Macquarie announces successful implementation of first toll ordinance in Germany

18 June 2003

FRANKFURT - Macquarie, as adviser to Warnowquerung GmbH & Co. KG (WQG), today announced that the Ministry for Transportation has signed the Toll Ordinance for the Warnow River Crossing in the City of Rostock, on the northern German Baltic coast. This signals the successful implementation of Germany's first toll ordinance.

The Warnow River Crossing is the first development of its kind in Germany, following the passing of the Private Financing of Federal Highways Act (Fernstrassenbauprivatfinanzierungsgesetz) by the Federal Government in August 1994. The project comprises 4km of road including an 800m tunnel, which will be operated with tolls. In addition to providing much needed urban congestion relief and improved access to Rostock port, the project forms part of the road network linking Hamburg to Berlin and Poland. As such it has been granted status as part of the Trans-European Network, qualifying for EU subsidy.

The Toll Ordinance Application was lodged in April 2002 by WQG, the concession company awarded the contract to design, finance, construct and operate a fixed crossing under the Warnow River. Advised by Macquarie, WQG worked with the Ministry of Transportation to develop the framework and the respective procedures for the toll ordinance process.

"Bringing this toll ordinance application to its successful conclusion is a major achievement by the parties involved. The processes of establishing the proper project base, eligible costs, financial analysis criteria and appropriate return calculation have been subject to rigorous testing and debate to ensure compliance with the relevant requirements of the new laws and specific German regulations," said Andrew Hunter, Head of Macquarie's European Advisory business.

"Timely conclusion of this process would not have been possible without the level of cooperation and understanding demonstrated by the Ministry of Transport's representatives," Mr Hunter said.

Funding for the project comprises €42.5m of sponsor equity, €147m of senior debt and €26m of subsidy, excluding standby provisions. Construction commenced in March 2000 and has been funded through equity and debt drawdowns. Completion is scheduled for late 2003. Operations will then commence and continue for a period of 30 years from the date of opening. WQG is 70% owned by Macquarie Infrastructure Group, an Australian listed fund which invest in toll roads globally. The remaining 30% is owned by Bouygues SA of France.

Notes to Editors:
The Project Finance Division of Macquarie Corporate Finance (Frankfurt) was established in July 2002 to provide advisory services to corporate and government clients in Germany. Macquarie was a member of the consulting panel at the Ministry of Transportation for the preparation of the A-Programme tender documentation and the respective standard draft concession agreement. The A-Programme comprises a federal motorway extension programme from 4 to 6 lanes with a total length of 523 km and a total investment volume of approx € 3.5bn. Macquarie has recently been mandated as exclusive financial adviser by a consortium of Bilfinger Berger and Walter Bau for the initial set of 12 projects under the A-Programme scheme. The Government intends to start the tender process for the first two projects under this scheme in late 2003.

The Macquarie Group provides specialist investment, advisory and financial services in select markets around the world, with 5000 people in 18 countries. Macquarie has developed specialist expertise in the infrastructure sector, and was ranked No.2 Globally, No.1 for Americas and No.1 for Asia Pacific for advisory in 2002, in the Thomson Financial/Project Finance league tables.

For further information please contact:

Andrew Hunter
Head of Advisory, Europe
Macquarie Bank
Tel: +44 (0)20 7065 2340

Alison Jefferis
Corporate Communications
Macquarie Bank
Tel: +44 (0)20 7065 2335
Mob: (0)79 1938 2958

Andrew Waterworth
Financial Dynamics
Tel: +44 (0)20 7269 7127
Mob: (0) 7771 740484