Transcript REGIONAL WORKSHOP ON PPP IN TRANSPORT RIGA, LATVIA

Safe roads, Reliable journeys, Informed travellers
REGIONAL WORKSHOP ON PPP IN TRANSPORT
RIGA, LATVIA – 6 to 8 MARCH 2007
CONTRIBUTION OF PPP TO ENHANCE TRANSPORT
INFRASTRUCTURE – THE UK EXPERIENCE
by
ALEC BRIGGS, SENIOR PROJECT LEADER, HIGHWAYS AGENCY
and
BARRY DREWETT, TECHNICAL DIRECTOR, PELL FRISCHMANN
CONSULTANTS LIMITED
Safe roads, Reliable journeys, Informed travellers
OUTLINE OF PRESENTATION
Part 1 - Alec Briggs
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The Role of the Highways Agency
Funding of Motorway and Trunk Road
Improvements
Methods of Procurement
Key Advantages of DBFO (PPP)
DBFO Projects Awarded To Date
Part 2 - Barry Drewett
•
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•
•
Typical Contractual Arrangements
Congestion Management Payment
Mechanism
Some Lessons Learnt
Next Privately-Financed/DBFO Project (M25)
Safe roads, Reliable journeys, Informed travellers
THE ROLE OF THE HIGHWAYS AGENCY
An Executive Agency of the Department for
Transport
Responsible for operating, maintaining and
improving the 8000 km strategic road network in
England, valued at £72bn, carrying a third of all
traffic and two-thirds of freight traffic
(over 170 bn vehicle-kilometres per annum)
In conjunction with its ‘Customer First’ initiative, its
primary aims are to provide:
Safe Roads
Reliable Journeys
Real-Time Information for Travellers
Safe roads, Reliable journeys, Informed travellers
FUNDING OF MOTORWAY AND TRUNK ROAD IMPROVEMENTS
Annual Highways Agency Budgets 05-06, 06-07 and 07-08 (£m)
ACTIVITY/YEAR
05-06
06-07
07-08
MAJOR IMPROVEMENTS (TPI)
589
1046
905
MANAGING TRAFFIC (incl. NTCC,
RCCs, Traffic Officers)
109
103
98
TECHNOLOGY IMPROVEMENTS
(motorway communications)
138
120
159
MAINTENANCE (incl. payments for
completed DBFO schemes)
865
862
838
SMALL SCHEMES and R&D
191
167
170
TOTALS
1893
2298
2170
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The Targeted Programme of Improvements (TPI) – February 2007
Total Value of Schemes:
£11.9bn
Total Number of Schemes:
(incl. completed schemes)
112
Comprised of:
Motorway Widenings
28
Trunk Road Widenings
30
Junction Improvements
22
Bypasses
32
Total Number of Schemes Completed:
30
Safe roads, Reliable journeys, Informed travellers
PROCUREMENT OF IMPROVEMENTS AND MAINTENANCE
Main Types of Procurement Contracts
Major Improvement Projects:
●
Design, Build, Finance and Operate (DBFO) (PPP)
●
Early Contractor Involvement (ECI)
●
Design & Build (D&B)
Maintenance:
●
As part of DBFO contracts (PPP)
●
Managing Agent Contractor (MAC)
Specialist Services:
Framework Agreements, e.g. design services
Safe roads, Reliable journeys, Informed travellers
Categorisation of Major Road Projects (February 2007)
MW
Type
TRW
J
Total
B
No.
£
(bn)
No.
£
(bn)
No.
£
(bn)
No.
£
(bn)
No.
£
(bn)
ECI
16
3.88
19
2.20
16
0.76
15
1.58
66
8.42
DBFO
6
1.77
1
0.08
0
0
0
0
7
1.85
D&B
6
0.63
10
0.26
6
0.13
17
0.59
39
1.61
Total
28
6.28
30
2.54
22
0.89
32
2.17
112 11.88
Key: MW = Motorway Widening TRW = Trunk Road Widening J = Junction Improvements B = Bypasses
Safe roads, Reliable journeys, Informed travellers
Typical Procurement of a Major Highway Scheme (Private Funding)
Task
Undertaken by
Type of Contract
Payment Method
Study work for Scheme Identification Consultants
Project Support Framework
(PSF)
Target Cost based on time
charges
Assessment ofAlternative Options
and Public Consultation
Consultants
Project Support Framework
(PSF)
Target Cost based on time
charges
Development of Preferred Option
inc.
Consultants
Project Support Framework
(PSF)
Target Cost based on time
charges
Consultants
Project Support Framework
(PSF)
Target Cost based on time
charges
Consultants and Contractors in
DBFO Company
Design, Build, Finance and
Operate (DBFO)
Negotiated Service Payment
Surveys
Outline Design
EnvironmentalAssessment
Cost Estimates
Draft Order Publication
Public Inquiry and Secretary of
State’s Decision
Land acquisition
Detailed Design and Construction,
and Operation and Maintenance
Safe roads, Reliable journeys, Informed travellers
DBFO PROJECTS AWARDED TO DATE
Tranche
1
Works
Cost
Payment
Mechanism
Contract
Award
● A69 Newcastle to Carlisle
£9.4m
Shadow tolls
Jan 1996
● A1(M) Alconbury to Peterborough
£128m
Shadow tolls
Feb 1996
● A417/A419 Swindon to Gloucester
£49m
Shadow tolls
Feb 1996
● M1-A1 Motorway Link, Leeds
£214m
Shadow tolls
Mar 1996
● A50/A564 Stoke to Derby Link
£20.6m
Shadow tolls
May 1996
● A30/A35 Exeter to Bere Regis
£75.7m
Shadow tolls
July 1996
● M40 junctions 1-15
£37.1m
Shadow tolls
Oct 1996
● A168/A19 Dishforth to Tyne Tunnel
£29.4m
Shadow tolls
Oct 1996
Tranche 2
● A13 Thames Gateway, London
(Transferred to T f L in July 2000)
£146m
Lane availability
Apr 2000
● A1 Darrington to Dishforth
£245m
Congestion
Feb 2003
● A249 Stockbury to Sheerness
£100m
Congestion
Feb 2004
Tranche 1A
Safe roads, Reliable journeys, Informed travellers
Key Benefits of DBFO Contracts
● Fostering development of a private sector road operating
industry
● Better outturn cost certainty
● More reliable and accurate expenditure forecasts
● Transfer of appropriate levels of risk to private sector
● Improved partnerships between public and private sectors
● Provide scope for innovation in all areas including finance
● Overall, provides better value for money
Safe roads, Reliable journeys, Informed travellers
Part 2 - Barry Drewett – Privately-Financed DBFO Projects
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Typical Contractual Arrangements
Congestion Management Payment
Mechanism
Some Lessons Learnt
Next Future Privately-Financed/DBFO
Project (M25 London Orbital)
Safe roads, Reliable journeys, Informed travellers
TYPICAL CONTRACTUAL ARRANGEMENTS
Secretary of State
Highways Agency
Department's Agent
(FM / PFC)
Department's Representative
(Highways Agency)
DBFO Agreement
(inc. Direct Agreement)
DBFO Company
(RMS)
Construction
Contract
Contractor (RMG)
(AMEC, A. McAlpine, Dragados, KBR)
Funders
(Shareholders)
(Bank Loans)
(Bond Finance)
Finance Company
O & M Contract
Operation and Maintenance
(A. McAlpine)
Design Contract
Typical Contract Structure
Designer
(Mouchel-Parkman)
Design sub-consultants
(KBR, Carl Bro)
(A1 Darrington to Dishforth)
Total No. of contracts: 160
Safe roads, Reliable journeys, Informed travellers
CONGESTION MANAGEMENT PAYMENT MECHANISM
Development of Payment Mechanisms in DBFO Projects
Tranches1 & 1A
A13
D2D & A249
shadow tolls
availability
congestion
payments
safety payments
safety
performance
safety
performance
lane closure
charges
Future M25 London Orbital likely to
be availability-based mechanism
Safe roads, Reliable journeys, Informed travellers
Congestion Management Payment Mechanism
A1 Darrington to Dishforth DBFO Project
Length: 53 km
New D4M motorway: 22 km
2 TPI Schemes
New or upgraded
Motorway
Communications
Facilities throughout
Works cost: £245m
Concession period: 33 years
Safe roads, Reliable journeys, Informed travellers
Congestion Management Payment Mechanism – D2D Contract
Comprises 2 separate key elements based on:
(a)
Active management of traffic congestion
(i.e. minimising congestion)
(b)
Active management of traffic safety
(i.e. minimising Personal Injury Accidents (PIAs))
Safe roads, Reliable journeys, Informed travellers
(a)
Active Congestion Management
Allocation of payment amounts and measurement of traffic
●
Whole Project Road divided into 50 NO 2 KM LONG CARRIAGEWAY SECTIONS
(25 NB and 25 SB)
●
GROSS ANNUAL PAYMENT (as tendered) allocated to whole project road to
give amounts for EACH HOUR on EACH CARRIAGEWAY SECTION pro-rata
previous hourly traffic flows
●
VEHICLE SPEEDS and VOLUMES measured AUTOMATICALLY using a
MONITORING SYSTEM based on inductive loop detectors (in carriageway
surfacing)
Safe roads, Reliable journeys, Informed travellers
Monitoring System Out-station Equipment
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Inductive loops & GR Marksman 660 counters
CCTV cameras for verification
Dedicated fibre optic cables for signal transmission
Safe roads, Reliable journeys, Informed travellers
Congestion Management Payments
Minimum Condition Criteria
must be met before any
payment made
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(b)
Active Safety Adjustment
Zone A – no
adjustments
Zone B – enhanced
adjustments
Zone C – standard
enhancements
Benchmark
Criteria for Safety Payments or Deductions
Cap
£ Bonus
+PIAs
-PIAs
C
B A B
-8 -2 2 8
£ Deduction
C
Cap
Safe roads, Reliable journeys, Informed travellers
SOME LESSONS LEARNT

Schemes with large new-build elements more viable (more risk)

Need to reduce tendering costs

Need to reduce tendering / negotiation period

Need for robust reality check, e.g. risk pricing

Need for well-resourced DBFO companies
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Need to streamline contractual procedures

Need for appropriate monitoring
Safe roads, Reliable journeys, Informed travellers
NEXT PRIVATELY-FINANCED / DBFO PROJECT
M25 London
Orbital
New-build cost:
£2bn
O/A cost (incl.
O&M): £5bn
Safe roads, Reliable journeys, Informed travellers
M25 Indicative Programme
Junction 2006
2007
2008
2009
2010
2011
2012
2014
Section 3
J1b-3
J5 – 6/7
Section 2
Section 1a
J16 - 19
Section 1b
J19 - 23
Section 5
J23 - 27
Section 4
J27 - 30
M1
2013
J6a - 10
Legend:
ECI
DBFO
M1
ECI
DBFO
Ongoing
2015
Safe roads, Reliable journeys, Informed travellers
Thank You!
[email protected]
+44(0)113 283 6303
[email protected] +44(0)1924 368 145