OECD/SIGMA “ Concessions and Public Private Partnerships” Ankara, 10-11 March 2008 Case Studies from Technical I nfrastructure S ectors -Highways Sector. Mag. Martin Oder, LL.M. Case study – Highways. Austria: A5 Eastern region – concession model Preparatory stage - PowerPoint PPT Presentation
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Austria: A5 Eastern region – concession model- Preparatory stage- Decision-making process- Scope and shape of project- Time schedule- Main procedural and contractual
issues
Preparatory stage – shaping of first road Preparatory stage – shaping of first road PPP project on political levelPPP project on political level
Working group on road infrastructure financing 2002 (Interest groups)
Ministry of Transport, Innovation and Technology – Steering Committee PPP 2003 (with help of external experts)
Discussion on most suitable model: IPP vs.
concession model
procurement law Scope of procurement
financing
accelerationrisk transfer
debt
Ministry of Transport – Steering Committee PPP Oct. 2003
CONCESSION MODEL
Resolution of the Council of Ministers Dec. 2003
Scope of projectScope of project
• First road PPP-project in Austria• Estimated construction costs € 800 m• Project size: too big in terms of seize
and value?• 4 EIA procedures for different parts of
road: different planning and approval status
• Financing issues: ASFINAG financing vs private financing
• Bankability
-
51 km motorway, 1 tunnel (2km)
Project leader
Infrastructureworking group
EconomicsFinancing
working group
Lawworking group
Ministry of Transport – MoF
Management board
of ASFINAG
Core technical planning team
OstregionAdvisors &
experts
Advisors & experts
Project setupProject setup
ASFINAGSupervisory board
Advisors & experts
Task sharing within the project teamTask sharing within the project team
Infrastructure Financial Law Functional output
specification for construction, operation, management and maintenance
Traffic forecasts as basis for revenue models
Concession model Risk allocation Risk valuation Business plans Revenue models Econ. planning tools Tender evaluation
Award procedure Concession contract Interface to BMVIT and
authorities
EXTERNAL CONSULTANTS
Interdisciplinary
Haslinger / Nagele & Partners
Doralt – Seist - Csoklich
KPMGTechnical consultants
DonauConsult, Zottl & Erber ZT GmbH
Project sProject structure – Concessiontructure – Concession model model
sponsors (equity)
lenders (debt)
Concessionaire(SPV)
planning & construction
maintainance & operation
Art of Association
Loanbond
subcontractors
concession contract
Republic of Austria
Direct
Agreemen
t
• Financing through debt (90%, loans and bonds, EIB & Dt Bank) and equity (10%)
• Remuneration upon completion and opening of road to traffic through cash-flows from project only
• Non-recourse project (no contingent liabilities on sponsors)
• Concession lifetime: ~33 years
• ASFiNAG: no stake in SPV, only monitoring and control function
• Fair risk allocation
Time scheduleTime schedule
May 05
Determination of „preferred bidder“: 8 months
Time limit for submission of bids:
6 monthsPreparation period: 12
months
- Planning, EIA procedures
- Conception of model: definition of project scope, determination of financing model, ......
- Preparation of prequalification documents (PQQ, project information brochure)
Main issues during negotiationsMain issues during negotiations
Procedural issues- Alleged discriminatory effect of different financing solutions
(bond vs loan) on comparability of LAFO- Submission of complete financial documentation by preferred
bidder only and point of time of publication of award decision
Contractual issues- Changes in law and additional remuneration- Relief / force majeure events and their consequences - Payments in cases of early termination (bond vs loan)- State guarantees- Direct agreement financing with lenders, esp liabilities of