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08 July 2004

Mott MacDonald to review the feasibility of introducing private finance to accelerate highway developments in the Slovak Republic

Mott MacDonald, together with Deloitte, Dewey Ballantine and Dedak & Partners, has been appointed by the Slovak Ministry of Transport, Post and Telecommunications to review the feasibility of accelerating motorway construction in the Slovak Republic using private finance.

The study will concentrate on two highway developments proposed by the Slovak government, the D1 motorway which travels west-east across the country from Bratislava to the Ukraine border, and the D3 motorway from Zilina north to the Polish border. Mott MacDonald will initially develop a detailed forecast of likely traffic demand on the two motorways using existing traffic data and surveys. Origin/destination patterns will be determined as well as any seasonal variation of traffic. From this a range of revenue forecasts will be produced for various tolling systems and surveys will be conducted with the general public to determine their views on paying to use the roads.

In parallel with the traffic forecasting, Mott MacDonald will undertake a technical review of the proposed designs for the remaining sections of the two motorways. The review will look at alternative design standards, staging of construction, environmental impacts and economic and financial viability. From this capital cost estimates will be prepared, a public sector comparator developed and the private and publicly funded options compared to ensure that the private finance route will deliver value for money. Funding sources and possible financial structuring will then be reviewed along with project risks and an optimal project structure will be identified.

The final report, giving recommendations for the way forward, is due to be completed by the end of 2004.

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