1. PPP in the Latvia Highway Project (Risks & Tools to Mitigate the Risks) Eshaan MBA(mktg.)

3. Operational Performance Risk

4. Market Risk

5. Financial Risk

7. Contractual Risk

8. Macroeconomics Environment

10. IEF, April 2005 5 Effect of Riskon Cash Flows US$ Investment Cash Flows (e) Debt Real Cash Flows Equity Years PC (project completion)

11. Key Stakeholders in the Risk Assessment and Risk Allocation IEF, April 2005 6 Shareholders Granting Authority Lenders / Bondholders Shareholders Agm’t Concession Agreement Project Company Operator Services Purchaser End-users Traffic Demand Operation & Maintenance Agreement (O&M) Purchase Agreement (e.g., shadow toll) Construction Contracts Construction Contractor Authority Right of Way Land acquisition and further transfer to PPP

12. Risk Mitigation IEF, April 2005 7 Risks Cash Flow effect Impact Risk Mitigation Instrument

13. Thank You