Post on 23-Dec-2015
transcript
Public-Private Partnership (PPP)
Alstom Transport’s experience
Philippe Pegorier, Martin Vaujour
03/06/2011
Three main activities
96 000 employees in 70 countries
Power sectorEquipment & services for power generation
Transport sectorEquipment & services for rail transport
Grid sectorEquipment & services for power transmission
Three main activities
Transport5.8 €bn
Total sales 2009/10 : €23 bn*
Power13.9 €bn
30%
51%
19%
* Proforma figures
Grid3.5 €bn(2009)
A worldwide presence
Latin America2 5009,5%Asia Pacific
1 3005%
North Europe5 800 22,1%
North America1 1004,2%
South Europe670025,5%
26 000 employees in more than 60 countries
France8800 33,6% CEI
200,1%
Alstom Transport, the only railway multi-specialist
The only manufacturer in the world to master all businesses of rail sector The most complete range of systems, equipements and services: • -
Rolling stock
• - Infrastructures
• - Signalling
• - Services
• - Turnkey systems
N°1 in high and very high speed N°2 in urban transport (tramways, metros) N°2 in signaling N°2 in maintenance
Metro
Regional
Locomotives Very high speedDISTANCE
SPEED
Tram-Train
Tram
High speed
A wide range of products and services
Suburban
Rolling stock : from trams to very high speed…
A wide range of products and services
Infrastructure, signalling, services and maintenance
SIGNALLING
INFRASTRUCTURE
Track laying
Electrification
Electric power supply
Electromechanical equipment
SERVICES AND MAINTENANCE
Full Maintenance Management
Spare parts management
Renovation
Traintracer
AtlasRevolution in interoperable drive systems
UrbalisOptimal and efficient monitoringof complex urban transport systems
Optimised turnkey engineering phase
Alstom has a large system engineering team which guarantees • Co-ordinated turnkey design team integrating each subsystem • Selection of products and solutions to optimize the Life Cycle Costs• Sophisticated RAMS (Reliability Availability Maintainability Safety) simulation team and
tools• Planning optimisation reducing construction time
Our large experience allows costs optimisation • Better logistics management• Mutualisation of resources• Optimization of site organisation
PPP & Concession : General Definition
A PPP & Concession’s Project is a project which includes through a single contract :
− the construction of all or part of a railway transport system
− the financing of all or part of the construction by the private sector
− the operation and/or maintenance of the railway transport system
− the revenue, taking into account (part of) the traffic risk and/or performance risk (availability, reliability , …)
A PPP or Concession’s Project (BOT, BOO, DBFOM, DBFM…) is a project where Alstom :
− has its usual role of contractor / supplier / maintainer
+
− acts as shareholder of a Special Purpose Company (SPC)
+
− mobilizes private fundings (equity, limited recourse financing) to implement the Project and secure its scope of works
PPP & Concession: Alstom Definition
Consortium Construction
Lenders
Conceding Authority
Special Purpose Company
Consortium(Exploitation) & Maintenance
PPP contract
O&M contract
Engineering, Procurement and
Construction (EPC) contract (turnkey)
Loan contract
Debt service
Users
Capital subsidy
Operating subsidies
PPP contractual scheme :
Shareholders
PPP typical structure & benefits
Risk transfer
Budget control
On-time delivery
Substitute Capex by Opex
Main benefits for the customer :
Investment scope
Operational scope
Civ
il work
s
Ele
ctro
-m
ecan
ic
Rollin
g S
tock
Con
stru
ctio
n
Op
era
tion
Main
ten
an
ce
Benefits Drawbacks Examples
1/ Global project setting up
X X X X X XNo interface to deal with
Private sector totally responsible
Well-adapted to tramway projects
Financial flow too important for high speed projects
TAV Brazil
2/ PPP for infrastructure only
X X - X - X
Facilitating multiple operation
Private sector totally responsible of the line
Possible segmentation into portions
Lead to hold a precise preliminary referential for operation by third operators
Not much adapted to tramway or metro
RFF France
California
Spain
3/ PPP for superstructure only (or for selected portions)
- X - X - X
Multiple operation facilitated
Direct control on civil works by the customer
Private sector committment to the system
Possible segmentation into portions or trades
Reducing risk transfer (interfaces)
Not much adapated to tramway or metro
HSL Zuid Nthlds
Example: Three possible schemes for a High Speed PPP project:
Why is Alstom involved in a PPP ?
• Life cycle cost: long-term performance maintening from the conception phase to the operational phase
• Industrial Alstom share in a PPP, up to:- 20% for high speed, - 30% for metros,- 80% for tramways
• Being minority shareholder in the SPC, Alstom fulfils its global committment towards the Customer and the shareholders
• Mid-term & long-term balance between customers’ and Alstom’s interests
Unique expertise as a railway system integrator:
PPP projects:
Laws context
Grounds
Rights
Subsidies
Design & construction
Operation & maintenance
Capital
Financing Banks
PPPproject
Private sector
Passengers
Public sector
What each one bringsWhat each one gets
Risk sharing
Turnkey solution
On-time delivery commitment
Betterbudget control
Service Quality
Design & construction Contract
Financing Contracts
Dividends
Operation &Maintenance
Contract
Farebox Income
RISK SHARING MATRIX Alstom views – Subject to negotiation
Land acquisitionDesign & Construction
Modification of standards and normsOperation and maintenance
Exchange rateTicket price
InflationChange orders
Level of serviceTraffic
Interest rateTechnology
New competition modesPolitical risks
Conceding Concessionaire
PPP: Major Success Factors
Sustained political support to the project
Adequacy of legal concession frame with international standards
Realistic assessment of the investment cost and/or of the revenues of the passenger traffic at the ‘feasibility’ stage
Past experience of the country for such projects
The conceding authority must have the financial capacity to support the project
Well-balanced risk sharing between the conceding authority and the concessionaire
Strong committed , experienced, international and local partners for construction, operation, and financing
Limited number of partners at Concession and EPC levels
Alstom’s References
Arlanda Airport Link - Sweden 1994 45-year concession; 40 km line/7 EMU trains
Barcelona LRT Ph 1- Spain 200028-year concession; 16km/19 Citadis LRV’s
Barcelona LRT Ph 2 - Spain 200325-year concession; 14km/18 Citadis LRV’s
Jerusalem LRT Line 1- Israel 200430-year concession; 14km/46 Citadis LRV’s
Florence LRT Lines 2&3 – Italy 2005 25-year concession; infrastructure
Milan metro Line 5 – Italy 200632-year concession; infrastructure
Milan metro Line 5 extension – Italy 201032-year concession; infrastructure
Reims LRT Line 1 – France 200630-year concession; 11km/18 Citadis LRV’s
Nottingham Tramway Phase 2 - UK 201123 years concession, turnkey/22 Citadis LRVs
Barcelona
Reims
Arlanda
General Key Messages
The State have to create upstream adequate political and legal frame
A too complex environment does not attract investors
A direct investment from public authority is a must
Allow use of Export Credit from Supplier to leverage additional support
Part of the payment (including revenues) to be considered in strong currency (or to
provide Forex guarantees)
The risk matrix should be discuss locally and take into consideration the local
environment as well