Transcript Slide 1
WORKSHOP ON INVESTMENT, FINANCIAL AND TECHNOLOGICAL ISSUES OF MODEL HIGHWAY INITIATIVE (MHI) IMPLEMENTATION
6-8 March 2012, Thessaloniki, Greece
SESSION 3: PUBLIC-PRIVATE PARTNERSHIP IN CREATION OF MHI – TECHNOLOGICAL ASPECTS The development of Attica Tollway (Attiki Odos) in Athens, Greece: Is this a successful PPP example?
Bill M. Halkias, PE, F.ASCE, F.ITE
CEO,
Attica Tollway Operations Authority
President,
Hellenic Institute of Transportation Engineers
What is a PPP in road transport?
A cooperation between the public and private sectors for the financing, development and operation of road infrastructure.
PPP or PFI or BOT or BOOT Hybrid PPP's PPP’s combined with EU funding are termed “hybrid” PPP’s. Usually EU Grants are part of the State’s Financial Contribution.
Attributes for successful PPP’s
• Strong partnerships through agreed common goals.
• Adequate and sustained financing.
• Effective organization and management.
• Long term commitments of the Partners.
• Timely development that incorporates results into the transportation infrastructure.
OMC: Operation and Maintenance Center TB: Technical Base TB OMC TB
The Project In numbers
65 km Urban Toll Motorway Fully Access Controlled 3 lanes per direction Link of 2 major National Roads Link to 3 Ports (Piraeus, Rafina, Lavrio) AADT(2009):
307.300
AADT(2010):
281.329
AADT(2011):
250.491
Toll Stations/Toll Gates: 39/195
Who is Who in Attiki Odos S.A.?
When started: 14 small firms. Today: market leaders.
PANTECHNIKI AKTOR CONCESSIONS
Financing structure of Attica Tollway: A Typical Hybrid PPP
MCP Project Cost – 1,300 million Euros
• • •
Project Finance:
•
EIB Loan
Guaranteed by International and Greek Banks until final • completion; then guaranteed by the State
.
Commercial Loans
(Greek Banks)
Project Owner Contribution Equity 13% Revenues 3% Equity & Revenues
(Greek Contractors)
Standby Facility
(Greek & International Banks)
POC 34% Commercial 7% EIB 43%
Main Contracting Parties
MINISTRY OF INFRASTRUCTURE TRANSPORT & NETWORKS Project Owner EYDE/LSEP (a Special Service) Project’s Owner Representative Concession Company Construction Joint Venture Operator
Project History
The need was identified in the early 1960s • Issuing of Tender Documents • Tenders submitted(3 bids) • Concession awarded 14/02/1992 28/02/1995 23/05/1996 • Ratification of Contract • Full Financial Close • First Drawdown 04/08/2000 • First section in operation 06/03/2000 19/03/2001 • Completion of the project 16/12/1996 24/06/2004
Independent Engineer
Main Project Contracts
ΕΙΒ Project Owner Greek State PO
Finance Documents Concession Contract Shareholders’ Agreements I.E. Agreement Design – Build Contract
Attiki Odos JV Commercial Banks Shareholders of S.A.
Shareholders of A.D.
Operation – Maintenance Contract Shareholders’ Agreements
Attikes Diadromes
CJV Agreement Execution of works / Supplies Agreements ITTMS Consultancy Agreement Know – How Agreement Provision of Services Agreements Supplies Agreements
Members Sub-contractors Suppliers IBI Group Sub-contractors Suppliers
Issues faced during Project Development
• Financial close took longer than expected.
• Environmental design changed since tender documents were issued.
• Risk allocation problems were not reflected in the concession contract.
• Lack of legal framework in Greece created difficulties.
Risk allocation problems
• • • Mechanism for partial delivery of the project with partial release of Commercial Banks guarantees was missing.
In case of PO instructed variations, no mechanism for EoT was foreseen.
Financial security structure was missing.
As a result the Commercial Banks could not participate in the project financing, unless the risk allocation was better balanced.
Construction problems
Construction problems occurred due to: Archaeology Expropriations Relocation of public utilities Design variations for environmental reasons
Consequences
• Delays • Impossibility of achieving deadlines • Impact on finalization of documents and starting of drawdowns • Concern of lenders
The success story
• Problems were solved through contract amendments.
• Financial close was reached in 2000 and money drawdown started.
• Construction completed within budget and on time for the 2004 Athens Olympic Games.
• Support to Greek construction industry and competitiveness.
Attica Tollway Operation: The Key elements
• Excellent road safety records: one of the safest roads in Europe.
• Incidents management plan and response.
• Active traffic management.
• Customer service policy and “customer” treatment of users.
Annual Average Daily Transactions (March 2001-December 2011)
450 000 400 000 350 000 2001 avg.= 33.500
2002 avg.= 36.500
Real Traffic Anticipated Traffic
2003 2004 avg.= 125.000 avg.= 231.542
2005 avg.= 248.784
2006 2007 avg.= 270.002 avg.= 295.140
2008 2009 avg.= 300.993 avg.= 307.300
2010 2011 avg.= 281.329
avg.= 250.491
300 000
+34.0% +33.9% +34.5% +19.9%
250 000 200 000 150 000 100 000
+38.6% +22.0% +25.6% +4.4%
50 000 0
Anticipation versus reality
• The traffic forecasts for Attica Tollway during the bid phase have been surpassed.
• Actual annual average daily traffic is higher than the traffic levels initially foreseen.
• Reality permitted Actual Toll Rates to be substantially lower than the contractual Upper Toll Rate.
• Actual toll revenue in line with what was anticipated.
Awards from International Organizations
Prize Décibel d’ Or
Conseil National de Bruit (CNB) Paris, France.
1 st Prize Special Achievement in GIS
Environmental Systems Research Institute (ESRI) San Diego, CA, USA
Global Road Achievement Award in Environmental Mitigation
International Road Federation (IRF), Washington DC, USA
1 st Prize European Road Safety Award
International Road Federation (IRF) European Road Federation (ERF) Amsterdam, Netherlands
Recognition of Excellence
1 st Campaign Prize Mega Ilios Award as the Top Brand in Greece
CEO & CSR Corporate Superbrands, Convention, Athens, Greece Athens, Greece “
Green Leader – Carbon footprint Assessment and Mitigation” Award
Centre for Sustainability and Excellence (CSE), Athens, Greece
1 st Back Office Award
Hellenic Institute of Customer Service (EIEP), Athens, Greece
International recognition
Toll Excellence Award in the Category of Administration
International Bridge Tunnel Turnpike Association (I ΒΤΤΑ) Chicago, IL, USA
The success of Attica Tollway What do the users think?
Toll Station cleaness 0 Very Satisfied 10 20 Satisfied 30 40 Not Satisfied 50 60 70 Not at all 80 90 60,4 38,6 100 Very satisfied/ Satisfied April 2011 0,1 0,8 99,0% 0,5 2,0 97,4% Road celaness 58,2 39,2 Road Surface quality maintenance Patrol services responce in incidents Sufficiency and quality of green areas 16,6 46,9 40,1 46,9 48,5 56,3 33,2 4,6 95,4% 1,0 2,5 96,4% 3,3 63,5%
User satisfaction regarding Attica Tollway Safety (%)
60 50 45,4 45,9 46,3 47,3 49,2 49,3 40 30 20 10 0 Very Satisfied Satisfied Satisfaction level 2011: satisfied/ satisfied (vs. 95,1% in 2010).
5,7 2,6 3,2 Not Satisfied Mar-09 May-10 Apr-11 95,6% 0,7 1,8 0,2 Not at all 0,9 0,5 1,0 Not know/ No answer very
User satisfaction regarding Customer Care (%)
50 40 30 20 10 0 100 90 80 70 60 97,6% of users are either very satisfied or satisfied 72,0 67,2 65,6 Very Satisfied (vs 95,3% in 2010) 26,0 28,1 31,9 Satisfied 1,5 3,2 1,0 Not so much 0,5 0,3 0,0 Not Satisfied 0,0 1,2 N/A 1,4 Mar 09 May 10 Apr 11
Thank you!
Contact: Bill M. Halkias, PE, F.ASCE, F.ITE
CEO,
Attica Tollway Operations Authority
President,
Hellenic Institute of Transportation Engineers
Email: