Public and Private Partnerships for the Development of Infrastructure to Facilitate Trade and Transport

Transcription

1 Multi-year Expert Meeting on Transport and Trade Facilitation: Public and Private Partnerships for the Development of Infrastructure to Facilitate Trade and Transport 8-10 December 2009 TRANSPORT AND TRADE FACILITATION IN SOUTH EASTERN EUROPE THE NEED TO DEVELOP INNOVATIVE FINANCING SOLUTIONS Submitted by Ministry of Transport Republic of Turkey This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

2 TRANSPORT AND TRADE FACILITATION IN SOUTH EASTERN EUROPE THE NEED TO DEVELOP INNOVATIVE FINANCING SOLUTIONS Ministry of Transport Republic of Turkey TURKEY A candidate member to EU, Located in the main artery of trade between Europe, Asia, Middle East Countries, Providing suitable junction combinations between potential regions. Possess: territory both in Europe and Asia Continents connected by two straits, coastal strips in four different sea boundaries (Black Sea, Marmara, Aegean Mediterranean ). 2 Under the impact of the recent geopolitical developments in Eastern Europe and Asia, Black Sea CIS (Commonwealth of Independent States) and Asian landlocked countries, transportation demand arises due to establishment of new trade links. Within this context, formulation of New European Transportation Policy is unavoidable following the discussion on new transport corridors. 3 4 European Transport Policy Motorways of the Sea concept, gains importance and shifting the balance between the modes proves to be a remedy for the traffic bottlenecks faced in the existing European transport network,while diversion of the traffic towards southern axis to the Mediterranean corridor to be more likely solution. Mediterranean region, has considerable share among the worldwide container traffic throughput, while East Mediterranean where Turkey is located, including Black Sea Region shows a rapid increase in comparison with the West 5 EXISTING AND FUTURE INFRASTRUCTURE 6

3 Role of transport sector has incontestable impact on the trend of economic growth and development patterns for Turkey. The formulation of transport policy is the main task of Ministry of Transport Ministry of Transport is responsible for Determining the means to facilitate international and domestic transport of goods considering future prospects based on peace, political stability and integration within the framework of international trade routes, Maintaining regional balance between the modes of transport Minimizing ecological threats caused by transport, Maintaining rational use of energy Maintaining safety of transport 7 Overall planning programming, design and construction and operation of public railways (including urban rail mass transport) Ports and Airports infrastructure and approval of private sector projects in related fields. 8 At Present The locality of Turkey enforces to realize Rail network major public ports container throughput km 318 mil. tons 5 million TEU Efficient junctional role, Maintain efficient corridors on both east west and north south axis for international multimodal network, Develop Euro- Asian transport linkages via Turkey, 9 10 EXISTING RAILWAYS 11 12

4 EXISTING AIRPORTS ( ) p New Projects Priorty port projects Filyos port Candarlı port Mersin Container port 15 CANDARLI PORT GATE ON AEGEAN Main objective Hubport functıon for the main shipping lines passing through mediterranean for the maritime traffıc to east. pire çandarlı port 17 ÇANDARLI PORT 18

5 operational plan CAPACITY FİLYOS PORT 1. STAGE: TEU/YEAR 2. STAGE: TEU/YEAR TOTAL : TEU/YEAR TURKISH GATE OPENİNG TO BLACKSEA Filyos Port Layout 21 FİLYOS PORT Open Anatolian Market to Asia, Blacksea, East European Countries. 25 million tons/year capacity The railway connected facility will accomodate bulk and container vessels basically, providing deep berths Free Trade Zone,behind the port Activate trade in Black sea MERSİN CONTAINER PORT ASIAN GATE TO MEDİTERRANEAN 23 24

6 Hinterland Mersin Container Port The existing port facilities in The Turkish Eastern Mediterranean coastline is unsufficient to respond to the future demand for the marine bound traffic. Thus Mersin Container Port Project is planned to provide Hub function and act as a gateway facility between Mediterranean container Shipping lines and Mid Asian landlocked countries. 25 MEDİTERRANEAN PORTS CAPACITY AND TRANSSHİPMENT RATIOS MERSİN CONTAINER PORT LAYOUT 28 RAILWAY PROJECTS 29 30

7 MARMARAY Istanbul Tube Tunnel Project The project is a railway line of 77 km. 1.4 km is the strait crossing in the form of immersed tubes 12.2 km. as bored tunnel. capacity of passenger/ hour/ oneway. The construction is now being continued and planned to be completed in Immersion of the Elements Photos of the Marmaray Photos of the Marmaray Photos of the Marmaray 35 36

8 Brıef ınformatıon Project tıtle : İSTANBUL STRAIT ROAD TUNNEL CROSSING PROJECT- ıstanbul TURKEY : İstanbul, Turkiye CONTRACT TYPE BOT Administration : Republıc of TURKEY- Ministry of Transport DLH COMPANY : TURKISH -KOREA N JOİNT VENTURE CONTRACT PERİOD : 30.5 YEARS CONSTRUCTİON : 55 MONTHS (4.6 yıl) OPERATİON : 311 months (25.9 yıl) 38 STRAIT ROAD TUNNEL CROSSING PROJECT TBM TUNNEL SHAFT CONNECTION TOTAL LENGTH OF THE PROJECT İS 14.6 KM.. THE STRAİT ROAD TINNEL CROSSİNG PROJECT CONSİSTS OF 3 SECTİONS. SECTION 1 EUROPEANSİDE CONNECTION. SECTION 2 STRAIT ROAD UNDERTUNNEL. SECTION3 ASIANSİDE CONNECTION power distribution ELECTRO MECHANIC SYSTEM power distribution lightining air ventilaton fire prevention monitoring an d control OPERATION CENTER tv system anoucement system drainage system discharge system Ankara İstanbul Rehabilitation Project - under contruction 2- Ankara Konya Railway Project - under construction 3- Ankara Sivas Railway Project - under construction 4- Tekirdag Muratlı Bandırma- Izmir Railway Connection Project - under construction 5- Sivas Kars railway connection 6- Kars Tbilisi Connection Project - under construction 7- Ankara Izmir Railway connection completed design stage are other outstanding railway projects. 42

9 Kapıkule Kırklareli Menemen Ödemiş Tire Ayazma Alayunt i Osmaneli Eğirdir Çarşamba K.maraş PLANNED HIGH SPEED LINES JOURNEY TIME : (HOUR : MINUTE) CURRENT FUTURE 7:00 3:00 Ankara-İstanbul İstanbul-Konya 12:25 3:45 Ankara-Konya 10:30 1:15 Ankara-Sivas 10:29 2:00 İstanbul-Sivas 17:29 5:00 Ankara-İzmir 13:06 3:20 Bursa-Osmaneli K A R A D E N İ Z STATIONS will be BUILD with PPP EDİRNE İSTANBUL ANKARA YOZGAT ESKİŞEHİR BURSA SİVAS POLATLI E G E D E N İ Z İ İZMİR Torbalı Ortaklar Balıkesir Manisa Zongulda İSTANBUL Ereğl k Samsun Tirebolu İzmit Adapazarı Çankırı Trabzon Arifiye Amasya Turhal İnönü ANKARA Irmak Erzincan Eskişehir Yıldızeli BURSA Sincan Yozgat SİVAS Yerköy Bostan kaya Polatlı Hanlı Divriği Çetinkaya AFYON Elazığ Palu Uşak Kayseri MALATYA Yolçatı Kars Erzurum Horasan Van Gölü Kapıköy Muş Tatvan Van İZMİR AFYON KONYA KAYSERİ Aydın Söke Denizli KONYA Karaman Ulukışla ADANA Yenice Mersin İskenderun Narlı Gaziantep Çobanbey Diyarbakır Mardin Kurtalan Nusaybin HIGH SPEED LINES UNDER CONSTRUCTION HIGH SPEED LINES PLANNED 43 STATIONS will be BUILD with PPP 44 HIGH SPEED TRAIN STATIONS to be BUILD with PPP İSTANBUL It is estimated to serve 50,000 pax daily after completion of Ankara-Istanbul, Ankara-Konya and Ankara-Sivas High Speed Railway Projects Dimensions : 340 x 80 m 2 Height : 34 m Railway Station : m 2 Parking Area : m 2 BURSA ANKARA ESKİŞEHİR İZMİR AFYON KONYA YOZGAT KAYSERİ SİVAS TOTAL CONSTRUCTION AREA : ~ m2 45 RAILWAY STATIONS WILL BE CONSTRUCTED AS GREAT LIVING SPACES AND MALLS HIGH SPEED LINES UNDER CONSTRUCTION HIGH SPEED LINES PLANNED HIGH SPEED RAILWAY STATIONS (with PPP) 46 BURSA OSMANELİ HIGH SPEED RAILWAY PROJECT LOGISTIC CENTERS CONSTRUCT WİTH PPP İSTANBUL ANKARA Ispartakule/ ISTANBUL İSTANBUL İZMİR Kosekoy / IZMIT Gelemen / SAMSUN Gökköy y / BALIKESİR Bozüyük k / BİLECB LECİK OSMANELİ BURSA ANKARA Electrified Signalled - Double Track Annual Potential Freight & Pax Volumes Total Length : ~ 105 Km Bursa-Istanbul: 4 million pax Incoming: Design Speed : 250 km/s Road : 4 h Minimum Curve Radius : 5000 m 15 million tonnes Rail : 2 h Maximum Grade : 12 Bursa-Ankara:1,75 million pax Outgoing: Estimated Project Cost : 300 million Road : 6 h 23 million tonnes Rail : 2 h 20 min. 47 USAK Kaklık k / DENIZLI Hasanbey / ESKISEHIR Kayacik / KONYA Yenice / MERSIN Bogazkopru / KAYSERI Palandoken / ERZURUM OBJECTIVE: Establishing modern logistic centres at places, esp. close to Organized Industrial Zones, having a great freight potential, and convenient for economic developments. DEFINITION: It is planned to construct and/or operate, preferably by PPP model, 12 logistic centres, which encompass all activities regarding transport, logistic and distribution of freight. EXPECTED BENEFITS: Developed combined transport and increased share of railways 48

10 The following intermodal links will be introduced as candidate arteries via Turkey to formulate accessibility between Trans European network and related markets 1.Mediterranean Mersin Container Port- railway connection- Filyos Port, Samsun port-black sea 2.Mediterranean Mersin container Port- Railway - Caucasian markets 3.Mediterranean Mersin Container Port Mersin Port, Iskenderun Port - Railway - Middle East Countries 4.Aegean Sea -İzmir Port or North Aegean Port - Railway - Caucasian, Mid Asian markets 5.Corridor IV - Marmaray Bosphorus Tunnel Project - railway Kars Tiblis project- Caucasion Asian markets The above mentioned links are being evaluated under the TINA Turkey Study which has been started in December 2005 and expected to be completed by end of 2006 where all required infrastructural needs will be assessed for the purpose of establishment of interconnectivity and interoperability between EU and Turkey. These links will also provide alternative routes for the congested Strait passages causing environmental threat and delay AIR TRANSPORTATION AIRPORTS Air transportation in parallel to its importance and accelerated development trend among the world, Turkey has put utmost attention to maintain efficient service both on international and domestic basis following all technological developments and changes at aviation sector, At present 45 airports are under operation 12out of these airports are open both for scheduled and non-scheduled international flights and domestic flights; BUILD OPERATE TRANSFER PRACTICES AT AIRPORTS The BOT Model implementations are very successful at the passenger terminals of airports in Turkey. The seven BOT Model Terminal Airport Terminal Projects are as follows: Antalya Aırport 1.Internatıonal Lınes Termınal Project 2. Antalya Aırport 2.Internatıonal Lınes Termınal Project 3. Istanbul Ataturk Aırport Internatıonal Lınes Termınal Project 4. Dalaman Aırport Internatıonal Lınes Termınal Project 5. Ankara Esenboga Aırport Domestıc & Internatıonal Lınes Termınal Project 6. İzmir Adnan Menderes Aırport Internatıonal Lınes Termınal Project 7. Bodrum Milas Aırport Internatıonal Lınes Termınal Project (still in progress) 54

11 Atatürk Airport 55 Through these projects, a total investment of USD 1,4 billion has been financed by the private sector, without using public resources. The annual additional passenger capacity of these passenger terminals is 44 million. Within the scope of airport projects realized with BOT model has been completed in 1 ½ years on average. Total number of passengers guaranteed for operation period is 108 million and total guaranteed income is 1,5 billion $. 56 RENTED AIRPORTS VIA OPERATING RIGHTS TRANSFER ISTANBUL ATATURK AIRPORT TERMINALS ANTALYA AIRPORT TERMINALS ISTANBUL SABiHA GOKCEN AIRPORT TERMINALS ANTALYA/GAZiPASA AIRPORT ZONGULDAK/CAYCUMA AIRPORT The total rent amount of above mentioned three Projects are approximately 9,2 Billion $. Istanbul Sabiha Gokcen Airport s passenger capacity is increased 20 Million. 57 NEW BOT AND LEASING/OPERATION RIGHTS TRANSFER PROJECTS Rental studies are carrying and Nevsehir Airports. Istanbul Ataturk Airport Cargo Terminal, for Samsun, Sinop, Tokat Zafer Regional Airport (between Kutahya, Afyon, Usak provinces) and Cukurova Airport (between Mersin and Adana provinces) are also planned to realize by BOT Model and studies are carrying on for these projects. 58 Finance methods? Lack of finance sources is the main bottleneck, The level of public investment share in the general budget has negative impact on the growth rate. At present infrastructure Projects are tendered under by the following methods; General Budget projects, financed by local sources are realised under local bidding law 4734 BOT type of bidding is applied for attractive infrastructure Projects under the law 3996 Projects financed through foreign finance sources where specific bidding procedures related to bilateral agreements are applied

12 alternative finance models New approaches towards formulating the contribution of private sector sources and dynamism together with risk sharing is of question. Public Private Partnership (ppp) allocation and share of responsibilities, costs and risks, revenues and benefits in optimum proportions between the private and public sector during creation of public service. The assessment of optimum proportions and definition of the role of each party comprises the backbone of the Public Private Partnership modeling. 61 BOT MODEL CONTRACTİNG BOT model is used for transportation infrastructural projects under the Law numbered 3996 issued in Till now; In port sector 16 projects involving 12 marinas and 4 port facilities In Air transport sector 7 airport terminal projects has been contracted on BOT basis. 62 Airport terminal projects have been successsful owing to shorter recovery investment period and guarantees issued by the government The total cost of 7 projects 1.5 billion USD$. And additional capacity created 50 million passengers per year. However in port sector infrastructure projects, No government guarantees are allowed Requirement of high investments and long recovery investment periods brought out failure of some of the contracts. Also in these contracts the BOT contractor was obliged to finalize the settlement plans. EİA Study approvals, which caused delays in the implementation schedule A good example in port sector TURGUTREIS MARINA the infrastructure of which has been implemented successfully with a 20 million US dollars investment cost, is now being in operation for a duration of 22.5 years concession period, 460 yacht capacity 65 66

13 Çanakkale Port Infrastructure has been implemented by public but superstructure is being completed by the company is now in operation.. The cost of the Project is 14.6 million US dollars operational period is 29 years Bodrum passenger terminal is contracted on BOT model to meet passenger traffic demand of South Western Anatolia. The cost of the BOT contract is: 10 million $ / concession operation period 12 years two gross ton passenger ships will accommodate at the same time. providing ferryboat ramp function. The Project is under construction now Güllük Bulk Terminal Planned to meet the dry bulk demand of South Western hinterland of Turkey In South Western Aegean Anatolia, where there are large scale sources of (feldspat) minerals, ore to be exported to other countries. Will provide savings in economy and time. The construction has been completed and operation phase has just started Investment is 12,5 million $ Operation period 7 years BOT contract 71 72

14 For New BOT Projects As another approach to minimize the cost to be borne by the contracter and to increase the profitability of the project, the main components of the construction of infrastructure are implemented by public, Thus the main item of the investment required in the BOT contract, becomes completion of the infrastructure together with the realization of necessary superstructural facilities required for efficient operation. Within this understanding new port projects are tendered, of which the main components of the infrastructure have already been completed by public are tendered Within this understanding marina projects, of which the main components of the infrastructure have already been completed by public are already tendered AN EXAMPLE FOR THE BOT MODEL TENDER EVALUATION PROCEDURE 75 a- The tenderers are prequalified with respect to their experience for similar work and financial level b- Technical evaluation of the proposal in terms of Physical and functional characteristics Environmental measures Economic viability c- Financial evaluation of the tender Amount of payments offered for the utility of land Investment period Operational period Amount and type of investment d- Final evaluation 40% of Technical score + 60% of the financial score = final score The highest final score is awarded. 76 SUCCESS IN THE BOT PROJECTS DEPENDS ON FOLLOWING PARAMETERS With reference to our experience and lessons acquired, the below points are highlighted a- Maturity of the Project Aim of the Project should be in line with national policies- Feasibility EIA engineering surveys and settlement plan approvals b- Optimum formulation of the vital parameters on Allocation of risks Cost revenues Guaranties obligations extent of responsibility and liabilities Optimum period of partnership On the other hand for transport infrastructure projects long investment periods huge investment amounts global economic crisis conditions some further remedies are to be considered (such as ıntroduction of guaranties and longer conssession periods shadow tolls etc.) Thus defining a BOT model is an art where related tools are to be designed in harmony to produce success in achieveing benefits on each party in quality and quantity

15 PUBLIC PRIVATE PARTNERSHIP Under Emergency Action Plan which Turkish Government has formulated, Ministry of Transport is authorised for the task of development of alternative Finance models. Within the scope of this responsibility a report has been prepared reflecting the existing situation and bottlenecks concluding with recommendations to overcome the bottlenecks, the outcomes of which are summarized as. A- Short term approach 1- To enable improvement under the prevailing laws within the scope of deficits related to application, the necessary steps will be formulated with regard to problems encountered during implementation of BOT contracts. 2- Modification and rearrangement of the existing laws 79 B- Long term approach Adjustment of the legal framework and Introduction of a new law related to purely Public Private Partnership concept identifing, defining the role of public and private sector and activitywise planning essential tasks, to be undertaken. Establishment of an authorised governmental body to be in charge of PPP activities. 80 As conclusion, under the spirit of globalization, implementation of priority environment friendly transport projects will not only be of national concern, but will comprise to be the focus of international common interest. Therefore further efforts on the formulation of cost and time saving finance models is an essential requirement 81 82