Infrastructure finance: Second Metro line for capital of Dominican Republic

Frankfurt am Main (ots) -

- KfW IPEX-Bank structures and finances Metro line in Santo
Domingo, Dominican Republic
- Complete railway electrification and railway automation systems
to be supplied by a consortium led by Siemens
- Support for important export transaction
- Helps improve traffic situation in the metropolis and develop
environmentally sound and efficient urban transport systems

KfW IPEX-Bank has joined with other banks to finance the provision
of the railway electrification and railway automation systems
including rail construction for the first expansion stage of the
second Metro line in Santo Domingo, the capital of the Dominican
Republic. The Dominican Congress recently approved the concluded
financing agreements.

The entire railway system will be realised by a manufacturing
consortium led by Siemens AG. The order comprises rail construction
and signalling equipment, electrification and communications systems,
fare management, tunnel ventilation and fire prevention, installation
and project management as well as maintenance services for the
components during the first three years. The system matches the
technology already supplied by Siemens for Line 1, which is
characterised by high reliability.

Through its project and export finance unit, Siemens Financial
Services structured the multisourcing financing concept together with
KfW IPEX-Bank and the other financing banks modelled after Line 1.
The total financing volume of around EUR 166 billion is divided among
the syndicate banks in accordance with the German, French and Spanish
supplier shares, with coverage by the respective export credit
insurance agencies (EulerHermes for Germany). KfW IPEX-Bank is
participating in the German and Spanish tranches.

"With this financing KfW IPEX-Bank supports Siemens AG in this
important and prestigious export transaction", said Christian K.
Murach, member of the Management Board of KfW IPEX-Bank. "In
addition, the financing makes an important contribution to the
development and implementation of efficient, power-saving and
environmentally-friendly rapid transit systems and, thus, to
promoting climate and environmental protection."

Line 2 is to run east-west, complementing the north-south Line 1,
which is already operational. Construction work on the tunnel, the
permanent way and the stations is already well advanced. The new Line
(stage 1) will initially be 11.5 kilometres long and serve 14 metro
stations; in a second expansion stage it will reach a total length of
28 km. It is part of the urban rail system of Santo Domingo, which is
to be expanded to a total length of 60 km.

With now more than three million inhabitants, the metropolis still
has an inadequate transport network. Apart from the first Metro line,
which began operating in 2009, bus lines and share-taxis ("conchos")
are the only other means of public transport. There is an unmet,
urgent need for public transport, and the city is suffering from
chronic road congestion.

The construction of Line 1 created a link between the very
populous but poorer northern zone and the southern parts of the city.
This has considerably improved access to the city centre and to the
university. Line 1 has been received very positively by the
population and is currently carrying some 100,000 passengers daily.
With a fare of 20 pesos (approximately 35 euro-cents), which is fixed
by the government, an affordable means of transport has been created
which benefits particularly low and medium-income users. The Metro
also makes it easier for commuters to reach their workplaces. The
plan to connect long-distance bus lines to the terminal stations is
intended to optimise commuter traffic in Santo Domingo in the medium
and long term.

The supplies and services that originate in Germany alone are
expected to create an employment effect of 2,000 expert-months in
total. On the other hand, small and medium-sized suppliers will also
be involved to a considerable extent. During the implementation of
the electromechanical components, up to 4,500 local jobs are expected
to be created additionally. The subsequent operating phase will
create some 400 direct and more than 600 indirect jobs in the areas
of train control, maintenance, software operation and security, and
other areas.

A Press photograph is available in the press section on the
homepage of KfW IPEX-Bank under "Material for the press/photographs".

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank is in charge of
international project and export finance. It is responsible for
providing financing to support the German and European economy, a
task derived from the legal mandate assigned to KfW Bankengruppe. Its
prime focus is on medium and long-term lending to boost the export
economy, develop economic and social infrastructure and support
environmental and climate protection projects. KfW IPEX-Bank operates
as a legally independent group subsidiary and plays a major role in
fulfilling the promotional mission of KfW Bankengruppe. It has 526
employees (as of 31 December 2010) and is represented in the key
economic and financial centres around the globe.

Pressekontakt:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: dela.strumpf@kfw.de
Tel. 069 7431-2984, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de