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Polands A2 Motorway Case Solution & Answer

Autostrada Wielkopolska SA (AWSA) is a consortium of 18 companies that won the concession to build and operate the first private toll motorway in Poland. In June 2000, the financial director of the AWSA, Wojciech Gebicki, prepares for a meeting with bankers draft leading to talk about the concerns they have regarding traffic forecasts and revenue projections. Based on your concerns, bankers are asking sponsors to inject an additional e60 90 million of capital in the agreement, a significant increase since the total project cost of E934 million and commitment in promoting circulation E235 million. This application is a serious problem for Gebicki (AWSA) because the award is scheduled to expire in six weeks if funding was not closed, as it has very few options available to resolve the problem. This case describes the structure of the transaction and invites students to accept or challenge the views of Gebicki main risks are identified, assessed and mitigated so that major lenders are adequately protected without greater support equity.
by
Benjamin C. Esty,
Michael Kane
Source: Harvard Business School
18 pages.
Date Posted: December 18, 2001. Prod #: 202030-PDF-ENG
Case of the A2 motorway in Poland Solution

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