Ethiopian Railways Corporation

Expression of Interest to provide Consultancy Service for Preparation of a

Feasibility Study of Standard Gauge Railway (SGR) connecting Ethiopia and
Sudan

9 July 2019
Section 2 Our Experience

01. Our Understanding

02. Our Experience

03. Our Project Team

04. About Grant Thornton

Grant Thornton has provided advice on various railway and capital projects.

Ethiopia United Kingdom Qatar Scotland

Ethiopian Railroad Merseyrail Franchise Qatar Rail Company Transport Scotland
• Policy options • Financial advisor • Policy options • Rolling stock strategy
• Financial modelling • Bid evaluation • Strategy • Funding options
• Risk Analysis
Advised by Grant Advised by Grant Advised by Grant Advised by Grant
Thornton Thornton Thornton Thornton

United Kingdom United Kingdom United Kingdom United Kingdom

Merseyrail Rolling Stock
• Business case
• Financial modelling
• risk
Advised by Grant
Thornton
Pteg Rail Devolution DfT - East Coast TfL LOROL
• Financial modelling • Financial Advisory • Financial advisor
• Risk analysis • Due diligence • Financial modelling
Advised by Grant Advised by Grant Advised by Grant
Thornton Thornton Thornton

United Kingdom United Kingdom United Kingdom United Kingdom

DSB Thameslink Franchise DfT - Stress Testing DfT - McNulty Review Nexus Metro Reinvigoration
• Financial advisor
• Financial advisor • Policy options • Financial modelling • Lead advisor
• Financial modelling • Financial modelling • Report review • Strategy advice
• Business case
Advised by Grant Advised by Grant Advised by Grant Advised by Grant
Thornton Thornton Thornton Thornton

3
Grant Thornton has provided advice on various railway and capital projects.

United Kingdom United Kingdom United Kingdom United Kingdom

Siemens Rolling Stock PPP
• Financial advisor
• Financial modelling
Advised by Grant
Thornton
Merseytravel Vertical Centro Tram Procurement Alstom - Thameslink Rolling
Integration Stock
• Policy options • Financial advisor
• Financial advisor • Strategy • Financial modelling
• Financial modelling • Risk Analysis Advised by Grant
Advised by Grant Advised by Grant Thornton
Thornton Thornton

China Scotland United Kingdom Russia

Network Rail Airdrie to National Ministry of
MTR Bathgate Centro Transport
• Financial advisor • VfM analysis • Rail devolution advice • Moscow to St Petersburg
• Model review • Financial modelling High Speed Rail Project
• Midland Metro Extensions
Advised by Grant Advised by Grant Advised by Grant Advised by Grant
Thornton Thornton Thornton Thornton

Kyrgyzstan India United Arab Emirates

United Arab Emirates
Ministry of Railways of
Kyrgyz Railway Company Tajik Railway Company UAE Road & Transport
India
Authority
• Establishment of the • Railways Fleet Renewal • New Delhi Railway Station
management and financial project - Financial Due • Dubai Metro – O&M
PPP
accounting system Diligence Concession procurement
Advised by Grant Advised by Grant Advised by Grant Advised by Grant
Thornton Thornton Thornton Thornton

4
Section header

Advisian provides services for all aspects of rail business. 20 +Plus years’ rail
experience
Ethiopia Djibouti, Ethiopia San Atnonio, Chile Matthews Ridge Guyana
Ethiopia Railway Chemin De Fer Djibouti Intermodal Corridor Pit-to-Port
Corporation Ethiopia Railway Study, San Antonio - Transportation
Santiago Corridor Logistics
Advisian was engaged to analyze the Feasibility Study for the Revitalization of the Feasibility Study for the Port of San Antonio Performed a Transportation Scoping Study
economic cost per liter of transporting fuel on Chemin De Fer Djibouti-Ethiopia Railway. (EPSA) to increase the capacity of the port . and a Transportation Pre-Feasibility Study
a standard gauge railway in Ethiopia. for Reunion’s Matthews Ridge project.

Advised by Advisian Advised by Advisian Advised by Advisian Advised by Advisian

United Kingdom Australia Western Australia Qatar Economic Zone 3

Network Rail, UK
Guidance and strategic recommendations to
expand and improve Network Rail’s
Intermodal freight business.
Advised by Advisian
Pilbara Infrastructure Midland Freight Railway Master plan for the Qatar
Corridors Governance Alignment Study Economic Zone 3
Study
Engaged by the Department of Planning to Advised on multiple alignment options, land Prepared concept and detailed level Master
identify options to improve the planning, use and transport integration. Concept designs Plans for the complete development area.
implementation and operation of for rail, roads, bridge and tunnels.
infrastructure corridors in the Pilbara
Region.
Advised by Advisian Advised by A Advised by PwC

5
Other recent executed f3easibility studies in Ethiopia
Executed projects
Feasibility studies
Confidential
Real Estate Market Study
A detailed market study on the real
estate market in Addis Ababa for
high-end, luxurious apartments
Confidential
Business Plan
Business plan preparation for the four
towns in Oromia, Amhara, SNNP and
Tigray regions water supply sewerage
authorities.
Confidential
Business Meeting Facilitation
A German based infrastructure and
power company engaged Grant
Thornton Advisory for business
meeting facilitation concerning the
various long term government
projects they have secured.
Confidential
Feasibility Study
Feasibility study including market
study on the viability of establishing a
semi-finished ductile cast iron pipe
factory in partnership with a Chinese
ion pipe company.
Confidential
Feasibility Study
Feasibility study to establish Morinaga
farm and honey production and
processing. It also includes market
study
Confidential
Feasibility Study and Business
Development
The project included economic
analysis, air traffic forecasts, cargo
demands, passenger needs, market
study as well as a high-level master-
plan on how to move forward in
capturing top value.
Confidential
Feasibility Study and Private
Placement Memo
Textile company commissioned Grant
Thornton Advisory to conduct a
Feasibility Study including market
study to setup a cotton spinning
Confidential
Feasibility Study
We were commissioned to conduct a
feasibility study on the viability of
establishing a container glass factory
including technical and financial
evaluation and analysis as well as
market study
Confidential
Bank Loan Processing
Grant Thornton Ethiopia advised the
client regarding a bank loan process
applicable where our experienced
consultants assisted the client from
document preparation to
implementation and follow up.
Confidential
Feasibility Study
A bankable feasibility study on the
expansion of an existing candle
producing factory with full market
research, production plan, and
financial analysis.
Confidential
Investment Facilitation
Grant Thornton Ethiopia assisted a
Morocco based investment group in
identification of prospective investee
companies involved in the FMCG
sector in Ethiopia, and evaluating their
management.
6
Section header

Global Infrastructure Thought Leadership

Grant Thornton understands the key success factors of a railway project: The extensive horizontal nature of rail projects renders them susceptible to pressures
from a wide stakeholders and land owners. The ideal solution to this challenge is to place the projects within an appropriate institutional environment under the
leadership of a political champion that has requisite authority to advance the project and to shield its commercial design from undue influence. The institutional design of
the project should extend beyond governance and stakeholder management. It should include considerations such as future network extensions and the vertical
separation or integration of the systems. Importantly, a programmatic approach should be developed to standardize, as much as possible the, technical, commercial
and procurement elements.

Experts in infrastructure advisory

Grant Thornton has requisite skills and experience to manage and respond to the
challenges of Greenfield rail development and feasibility studies. We are well placed to
deliver a holistic value solution for Ethiopian Railway Corporation, our deep
understanding of rail development and success factors
7
Section header

Grant Thornton: A Global Organisation

Global network

Services We’re a network of independent assurance, tax and

advisory firms, made up of 53,000+ people in 135
countries.

For more than 100 years, we have helped dynamic

organisations realise their strategic ambitions.

Whether you’re looking to finance growth, manage

risk and regulation, optimise your operations or
realise stakeholder value, we can help you.

8
Grant Thornton Advisory: Ethiopia
Unlock your organization’s instinct for growth with Grant Transaction advisory services (TAS)
Thornton Advisory
• Fundraising/ Negotiation Support
Grant Thornton Ethiopia is one of Ethiopia’s leading assurance, • Due diligence
tax, and advisory firms dedicated to serving the needs of privately • Valuations
held businesses and public interest entities. • Market and feasibility studies
As a member firm of Grant Thornton International, we access the Audit and Assurance
expertise of member and correspondent firms in over 135 • Financial statements audits
countries with more than 53,000+ consultants. In Ethiopia, our
• IFRS/ IPSAS conversion and training
office has 76 professionals and 7 partners working in various • Statutory audits
functions and roles. • Agreed upon procedures
• Project audit
Our assurance wing, A.W. Thomas L.P., have built a national
Human capital advisory
reputation in leading the assurance professional services since
1981. Our clients benefit from experienced professionals, who • Organisational assessment
offer their in-depth knowledge. We are experienced in various • Organization design
sectors, with broad industry involvement in assurance and • Job description and specification
advisory service lines. • Job evaluation and grading
info@et.gt.com • Salary structure
• Policies and procedural manual
IFRS Services
• Training for accounting personnel
• Alternative accounting policies
• Client specific conversions from GAAP to
IFRS
• Accounting system and internal control design
and implementation
• Stakeholder and shareholder communications
Tax advisory services
• Direct international tax
• Global mobility services
• Indirect international taxes
• Tax audit support/ and compliance
checks
• Transfer pricing
Information technology (IT)
• ERP/ Integration Software
• Financial and Accounting Software
• Payroll and Human Resources IT
Business process outsourcing (BPO)
• Bookkeeping/ financial accounting
• Payroll processing
• Monthly management accounts
• Preparation of financial statements
• Employee recruitment/ outsourcing
Secretarial services
• Incorporation and Registration of
Companies
• Work Visa/ Residence Permits
Processing
• Administration Support
Business risk services
• Internal audit
• Operational advisory/
Improvement services
9
Section header

Government & Infrastructure Advisory

Government and Infrastructure Advisory

Public sector:
Private sector:
feasibility studies
financial modelling
preparation of business case
model audit / review
risk analysis and PSC development
financial structuring advice
documentation drafting
funding competitions
develop payment mechanisms
full bid support
bid evaluation
bid optimisation
procurement support
negotiation support advice
negotiation support
refinancing
financing
tax advice
funding competitions
tax advice

Transport Energy, Environment & Sustainability

Real Estate and Assets Public Services Advisory

Strategic Finance & Economics Business Growth Services

10
Transaction Advisory Services

Feasibility
and market
Study/
Business
Plan
Commercial/
Market Due IT Due
Diligence Diligence

Transaction Operations
In a global business environment, acquisitions, investment Valuations Advisory Due
opportunities and fund-raising increasingly cross country borders. Services Diligence

A successful transaction therefore requires access to advisors around

the world. Grant Thornton and its global advisory teams have the right
experiences and credentials to achieve an efficient and effective
transaction.
Fundraising/
Tax Due Negotiation
We seek to identify key business issues through a rigorous data Diligence Support
collection approach and a through qualitative and quantitative analysis
to build a tailored understanding of the transaction. Our advisors take a Financial
Due
hands on approach that supports you through every step of the Diligence
transaction process from initial investigation through to completion
and integration.

11
Section 4 About Grant Thornton

01. Our Understanding

02. Our Experience

03. Our Project Team

04. About Grant Thornton

05. WorleyParsons
WorleyParsons
Worley has more than 50 years experience in helping our
customers complete successful rail infrastructure projects
and improve the operations of their existing rail assets.

We cover every aspect of the project life cycle, including

concept, pre-feasibility, front-end engineering and design,
construction and commissioning as well as ongoing
operation and maintenance. We have provided policy and
strategy reviews to our customers such as master planning
and transport economics.

Our core offering includes services such as turnkey railway

design, procurement, project management consulting, and
engineering, procurement and construction management.
Through Advisian, our global advisory and consulting
division, we offer a range of services from project finance,
front-end studies including reference design to interface
management, and asset management. Advisian’s experts can
offer advice on railway operations, infrastructure, rolling
stock, maintenance practices and railway safety legislation

13
Advisian

Creating value by solving the world’s critical

resource energy and infrastructure challenges.
Advisian understands your specific commercial,
technical and collaboration challenges - proudly
accessing decades of project and business
experience to provide informed advice and
ensure strategic, practical and commercially-
orientated solutions.

As the independent consulting arm of

the WorleyParsons group, we provide a true
end-to-end offering for clients, with
approximately 3,000 consultants across 19
countries integrating strategy, management and
technical consulting expertise with deep domain
knowledge, backed by real-world experience.

14
 © 2019 Grant Thornton Advisory. All rights reserved.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one
or more member firms, as the context requires.
Grant Thornton Ethiopia is a member of Grant Thornton International Ltd. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide
partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and
its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

© 2019 |et.gt.com
Zoscales Partners | 03 July 2019