EFTA00768289.pdf

From: "Sultan Ahmed Bin Sulayem" <MM > To: "Jeffrey Epstein" <[email protected]> Date: Thu, 05 Nov 2009 11:52:13 +0000 Importance: Normal Dear Jeffrey I am sending this to Peter in the next 20 mnts The Rt Hon Lord Mandelson Secretary of State for Business, Innovation and Skills Department for Business, Innovation and Skills 1 Victoria Street London SW1H OET 5 November 2009 Dear Lord Mandelson, DP World's development of London Gateway Port & Park (the "Project") You will be aware of the imminent state visit of H.H Sheikh Mohammed bin Rashid al Maktoum (Prime Minister and Vice President UAE, Ruler of Dubai) to the UK on 23 November, where he will meet with Prime Minister Rt. Hon Gordon Brown. During this important visit we understand that the UK Government wishes to announce that London Gateway will be proceeding. We agree that an announcement of the UK's biggest inward investment, creating 44,000 jobs in the important Thames Gateway corridor is an excellent opportunity. You will recall from our recent meeting in London that the London Gateway funding process is underway. The initial feedback has been positive, however, it remains highly conditional in terms of debt levels and funding terms. In particular, the UKFI banks have been notably more conservative than the continental European banks, with RBS and Lloyds only committing to £75 million each (out of a total £672m first phase debt funding being sought) and indicating levels of gearing and sponsor support which may prove to be unviable for DP World. DP World has worked with great endeavour since early summer alongside RBS (its lead adviser) to secure a successful project financing of the first phase of the port, with DP World proposing to inject some £445 million of equity. We have explored all opportunities for non- UK based funding, including overseas ECAs (no UK-based ones are available), TEN-T grants and EIB funding and have had considerable success with these European-based initiatives. However, despite this and our readiness to commit significant equity, the viability of the funding process is not certain. The reduction in PLA funding from over £60 million to £16 million has EFTA00768289 exacerbated the funding challenge, as has the ongoing inability to finalise the Network Rail issues. Unfortunately, as things stand we are not in a position to make any definitive statement about the Project during the state visit, which we believe will be considered a missed opportunity by our respective governments. The only basis whereby DP World would be able to announce that the Project is proceeding is if we have funding certainty at that time. This would mean the UK Government confirming in advance of the state visit that: EIB will approved at least 0300 million of funding plus mezzanine facility of at least 15 per cent of the senior commercial loans on acceptable terms; and- The UK Government is able to guarantee (wrap) the commercial funding and/or commit TIFU/UKFI banks to meet any funding shortfall on appropriate terms. If DP World is able to secure sufficient assurance on the above aspects, then we would be in a position to make a definitive announcement during the state visit. Without such assurance, the viability of the Project's funding remains uncertain. We believe that our request is appropriate given the equity risk DP World is prepared to take; the appetite shown by non-UK institutions to fund the Project; and the significant national benefits that will accrue to the UK should London Gateway be built. We look forward to your considered response and I am available to discuss this with you at any time. With kind regards, Yours sincerely Sultan Ahmed bin Sulayem Chairman, DP World Sent from my BlackBerry® wireless device EFTA00768290