CONFIDENTIAL

PAUSA

Preliminary Presentation. Second Draft

PAUSA: Automated Parking Garages in Moscow

CONFIDENTIAL© 2011

PAUSA

Executive Summary

● This presentation has been prepared by Power Engineering Group and discusses a project to develop the PAUSA network of automated parking garages in Moscow.

● The project is designed to address the current lack of parking space in Moscow, which is estimated to be 2.8 mln spaces. ● The project envisages the construction of more than 500 automated parking garages with the capacity of 300 to 1000

spaces in extensively built-up areas with heavy traffic patterns.● Key advantages; social and economic benefits to the city:

● Saving of up to 110 ha of land by constructing automated parking garages instead of conventional ramp multy-storey parking facilities;

● Releasing more than 70 ha of land by moving small-scale retailers to the ground floor of parking facilities, thus improving the city’s appearance;

● Clearing house courtyards from parked cars;● Reducing the load on the city power grid by 37 thousand mWh per year through in-house power generation;● Improving the city’s environmental situation by reducing emissions, and encouraging use of hybrid and electric

vehicles.● Construction of one garage takes 12 months and construction of 10 pilot garages can be undertaken simultaneously● Apart from the main investor (Power Engineering Group) their preliminary agreement to participate in the project

expressed a large manufacturer of automated parking equipment, major financial institutions and an engineering company

● The proposed benefits can be maximised through: optimal distribution of garages across the city; provision of the required utilities and infrastructure at the sites; stimulation of demand through enforcement of stopping and parking rules; development of the corresponding technical regulations. The above depend more on city government, and requires its close collaboration with the project initiators.

● The most attractive schemes of obtaining construction sites are the land-to-rent auction and provision of the land with preliminary agreement on the buildings’ localization

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CONFIDENTIAL© 2011

PAUSA

Shortage of Parking Space Adversely Affects Traffic, Safety, and the Appearance of Moscow

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Demand for parking space in Moscow exceeds supply by 2.8 mln spaces

Moscow parking space supply and demandin 2011, mln of parking spaces

Source: Interviews with traffic police officers

Involuntary violation of stopping and parking rules has a negative impact on urban life

Reduced street throughput capacity due to parked cars

occupying traffic lanes

Compromised safety due to parked cars blocking pedestrian areas

Negative city appearance due to cars parked in courtyards and

recreational areas

Significant environmental impact due to extra travel time required to

find a parking space

4.1

1.3

Demand**

Supply*

2.8 mln

*Supply– the number of legally available parking spaces**Demand – the number of registered vehicles in Moscow as of 1 July 2011.

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PAUSA

Most Affected: Built-Up Central Neighbourhoods, Old Residential Blocks; New Business Centres; Recreational, Trading and Entertainment Areas

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Центры деловой активности, такие как Москва-Сити, специфичны своей высокой плотностью застройки и большим количеством сотрудников и посетителей, которым необходимо в течении дня оставлять свои машины на близлежащих автостоянках и для которых могут быть не предусмотрены подземные паркинги.

Дворы жилых домов, особенно в центральной части города, зачастую не предусматривают парковки для большого (и растущего) количества автомобилей. Характерно, что дворы заполняются не только ночью (когда жильцы дома), но днем, когда во дворах паркуются приезжающие в центр города работники офисов

Крупные общественные или социальные объекты, например стадионы, больницы, университеты, с регулярным потоком людей, многие из которых предпочитают добираться до объектов на автотранспорте. Зачастую такие объекты не оснащены достаточным количеством парковочных мест, а плотность застройки вокруг них уже высока

Развлекательные / торговые зоны, например Пушкинская площадь, зачастую привлекают большое количество жителей города, однако не оснащены достаточными парковочными местами для краткосрочного или среднесрочного паркования автомобилей

Business Centers, such as Moscow International Business Centre (Moscow-City), are densely-occupied with plenty of offices, office staff and visitors seeking to park nearby

Residential yards, particularly in the centre, do not provide for parking spaces. They are congested with cars not only at night, but also during working hours, by commuting office workers

Major public or social service sites, like sporting arenas, hotels, transportation hubs with regular people traffic. In most cases there aren’t enough parking spaces provided.

Entertainment / trading areas, like Pushkin Square, increasingly attract many visitors, but do not provide enough parking spaces for them

High density of buildings does not allow parking demand to be metby constructing surface parking areas or even multi-storey ramp garages

CONFIDENTIAL© 2011

PAUSA

Automated Garages: International Best Practice for Populous Urban Areas with Parking Shortages

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Source: websites of equipment manufacturers for automated parking garages

Hollywood Grande, automated parking garage with 220 spaces

Budapest Parksafe, automated parking garage with 200 spaces

Copenhagen, automated parking garage with 408 spaces

Munich, automated parking garage with 284 spaces

Leased to residents and local office workers

Graz, Austria, automated parking garage with198 spaces

Located in the local government centre and used by its employees

Leased to residents and employees of nearby offices

Public garage for local residents

For local residents in the old city centre

New Jersey, Hoboken,automated parking garage with 314 spaces

Public garage for visitors to a major business centre

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PAUSA

Key Advantage of Automated Garages: More Spaces Within a Smaller Area

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The technology used in the construction of automated garages permits more space for more vehicles in half the area required for ramp multi-storey facilities …

… the released land can then be used by the city to accommodate other required infrastructure

Sources: websites of equipment manufacturers for automated parking garages

Ramp multi-storey parking facility

Automated parking garage

CONFIDENTIAL© 2011

PAUSA

With High Demand in Moscow, Automated Parking Garages Will Be Able To Provide in Excess of 700,000 Parking Spaces

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430,000 spaces

310 ,000 spaces

The Moscow City Government Program Development of Transport System for 2012—2016 envisages the construction of approximately 1.5 mln parking spaces:

People’s Garages

Programme

Multi-storey garages

Courtyard level parking

areas

On-street parkinig

Park-and-ride facilities

Surface parking close to social service sites

100,000 spaces

177,000 spaces

230,000 spaces

210,000 spaces

Source: Moscow City Government Program Development of Transport System for 2012—2016

can be offered through the use of automated parking multi-storey

garages

CONFIDENTIAL© 2011

PAUSA

The Project Proposes More Than 500 Automated Parking Garages Throughout the City with 10 Pilot Garages at Initial Stage

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Possible distribution of automated garages in Moscow by 2020

Pilot project with the construction of 10 automated parking garages

Approximately 100 automated garages within the limits of the Third Ring Road

More than 500 automated parking garages distributed throughout the city

2011—2012

2013—2015

2016— 2020

The proposed network solution will allow a reduction in Moscow’s demand for parking space of 15—25%

CONFIDENTIAL© 2011

PAUSA

The City will Receive a Number of Social and Economic Benefits Through the Project’s Implementation* 9

City benefits from the project

• Fitting well into any type of development

• Releasing neighbouring territories from small-scale retailers

• Reducing the pressure on residential courtyards

Improvement in the city appearance

• Saving in land that can be used to accommodate other important infrastructure

• Saving in power and reduction in the load on the city power grid

A saving in city resources

• Encouraging the use of hybrid and electric vehicles

• Reducing emissions• Reducing noise pollution

Positive environmental impact

• May be used by the disabled• Higher parking speed per car if

compared to conventional parking• Improved vehicle security• Affordable rates to all strata, etc.

Comfort, security and economic benefits for people

The project will also result in less congestion, increased domestic production and the creation of new jobs

*The benefits have been evaluated as regard to other types of garages and subject to technologies planned to be used

CONFIDENTIAL© 2011

PAUSA

Automated Parking Garages Require a Smaller Footprint than Ramp Facilities, Saving up to 110 ha of Land

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The required area for the construction of 500 parking spaces in different parking

facilities, sq. m.

Multi-storey automated parking garages:

…require half the area of ramp facilities… …saving of up to 2.2 ha under a 10-pilot garage scenario, and up to 110 ha* under fully

implemented project

Multi-storeyautomated

garage1100

Ramp multi-storey

facility2000

2 times

Pilot project (10 garages)

500-garage network

2.2 ha 110 ha

Building area saved through construction of automated parking

garages, ha

*Calculated for garages with the capacity of 500 parking spaces

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PAUSA

Retailer Relocation to Garages Will Release up to 75 ha of Land and Improve the City’s Appearance

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Sources: Strategy Partners research

…saving up from 0.45 ha to 1.5 ha under a 10- pilot garage scenario, and from 22 ha to 75 ha if

project fully implemented

Pilot project

500-garage network

0.45 ha 1.5 ha 22 ha 75 ha

Land released after moving small-scale retailers to ground floor of parking

facilities, ha

Building structure

18-2

0 flo

ors

The project will house small-scale retailers on the ground floor of its facilities…

Average kiosk takes up to 15—20 sq. m.

Removing small-scale retailers from city streets will improve the city’s appearance

CONFIDENTIAL© 2011

PAUSA

Automated Parking Garages Will Preserve Historic Sites Without Worsening the City’s Overall Appearance

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Modern Classic Historic

The technology used in the construction of automated parking garages is based on framework structures that could be accommodated for various facades:

This means automated garages can blend well into any Moscow architectural solution

CONFIDENTIAL© 2011

PAUSA

Automated Garages will Relocate Cars of Neighbourhood Residents from Courtyards

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Parking facilities will offer a preferential night-time tariff for neighbourhood residents

As is: courtyards are congested with cars parked on grass areas and pedestrian

walkways

To be: territory of yards can be used to accommodate playgrounds, etc.

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PAUSA

In-House Power Generation of a Fully Completed Network Will Reduce the Load on the City Power Grid by 37K mWh p.a.

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Sources: equipment manufacturers for automated parking garages (Stolzer, Germany); designer data*Sourced by solar panels located on the building perimeter, wind-power generators and power accumulation systems working on lithium-iodine batteries

Reduction of the load on the city power grid will be up to 0.7K mWh p.a. at the pilot

stage, and will reach 37K mWh p.a. for the whole network

Power consumption by automated garages under the project, mWh p.a. calculated on the basis of 10 garages

of 1,000 parking spaces

1 445

745

2 190

Power purchased by an automated garage from

the city

Power generation by an automated garage*

Power consumption by an automated garage

CONFIDENTIAL© 2011

PAUSA

Positive Environmental Impact: Hazardous Emissions Down by 50 Kt (as compared with conventional facilities)

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-83%

Automated garageConventional garage

CO2 emissions per 10 pilot garages, tonnes

-81%

-77%

-68%

NОx emissions per 10 pilot garages, tonnes

CO emissions per 10 pilot garages, tonnes

Volatile organic substances emitted per 10 pilot garages, tonnes

Sources: Air Quality Study Automated Parking System, EEA Consultants Inc., 2007

The fully completed project of 500 automated garages will permit a reduction in emissions on a larger scale:

• 46,857.14 tonnes of carbon dioxide

• 118.57 tonnes of nitrogen oxide

• 2,375.71 tonnes of carbon monoxide

• 232.86 tonnes of volatile organic substances

Automated garageConventional garage

Automated garageConventional garage

Automated garageConventional garage

CONFIDENTIAL© 2011

PAUSA

Driving Up the Use of Hybrid and Electric Vehicles 16

Automated parking garages can be used to facilitate induction charging of electric motors and help popularise hybrid and electric vehicles:

Induction charging of electric vehicles during parking

Electric charging depots can be located in the areas adjacent to the garage

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PAUSA

Offering High Levels of Comfort and Safety for All 17

Convenient entrance and payment arrangements: automatic parking; cashless settlements, including via Universal Electronic Card

High speed of parking per unit: 5 times quicker per car than conventional parking

ITS integration: parking information systems synchronised with navigation transportation system allows advance reservation of spaces

Reduced waiting time for parking or retrieving through an increase in the number of entry kiosks (1 per 70 spaces)

Convenient for disabled people: enough space to exit the vehicle, no long drives, staircases, or lifts

Protection from hijacking, vandalism, malicious damage: the system of the garage operation removes the possibility of any intrusion to car storage areas

Protection from incidental damage: an advanced system of monitoring sensors prevents damage to vehicles during time of parking, while automatic parking removes the possibility of damage to bumpers and wheel disks

No errors or faults: power-operated garages are equipped with a 5-level protection system against faults and errors

Continuous operation: power accumulation system storing 500 kWh and working on lithium-ion cells ensures 24 hour continuous operation; for 24 hour+ outages mobile high-voltage batteries (based on the KAMAZ trucks) are available

Comfort Safety

CONFIDENTIAL© 2011

PAUSA

Converging Tariff Policy by Accommodating all Residential Strata, Including Subsidised Categories

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Time of day

Residential strata

City area

Parking permit valid for

A cheaper tariff

Night timeWorking hours Year Month Week Day Hour

Subsidised categories

Other residents

Moscow Beltway

Third Ring Road

Garden Ring

Boulevard Ring

Potential drivers for the tariff policy

Range of tariffs, RUB

Daylight hourly rate

RUB 50—100 per hour

Daily rate RUB 250—300

Monthly rate RUB 5,000—7,000

Neighbourhood night time rate

RUB 10—30 per night

CONFIDENTIAL© 2011

PAUSA

Local Sourcing to Provide Additional Business to Russian Enterprises in Excess of RUB 100 bln, and Create Approximately 4,500 New Jobs

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Single garage construction budget, RUB bln

100% = RUB 130 bln

80%

Local sourcing will provide new business totaling RUB 104 bln

Equipment used by automated garages can be supplied by leading Russian enterprises (e.g., Tushino Machine-

Building Plant and companies comprising TVEL Corporation (ROSATOM fuel company)

The project will create approximately 4,500 new jobs

20%20%

80%

Domestic production

Imported 2011—2012: 10 pilot garages

2013—2015: 100 garages

2016—2020: 500 garages

90 new jobs

900 new jobs

4,500 new jobs

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© 2011

PAUSA

Constructing of a Garage will take around 12 months. All 10 Pilot Garages can be Built Simultaneously

Project

Production

Transporting

Construction

Checking and start of exploitation

0 1 2 3 4 5 6 7 8 9 10 11 12 13

1 month

4 months

2 months

5 months

1 month

Months

*Without approval procedures

Main steps in constructing a garage*

All pilot garages can be constructed simultaneously

With simultaneous work all 10 pilot garages can be constructed in a year’s time

CONFIDENTIAL© 2011

PAUSA

Tentative Participation Confirmed by Major Manufacturers of Automated Parking Systems and Leading Financial Institutions

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Power Engineering and Electrotechnical Company

Russian major investment and construction and investment engineering companies

Dongyang Menics, Hundai *

One of the major Korean companies involved in the development and manufacturing of automated parking systems

Sberbank, VTB and VEB

Major national financial institutions

* Possible options

Investments, project management, garage operation

Equipment, project solutions Loans

CONFIDENTIAL© 2011

PAUSA

Success of the Project and its Social and Economic Benefits Depend on a Number of Conditions to be Defined by the City Government

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Distribution and size of the garages

Required utilities and infrastructure on the

sites

Demand for parking

Red tape and excessive requirements and

standards

Factors affecting the level of social and economic benefits of the project:

•Garages need to be located in areas with heavy traffic

•Garage capacity should satisfy demand

•Land plots need to have utilities and access roads for sufficient throughput capacity

•Demand partly depends on enforcement of stopping and parking rules, rules of use in municipal parking areas

•Red tape and excessive requirements and standards may prolong the network’s development and make the project more expensive

Many factors are defined by

the policy pursued by the

city government

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© 2011

PAUSA

Attractiveness of Construction Site Depends on several Parameters

Necessary Preferably

District

Localization

Central administrative district

Within walking distance from underground station (500 meters)

In close proximity to offices or shopping centers without sufficient

parking spaces

SizeMinimal area – 1200 sq.m.Allowance for a building 20

meters tallOptimal area – 2000 sq.m.

Shape Rectangular. Least side no less than 20 meters long

InfrastructureAdjacent roads;

Electricity facilitates of no less than 300 kW.

EncumbranceNo encumbrance. No existing

buildings

Accessible from different sides;Water and sewage infrastructure

Parameters

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PAUSA

Examples of Attractive Construction Sites

● If available

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© 2011

PAUSA

Attractive Schemes to Obtain Construction Sites: Site-to-Rent Auction and Provision of Sites with Agreement on the Buildings’ Localization

1 Site-to-Rent Auction

2 Site-to-Develop Auction

3 Concession

4 Joint-stock company with city participation

6 Development of land in accordance with owners rights

5 Provision of Sites with Agreement on the Buildings’ Localization

Possible schemes of obtaining construction sites: Attractive schemes

ü

ü

CONFIDENTIAL© 2011

PAUSA

Pilo

t pa

rkin

g ga

rage

sNext Steps 26

Private Investor City

1.Feasibility study for the project2.Specific negotiations with

potential participants in the project

3.Standard garage design

1.Prospective locations for the distribution of 10 pilot garages and an implementation scheme defined in conjunction with project developers.

2.Participation in the development of a standardised garage design

3. Incorporation of the project into a program for the development of an integrated parking environment

Gar

age

netw

ork

dep

loym

ent 1. Identifying demand for automated parking garages and

prospective locations across the city 2.Land allotment conditions for selected plots; defining the

required architectural solutions. Tenders for lease rights.3.Regulatory framework to develop technical regulations for

automated parking garages