Case ID: 202030
Solution ID: 22062
Words: 986
Price $ 45

Polands A2 Motorway

Case Solution

Autostrada Wielkopolska S.A. (AWSA) is a consortium of 18 firms that won a concession to build and operate Poland's first private toll road. In June 2000, AWSA's chief financial officer, Wojciech Gebicki, is preparing for a meeting with the projects' lead bankers to discuss concerns they have regarding the traffic forecasts and revenue projections. Based on their concerns, the bankers are asking the sponsors to inject an additional e60 to e90 million of equity into the deal, a size able increase given the projects' total cost of e934 million and the sponsor's current equity commitment of e235 million. This request presents a serious problem for Gebicki (AWSA) because the concession is scheduled to expire in six weeks if financing has not closed and because he has very few options available to address the problem. This case describes the deal structure and invites students to accept or dispute Gebicki's view that the major risks have been identified, assessed, and mitigated in such a way that the senior lenders are adequately protected without further equity support.

Excel Calculations

Questions Covered

Who are the parties involved?

The features of this project finance

The original financial structure proposed by Wojciech Gebicki (Vice President-Finance and Chief Financial officer of Autostrada Wielkopolska, SA

How was done the senior debt? ( obligations, commitments, provisions, risks regarding this debt)

The feasability of the forecast of toll revenues 

Risk Assessment