BeNEX wins significant new co

RNS Number : 6534W

International Public Partnership Ld

31 July 2009

 



31st July 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED

(formerly known as Babcock & Brown Public Partnerships Limited)

BeNEX wins significant new contracts

International Public Partnerships Limited ('INPP' or the 'Company') advises that its German transportation investment vehicle, BeNEX, has, via its 50% owned subsidiary ODEG Ostdeutsche Eisenbahn GmbH ('ODEG'), been awarded a further significant rail tender in the German local passenger transport market. INPP holds a 49% stake in BeNEX which is a 51% subsidiary of Hamburger Hochbahn AG, the second largest LPPT (Local Public Passenger Transportation) company in Germany. 

The contracts in the regions of the Federal State of Brandenburg and the German capital City of Berlin comprise a total volume of 7.2m rail kilometres per annum and have a term of 11 years commencing from the end of 2011. In detail, the contracts cover important Regional Express connections between Stendal via Berlin to Cottbus (2.9m rail kilometres), Wismar via Berlin to Jüterbog (3.0m rail kilometres) as well as three regional connections in the wider area of Berlin (1.3m rail kilometres). The total investment volume required amounts to approx. € 150m for the required vehicles which will either be leased or acquired with financing from existing BeNEX equity reserves which were established at the time of INPP's initial investment in BeNEX, and debt.

ODEG, established in 2002, is jointly owned by BeNEX and Prignitzer Eisenbahn GmbH, a subsidiary company of Arriva plc. The new contracts make ODEG the most important private rail provider in Eastern Germany. 

Together with contracts recently won in the Federal State of Bavaria, BeNEX will on commencement of this contract have more than three times the volume (calculated on a kilometre per annum basis) compared to the position at the time of INPP's initial investment in BeNEX in August 2007. Additionally, BeNEX will get the opportunity to demonstrate its ability to provide services within the main traffic region of the German capital City of Berlin.

The investment in BeNEX is managed by Dr. Jürgen Bufka who leads the work of INPP's investment adviser Amber Fund Management Limited in Germany, and who has been involved with BeNEX since its inception.

Giles Frost, Director of the Company said, 'This is excellent news for BeNEX and for INPP. This demonstrates the real potential of our partnership with BeNEX and Hamburger Hochbahn whose experience and strong track record in the German LPPT market complements INPP's experience in the development and financing of public private partnerships. The privatisation of the German LPPT market is in the earliest stages and INPP, through BeNEX, hopes to continue to participate actively in its future development.'

For further information, please contact:

Giles Frost                                  [phone]

Director

Media Enquiries:

Byron Ousey/Michael Turner        [phone]

Kreab Gavin Anderson

Notes to Editors:

International Public Partnerships Limited is a closed end investment company that invests in infrastructure assets in the UK, Europe and internationally, particularly those with a public or social character such as those developed with public bodies under private finance initiative (PFI) or public private partnership (PPP) procurement.  

The portfolio consists of 50 PPP/PFI projects with more than 99% of revenues backed by Governments. There is diversification geographically as well as across several PPP/PFI sectors, including roads and tunnels, railways, schools, courthouses, police and custodial facilities, government offices and health facilities. Average remaining concession life of projects in the portfolio is 25 years, against a weighted average debt tenor of 24 years, ensuring that project debt is largely matched to concession life. 

Employees of Amber Infrastructure Group have been responsible for the development and management of the majority of these assets and will continue to manage them for the benefit of INPP shareholders. 

The company listed on the Main Market of the London Stock Exchange in November 2006, and is a constituent of the FTSE 250 and FTSE AllShare. 

Disclaimer

Nothing in this press release is intended as an offer to sell or a solicitation of an offer to buy any securities. An investment in International Public Partnerships Limited carries certain risks and past performance cannot be relied on as a guide to future performance.

 

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