Subject: Puerto Rico Toll Road
From: "Michael Muldoon" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Date: Thu, 28 Oct 2010 16:26:21 -0400

Hey Guys,

See note below on consortiums that submitted bids on the Puerto Rican toll
road deal. Not sure if Estrella is included in one of these or not, but its
clear that its too late for Kenny to be involved (in this particular
project).

 *Strong Investor Interest in First Toll Road Project Under Puerto Rico
Public-Private Partnership Program*

SAN JUAN, Puerto Rico--(BUSINESS WIRE <http://www.businesswire.com/>)--The
first toll road concession to be procured through a public-private
partnership (“Partnership” or “PPP”) as part of the current Puerto Rico
Government administration’s PPP initiative generated wide interest among
investors worldwide, who filed their qualifications to participate in the
project.

Qualifications were received from eight (8) infrastructure consortia in
response to the Request for Qualifications (RFQ) issued by the Puerto Rico
Public-Private Partnership Authority (PPPA), in conjunction with the Puerto
Rico Highways and Transportation Authority (HTA), to select a concessionaire
to finance, operate and maintain existing toll roads PR-22 and PR-5 on the
Island of Puerto Rico.

Qualifications were filed by the following consortia presented in the order
in which they were received:

   - Morgan Stanley Infrastructure Inc. and OHL Concesiones
   - CCR (*Companhia de Concessōes Rodoviárias*)
   - JP Morgan Infrastructure Investments Fund (IIF)
   - Citi Infrastructure Investors and Itínere Infraestructuras, S.A.
   - Abertis Infraestructuras and Goldman Sachs Infrastructure Partners II,
   L.P.
   - Road Development of Puerto Rico (ICEIN S.A. and CONCAY S.A.)
   - Interplan-Grodco-Consorcio Remix Development Group
   - Grupo ODINSA, S.A.

The filing deadline for the companies or consortia interested in the PR-22
and PR-5 brownfield projects was Thursday, July 29, 2010 at 5:00 p.m.,
Puerto Rico time.

PPPA Executive Director David Álvarez expressed his satisfaction with both
the number and the quality of the consortia interested in bidding for this
project, and what this interest represents for the future development of
Puerto Rico’s infrastructure. “The level of interest, combined with the high
caliber of the participants, is a conclusive indication of the great
opportunity that Puerto Rico has to renovate and deliver a high quality toll
road network through the use of PPPs,” Álvarez said.

According to Álvarez, the eight consortia include the main infrastructure
investment funds in the United States mainland and worldwide leading
operators of tolls roads and transportation infrastructure. “The expertise
and capacity of these eight consortia are recognized worldwide,” Álvarez
said. The PPPA estimates that, in the aggregate, these eight consortia are
responsible for the improvement, maintenance and operation of more than
15,600 miles of toll roads around the world and handle an average of over
900 million vehicle transactions every year.

“Puerto Rico has managed to generate interest from a number of important
investors who are willing to participate in the effort to improve our
infrastructure in times when the financial markets are not yet entirely
recovered. This response is clear evidence of our capacity to attract new
private investment to develop our infrastructure. These partnerships
represent progress and jobs for Puerto Ricans,” said Carlos M. García,
Chairman of the Board of Directors of the PPPA and Chairman and President of
the Government Development Bank for Puerto Rico.

“In Puerto Rico we have a great opportunity to bring our infrastructure up
to the best worldwide standards in spite of difficult times facing the
Government and its public corporations that simply do not have the economic
resources to do it. We must take advantage of the opportunity and aspire to
achieve the kind of state-of-the-art infrastructure that Puerto Ricans
deserve,” García added.

Highways and Transportation Authority Executive Director, Rubén Hernández
Gregorat, said that “the modernization of our highways transportation
network is a commitment that we cannot continue to leave unattended. The
response we have seen to this RFQ is evidence that we certainly can achieve
that goal, which will result in a better quality of life for all,” he
stressed.

The project calls for a PPP between the Government and a private
concessionaire to finance, operate and maintain two existing toll roads on
the island of Puerto Rico, PR-22 and PR-5. The PPP is enabled through a
long-term contract under which a private consortium has the obligation of
doing all the capital investment necessary for the improvement, maintenance,
and operation of the toll roads while the Government demands strict
compliance with the improvement plan and a high standards of service to
users. The highways always remain the property of the Government; hence the
partnership does not result in privatization of the assets.

PPPs have been used successfully around the world by governments in the
United States mainland, Europe, Latin America, Asia, and even in the
Caribbean.

The first step in the procurement process to establish a PPP is to ensure
that the proponents are duly qualified to undertake such an infrastructure
project, which is the purpose of the request for qualifications. The next
step will be the evaluation of the qualifications by the Partnership
Committee designated for the project, as provided for under Puerto Rico’s
PPP Act and Procurement Regulations. Afterwards, the names of the consortia
qualified for the project will be announced and they will be invited to
submit formal proposals for bidding.

“The responses we have received are a vote of confidence in the process that
we have established—a serious, sound and transparent process that inspires
trust among the investor community around the world. The process and its
transparency are yielding results, and we will remain committed to both as
part of our efforts to improve our infrastructure for the well being of all
Puerto Ricans,” Álvarez concluded.

The PPPA has established a website,
www.p3.gov.pr<http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.p3.gov.pr&esheet=6381106&lan=en-US&anchor=www.p3.gov.pr&index=1&md5=fd228bdc50ffbcc0eb51701dcf0ca7f6>,
which contains all the information about this and other PPP projects in
Puerto Rico.

-- 
Mike Muldoon
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]