Ferrovial is awarded the Toronto Highway for 320,000 million pesetas and begins its 99-year management period. The H407 Highway in Toronto, Canada, the largest investment in concessions abroad made by a Spanish group, after closing the financing of the investment which reaches 410,000 million pesetas, has come under the ownership of the concession company led by Ferrovial. The concession company is made up of Ferrovial through Cintra, its concession subsidiary with 61.29%, along with SNC Lavalin, one of Canadas largest engineering firms, with 22.58%, and Caisse de Dépôt de Quebec, with the remaining 16.13%. The current concession operates a 69 km section, open to traffic since April of last year. The project includes the construction of two sections totalling 39 km (West, 24 km long, and East, 15 km long), which will begin operation starting in August 2001. The highway has a 99-year concession term, and Ferrovial will be in charge of managing it. Investment and financing Of the overall investment, 320,000 million have been allocated for the acquisition of the concessionaire; 52,000 million will be invested in the construction of two new sections and there is an additional investment of 38,000 million pesetas for the concept of reserve funds, operational start up costs, etc. The investment is financed through a capital contribution by shareholders of 19%, a subordinated debt of 19%, and a loan to the concessionaire without resorting to the shareholders - of 62% of the investment. The disbursement of Ferrovial capital was 49,000 million pesetas, with an investment commitment for another 49,000 million in the form of a subordinated debt in the next three years. Citibank, Royal Bank of Canada, and Bank of Montreal granted the bank loan of 237,000 million pesetas, along with an additional loan of subordinated debt of 15,500 million pesetas granted by Bank of Montreal. The loan is bridge financing until the issue, by the concession company, of Bonds directed at financing the entire project. The long- term financing structure, which will refinance the syndicated loan, is managed by Nesbitt Burns (Bank of Montreal Investment Bank) and Salomon, Smith Barney. Revenue of more than 18,800 million pesetas for the year 2000 The estimated annual revenue for the concession currently in service is 18,800 million pesetas for the year 2000 (the first full financial year of private management), which is predicted to increase 30% with the start of operation of the new sections. The concession currently has an Average Intensity per Day (AID) of 57,400 vehicles. The concession company estimates traffic growth of the order of 4.5% annually, a rate which, with the opening of the new sections (in 2001) will increase to 6%. The most modern highway in the world The H407 is the first highway in the world in operation with a completely electronic toll and free access. The highway uses a combined vehicle identification system, through "transponders" (readings through an electronic card located in the car) and video (reading the digital photograph of the license plate) charged later to the bank account of the vehicles owner. Currently, 71% of the users utilise the "transponders" system and the concessionaire hopes to increase their use up to 75% in the next three years. 1 billion in investments in transport concessions Ferrovial through its subsidiary Cintra is the world leader in the area of the private promotion of transport infrastructure, with experience going back to 1969, beginning with the contract award of the Bilbao-Behobia Highway. With this new contract award, Ferrovial now manages 14 highway concessions in Spain (6), Latin America (7) and North America, and consolidates itself as the world leader in volume of investment in concessions, which totals 1 billion pesetas. In the area of parking lots, Ferrovial through Cintra manages more than 120,000 parking places (rotating, residential, and surface) in the main cities in Spain and Portugal. In the area of operation and management of airport services, Ferrovial through its subsidiary Cintra has begun its area with the concession of nine airports in Mexico, among them, the Cancun airport, with more than six million passengers per year.