways that PPPs can be adapted to new situations. With some of the most competent in-house skills, Altra Capital concentrates on PPP as end-to-end processes.

Air Traffic PPP, UK Public sector promoter: UK Department of Transport

Private sector partner: The Airline Group – consortium of airlines: British Airways, British Midland, Virgin, Britannia, Monarch, EasyJet and Airtours

Financing: Abbey National, Barclays, HBOS and Bank of America

The UK government’s decision to create a PPP for UK National Air Traffic Services (NATS) was based on an estimation that it required £100 million of additional capital investment every year for the next decade to increase air traffic control capacity to meet future traffic growth. The government also wanted to:

• Maintainandimprovesafetyandnational security

• Secureaccesstoprivatesectorcapital

• Secureaccesstoprivatesectormanagement expertise

• Provideincentivestoimprove efficiency • Ensureaccountabilitytousers • Providefreedomtoinvestand undertake business overseas • Provideareturntothetaxpayer

Altra Capital’s Geoff Maynard originally established a performance regime and advised the British Air Transport Association on the impact and progress of legislation through Parliament, then made the formal response on behalf of BATA, and finally along with our chairman, John Davie, managed and co-ordinate the Airline Group’s successful bid activities and compilation of the bid documentation for the PPP of NATS.

The UK Government concluded the PPP with the Airline Group, which was given operational control while the Government retaining a 49% interest in the PPP Company.

NATS performance has improved every year since the PPP. Since the PPP came into operation underlying operating costs have been reduced by 33% (in real terms).

Delays have reduced every year significantly over the last decade, from 109.3 seconds in 2001/1) to 7.0 seconds. It is forecast to reduce to 2.0 seconds.

In its first 10 years NATS has gone from a making a loss of £106.3 million to a making profit of £154.2 million. Dividends are payable to the UK taxpayer through the government’s 49% holding in the company. Gearing (leverage) has reduced since 2001/2 from 112% to 58%.

Case study

International and Islamic finance

Altra Capital brings global experience to wherever it is needed, especially to emerging economies. Emerging economies need the highest quality of investment and financial advisory services at affordable prices. Altra Capital’s commitment to encourage social improvement focuses on that challenge.

Our suite of legal, financial and advisory services is predominantly associated with the private sector financing of the provision of public services and infrastructure. Our

investment and financial services provide a comprehensive offering to both the public and the private sectors. This can be provided all-inclusively or provided in discrete elements.

In emerging economies it is normal for equity sponsors and senior lenders to infrastructure to demand higher returns and tighter terms than the government is willing to accept, and the government to seek to transfers more risks and uncertainties on to the equity sponsors and senior lenders

Opening up opportunities

“Bankability is the degree to which a project is structured to represent an overall risk acceptable to the lenders”

Pre-Acquisition Appraisal

Jordan in association with Arabtech Jardaneh

Intention The current principals of Altra Capital were approached by Arabtech Jardaneh to assist AJ with establishing the viability for one of AJ’s clients, The Kuwaiti Jordanian Holding Company (KJHC), of acquiring an interest in Queen Alia International Airport (QAIA) following the Government of Jordan’s indication that it intended to privatise QAIA through a form of concession.

KJHC wanted to determine the commercial viability of bidding through a PPP concession for QAIA, Amman, Jordan. The assessment was to include feasibility studies, financial analysis and the forecasting the potential for air traffic growth, other services and value-added activity within the airport’s operational land.

Précis Our team, led by our chairman, provided a pre-acquisition assessment providing:

• feasibilitystudies • financialanalysisandforecasting the potential for air traffic growth • othersourcesofincomeand

value-added activity within the airport’s operational land.

Working with the KJHC and various ministry personnel, we were able to oversee and co-ordinate a comprehensive appraisal of the airport, its existing operation and the potential for future economic growth. A feature of this project was to help AJ to develop in-house experience and knowledge.

In forecasting the staffing requirement and hence staff costs a methodology was employed to estimate efficiency by calculating the existing number of passengers

per employee and evaluating this against international good practice. Based on experience, and on a discretionary basis we could bring the ratio back in line with what we would expect to see at this type of airport.

The team reviewed the operations, forecast the potential future growth and prepared the brief for a master plan: a new terminal concept design and phasing proposals. Our specialists then produced a comprehensive financial model for the concession.

Our extensive international airport project experience added to AJ’s extensive experience, offered a one-stop shop to KJHC. The team’s skills were made directly available to the client’s team, allowing a cost-effective answer to its need for detailed information.

Case study

than they are willing to accept. Such issues can be overcome through innovation, expertise and partnerships.

Our ethical standpoint encourages market mechanisms to bring about sustainability and social improvements, and private equity and venture capital to add value when appropriate. We are experienced in Islamic Finance structures, which carry ethical, social, political and religious dimensions that inform their structure; we have developed risk sharing strategies supported by limited government backing to stimulate SME development programmes; created mezzanine funding solutions to advance market confidence in infrastructure investment; and are working on Shariah compliant PPP structures.

Altra Capital undertakes financial

appraisals and cash flow projections to support negotiations to secure equity, mezzanine and debt investment. Bankability is the core to the private sector financing of public services and infrastructure.

Bankability is the degree to which a project is structured to represent an overall risk acceptable to the lenders. Optimizing risk allocation is fundamental to bankability and thereby more closely aligning the interests of stakeholders. At Altra Capital we work on developing comprehensive risk-weighted business plans and financial models.

Altra Capital offers assistance to the public sector for specific projects as Transaction Advisers; including advising on legal and regulatory amendments as well as drafting and negotiating procurement and

contractual documentation. Altra Capital also specialises in the interface with the private sector; advising private sector investors, financiers and operator; managing bidding teams.

Altra Capital combines strategy, structuring and financing. Our services provide project bankability assessments; business planning; project appraisal; due diligence; financial modelling; risk analysis and mitigation; transaction advisory services; refinancing options appraisal; and PPP advisory services

Our investment and financial services team brings over 25 years’ experience in capital markets and corporate finance, private sector debt restructuring, mergers and acquisitions, derivatives, asset trading in emerging markets debt and asset-backed securities.

Strategy

The aim of Altra Capital’s strategy consultancy is to help clients appreciate the risks and opportunities facing businesses, governments and other groups. Altra capital provides clients with an improved understanding of the political and economic climate in which they operate.

There will probably never be a single unified theory of strategy. Academics and some consultants slice up realty to fit their theories. At Altra Capital we realise that managers cannot allow themselves such luxuries; they have to get results from the strategies we put forward.

In developed economies this primarily concerns internal organization and performance. In developing and transition economies this can involve a more wide-ranging set of challenges.

Strategy is considered to be the high-point of managerial activity,

and managers use the word both freely and fondly. Strategy formation is judgmental designing, intuitive visioning, and emergent learning; it is about transformation as well as perpetuation; it has to include analysing before, and programming after, as well as negotiating during its formation.

The Altra Capital strategy consultancy draws on the team’s expertise from assignments in more than 75 countries: expertise built on observing differences in business cultures in mature economies and among developing nations. This diversity of experience enables our professionals to successfully collaborate with different cultures, ideologies and procedures.

Altra Capital’s strategy consultancy provides advice to customers which influence their economic ecosystems, and which may shape the expectations of a customer’s whole enterprise.

Charting the way forward

“Strategy formation is judgmental designing, intuitive visioning, and emergent learning.

Altra Capital’s strategy consultancy develops strategies for our customers that produce sustainable social benefits”

At its heart Altra Capital’s strategy consultancy are three competencies: (i) analysis skills to create good ideas – an ability to know where to go and how to get there; (ii) relationship-building skills that people go along with – an ability to take people along with you; and (iii) project management skills that can be put into practice – an ability to make it happen.

As with all it does Altra Capital aspires to provide world-class advice at affordable prices. Altra Capital’s strategy consultancy compliments our investment advisory work, our legal services and our project management consultancy. Our strategy consultancy contributes strategy, structuring and financing for our projects: all fundamental to the sustainability of a customer’s activities.

At Altra Capital our ethical approach to business produces strategies for our customers that engender sustainable business activities that have a beneficial or favourable impact on people or places. Altra Capital promotes imaginative combinations of management, financial and planning techniques. Altra Capital’s strategy consultancy focuses on creating as better future.

Strategies exist at several levels in any organisation - ranging from the overall business (or group of businesses) through to individuals working in it. Strategic positions can be based on customers’ needs, customers’ accessibility, or the variety of a company’s products or services. Altra provides: stakeholder analysis; vision; mission; corporate finance and business models; organisational structure; governance arrangements, including that of subsidiaries; business development and incubation; operating and governance models; corporate communications; and knowledge transfer.

Altra Capital’s approach to stakeholders is to bring people together to share ideas, tackle challenges and make advances. The impetus is to design positive relationships among stakeholders, both in the external and the internal environments, through the appropriate management of their expectations and objectives.

Examples of our team’s strategy commissions include:

China: Strategy and operations planning for China Air Express

Czech Republic: Strategic advice to Czech Government on development opportunities for Ostrava-Mošnov Airport

Europe: Strategy consultancy to JP Morgan exploring potential intermediary functions to optimise property portfolios

Russia: Advice to Deutsche Bank regarding merger of Yukos and Sibneft

Swaziland: Business development strategy for the National Ministry of Economic Planning and Development, Government of Swaziland; including assessing the market opportunity and producing a clear marketing strategy highlighting the potential to develop tourism to determine the economic benefit to the country UK: Advice to Deutsche Bank on British Energy restructuring

UK: Strategy advisor to major global Investment Bank, working in close harmony with the bank’s New York and London management teams

UK: Financial planning strategy - Portsmouth Continental Ferry Port, UK providing financial planning and investment analysis to model options for full privatisation, JV, concessioning and PPP

UK: Development of cost efficient strategy for procurement of ATC at London Luton Airport

UK: Co-ordination of the IT strategy for the Heathrow Airport Terminal 5 Project – British Airways

USA: Advice to Deutsche Bank on restructuring of UES

Surface Access Strategic Planning Study

AENA-Barcelona International Airport required a surface access strategy that would accommodate the forecasted growth in the airport, deliver passengers to the right terminal, provide inter terminal transport and improve access from the catchment area.

Geoff Maynard led the Strategic Rail Planning team that provided a full analysis of the transport implications for each of the airport’s strategic planning and master planning options.

For each planning option, demand and capacity data for forecasted O&D and transfer traffic, together with modal splits, were analysed and tested against surface access options. Considerable effort was expended identifying possible improvements to the public transport options. These included a new station on the high speed line under construction, a loop on the high speed line to enable some trains to call at the airport, extension of existing suburban rail services,

an extension to two existing metro services to the airport, new bus services and a new light rail (tram) line into the surrounding areas. Each improvement was designed to meet specific needs – travel from the city centre for tourists and businessmen, and travel from the suburbs for Barcelona residents flying from the airport or working at the airport.

Inter Terminal connectivity options included people movers, for airside and landside passenger movements, and the possible use of heavy rail for landside movements.

Each surface access proposal was thoroughly investigated, including establishing service frequencies, journey times, hours of operation, and operating and capital costs. The services were then tested against each demand scenario to establish their financial viability, ability to meet forecasted demands, and for their simplicity of operation. Recommendations were made for each of the demand scenarios, and a proposed staging plan for the improvements was drawn up.

Projects

Case Study

Project management

Altra Capital’s is accustomed to viewing life through the client’s eyes. Our focus is on client needs and value creation, time and cost efficiency, transparency and accountability, ethics and customer service.

Our project management services cover the entire spectrum offering a complete cycle of broad-based services. We aim to provide first-rate advice at affordable prices. We bring flexible, innovative and robust solutions based on many years of world-class delivery, whether business change or physical developments. Altra Capital’s experience and professionalism achieves excellent value for money to customers around the globe, bringing global experience wherever it is needed.

Project management is the application of structured techniques for the planning, monitoring and control of projects with the intent of achieving a successful outcome. Project management is principally about planning and managing processes, identifying and mitigating risks and controlling costs.

Our objective is to maximise the value created at each stage of each real estate project and infrastructure development.

At Altra Capital the project manager will have a good grasp of the roles of the technical, financial, legal, and operational requirement of a project, and is able to take a lead in identifying and agreeing the scope of work. The briefing process is the most important and often the least understood feature

Delivering success

Our team has acted as Project Manager on many major projects. Some examples include: China: Project Management of Beijing International Capital Airport’s 43 million passengers Terminal 3, the world’s biggest airport terminal

UK: Heathrow’s 35 million passenger Terminal 5, the world’s most advanced airport terminal

UK: John Davie, our chairman, with his experience of earlier post-merger bank integration projects and was appointed as the Bank’s Project Manager, working closely with the bank’s New York and London management teams. The services involved Strategy Workshops, Project Management, Planning and Cost Management.

“Our objective is to maximise the value created at each stage of each real estate project and infrastructure development”

of successful infrastructure and commercial development. Where long-term investment and operational commitments are to be entered into, this is critical. The project manager will understand the totality of a client’s objectives and will encapsulate these such that the optimum outcome can be reached. Altra Capital advises governments, financiers and investors, private sector clients, operations and management companies and owner occupiers of facilities.

Our Project Management services include: development management; project management; commercial management; financial modelling and structuring; risk management; operational support; lender's supervision; due diligence; and strategies for developing and transition economies.

Projects

Beijing Capital International Airport, China

The importance of adequate and comprehensive briefing is a core element of the Project Management Process. Members of our team acted as Project Manager to a multi-national design team on one of the world’s largest projects is fundamental. One basic tenet is that it can prove very costly to decide on a particular solution before a full assessment of the clients' and users' needs and problems has been made.

The briefing advice our people provided to the Chinese CAA brought clarity to the project. The brief was consistent within itself, and with other related documents. At each

stage it was complete as far as the project team's understanding and expectations had developed. The final brief was realistic in its aims, resources, context and quality to be achieved.

The brief that our people developed, whilst comprehensive, contained only information and decisions that were relevant to the project. It smoothed the progress and stimulation of communication and discussion within the team of over 1000 professional staff by facilitating the setting of priorities, analysis, problem identification and information flow.

It provided a collective 'thinking through' of the project.

Jinan Airport, China

Following a successful series lectures to the Civil Aviation Administration of China (CAAC) on the commercialisation of airports, Altra’s John Davie was invited to lead the British Consortium that secured, in competition, the design commission for the development of Jinan Airport.

In addition to leading the multi-disciplinary design team, the role included analytical studies to verify forecasted demand and capacity, option studies and operational models, project management and cost management of the master plan and the new terminal scheme design.

We also explored the potential to commercialise the airport in the future.

Case Study

Case Study

Project management is a core expertise at Altra Capital.

Altra Capital’s senior team has been involved in many aspects of international infrastructure and commercial real estate developments for several decades. We are experienced in the area of syndicated property exposure, identification of joint venture partners, maximisation of taxation strategy and developing master plans. We have extensive experience in acting internationally as development managers in every sense of the word.

Altra Capital is a customer-centric organisation which undertakes a broad range of management consultancy services providing solutions that meet today’s business objectives. Its consultants bring relevant technical and industry sector experience, utilize robust and tested techniques and operate in an inclusive manner.

Altra Capital’s legal department supports its clients with advisory services to enable the provision of public services and infrastructure to emerging economies. It is committed to giving exceptional value for money. Altra Capital’s legal services complement our strategy consultancy, our investment advisory work, our project management activities and specifically our expertise in Pubic Private Partnerships (PPP). Our legal services add strategy, structuring and financing: all contributing to the bankability of projects.

Altra Capital’s legal services concentrate on infrastructure, pubic services, construction, real estate and partnership approaches (such as PPP). Altra Capital specialises in devising and implementing procurement strategies for emerging economies. Those who wish to succeed must understand the drivers from the perspective of all the parties involved in a programme.

Appointing professional advisers requires competent scoping and skilful drafting; Altra Capital brings a ‘client perspective’ to framing assignments with consultants; providing procurement advice for, and management of consultants, and assessing output of work performed; advising on a

“The single most important thing that government must do is commission very high quality project development work, using high quality experienced advisers like Altra Capital”

Legal services

A client’s perspective

fair payment mechanism that incentivises the private sector to deliver the specified services throughout a long-term service contract.

Our legal team is actively involved in technical assistance to various governments in developing the necessary regulations and laws to achieve optimal private sector participation in infrastructure and public service delivery. Its experience in developed jurisdictions has been a valuable asset in assisting those emerging economies seeking to develop their infrastructure provision in accordance with international standards.

Among the services Altra Capital undertakes are: Legal and regulatory reviews; legal structures; drafting of laws and regulations, probity reviews; drafting model contracts and master concession agreements (which it has done for a

The team consists of only senior lawyers who have together decades of experience in practical delivery of PPP Projects. The Team leader, Anthony Smith, was for some years Head of the United Nations PPP Readiness Task Force, dedicated to assisting governments around the world in setting up and delivering their PPP programmes and remains a Lead Specialist in the U.N.E.C.E PPP Team of Specialists. The majority of Anthony’s time is now spent assisting Government in drafting Laws, Regulations, and project contracts as well as advising them on procurement strategies and capacity building within Ministries of Finance, PPP Units and Procuring Authorities. He is a well known speaker on the international PPP Circuit and brings over 20 years’ experience of practical PPP delivery in all sectors.

Our depth of experience in legal aspects of PPP delivery in unequalled outside of the major international law firms (where all the members of our team originally came from), but our fee structures deliver significantly better value for money.

We pride ourselves in the experience and worldwide expertise of our team and its ability to deliver that experience and expertise to each project which Altra Capital undertakes.

Unlike most law firms, we do not field junior lawyers on project (in fact, we don’t employ any), only those with an in depth experience that in suited to the project currently being dealt with. We feel that this gives a much better service to our clients as they always have to hand someone whose advice and experience will be of very valuable benefit to the delivery of a project.

Our legal team

Many experts have only worked in mature markets. Altra Capital also has developing economy exposure, offering far greater insight into modifying PPPs to almost any situation. We adapt this unique experience and successfully use the knowledge in developed markets.

There are many examples worldwide, even in successful economies, where projects have been stalled during the procurement process when legal impediments to successful PPP implementation have been discovered and this can have serious effects on the ability of the Country to attract both investors and funders for future projects. Bidding for major infrastructure projects is expensive for the private sector and any doubt as to the readiness of the Country to deliver the project seriously reduces the private sectors appetite to bid.

In 2013, Asian Development Bank were providing technical assistance to the Government of the Kyrgyz Republic to assist them in developing a satisfactory PPP Environment and to work with them in procuring and delivering PPP projects in the Country.

Accordingly, members of the Altra Capital legal team were contracted by Asian Development Bank to conduct a Legal framework assessment of the legal system in the Republic, in order to ensure that there were no legal impediments to PPP implementation in the Country.

We visited Bishkek in October of 2013 in order to review the system of laws in the Country with particular reference to those laws that would be likely to impact on PPP Implementation, and to amend the existing PPP Law in order to bring the law up to international standards. Concerns were highlighted in areas likely to impact successful implementation of projects already in the process of preparation.

Some areas of concern identified were as follows: 1. The budget law, as then drafted, was likely to impede the ability of a procuring authority to enter into contracts which committed them to expenditure for a time greater than 3 years from the execution of the contract - clearly, this was something that needed to be addressed prior to any project procurement process being undertaken

as PPPs involving any payments from the public sector are for considerably longer periods

2. The Law on Concessions and Concession Enterprises needed to be amended to restrict the requirement that all improvements to land under a concession would be the property of the state to mineral resources projects

3. The question of whether the PPP Law should work within the parameters of the Procurement Law or be excluded had to be settled

The PPP Law was extensively reviewed and amended in discussions with the Ministry of Finance and to ensure that it complied with the recommendations contained in the UNCITRAL Legislative Guide to Privately Financed Infrastructure Projects and also to be line with EBRD recommendations.

The amended PPP Law is shortly to be put before the Kyrgyz Parliament, paving the way for the commencement of procurement of the Kyrgyz Republic’s first PPP Projects.

Case study

number of countries); advising on and negotiating contracts; governance models; PPP policy, readiness assessments and implementation action plans; forming special purpose vehicles (SPVs) service level agreements (SLAs), output specification and payment mechanisms; knowledge exchange, training and capacity building both for government and the private sector; and framing assignments with consultants, procurement advice for, and management of consultants.

From a legal perspective, contractual structures for large infrastructure project can be complex and the identification, quantification, mitigation and apportionment of the numerous risk factors within a project can be daunting, particularly when seeking to contractualise the risk apportionment. Altra Capital’s Legal Team is well versed in assisting clients to manage this important part of a project, as well as ensuring that the ‘flow down’ of risk from the Provider to the sub-contractors, insurers and other parties is achieved with optimal value for money for the Authority.

Appendix

Our team’s activities include capacity building for infrastructure development within Government, social infrastructure development and public services programmes, airports, air traffic control systems, roads, railways, hydroelectric dams, power plants, water projects, gas pipelines, aluminium smelters, mobile phone networks, hospitals, schools, sports, defence projects, energy from waste, canals and hotels.

Globally: Altra Capital has produced various studies into developing a sharia compatible for of PPP for providing essential public services and infrastructure by extending the far reaching concepts of the United Kingdom PFI model

Afghanistan: Developing the Master Concession Agreement, Requests for Qualifications, Requests for Proposals, output specifications and payment mechanism for Health PPP Projects, advising on Procurement and PPP Policy formulation, for the Ministry of Public Health in Afghanistan for 3 hospital PPPs as part of the USAID Global Health Project

Bahrain: Economic feasibility study for an island development to establish drivers in demand, increase natural growth in the GCC region, develop a revenue model

Bahrain: Business plan, marketing strategy and operational plan resulting in Bexair (Bahrain Executive Air Services WLL) being launched at the Dubai Air Show 2001. Altra has recently managed the team that is valuing the airline and is handling negotiations for a private placement of equity in the airline.

Bulgaria: Refurbishments and lender’s supervision for DSK Bank

Canada: supporting the Mayor of Calgary in establishing his PPP programme

China: CAAC (General Administration of Civil Aviation of China). The provision of a resource to assist the Chinese Aviation Ministry to develop a culture embracing commercialisation of its aviation sector. Training and advice to the Civil Aviation Authority of China for Airport management

China: Advisor to the Chinese authorities in the rail access strategy for the new lines from Beijing to the giant new Terminal 3 to provide a world-class rail service in time for the 2008 Summer Olympic Games

Cyprus: Larnaca and Paphos Airports, Cyprus. To review the input data upon which the Cypriot government's traffic forecasts - annual passenger, aircraft movement and cargo forecasts for both Larnaca and Paphos Airports for a 20 year period.

Estonia: financial adviser to the State Enterprise Port of Tallinn, the Government of Estonia, for Muuga Port, a major port of the eastern Baltic coast. Provided the State Enterprise with a feasibility study generating options for the financing of the US$500m port expansion

France/UK: Demand study for domestic services on the Channel Tunnel Rail Link

France: Advising on the Seine-Nord Canal PPP Project in France (106Km new build and upgrade)

Ghana: acting for Gadco in the development of large scale sustainable irrigation and agricultural projects in Ghana

Greece: financial adviser to a consortium of Greek companies bidding to design, build, finance and operate the Athens Ring Road.

Hong Kong: financial adviser to a consortium of companies headed by Cheung Kong bidding to build the Route 3 toll road in Hong Kong.

India: delivering PPP workshops and PPP Action-Learning programme for the Minister of Road Transport and Highways

India: acting for an Antilles based Energy Company procuring a 960MW run of river hydroelectric plant in Northern India

Indonesia: financial adviser to the Export Credit Guarantees Department (ECGD, the UK export credit agency) on the Cikampek-Padalarang toll road project in Indonesia

Italy: Aeroporti di Roma. Member of technical advisory team set up by Mediobanca to advise the Gemina Consortium of Italian Industrialists in its bid in response to the public placing

Jordan: Preparation of a pre-acquisition airport business plan for a single action tender for the acquisition of Queen Alia International Airport, Amman, Jordan. This included revenue and cost model analysis and financing for US$ 600m investment.

Latvia: PPP Motorway Project: advice and guidance to the Min. of Transport/Motorway Agency on the payment mechanism for a DBFO motorway project

Libya: Evaluation of the supply and demand factors affecting the market for private healthcare in Libya for the purpose of projecting the likely future demand for an additional private hospital

Libya: Tripoli Urban Express Railway System (Metro). Legal and regulatory advisory services, financial structuring concepts, project management advisory services, technical and operational advisory services, economic and financial models, contract review and legal advisory services

Malaysia: Review of Air Asia for the Islamic Development Bank in respect of investing in equity stake in Air Asia. Strategic study of the low cost airline sector, assessment of suitability of model in far east strategic and review of investors capital model

Mexico: advice to President’s office on PPP policy and communications issues

Mongolia: worked with the World Bank and Asia Development Bank on the MP3IC PPP programme and USAID and UNDP in development of the PPP Unit Capacity Building

Portugal: Financial adviser to a consortium of companies including Siemens and GEC Alstom (now Alstom) in respect of their bid to build, own and operate the North-South Rail Link in Lisbon

Romania: Reviewing the Romanian Law on Public Procurement on behalf of the European Investment Bank

Saudi Arabia: Advising the Saudi Ministry of Labor on a Private Equity Strategy and Public Private Partnership implementation

South Africa: Feasibility study, economic assessment, development strategy and financing options for Wilson’s Wharf Marina and Shopping Centre, Durban

Spain: Initial Public Offering of Ferrovial. Our Head of Investment Banking acted as Transaction Adviser undertaking financial and legal due diligence, including review of all infrastructure concessions and assets; valuation of company; governance; demand assessment, marketing and placement of IPO

Spain: Strategic Rail Planning for the interface between the AGV and Barcelona Airport providing a full analysis of the transport implications demand and capacity data for forecasted O&D and transfer traffic

Sri Lanka: financial adviser to a consortium of companies appointed sole bidder to the Government of Sri Lanka to build, own and operate Galle Port in Southern Sri Lanka

Swaziland: Drafting support to the Attorney General’s office with the preparation of the new CAA Act and supporting regulations to promote an efficient and economical civil aviation system and liaison with the Department of Civil Aviation, ICAO and EU

Trinidad and Tobago: Conducting a PPP in Social Infrastructure Training programme (including Policy formulation, procurement and legal frameworks) for Government officials from Trinidad and Tobago

Turkey: working with the State Privatisation authority to found the Turkish PPP Association

Ukraine: Advising and producing a report on worldwide procurement best practice to Ukravtodor in connection with their proposed procurement of the Kiev Ring Road

UAE: Advising the Abu Dhabi Education Council in connection with a 34 school education PPP

UK: Strategic adviser for the London Cross Rail project, London’s largest planned expansion of the railways system in almost 100 years; leading study into demand and cost/benefits and giving evidence to the Parliamentary Bill Committee

UK: Conducting major operational, business and process reviews for Thameslink 2000 project including directing a successful campaign to secure Government approval and funding

UK: Adviser on the Kings Cross master plan in London

UK: Advised in pre qualifications negotiations for the Tubelines track replacement contract for the Jubilee, Piccadilly, Northern and Metropolitan Lines (London Underground)

UK: Drafted standard construction documentation for Siemens Plc for rail infrastructure projects

UK: Leadership, management and co-ordination of the successful PPP bid to acquire a controlling interest in National Air Traffic Services (NATS) including formulation of the a performance regime for the UK government

UK: Project management of the British Airways main data centre at Heathrow Airport

UK: Procurement strategy for the PPP to provide the Radiocommunications Agency with its new HQ

UK: Feasibility into direct rail access to London City Airport and potential impacts on the airport’s terminal building and land use, resulting in the preferred rail access solution being identified and subsequently incorporated into the Docklands Light Railway’s plans

UK: Advising on numerous landfill and waste disposal contracts including waste-to-energy plants for a major waste operators and public authorities

UK: financial planning strategy for Portsmouth Continental Ferry Port providing the financial planning and investment analysis of model options for full privatisation, joint venture, operations, concessioning and PPP

UK: Advised Roadways Container Logistics Ltd in connection with the connection and operation of the Birmingham International Freight Terminal

UK: Detailed financial appraisal and cash flow to support negotiations to secure incoming equity investors for London Bridge Quarter, one of the most prestigious developments in the world, which features 310 metre high ‘The Shard’ and London Bridge Place

USA: Contribution to the production of a P3 Guidebook on Financial Appraisal for the US Department of Transport Federal Highways Authority.

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