International Public Partnerships Regulatory News (INPP)

5 Dec 2007 07:00

Babcock&Brown Public Ptnrships Ltd05 December 2007 Press Release BeNEX WINS SIGNIFICANT NEW CONTRACT Babcock & Brown Public Partnerships Ltd (LSE: BBPP or the "Company") todayannounced that BeNEX has been awarded a 12 year contract for the provision ofrail services in the region of Regensburg in Bavaria. BBPP holds a 49% stake inBeNEX which is a 51% subsidiary of Hamburger Hochbahn AG (HHA), the secondlargest LPPT (Local Public Passenger Transportation) company in Germany. The contract will commence in December 2010 and is the first concession acquiredby BeNEX in Southern Germany. According to information provided by BeNEX, thisis the largest LPPT contract awarded in Germany this year and will provideservices for nearly seven million passengers per annum. The contract representsan addition of nearly 50% to the route distance applicable to the existing BeNEXconcessions. BeNEX won the contract against competition from incumbent, DB Regioas well as local and international competitors including Arriva and Veolia. In order to service the new concession, BeNEX intend to establish a newwholly-owned rail transportation company on site in Regensburg and to acquire 26new vehicles with an anticipated cost of approximately €100 million. BeNEXexpect to fund the project from a portion of the equity capital committed at thetime of BBPP's initial investment in BeNEX, and debt. Giles Frost, on behalf of Babcock & Brown Investment Management Limited, theInvestment Adviser to the Company said, "This is excellent news for BeNEX andfor BBPP. This demonstrates the real potential of our partnership with BeNEX andHamburger Hochbahn whose experience and strong track record in the German LPPTmarket complements BBPP's experience in the development and financing of publicprivate partnerships. "The privatisation of the German LPPT market is in the earliest stages and BBPP,through BeNEX, hopes to continue to participate actively in its futuredevelopment" ENDS For further information, please contact: Babcock & Brown: +44 (0)20 7203 7300 Investors Bianca FrancisMedia Anthony Kennaway Notes to Editors About Babcock & Brown Public Partnerships Limited: Babcock & Brown Public Partnerships Limited is a Guernsey incorporated, LondonStock Exchange listed company. The Company offers shareholders an exposure toinvestment in infrastructure assets, particularly those with a public or socialcharacter such as those developed under public bodies under private financeinitiative or public private partnership procurements. The Company floated on the main market of the London Stock Exchange on 9November 2006 and on 2 December 2007 had a market capitalisation of £327million. About BeNEX BBPP owns 49% of BeNEX which is a subsidiary of Hamburger Hochbahn AG, thesecond largest Local Public Passenger Transportation (LPPT) company in Germany. BeNEX was formed in May 2007 when Hamburger Hochbahn placed all its existingexpansion activities in the LPPT sector outside the metropolitan region ofHamburg into BeNEX. The investment in BeNEX was announced by BBPP in August2007. Including this contract, BeNEX will have interests in five rail transportationcontracts (cantus in Hesse, metronom in Lower Saxony, NBE nordbahn inSchleswig-Holstein, ODEG in Brandenburg, Mecklenburg-Vorpommern and Saxony andnow Regensburg in Bavaria) and three bus transportation contracts (FBG Fulda,KVG Kieler Verkehrsbetriebe and Stadtverkehr Lubeck). This information is provided by RNS The company news service from the London Stock Exchange