Latin America : Innovative financing schemes for urban transport projects in India

Transcription

1 Latin America : Innovative financing schemes for urban transport projects in India Arnaud Dauphin Lead Urban Transport specialist Urban Mobility India New Delhi, November

2 AFD, the French Development Bank 70 countries 8 billion commitment /year 1 billion for transport /year India since million /year Bangalore, Kochi, Nagpur metros 2

3 BRAZIL : Salvador de Bahia Metro Line 1 and 2 3

4 Brazil : Salvador de Bahia Project map Population : 4,4 M inhab. Length : 33,4 km 19 stations Commissioning: Ridership: pax/day

5 Brazil : Salvador de Bahia Main features Owner Federative State of Bahia Scope Greenfield - Brownfield project : 2 metro lines, 33,4km, 19 stations and passenger transfer terminals Investments cost US$ 1 bln (6605 Kr) Public funding $620 M 3945 Kr (64%) Private financing $380 M Kr (36%) IFI s Involvement No but on going discussion with AFD for LRT rehabilitation Project structuring PPP DBFOM Contractor CCR metro Bahia (Camargo Correa group) Construction schedule 42 months Operation 30 years (but operation in 9 months) 5

6 Brazil : Salvador de Bahia financial mechanisms International bidding process Fixed amount of public financing disbursed on milestonebased payment during the construction (8 milestones) A minimum ridership threshold is guaranteed by the Owner in the tender docs ( px/day) Bid evaluation based on the level of remuneration requested by the concessionaire to balance the project Concessionaire able to get concessional loans from BNDES Brazil development bank Tariff adjustment mechanisms (based on consumer and energy index ) and demand risk sharing (+/- 10%, 10-25%, +25%) 6

7 Brazil : Salvador de Bahia - Financing structure Supervisory and management level Federal Government of Brazil State Federal District Participation Fund (PPP Guarantee) Desenbahia (Development Agency of State of Bahia acting as a guarantor) State of Bahia Secretary for urban development (SEDUR) CTB (Bahia Urban Transport Company) Other secretaries, municipalities and development partners Civil society Organizations (NGOs, civil society, transport users and affected people) Technical and financial audit, and evaluation consultants CCR Metro Bahia (Private Consortium) Construction Phase Construction level Public funding paid at each construction milestones (station completion, tunnel bored, etc.) Overall Project Management Consultant Detail Engineering, construction Supervision -(EGIS) Civil works (Andrade Gutierrez, Camargo Corrêa e Soares Penido) Systems and Equipment (Siemens) Rolling stock (Rotem) Operational level Annual lumpsum proposed in the bid: 127,6 million reais Remuneration : passenger x remuneration tariff proposed in the bid (2,1 reais/pax) Operation and Maintenance Phase 7

8 PERU : Lima - Calao Metro line 2 8

9 Peru : Lima Metro Line 2 Project map Population : 10 M inhab. Length : 35 km and 35 Stations Commissioning: Ridership: pax/day

10 Peru : Lima Metro Line 2 Main features Owner Government of Peru Scope Greenfield project : 35 km (Line 2-28km, Line 4-7km), 35 stations and 42 driverless trains Investments cost $5,88 bln Public funding $3,7 bln - (78%) Private financing $1,15 bln (22%) + $0,85 bln ECA financing for rolling stock IFI s Involvement World Bank, IADB, CAF, KFW, AFD, EIB Project structuring PPP DBFOM Contractor Consortium Iridium-ACS/FCC Impregilo - Ansaldo COSAPI (Spanish-Italian-Peruvian consortium) Construction schedule 58 months (but operation in 24 months) Operation 35 years 10

11 Peru : Lima Metro Line 2 Financing mechanisms International bidding process 60 deferred payment certificates during 15 years to the Concessionaire as compensation for the works performed Concessionaire use its certificate to borrow money from the Bank and secure the reimbursement by the payment streams Bid evaluated based on the remuneration requested by the concessionaire to balance the project Remuneration based on services offered (train.km) with quality of services requirements 11

12 Peru : Lima Metro Line 2 - Financing structure Supervisory and management level IFIs: WORLD BANK, IADB, CAF, KFW, AFD, EIB, Public Project Bonds OSITRAN (Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público) CONTRACT REGULATOR MINISTER OF FINANCE GOVERNMENT OF PERU PROINVERSION (Peruvian Agency for private Investment) PROJECT PREPARATION PROCUREMENT MINISTER OF TRANSPORT AND COMMUNICATIONS AATE (Autoridad Autonoma de Transporte Electrico) TECHNICAL AND OPERATION SUPERVISOR Municipalities of Lima and Calao, other ministries, agencies and development partners Construction level Technical and financial audit, and evaluation consultants Public funding paid according to milestone-based cash payments (station completion, tunnel bored, etc.) Construction Phase Metro DE LIMA LINEA 2 SA (Private Consortium) Overall Project Management Consultant Detail Engineering, construction Supervision Civil works Contractors (ACS-FCC-IMPREGILO) Systems and Equipment (ANSALDO) Rolling stock (ANSALDO) Private project Bonds (Citigroup, Morgan Stanley and Banco Santander) using deferred payment certificates Export Credit Agency Loans back by Italian SACE IADB Non sovereign loan Operational level Services in operation based lump sum according to AATE requirements (estimated at $195 M) Operation and Maintenance Phase AND OPERTAION 12

13 MEXICO : Mexico City Metro improvement and rehabilitation 13

14 Mexico : Metro improvement Project Map Population : 21 M inhab. Length : 226 km and 195 Stations Ridership: 5,2 M pax/day

15 Mexico : Metro improvement - Financing structure SISTEMA DE TRANSPORTE COLECTIVO DE DISTRICTO FEDERAL (STCDF) FIMETRO (Fiduciary Fund set for 50 years signing the loans and issuing bonds) 100M in 2015 Increase of tariff in 2013 to feed an investment fund (2 pesos additional on top of 3 pesos // paratransit 6-13 pesos) Mexico city Metro Company Project Office BBVA Bancomer (Acting bank on behalf of FIMETRO) AFD, ECA, local banks PROJECT BONDS Payment to contractors based on International competitive bidding process Project improvement contractors : $1,18 bln 8256 Kr (7 projects) Rolling stock renewal Signalling improvement Line 12 extension Track and alignment modernization 15

16 Mexico : Metro improvement Main features Owner Investments cost Contractor Public funding External lending Project structuring Construction schedule Operation Scope IFI s Involvement SISTEMA DE TRANSPORTE COLECTIVO DE DISTRICTO FEDERAL (STCDF) $1,18 bln 8256 Kr (7 projects) To be procured on separate basis 55% from the SPV (Deposit and future Revenues) 45% (ECA, AFD, local banks) Non sovereign financing (Lots or turnkey) To be defined for each contract Works under operation 7 brownfield projects : trains renewal, track and alignment improvement, line extension, signaling modernization AFD 16

17 PPP for mass transit transport could be feasible and financially sustainable Technical Private : Technical risks borne by the concessionaire: design optimization, construction, geological, interface management, completion date Public: Land acquisition and clearance, resettlement, archeological risks Milestone-based payment, incentive for concessionaire to speed up construction Financing structure What can we learn? More than 60 % of financing should be public (Investment, Bonds, IFIs,) Public Funds should be committed and secured Milestone-based cash payments to secure private sector financing and allow concessionaire to get its own financing or issue project bonds IFIs involvement for both public funding but also for the concessionaire 17

18 Regulatory framework Stable regulatory environment with long term commitments for both construction and operation Stakeholders Need strong players (most of the case civil works companies) able to gather financing and lead construction and operation Sophisticated and complex structure and arrangements, need good financial advisors for both public and private sides Contract negotiation should start during the procurement process (need to create a competitive dialog with bidders) Operation What are the key findings for Indian projects? Ridership and fares risks should be borne by the public side with a minimal ridership threshold and a risk sharing mechanism in case of major demand variation Remuneration/pax incentive to start operation soonest 18

19 Thank you for your attention Arnaud Dauphin Lead Urban Transport Specialist Sustainable Transport and Energy Division 5 rue Roland Barthes Paris