MRT – 7MRT – 7Project Project

PresentationPresentation

June, 2007June, 2007

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June 2007

A lead Infrastructure ProjectMetro Manila, Philippines

Multi-purpose Transportation Solution Multi-purpose Transportation Solution withwith

Real Estate Development ComponentReal Estate Development Component

Enhancing infrastructure priority development project thru partnership between the

private and public sectors

MRT - 7 Project

• Elevated MRT

– 12.11Km

• At-Grade MRT

– 6.655 Km

• Open-Cut MRT

– 1.445 Km

• Tunnel MRT

– 0.785 Km

• 6 Lane Road

– 22.0 Km

MRT-7 Stations

• Elevated– 8 Stations

• At-Grade– 3 Stations

• Depressed – 3 Stations

Project Costs

In Million US Dollars

$1.235 B

MRT -7 Project Mission Transportation - not only providing reliable

connection for Commonwealth, Fairview and Bulacan commuters, but uniquely addressing decongestion of EDSA by providing an alternative route for the provincial buses from the North.

Decongestion - of Metro Manila thru obligation for the construction of the satellite town in San Jose del Monte.

Ridership Risk - Uniquely and first time undertaking of private sector to assume full responsibility for the ridership risk and the O&M cost.

MRT -7 Project Mission Energy Savings – NEDA study indicates

project causes $2.4Billion in Forex savings over the concession period base on crude oil price of $50 per barrel.

Employment – the project and the satellite township undertaking will create over 20,000 new jobs throughout the concession period.

Housing – uniquely creating for the low and middle class income group an affordable housing linked by transportation arteries to their work destinations.

MRT -7 Project Mission

Air Pollution – Significantly reducing air pollution over the Metropolis

Investment – opening opportunities in the project and its real estate development for $3Billion foreign and local investment pump priming of the economy.

Financial Overview

PROJECT COST $1.235B

SOURCES USES

EQUITY $ 309 Million PROJ. CONSTRUCTION& EPC CONTRACT (about)$ 1,000 Million

ECA LOANS $ 800 Million

OTHER LOANS $ 126 Million OTHER PROJ. COST (about)$235 Million

Total $ 1.235 Billion Total $ 1.235 Billion

FINANCIAL & ECONOMIC FINANCIAL & ECONOMIC VIABILITYVIABILITY

(BASIC)(BASIC)

Project EIRR 21.8%* Project FIRR 11.5% Investors FIRR 11.9% Government FIRR Deficit Neutral

* Excluding Road and Real Estate Development

Fund Source

Untied Loans

ECA

Thru EPC Contractor

Thru Other Multilateral

Thru Local & Foreign Investors Primarily

Real Estate Investors

$100 M

$100 MDEBT EQUITY

EQUITY

DEBT

US$309M

US$926M

$109 M

$126 M

$800Mof EPC = $1,000 M

Intermodal Terminal

Sixty (60) slots for simultaneously bus loading / unloading. Train underground Second floor providing facilities for up to 3,000 waiting

passengers for their rides Complex provide eleven (11) sets of escalators for rapid

movement of commuters.

Real Estate Development Opportunities

Private investors to develop 2 Million sq. meters residential space 900,000 sq. meters commercial space, malls, and community

development facilities throughout the concession period.

Investors Recovery

US$ 108 Million per year capacity fee payment for 20 years

70% Sharing of net passenger revenue after O&M 80% Sharing in advertising and commercial

development over the stations. Real Estate Development Income Capacity fee of US$100,000 from year 2032 to

2037 Government commits to fare adjustments

Government Recovery ofAmortization Payment

30% Sharing of net passenger revenue after O&M 20% Sharing in advertising and commercial development

over the stations. 20% Sharing on Real Estate Development Project and real estate development projected taxes Increase ridership to Government operated rail system. NPV (10%) of total Government undertaking $620

Million. Mere payment for gradual transfer of the assets worth

US$1.2Billion. Government to recover its entire exposure thru tax

benefits from the various activities generated by the project and the real estate development

Passenger Fare Unified fare is assumed per km for all existing

Mass Transit project Fare is based on LRT-1 and MRT-3, 2003 per km

and adjusted to reflect inflation and foreign exchange fluctuation.

Agreed formula for incremental fare adjustment Per agreed concession agreement, if actual fare

is not adjusted to agreed fare, Government shall pay the difference thru deduction from other government revenues resulting from the project.

Extra ordinary fare adjustment is provided for in the concession agreement when circumstances require.

Philippine Macro Economics Balanced deficit is consistently reduced Balanced budget projected by 2008 – two years

ahead of schedule Continuously reduced foreign debt Inflation much restrained

(from Double Digit in the 90’s to around 3% at present)

Larger inflow of stable foreign remittances (OFW) Larger tax collection Economic growth in the first quarter of 2007 reached

6.9%, best in 17 years Credit rating is improving and expected to rise next

quarter. Overall economic outlook best since 1978 much

better than 2001 when proposal was made.

Project Risks Country risk

Philippine Outlook much improved Sovereign risk and risk of repatriation can be insured

thru OPIC/MIGA and the like Construction cost is mitigated thru single point of

responsibility contract with an EPC contractor at fixed price.

Cost overruns due to delays and inflation (ROP faults) adjustment provided in the contract

O & M Cost Agreements with maintenance and project

engineering management groups In-house Experienced Team

Market risk thru conservative ridership assumption and agreed fare structure (Metro Manila traffic is overwhelming).

Project Schedule

TARGET DATES: Complete Swiss Challenge - June 2007 Project Awarding - October 2007 Contract Signing - December 2007 Financial Closing - December 2008 Start of Construction of Rail - July 2010 Start of Real Estate

Construction - July 2011 Rail Project Completion - July 2012

Project Task Completed ACHIEVEMENTS

(February 2001 – February 2007):– Ridership studies– Endorsement by DOTC of ULC (BVI) as the

Original Proponent – NEDA-ICC first and second pass approvals– NEDA Board approval for publication of Swiss

Challenge– Department of Justice clearance of the Terms of

Reference for Swiss Challenge– Publication of Swiss Challenge bid closing date

on June 2007

Project Task PENDING

(April 2007 – December 2007):

– Finalize pending negotiations for the following agreements:Engineering and Procurement ContractOperations and Maintenance ContractProject Engineering Management ContractFinancial Services Contract

– Matching, if necessary, of possible Swiss Challenger

– Negotiate details of the Concession AgreementPerformance Bond on Real Estate Development

Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development)BASIC ASSUMPTION

Cash Flows from Capacity Fees and Net Passenger Revenueswith 300,000 initial ridership (in million US$)

Year

 Equity

Infusion

Projected Gross

Pax Rev.

GOP Share in Pax Rev.

Capacity Fees O&M

 Loan

Repayment

 Income

TaxNet Flowto ULC

-3 (120.0) - - - - - - (120.0)-2 (100.0) - - - - - - (100.0)-1 (88.9) - - - - - - (88.9)

0   - - - - - - -

1   44.0 (2.7) 108.0 (35.0) (100.1) - 14.2 2   52.5 (4.7) 108.0 (36.8) (100.1) - 19.0 3   61.5 (6.9) 108.0 (38.6) (100.1) - 24.0 4   70.9 (9.1) 108.0 (40.5) (100.1) - 29.2 5   80.8 (11.8) 108.0 (41.3) (100.1) - 35.6

10   137.1 (27.4) 108.0 (45.6) (115.7) (27.0) 29.4 12   163.3 (34.7) 108.0 (47.5) (37.5) (34.6) 116.9 15   175.8 (37.6) 108.0 (50.4) (37.5) (39.2) 119.1 20   198.9 (43.0) 107.9 (55.6) (21.9) (58.0) 128.3 25   225.0 (49.1) 0.1 (61.4) - (32.3) 82.4

@ 12 years

@ 15 years

@ 20 years

@ 25 years

IRR 4.6% 8.6% 11.2% 11.8%

Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development)

Project Sensitivities

Project Cost

O & M

(initial year, escalating at 5%

every year)

Investors’ FIRR

at US$ 1.235 B at US$ 35 M 11.8%

at US$ 1.235 B

10% decrease

at US$ 31.5 M 12.2%

10% decrease

at US$ 1.110 B at US$ 35 M 14.0%

10% decrease

at US$ 1.110 B

10% decrease at US$ 31.5 M 14.4%

Invest in ULC (HK), the SPC (excluding investments in the Real Estate Company and the Vertical Development)

Project Sensitivities

Project Cost

O & M

(initial year, escalating at 5%

every year)

Investors’ FIRR

at US$ 1.235 B at US$ 35 M 11.8%

at US$ 1.235 B

10% increase

at US$ 38.5 M 11.4%

10% increase

at US$ 1.358 B at US$ 35 M 10.0%

10% increase

at US$ 1.358 B

10% increase at US$ 38.5 M 9.6%

Project Proponents

Universal LRT Corporation(with 15 local and international investors)A consortium of Alstom and Bouygues of

FranceO&M service provider, SMRT Singapore

Subsequent to Swiss Challenge price matching mechanism as provided by the BOT Law, several institutional investors including the IFC are expected to join.

Universal LRT (BVI) CorporationUniversal LRT (BVI) CorporationBoard of DirectorsBoard of Directors

Mr. Roberto F. de Ocampo Director Former President, Asian Institute of Management

Mr. Eli Levin Managing Director (CEO) Chairman, E.L. International Holdings (BVI) Ltd. Mr. Vicente V. de Villa Executive Director Executive Director, E.L. Enterprise, Inc. Mr. George Y. Uy Executive Director Executive Director, E.L. Enterprise, Inc.

Mr. Roberto Jose L. Castillo Director President and COO, EEI Corporation

Mr. Antonio A. Henson Chairman of the Board President, SM Investment Corporation

Ms. Imelda D. Bautista Director Chairwoman & CEO, Premier Gold Group Ltd.

Mr. Sergio Ortiz – Luis Director Former Chairman, Export and Industry Bank

Mr. Jovencio F. Cinco Director President and CEO, Penta Capital Investment Corporation Mr. Geronimo Velasco, Sr. Director Chairman, Hollington Management Ltd. Mr. Jose Tan Sio Director Exec. Vice President & CFO, SM Investment Corporation

Mr. Claudio B. Altura Director Chairman of the Board, TCGI Engineers

Mr. Wellington Y. Tong Director Representative, Merlin Capital, Inc. Mr. George Go Director

Mr. Geronimo F. Velasco, Jr. Director President, Hollington Management Ltd.

Universal LRT (BVI) Universal LRT (BVI) CorporationCorporation

Board of DirectorsBoard of Directors

Intermodal Animation

THANK YOU