The Consultant s Perspective on the Challenges in CEE/SEE

Transcription

1 The Consultant s Perspective on the Challenges in CEE/SEE Provocations! Proposals. Solutions? Wilhelm Reismann, 19 October 2012 Public version.

2 engineering consultants, approx. 350 staff expertise in tunnelling, water, energy, structures project management

3 Copyright This version does not contain the illustrations used during the workshop. For the full version please contact

4 Buildings, mainly Private sector Continuity???

5 9/19/2012 2:28:00 PM - TANJUG Chinese company to build Pojate-Preljina highway BELGRADE - Serbia's Minister of Regional Development and Local Self-Government Verica Kalanovic said Wednesday that she had started talks with the Chinese on the construction of a 110-kilometer regional highway from Pojate to Preljina, in central Serbia. Kalanovic, who is heading the team negotiating with potential contractors, told Tanjug that the job would most likely go to China Road and Bridge Corporation, which is already building a bridge over the Danube which will connect the neighborhoods of Zemun and Borca in Belgrade. Kalanovic said Serbia would get a very favorable loan for the project from China - with an 18-year payment period and a very low fixed interest rate. "The price will be the most affordable we can get," said the minister, adding that financial terms are being negotiated with China Exim Bank.

6 Europe: Home?? Market?? Home Market??

7 Provocations! Problems? No right? No direction? No power? Legal systems? In theory? Practically? Procurement? Project delivery? Contracts? Cooperation? No risk, no fun? No fun, only risks! Local diversities? Language barriers? Unbalanced contracts?

8 Provocations! Problems? No market? No home? No future? Look at Asia? America? Africa? What happens in Europe? With Europe? No money? No hope? Private sector? Public sector? EU+IFIs+States coordinated? Efficient? Transparent? Young professionals. Chances? Stay or go?

9 Int. Funds 1,2,3 One Continent? Nat. Funds 1,2,3 One Strategy?

10 Int. Fund 1,2,3 Coordination? Nat. Fund 1,2,3 Continuity? years?

11 Clients+Consultants+Contractors The perfect partnership C C The traditional balance Mr FIDIC s dream! C

12 E B Project Polychaos standard project organization and communication N A C G H K C S F C P D L M T R O C J W

13 Proposals. Solutions? Let s dream! Let s lobby! Let s cooperate! Let s improve!

14 Dreams? Proposals. Solutions? CEE+SEE is our home! CEE+SEE is our market! The EU is a strong and fair partner! The states welcome our cooperation! Language is not seen as a defence weapon! A European is not a foreigner, by definition.

15 Dreams? Proposals. Solutions? Financing institutions cooperate+coordinate. Clients have projects well prepared. Consultants expertise is honoured. Contractors+consultants have clear roles. Reasonable forms of contracts are developed. Risks are borne, not shifted to the last one. Single point responsibility is taken seriously.

16 Dreams? Proposals. Solutions? Laws and rules are simple, fair, and kept. Authorities execute efficiently. Administration does serve, not hinder. Transportation, water, energy need networks. Procurement follows rules and best practice. Institutions need and accept expertise.

17 Contractors+consultants have clear roles Client expertise, controlling, independent engineer studies, design Consultants expertise Contractor Consultants design expertise

18 A good example at the end. 01 EU and IFIs have agreed on an infrastructure network to be financed, designed and built 02 IFIs (+ banks) together with the EU and national authorities have agreed on competitive and affordable financing conditions 03 one national authority is handling the case professionally 04 one set of international rules of procedure is followed 05 English is the official project language, and used every day 06 a team of international+national consultants prepares the project, studies, general design, contracts, tenders 07 project definition is well done, not too much detailed

19 21 points 08 international standard forms of contracts are applied 09 An independent risk evaluation group is proposing a reasonable and fair split of risks 10 A DBFO contract is awarded 11 Consultants stay on the client s side as controllers 12 The contractor and his consultants prepare a life cycle oriented project 13 The client and his consultants check and approve efficiently 14 The political situation is stable, in spite of elections 15 The legal framework and taxation do not change

20 towards project success!! 16 An ad-hoc arbitrator sorts out quickly eventual disputes 17 There are major claims on soil conditions and future operation which can be solved by risk splitting without litigation 18 Adequate contingencies (reserves) have been left in the budgets to cover unexpected risks 19 The client and his consultants maintain a strong but fair role throughout the project 20 Quality is in the contractors interest due to his operation obligation 21 The contractor works with good own staff instead of multi-level-subcontracting, reducing interfaces in the project

21 And who says that this best practice case does NOT exist??

22 You? are right! Thank you, still No improvements without dreams, aims, and constant lobbying!!