PPP Turning the Line 4 of Metro São Paulo into reality. São Paulo - Brazil

Size: px

Start display at page:

Download "PPP Turning the Line 4 of Metro São Paulo into reality. São Paulo - Brazil"

Corey Byrd
7 years ago
Views:

1 PPP Turning the Line 4 of Metro São Paulo into reality São Paulo - Brazil Historical milestone of Metro of São Paulo Financing Resources Due to the funding crisis, after 1995 a new model to obtain financing resources has been studied, now considering the participation of private organizations. 1

2 Historical milestone of Metro of São Paulo Financing Resources Studies resumed in 2000 World Bank and JBIC loan: US$ 418 Mi World Bank/JBIC loan contracts signed in 2001 International bid for construction in 2001 Construction contracts signed in 2003 Turnkey mode Part of the investments due to the State Government Historical milestone of Metro of São Paulo Financing Resources A new scenario in 2004: new federal and state laws on Private- Public Partnership - PPP establishment of effective warrants to PPP creation of the Paulista Company for Partnership rules for risk share and pecuniary payment feasibility for the private sector to share the enterprise. 2

3 Formal aspects and phases of the bid Contracted finance advisor: a private bank Concession approval and authorization by the PPP Management Council of the State of São Paulo Establishment of the Metro São Paulo as responsible for the bid process and bidding documents PPP The bid International bidding Consortium participation Judgement criterion: the least pecuniary payment by the State of São Paulo 3

4 Line 4 Yellow enterprise phases Phase I: 12.8 km underground Phase II: 5 additional stations 6 stations depot finishing operational systems complementary systems depot ridership: 970k ridership: 704k fleet: 29 trains fleet: 14 trains The concession object 30 years concession, starting on the phase I operation start up. 4

5 Implementation São PauloP State Gove vernmentnt Investmen ments: 12.8 km of tunnels and permanent way 11 Stations Depot Vila Sônia Operational systems Implementation Concessionaire Investments: Rolling stock, signalling, depot control, central control, voice and data mobile communication systems 5

6 Investiments ts US$ (2003 prices) Phase I Phase II Total % State Government % Concessionaire % Total % Revenues Public fare: Established by the state government Paid by the customer Initial value established in 2005 Concessionaire fare re: Initially the same as the average fare, base Feb 2005 Annual fare readjustment indexes and weights: First 15 years Following 15 years IGP-M 50% - IPC 50% 100% 6

7 Revenues Concessionaire share of the fare revenues nues: Line 4 exclusive passengers: 100% of the concessionaire fare Integrated railway passengers: 50% of the concessionaire fare Revenues Exploitation of non-fare revenues by the concessionaire Fare collection system operated by an organization, independent of the Government and the railway operators 7

8 Operational Performance The concessionaire performance will be assessed by means of operational performance indicators. The concessionaire payment will be variable as function of the performance indicators. Major Risks Ridership risk: the expected ridership is not accomplished Currency exchange risk: currency devaluation affecting the payment capacity of debts in foreign currency 8

9 Major Risks Constructio tion risk: delays on delivering the enterprise to the concessionaire Inter-muni municipal bus inte tegration: competition between the bus and the railway transport modes Ridership risk mitigation This will be applied only in Phase I Non-protection band: up to +/- 10% of the expected ridership 2 protection bands: the first between +/-10% to +/-20% the second over +/-20%, limited to 40% of the expected ridership 9

10 Ridership risk mitigation Passx1000 / day Ridership Mitigation Bands Year 1 Year 2 Year 3 Year % + 20% + 10% Expected - 10% - 20% - 40% Ridership risk mitigation Expected Ridership Working day (thousands) Expected ridership 704 Real ridership 70% 493 Non-protection band Up to +/- 10% % protection band +/- 10% to +/- 20% % protection band +/- 20% to +/- 40% Protection differential 106 Real ridership + differential

11 Construction risk mitigation The Government communicated the concessionaire, 2 years in advance, the intended revenue service start up date and offered warrants for the accomplishment of this goal. The concessionaire offered warrants to the Government that this revenue service goal will be accomplished. Bus integration risk mitigation The competition with the inter-municipal bus lines may cause significant reduction on the expected ridership The Government shall implement the sectorization of the inter-municipal bus lines that compete with Line 4 - Yellow. 11

12 The Regulator Responsible to inspect the contractual relationship with the concessionaire Public Service Concession and Permission Monitoring Committee, created in November 2006 to accomplish temporarely the Regulator functions The contract 30 years of revenue service Concessionaire revenue dependant on performance Economical-financial balance allowed Profit share Arbitration to solve business conflicts 12

13 The contrator The winner would accept the least pecuniary payment, limited to US$ 80 Mi The winner accepted US$ 40 Mi Consortium MetroQuatro: Companhia de Concessões Rodoviárias Montgomery Participações S/A RATP Developpement S/A Benito Roggio Transporte S/A Mitsui & Co. Ltd. 13

Alstom Transport supplier of Tram Systems in PPP schemes

Alstom Transport supplier of Tram Systems in PPP schemes Arnaud de Monts 04/04/2014 Various procurement schemes A tramway system can be procured in various schemes, each of them have been experimented