PPP s in Ireland. Tender Competition. Outline of Presentation. The Fermoy Bypass PPP Scheme. Fermoy Bypass Statutory Procedures

Transcription

1 PPP s in Ireland The Fermoy Bypass PPP Scheme Donal Minnock National Roads Authority Outline of Presentation Delivery of Fermoy Bypass Statutory Procedures Tender Competition Project scope Payment Mechanism Risk Allocation Project Consortium structure Contract Management & Monitoring NRA PPP Programme Activity overview & recap Delivery of Fermoy Bypass: Statutory Procedures - Planning Fermoy Bypass Statutory Procedures Planning application submitted by Cork County Council 12 th July 2001 Oral Hearing held November 2001 Supplementary material requested by the board and submitted 27 th May 2002 Oral Hearing re-opened 24 th September 2002 Approval received 30 th December 2002 Statutory Procedures - tolling Draft Toll Scheme published 14 th May objections received Oral Hearing into toll scheme 3 rd April 2002 Adoption of toll scheme by NRA Board 27 th March 2003 Publication of Draft Bye-Laws 12 th May 2006 Adoption of Bye-Laws 20 th July 2006 Tender Competition 1

2 Tender Competiton Pre-qualification in OJEU commenced July 2001 Shortlisting successful tenders in Nov 2001 : Direct Route Halliburton Brown & Root Ltd, Strabag AG, John Sisk & Son (Holdings) Ltd, Lagan Holdings Ltd, Roadbridge Ltd (Mulcair). Erin Route Carillion Private Finance Ltd, Balfour Beatty Capital Projects, Egis Projects SA, WS Atkins Investments Ltd. Togher Toll Mota-Engil SGPS SA, Mota & Companhia SA, Engil Sociedade de Construcao Civil SA, Acciona SA, Banco Espirito Santo SA, Coffey Construction Ltd, Priority Construction Ltd. Vinci-Hegarty Vinci, PJ Hegarty & Sons. PPP Procurement Process Prequalification Prequal Evaluation Invitation to Negotiate Tender Evaluation Clarification Meetings Shortlisting Negotiations Due diligence & BAFO Provisional Preferred Tenderer ( PPT ) Preferred Bidder Close Tender Programme Issue of tender documentation 19 th April 2002 Tender return date 18 th November 2002 Shortlisting of tenderers to BAFO 25 th March 2003 Togher Toll & DirectRoute Best and Final Offers in 16 th December 2003 Announced Preferred tender 17 th February 2004 Contract Close 11 th June 2004 Project Scope Statutory Procedures Belfast N8 Rathcormac /Fermoy Bypass Scheme Layout Plan Galway Dublin Limerick Waterford Cork 2

3 N8 Rathcormac/Fermoy Bypass Technical Scope 17.5 km 2 Lane motorway 450m Motorway Viaduct 2 Major River Bridges 3 Interchanges (1 was removed by ABP) 9 County Road Crossings 1 Motorway Toll Plaza 2 Ramp Toll Plazas N8 Rathcormac/Fermoy Bypass Typical Standard Motorway Cross-Section Toll Plazas Mainline Plaza between Watergrasshill and Rathcormac South Interchanges 6 lanes in each direction Ramp Plazas to be located at North facing Ramps at the Corrin Interchange 2 lanes per Ramp Includes Administration Building, Canopy, Toll Booths, access, etc. Toll Plazas Standard Layout Drawings Front Elevation Side Elevation N8 Rathcormac/Fermoy Bypass Significant Construction Issues Blackwater Crossing Viaduct 450m Long Motorway Viaduct in SAC Corrin Interchange Construction on Soft Ground Condonstown Toll Plaza Construction of Motorway Tolling Facility Payment Mechanism 3

4 Payment Mechanism Elements Primarily: 1. Hard Toll Revenue 2. Construction Payments 3. Operational Payments Secondarily Revenue Share Non Availability Payment Traffic Guarantee Lane Occupation Charges Payment Mechanism 1. Hard toll revenue from Permit to Use Date - Tenderer bids on his own traffic forecasts - Maximum toll charges as per Toll Scheme - Base toll as per Toll Scheme + Indexation + VAT, rounded to nearest 10c 2. Construction Payments (if required) - Maximum overall amount set in nominal terms - Maximum annual amount specified - Not greater than 50% of certified value of work completed at any point - Linked to Milestone Events Payment Mechanism (Cont d) 3. Operational Payments - Maximum annual amount set - Maximum average annual amount set - Cannot commence before Target Completion Date - Now subject to Non Availability deductions Fermoy Bypass - NRA payments to Direct Route: Approx 80m (2003 prices) over the period of construction Approx 40m (2003 prices) during the period of operation. (subject to CPI) Toll Charge Regime NRA set maximum tolls annually Same charge regime on M1, N6, N7, M7/M8, M8, N25 PPP Schemes Motor car = 1.70, Bus = 3.10 PPP Co s can propose lower charges to stimulate demand Agreed with PPP Co & published annually in national papers Visit Risk Allocation Risk Allocation Statutory Approvals / Planning risks rest entirely with the public sector. Construction related risks rest with PPP Co. Traffic risk mainly with PPP Co NRA establish a Data Room providing significant information to tenderers ie,. Site investigation results Survey results etc. 4

5 RISK PLANNING TRADITIONAL PPP N8 Rathcormac/Fermoy Bypass Site Investigation DESIGN CONSTRUCTION OPERATING DEMAND RESIDUAL LIFE FINANCING LAW Limited existing SI available - geophysical investigation carried out in areas of Karst Limestone Advance Ground Investigation Contract tendered by Local Authority - 12 week site works; 4 weeks testing and reporting Detailed investigation to comprise boreholes, trial pits and testing Overview report along length of project road provided during tender period N8 Rathcormac/Fermoy Bypass Archaeology EIS identified 13 sites of archaeological interest Archaeological Investigation Contracts were tendered by Cork County Council to excavate a 2m wide trench, at 12.5m centers, alternated along the centreline out to the CPO line Reports identifying all known sites within the site and progress of resolution of such sites fed in to the tender programme Approximately 93% of site was tested in this fashion prior to signing of PPP Contract Archaeological risk management Intensive advance testing Pioneered on N4/N6 PPP contract M4 - Johnstown Sites are excavated in timescales that sit within a considered timeframe On site excavation Advance testing non-invasive techniques geophysics, aerial, topographic, terrain modelling invasive techniques testing of sites & trenching of geophysical areas Existing N3 Roestown on the M3 Clonee-Kells Motorway Aerial view of testing on the M3 Clonee-Kells 5

6 Typical PPP Contract Structure Direct Agreement Contracting Authority Project Consortium Structures Funders Construction Contract Construction Contractor Direct Agreements Loan Agreement Security Package PPP Co Project Agreement Shareholders Agreement Operating Contract Operating Contractor Shareholders Direct Route (Fermoy) Ltd.: Consortium Members Lenders Kellog Brown & Root Strabag John Sisk & Son Lagan Holdings Roadbridge First Irish Infrastructure Fund Joint AIB/EIB investment fund Subsequent inclusion of Bank of Scotland KBC/IIB, AIB, ING Subsequent inclusion of Bank of Scotland European Investment Bank (EIB) Construction Joint Venture: Direct Route (Fermoy) Construction Ltd. All equity members except FIIF and Bank of Scotland Cash Flow Overview Finance Providers Project Lenders Road Users KBC/IIB, ING Bank NV, AIB & EIB + BoS Loans Tolls Principle & Interest Equity DirectRoute Direct Route (Fermoy) Limited (Fermoy) Holdings Limited Dividends Revenue Share Construction & operation payments Equity Dividends Tax VAT Loan Stock Rates Principle Construction Costs Operating Costs & Interest Project Investors Halliburton Strabag Sisk Lagan Roadbridge FIIF Construction Joint Third Parties +BoS Venture Co. National Roads Authority Other Public Sector Public Sector Designers Kellog Brown & Root Toll Link Lender s Technical Adviser RPS MCoS Functions of the Lender s Technical adviser Technical Due Diligence (pre-financial Close review and report on organisation structure, technical proposals - feasibility, risks and costs, contract documents etc.) Syndication Support (report update and presentation to Syndication Banks, post Finacial Close - if appropriate) Progress Monitoring (both for D&C progress and preparation work for O&M phase) Payment Certification (in accordance with the terms of the Credit Facility and LTA Agreements) Approvals (in accordance with the terms of the Credit Facility and LTA Agreements) 6

7 NRA Contract Management NRA PPP Contract Based on Highways Agency DBFO contract Amended to suit Irish PPP programme No compensation on PPP Co Default High level of risk transfer Strong incentive on PPP Co to identify, avoid, mitigate and manage risks effectively Toll Road (with free alternative route) Traffic and revenue risks Programme flexibility Long stop date 12 months past the Target Completion Date NRA provide access to site Co-operation Agreement with Local Authorities Little opportunity for claims or cost overruns Essential to avoid / minimise Authority changes PPP Contract: Key Sections Part 1: Definitions Part 4: Property Part 5: Design and Construction Part 6: O&M Part 7: Representatives Part 8: Change Part 9: Payment and Monitoring. Key Dates Expiry Date Completion Date Substantial Completion Permit to Use / Taking Over Certificates Key Contract Schedules for D&C Management Schedule 2: Land Issues, Roads and Orders Schedule 3: Third Parties Schedule 4: Design and Construction Schedule 5: Certification Procedure Schedule 9: Liaison Procedures Schedule 10: Quality and Environmental Management Schedule 15: Payments Schedule 16: Performance Points Schedule 28: Tender Proposals Clause 20.1 The Authority s Representative The Authority has appointed or will appoint the Authority s Representative to act as its agent in relation to the Project and as otherwise set out in this Agreement. The Authority s Representative shall exercise the functions set out in Schedule 8 (Representatives), such other functions as are set out in this Agreement, and those other functions in respect of this Agreement which the Authority may notify to the PPP Co from time to time. Main Duties of Authority s Representative Monitor (and review) the Design Monitor Construction Assess the need for Variations to the Contract Contract Administration and Financial Control Perform delegated functions NRA SPM/ Inspector Tim Ahern/Paschal Griffin Cork Co. Co. Project Manager Kieran McKeone Cork Co. Co. Liaison Officer (1) Fermoy Bypass NRA Site Team Project Archaeologist Ken Hanley Clerical Officer Assistant Contract Manager (Quality) Secretary Authority s Representative G. Murphy / D Minnock Project Director (Consultant) Commission Manager (Consultant) Authority s Site Representative (Consultant) Assistant Contract Manager (Roads) Section Manager (Roads) Assistant Resident Engineer or Clerk of Works Consultant s Technical Review Team Assistant Contract Manager (Bridges/Structures) Section Manager (Bridges/Structures) Assistant Resident Engineer Consultant s Landscape Subconsultant Consultant s Tolling Specialist 7

8 PPP Co s Certificates The PPP Co s Certification Procedure shall apply to those Certificates that are to be supplied to the Authority s Representative by the PPP Co PPP Co s Certificates: Responses Acknowledged, following which the PPP Co may proceed on the basis of there being no objection; or Acknowledged with Comments, and full details of the Authority s Representative s comments shall be supplied to the PPP Co. The PPP Co shall amend its proposals and resubmit amended Certificates. The resubmitted Certificates shall be deemed to be Acknowledged if not objected to within two Working Days after resubmission; or Rejected, and full details of the reasons for the rejection shall be supplied to the PPP Co. Grounds for such rejection are as set out in Schedule 5 Part 3. PPP Co s Certificates : Constraints on Starting Work 1. The PPP Co shall not be permitted to proceed with the Works which are the subject matter of a Certificate until such time as the Certificate has been Acknowledged 2. Quality and Environmental Documentation shall include a list of the written procedures, inspection and test plans and method statements which shall be followed to ensure the effective management of the activities to be undertaken by the Contractor. This shall indicate a programme for submission of any written procedure or method statement which allows for its submission to the Authority s Representative in accordance with the Certification Procedure prior to the commencement of the relevant activity. Clause 23. Quality and Environmental Management The PPP Co. shall procure that all aspects of the Project are the subject of Quality and Environmental Management Systems which comply with Clause 23 and Schedule 10 of the Agreement. Non Conformance Reports (NCR s) Aid for control of site procedures & construction quality No blame culture Majority should be coming from PPP Co s quality check & from Contractor & Designer. Follow up - closure Authority s Key Objectives for Construction Monitoring Receipt of design and its certification Monitor construction and progress Monitor management of environmental issues Monitor supervision by PPP Co Appropriate traffic management Report and advise on variations Monitoring of third party issues Review of NRA Progress NRA PPP Programme Activity Approx billion of private finance committed to road schemes Almost 70 km of national roads completed and 113 km operated and maintained under PPP Contracts Almost 180 km of national roads under construction Donal Minnock National Roads Authority 8

9 Recently opened toll roads 3 PPP roads open, 10 months, 8 months, and 5 months early and with no cost over-runs M1 Drogheda Bypass June 2003 M4/M6 Kilcock-Kinngead Dec M8 Rathcormac/Fermoy Oct Dublin Port Tunnel Dec Next openings N25 Waterford City Bypass N7 Limerick Tunnel N6 Galway Ballinasloe M7/M8 Portlaoise M3 Clonee Kells M50 Upgrade incorporating free flow tolling Or earlier watch this space! PPP s in Ireland Fermoy Bypass PPP Scheme Thank you for listening Donal Minnock - National Roads Authority 9