..\PPT Images\resized\water01.jpgInfrastructure Public-Private Partnerships

The Role of Private Capital in Meeting our Infrastructure Needs

Macquarie Capital (USA) Inc. April 2008

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The Macquarie Group

DIVERSIFIED, GLOBAL FINANCIALSERVICES ORGANIZATION Global institution, operations in all major

financial centers

Total assets under management, ~US$200 billion*

55%^ of total operating income derived from international markets

Nearly 12,500 employees in 25 countries—Over 1,500 employees in the

Americas

Macquarie Group Limited, Australian Securities Exchange-listed (ASX: MQG)

Market capitalization of ~US$15 billion

Successive years of record profits and consistent growth since 1992

Note: “Macquarie” refers to Macquarie Group

Limited and its subsidiaries and

affiliates worldwide

*As of December 31, 2007

^Excludes earnings on capital and is after directly attributable

costs including fee and commission expenses

Staff numbers as of December 31, 2007

Market Capitalization as at

January 31, 2008

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Macquarie’s Track Record in RoadsWorld Class Toll Road Developer and Operator

AustraliaEastLinkWestlink M7

USADulles GreenwayIndiana Toll RoadSkywaySouth Bay Expressway

JapanHakone Turnpike

Ibukiyama Driveway

CanadaA25*

407 ETREdmonton Ring Road

Sea To Sky

South KoreaBaekyang TunnelCheonan Nonsan ExpresswayNew Daegu Busan ExpresswayDaegu East Circular RoadIncheon ExpresswayIncheon Grand BridgeKwangju 2nd Beltway, Section 1Kwangju 2nd Beltway, Section 3Machang BridgeSeoul Chuncheon ExpresswaySoojungsan TunnelWoomyunsan TunnelYongin Seoul ExpresswaySeosuwon-Osan-Pyungtaek Expressway

AFRICASouth AfricaBakwena Platinum CorridorN3 TollN4 Maputo Toll

EUROPEUKM6 Toll

FranceAutoroutes Paris-Rhin-Rhône

GermanyWarnow Tunnel

PortugalTagus Crossings

34 roads, 10 countries - unique global positioning, local asset managers

Total Proportionate EV US$ 33 billion>1.7 million vehicles per day

As at 30 June 2007 – the assets listed are managed on behalf of investors with various direct % stakes held in each

*Subject to financing and customary closing arrangements

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Situation Assessment

Willingness to Embrace Financing Alternatives for Public Assets

Governments under fiscal pressures

Competing budgetary priorities

—New roads, health, education, welfare

Impact of congestion

—Impedes economic growth, environmental impact

—Need for new transportation infrastructure

Growing realization that status quo may have limitations

—Gas tax increase a difficult option politically

—Taxation a blunt instrument – shift towards user pays model

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Why Engage Private Sector?

Directly

Private sector capital can be mobilized along with private sector expertise to design, build, operate and finance new infrastructure

Allows the public sector to focus its resources on other worthwhile projects or services which may not be self supporting, as narrowly defined by the private sector

Indirectly

Private sector capital can be mobilized to acquire existing infrastructure or manage existing assets

Significant public sector capital and operating expenses are tied up in existing infrastructure, which could be liberated for higher value uses (new roads, schools, hospitals etc.)

Accelerating Infrastructure Delivery

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The Role of Private Capital

Safe, Efficient and Profitable Operation of Infrastructure

Good service attracts customers, poor service repels customers

Providers of private capital have a strong financial incentive to provide top quality service

— Safety and security of customers

— Uninterrupted, predictable journey experience

— High quality, well maintained assets

— Customer service at point of sale, increasingly electronically

Infrastructure businesses are important to the communities they serve

— Locally based management is preferred

— Community outreach is important

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Agenda settingPublic Sector Turns the Dials

Public Support

—Elected and appointed officials

—Motorists, developers and environmental groups

Level Playing Field

Clear Project Definition – The public sector should always set the agenda

Partnership Approach

—Avoid temptation to give the private sector the “too hard basket” only

—Identify projects for private investment early to maximize competition

Some key dials to consider:

—Concession length

—Tolling schedule

—Revenue sharing

—Other concession terms

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South Bay Expressway / SR-125

Overview Of Asset Total project cost – $820 million 11 miles in length 35 year concession from date of road

opening Flexible toll setting, cap on rate of return Results to Date:

—Congestion relief

—Time savings on commutes

—Positive economic impacts

—High customer satisfaction Other:

—100 PYs of CalTrans Engineers

—4,500 local construction jobs

—$20m in Environmental Mitigation

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Sea–to–Sky Highway / BC-99

Overview Of Asset

95km project

Critical piece of infrastructure for 2010 Olympics

$600m Price Cap – Award based on improvements over objectives

Availability Payment – No tolling – “Achieving Value for Money”

25-year Design-Build-Finance-Operate

Designed to improve safety and mobility; environmental considerations also important

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Conclusions / Summary

Provide significant benefits to the community by allowing the public sector to accelerate project development

Acceptance and management of risk for profit

Motivated by the same incentives as any business owner

Good service means good business

Local factors predominate

Private finance is not a cure all for all problems

The Role of Private Capital

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Contacts

Bernard CarrollSenior Vice-President

Macquarie Capital (USA) Inc.

Tel.: (310) 557-4305

Bernard.Carroll@macquarie.com

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Important Notice

The name “Macquarie” refers to the Macquarie Capital Group, which comprises Macquarie Capital Group Limited, its worldwide subsidiaries and the funds or companies that they manage.

This document has been provided to you for discussion purposes only and may not be relied upon by you in evaluating the merits of participating in any transaction referred to herein. This document does not constitute and should not be interpreted as either an investment recommendation or advice, including legal, tax or accounting advice.

This document is confidential and is intended only for the use of the person(s) to whom it is presented. It may not be reproduced (in whole or in part) nor may its contents be divulged to any other person without the prior written consent of Macquarie. Any person receiving this document and wishing to effect a transaction discussed herein, must do so in accordance with applicable law. Any transaction implementing any proposal discussed in this document shall be exclusively upon the terms and subject to the conditions set out in the definitive transaction agreements.

Future results are impossible to predict. Opinions and estimates offered in this presentation constitute our judgement and are subject to change without notice, as are statements about market trends, which are based on current market conditions. This presentation may include forward-looking statements that represent opinions, estimates and forecasts, which may not be realized. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information either received from the vendor and its advisors or available from public sources. Targeted financial results include assumptions as to facts and events, which are beyond our control. Changes to assumptions may have a material impact on the targeted financial results.

Each recipient must perform its own independent investigation and assessment of the proposed transaction.

Macquarie Capital (USA) Inc. is not an authorized deposit-taking institution for the purposes of Banking Act (Commonwealth of Australia) 1959, and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Securities (USA) Inc.

2008 Macquarie Capital (USA) Inc.