Private Sector Letters of Interest

For your information, letters or statements from the following private sector firms are
included in this package:
ACS
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AS2AL3I
45


2he 6onora7le "dmund , 89erry: ;rown 9r ,overnor of the State of California
#ffice of the ,overnor
State Capitol, Suite 44.%
9une 44, !54(
Sacramento, CA 1*04(
3ear ,overnor ;rown:
<e at ACS Infrastructure 3evelopment, Inc, the -S infrastructure investment=arm of
ACS ,roup, have 7een closely following the high speed rail pro>ect in California for
many years 2he high speed rail program envisioned 7y the State of California will 7e a
transformative pro>ect not >ust for the State 7ut also for the &ation In order to 7est
achieve the goals of this important program, we 7elieve that long= term funding 7y the
State is needed, and this commitment 7y the State will in turn motivate private sector
involvement in the financing and development of the program
2he ACS ,roup is a glo7al leader of construction and infrastructure services, and is
recogni?ed 7y 7oth "ngineering=&ews 'ecord as the @ 4 International Contractor in !54%
and Pu7lic <orks Financing as the <orldAs Largest 2ransportation 3eveloper of Pu7lic=
Private Partnerships <orldwide <e have su7stantial eBperience designing, 7uilding,
maintaining, and financing ma>or infrastructure pro>ects throughout the world, including
high speed rail pro>ects, and have 7uilt more than +55=miles of high speed rail
internationally In the last ten years alone, we have designed and constructed twelve
ma>or high speed rail pro>ects valued at over C+ 7illion
<e 7elieve that if the California legislature approves this su7stantial, multi=year funding
for high=speed rail, we at ACS, as well as many of our competitors around the world, will
actively compete for this work #ur company, as well as those of our partners and
competitors, 7rings the eBpertise and technology needed to design, construct, integrate,
commission and maintain these compleB pro>ects and systems, as well as the a7ility to
invest and finance the pro>ects in a way that 7est ensures their timely and cost=effective
delivery
"na7ling the California 6igh Speed 'ail Pro>ect to move forward now will serve the
needs of the people and 7usinesses of California, and clean the air future generations will
7reathe <e are also confident that 7y 7uilding from Los Angeles the pro>ect will 7ring
increased pu7lic interest that will help promote the rest of the program throughout the
Central )alley to the north and Anaheim and San 3iego to the south
ACS welcomes the opportunity to demonstrate how we can contri7ute to financing this
effort and to deliver new high speed transportation alternatives that will connect the
communities of California
Sincerely,

&uria 6altiwanger
Chief "Becutive #fficer
ACS Infrastructure 3evelopment, Inc
%!55 Park Center 3riveD Suite +55 DCosta $esa, CA 1!+!+ wwwgrupoacscom


A"C#$ 8!4%: %%5=.!55 tel *4* S Flower Street 8!4%: %%5=.!.. faB Suite (55
Los Angeles, CA 155.4
wwwaecomcom
4! 9une !54(
2he 6onora7le "dmund , ;rown 2he 6onora7le 3arrell Stein7erg 2he 6onora7le 2oni
, Atkins 2he State 6ouse
4(55 2enth St
Sacramento, California 1*04(
6onora7le Sirs and $adam,
#ur firm has 7een watching, and participating in, the development of the high speed rail
in California with great interest <e understand there are discussions under way to
provide additional funding for the high speed rail pro>ect
<e want to let you know that our firm has eBperience in these kinds of pro>ects
worldwide <e would 7e very interested in participating in the competition for the
construction and financing of California high=speed rail pro>ects
In particular, if there were sufficient funding in statute that provided a multi=year source
of repayment, we would 7e interested in competing for construction pro>ects where
private financing, investment or eEuity were needed 2his funding should 7e sufficient to
complete the pro>ect, in com7ination with funds from the state
In summary, we welcome a chance to compete for, and hopefully help 7uild, this
important pro>ect for the state of California <e think that providing multi=year funding
this year, sufficient to move the pro>ect forward on a more aggressive timeline, would
attract our firm and private sector competitors from around the world
Sincerely,
A"C#$
Stephen 9 Polechronis Sr )ice President


)I&CI C#&C"SSI#&S
From: FL#'"/ Sidney FsidneyfloreyGvinci=concessionscomH
Private Sector Letters of Interest I*

3ear $r Liikala,
)I&CI C#&C"SSI#&S is a world leader in developing highly technical P% pro>ects
around the world 2hese pro>ects 8among others: include our 6S' pro>ect 7etween 2our
and ;ordeauB in France 8See attached: <ith the ,overnorAs plan to launch a 6S'
program in California, )I&CI Concessions can play an important role in helping develop
the pro>ect 7ased on performance design leading to optimi?ed lifecycle cost and system
reliance #ur Concession model is one of a long term investor in an asset that is
constructed with special detail to Euality and design largely
lead 7y )I&CI C#&C"SSI#&S and other )I&CI resources #ur in house design and
construction capa7ilities provide a value for money that we feel California and all
stakeholders
can 7enefit from )I&CI C#&C"SSI#&S looks forward to the ,overnors announcement
and commitment to funding the program and will 7ring significant eBperience in listening
and
working with the stakeholders in constructing this legacy pro>ect with a focus on
optimi?ation in reducing costs and time of construction
;est 'egards Sid Florey
)I&CI C#&C"SSI#&S
Sidney ' Florey
3irector ;usiness 3evelopment &orth America
%.5 LeBington Ave = Suite 4!50 &ew /ork, &/ 4554.=+*0(
2J %4*=!5.=%15* CJ (5.=(.5=++%1

"J sidneyfloreyGvinci=concessionscom

'AIL,'-P
3e: Ignasi ,Kme?=;elinchKn FgerenciaGrailgrupnetH 3ear Sirs,
Private Sector Letters of Interest I.

As the manager of one of the most important rail clusters in "urope, helping many
leading companies
speciali?ed in 'ail, we want to let you know that our firms have eBperience in these kinds
of pro>ects worldwide <e would 7e very interested in participating in the competition for
the construction and financing of California high=speed rail pro>ects
In particular, if there were sufficient funding in statute that provided a multi=year source
of repayment, some of our mem7ers would consider 8after the proper analysis and
studies: competing for construction pro>ects where private financing, investment or
eEuity were needed
In summary, we welcome a chance to compete for, and hopefully help 7uild, this
important pro>ect for the state of California <e think that providing multi=year funding
this year, sufficient to move the pro>ect
forward on a more aggressive timeline, would attract our firms and private sector
competitors from around the world
Looking forward to 7eing a7le to see this important pro>ect 7ecome a reality, Lind
regards
'AIL,'-P
MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM Ignasi ,Kme?=;elinchKn
Cluster $anager
CJ CNrsega !.5, Otic = 50550 ;arcelona 2 P%( 1% (4* 10 +*
$ P%( +41 %0+ %45

wwwrailgrupnet
_________________________________


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SAC/'
From: 'aul 'omero FrrromeroGalliance=consultantscomH
Private Sector Letters of Interest I0

$ichael
<e have 7een following the high speed rail pro>ect in California for many years
6owever todayTs announcement regarding long term funding is the signal the private
sector has 7een waiting for as it shows the state is committed to getting this pro>ect done
and moving it forward now <e see todayTs announcement as a ma>or step forward
#ur firm has had eBperience with these kinds of pro>ects internationally <e 7elieve that
if the legislature does approve multi=year funding for high=speed rail, we, as well as many
of our competitors around the world, will actively participate in competing for this
pro>ect Firms like ours 7ring the technology,
eBperience in compleB design and engineering, construction and maintenence as well as
the investment and financing necessary to move this pro>ect forward Euickly and we
7elieve at and more managea7le cost Allowing the pro>ect to move forward now will
7etter serve the needs of California, the traveling
pu7lic and clean the air future generations will 7reathe <e welcome the opportunity to
demonstrate how we can contri7ute to this effort and to deliver new high speed
transportation alternatives for the people of
California <e are also confident that 7y 7uilding from Los Angeles the pro>ect will 7ring
the pu7lic interest and the ridership that will ensure that it will connect to the Central
)alley to the north, and to Anaheim and
San 3iego in the south All these efforts will attract private interest and eBpertise and we
look forward to continuing to look at ways we can help 7uild and finance this important
infrastructure
;est regards,
'aul ' 'omero
3I'"C2#', SAC/' -SA
4.54 Pennsylvania Ave &<, suite %55
<ashington 3C !555+
3C !5!=1.(=4%+*J faB !5!=1.(=4%+1
California 1(1=%.+=(0(1

Private Sector Letters of Interest I45

AS2AL3I

CALIF#'&IA 6S' P'#9"C2 I&I2IAL C#&S2'-C2I#& S"C2I#&
AS2AL3I 2eam is fully aware a7out the California 6S' Authority plans
Such a large scale pro>ect will 7e o7viously eBposed to a wide range and typology of
risks: 3esign, Construction Schedule and Cost, 'ight=#f=<ay, Permits, -tilities
'elocation, Shortage of $aterials are only some of the main risks that a selected team
will likely face during the pro>ect eBecution 2ypically a 3esign=;uild team will 7e in
charge for 3esign and Construction risks while other risks mentioned a7ove, more related
to the actual conditions and local legislation, would 7e 7etter and Euicker handled 7y the
Authority itself
6owever AS2AL3I is also familiar in managing and assessing risks of different nature
with respect to the typical ones for construction, this is due to its proven eBperience in
Concession and P% Pro>ects where the Concessionaire or SP) itself acts in lieu and on
7ehalf of the #wner to manage and eBpedite the whole process
AS2AL3I 2eam, due to its !5P years eBperience in Florida of its team mem7er Astaldi
Construction Corporation, has matured wide eBperience in leading construction contracts
with medium=high 3;"JS;" share so it will not 7e an issue in having a !*Y
participation in this initiative, provided the availa7ility of several good Euality 3;"JS;"
contractors in the area #n the other side a higher percentage, if still agreea7le for the
whole Community, would likely ends up in a lower Euality of work, longer construction
schedule, chance of default of one or more su7contractors and an overall increased risk
for the Authority
P6AS" 4 P'#,'A$
2he program includes approBimately *!0 miles 8over 055 km: of 6S' sections to
connect the ;ay Area to the ,reater Los Angeles 7asinZ the total eBtension of the line and
the fact that 6S' will link high=density populated areas could make it potentially very
interesting to the Private Investors due to the foreseen high ridership revenues and its
convenience 8particularly for the San Francisco Los Angeles section: in terms of 7oth
time and money with respect to the plane or the car
A full Life=Cycle Contract 8like a 3;F$, with or without #perations involved: in our
opinion would 7e the 7est option for such a large=scale initiative and we feel the
Authority and the
Private Sector Letters of Interest I44 Pu7lic will have great advantages 7y this contract
schemeZ main advantages might 7e pointed
out as follows:
2he 3;F$ Contractor 8the Concessionaire: will have in its team all the needed
eBpertise 7y any point of view 83esign, Construction, 2echnology, Financing:
serving the Authority itself with a high=level of competence
2ransfer of technological and planning risks from Pu7lic to the Private Sector
&atural incentive for Contractors to 7uild in time with good Euality
Life Cycle Cost Analysis to reduce $aintenance Costs naturally encourages
innovation
Private capital attracted, especially in such kind of economy
"ases the pressure on the Pu7lic 7udget
For the first time the state moves from a cost=7ased economy to purchasing
services ;ased on AstaldiAs PPP past eBperience, AS2AL3I 2eam is potentially
interested in participating to either stage of the long=term 3;F$ Contract
assuming that:
Initiative gives AS2AL3I 2eam the possi7ility of having a role in the "PC
Contract for the Civil <orks AS2AL3I core 7usiness is construction, not pure
investment, so construction activity is a must for us to 7e part of the picture
Part of the investment is covered 7y Pu7lic Funds 8no matter if either State or
Federal Funds: In our eBperience Pu7lic contri7ution should vary from a %5Y
minimum share up to +5=.5Y when Pu7lic Authority is heavily involved or has its
own 7usiness interest in the Pro>ect In alternative the Pu7lic Authority should
cover part of the 'idership 'evenues 'isk providing a $inimum ,uaranteed to
the Concessionaire with an Availa7ility Payment
3e7tJ"Euity share in the Concessionaire SP) may vary case 7y case, 7ut
typically should 7e around .5J%5 or higher
2he o7>ect of the Concession should cover at least the #peration of a whole
Functional Section 8for Functional Section we intend a 'ailway Section that could
generate revenues and 7e operated even without the other Sections:
Concession term would 7e around !5=%5 years 8not including the construction
period:
Possi7ility of collecting ancillary revenues from collateral 7usiness 86S'
Stations, 3evelopment Areas and others:

Private Sector Letters of Interest I4! 'eviewing similar eBperiences of 6S' lines
operated under a PPP scheme in "urope we
suggest to the Authority to have in place a similar scheme:
3ifferent Contracts for the design, 7uild, financing and maintenance 83;F$:
of the rail su7structure and superstructure, eBcluding the signaling and
telecommunications systems, with a criteria of geographical segregation of the
segments 2he split of the pro>ect in several PPP will result in contracts with a si?e
suita7le to the market 7etween 5* and ! 7illion C which ensures the capacity and
attractiveness of the private sector and therefore the eBistence of strong
competitiveness ;ut still, each PPP remains sufficient 7ig to in order to guarantee
efficiency and to minimi?e the num7er of transitions 7etween PPPs and
conseEuently mitigate the interface risk
In fact, the minimi?ation of interface risk should 7e one of the 7iggest goals of the
California $odel with the traditional procurement that could result in an
indefinite num7er of pro>ects with eEuivalent num7er of interfaces ;esides the
risk involved, such num7er and type of contracts would 7e much more demanding
in human resources
2he interfaces should 7e located where they are easier to manage and therefore
have less risk 2he hori?ontal interfaces do not represent ma>or concerns 2here
are few and clearly located in convenient spots 2he vertical interface 7etween
superstructure and signaling and telecommunications, on the other side, is still
where the main risk occurs and is the interface that needs much attention
A uniEue Contract for the design, supply, installation and maintenance of the
signaling and telecommunications systems and a uniEue Contract for the design,
supply, installation and maintenance of 'olling Stock, 7oth for the entire length of
the pro>ect 2he development of signaling and telecommunications in a separate
PPP would 7e >ustified 7y the technical characteristics of eEuipment, the
perceived risk associated with technology and the fact that there are few suppliers
of such eEuipment in the marketplace 2he com7ination of these factors would
result in the loss of competitiveness in PPP for the remaining infrastructure
In a typical 6S' pro>ect, signaling, telecommunications and rolling stock
represent less than %5Y of total investment, 7ut the private sector sees higher
perceived risk So if >oined in the same contract with the rest of infrastructure it
would amplify the risk premium on the other .5Y <ith this option, it is possi7le
to choose the signaling and telecommunications partners later than the
su7structure and superstructure partners, allowing for further sta7ili?ation of
technology
Finally, signaling and telecommunications also have a shorter life cycle when
compared to the rest of infrastructure and so it is easier to esta7lish a term
contract
A uniEue Contract for #perations with a 6S' #perator of proven eBperience

'espectfully,
$A'I# LA&CIA&I
Astaldi SpA
FA;'I[I# 3" '#SSI
Astaldi Construction Corporation
Private Sector Letters of Interest I4%

Such contract could either live 7y itself or 7e part of the 3;F$ Contracts already in
place, it all depends of the confidence and capacity of the 3;F$ Contractors to deal with
the long=term 'idership 'isk
C#&CL-SI#&S
It is unEuestiona7le that financial and management issues play a crucial role on the
success of a 6S' pro>ect From the AS2AL3I previous eBperience the following main
conclusions may 7e drawn:
2here is an international trend towards the increased involvement of the private
sector, namely through the usage of PPP
"Bperience says that PPP can generate value for money 7ut also reEuires
eBpertise and needs to 7e tailored to each situation
A compleB pro>ect like 6S' reEuires, in most cases, to 7e sliced into several
contracts, which may represent a delicate task with \interface] risk 7eing
introduced
2he vertical splitting of the pro>ect is particularly risky and has to 7e carried out
taking in account the risk, the competition and the specificity of the different
components
First and taking in consideration the credit crunch that occurred after the !550
financial crisis, the crowding out effects in pu7lic sponsored megapro>ects and
particularly in PPP
^
s have 7ecome an important issue ;y evaluating the
possi7ility of the occurrence of crowding out effects, it will 7e possi7le to
evaluate the eBistence of unintended negative impacts derived from the 6S'
pro>ect to the transport sector and to the California economy as a whole
AS2AL3I 2eam is thankful to the C6S'A for having the opportunity of
participating with his contri7ution of eBperience and is looking forward to
working with the Authority to ensure the success of the overall California 6S'
System,

C#&2AC2S
Private Sector Letters of Interest I4(

AS2AL3I SpA $A'I# LA&CIA&I
,eneral 3irector of &orth America #perations
)ia ,) ;ona, +*
554*+ '#$A = I2AL/
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$ail: mlancianiGastaldicom
AS2AL3I C#&S2'-C2I#& C#'P#'A2I#&
FA;'I[I# 3" '#SSI
Chief "Becutive #fficer
0!!5 State 'oad 0( Suite %55 %%%!( 3avie, FL
2el P4=1*(=(!%=0.++
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$ail: fderossiGastaldicom
'ICCA'3# $ '#CCI
*4* S Flower Street, Suite %+55 155.4 Los Angeles, CA
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$ail: rrocciGastaldicom