WORKSHOP ON ROAD USER CHARGING SYSTEMS

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WORKSHOP ON ROAD USER CHARGING SYSTEMS BEYOND
TECHNOLOGY Warsaw June 12, 2007
Presentation by Zoltan Pap, Intertoll-Europe
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CONTENT

• Brief introduction to Intertoll
• Road User Charging Systems
• Framework
• Technology
• Roles according to CESARE III.
• ETC Models
• Implementation Options
• Conclusion

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INTERTOLL EUROPE IS AN INDEPENDENT TOLL AND
MOTORWAY INFRASTRUCTURE DEVELOPER AND
OPERATOR.OUR MISSION IS TO

• Successfully Develop And Manage Motorway
  Infrastructure Projects
• Pursue Road User Charging, Tolling And Allied
  Activities As A Specialist Integrator And
  Operator
• Effectively Manage The Diverse Activities
  Necessary For The Operation And Maintenance Of
  Concession Motorways.

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PROJECTS (OUTSIDE EUROPE)

• SOUTH-AFRICA
• Toll collection, motorway operations and
  maintenance
• 13 toll collection location over the country
• INDIA / Delhi NOIDA bridge
• Toll collection
• Bridge, motorway operations maintenance
• Toll collection equipment supply
• BANGLADES / JAMUNA bridge
• Toll collection
• Bridge, motorway operations maintenance
• Toll collection equipment supply
• BRAZIL / Linha Amarela, Rio Teresopolis
• Toll collection equipment supply
• Consultancy appoitments
• USA / Bob Sikes bridge
• Toll collection
• Bridge, motorway operations maintenance

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INTERTOLL EUROPE
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The A1 Project in Poland

• Gdansk to Torun
• Links ports of Gydnia and Gdansk to Silesia
  Industrial Area
• North South Heavy Vehicle Traffic
• Closed Toll network

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A1 Contract Structure
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CONTENT

• Brief introduction to Intertoll
• Road User Charging Systems
• Framework
• Technology
• Roles according to CESARE III.
• ETC Models
• Implementation Options
• Conclusion

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FRAMEWORK

• DIRECTIVE 2004/52/EC
• To obtain agreement on European Electronic Toll
  Service (EETS)
• Target is common service in EC using-
• One OBU per User
• Single contract - i.e. one invoice?
• CESARE III
• Definition of common charging and/or payment
  services

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TECHNOLOGY

• 2 Basic Technologies proposed in Directive
  2004/52/EC
• GNSS/GPRS as a future objective for all systems
• Microwave 5.8GHz
• Other technologies that do not discriminate
  against non-equipped users are also provided for
• Directive prohibits specifying technologies

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ROLES - CESARE III
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TOLL LEGAL STATUS

• USAGE FEE (Austria)
• Fee for a service provided i.e. right to access
  domain
• Tolls subject to VAT
• TAX/DUTY (Germany, Switzerland)
• Charged on the basis of public law and considered
  revenue to the state
• Toll not subject to VAT
• Usage Fee or Tax defines the business model of
  the EP

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ETC MODELS

• RESALE MODEL
• Electronic Toll Service Provider (EP) buys
  tolls from Toll Charger (TC) and invoices to
  Service User (SU )
• Not applicable where Toll is regarded as a tax
• AGENCY MODEL
• Toll Charger (TC) sells Toll directly to Service
  User (SU) and
• EP acts as agent to TC issues invoices in name
  of TC, or
• EP acts as agent of SU ensures payment to TC by
  SU
• Applies to Tolls that are both fees and taxes

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COMBINATIONS
Toll Charger
Toll Charger
Toll Charger
Toll Charger
Country A
Country B
Country C
EFCO B1
EFCO B2
EFCO B4
EFCO B4
EFCO A
EFCO B4
Road Owner B1
Road Owner A
Road Owner B
Concessionaire
GNSS DSRC
DSRC
GNSS
DSRC
Tolling Agent
Operator SPV
EF
Operator SPV
Country B
BO
Operator X
Operator Z
OBE
Operator and BO
Operator
Call Centre
CS
C C
OBE
Back Office Y (BO)
Country C
C C
BO Y
EF
CS
BO
Country B
Country A
Country C
LS
LS
Country A
Country X
Electronic Toll Service Provider
Electronic Toll Service Provider
Electronic Toll Service Provider
Organisation that operates infrastructure
and/or receives toll on behalf of Road Owner
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CONTENT

• Brief introduction to Intertoll
• Road User Charging Systems
• Framework
• Technology
• Roles according to CESARE III.
• ETC Models
• Implementation Options
• Conclusion

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IMPLEMENTATION OPTIONS

• Public Procurement Implemented and Operated by
  Private SPV Company on Service Contract
• Traditional Public Procurement for System Supply
  with Operation by Public Sector
• PPP Concession Structure

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IMPLEMENTATION OPTIONS

• PUBLIC PROCUREMENT IMPLEMENTED AND OPERATED BY
  PRIVATE SPV COMPANY ON SERVICE CONTRACT
• Private Sector tenders technology solution and
  price
• Private Sector paid on tendered system delivery
  milestones and time based fee for operations and
  maintenance of system varied by performance
  regime
• All tolls collected paid to Public Sector

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IMPLEMENTATION OPTIONS

• 2. TRADITIONAL PUBLIC PROCUREMENT FOR SYSTEM
  SUPPLY WITH OPERATION BY PUBLIC SECTOR
• Private Sector tenders technology solution and
  price
• Private Sector paid on tendered system
  deliverability milestones
• Requires Immediate Transfer of Expertise from
  Private Sector to Public Sector Operator
• Public Sector operates and maintains system and
  collects tolls

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IMPLEMENTATION OPTIONS

• 3. PPP CONCESSION STRUCTURE
• Private Sector tenders to design, implement,
  finance and operate the system
• Tender adjudication on basis of retained Toll
  Income to repay loans and operate and maintain
  system. Balance of Toll Income paid to Public
  Sector
• Private Sector takes risk of system
  deliverability and performance
• Private Sector returns based on system
  performance

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IMPLEMENTATION OPTIONS FACTORS TO CONSIDER

• Public Sector Decides Level of Toll and Routes to
  be Tolled.
• Traffic Revenue Risk should be with Public
  Sector
• Private Sector has Necessary Technical Skills
  Experience
• Deliverability and System Performance Risk should
  be with Private Sector
• Complex Technology Interoperability
• Public and Private Sectors need to work together
  to resolve these issues

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PPP Concession Structure Can it Work?

• Uses Private Finance to Implement System
• Places Risks with the Party Best Able to Manage
  Them
• Uses Proven Know How of Private Sector
• Uses Proven PPP Track Record of Better Delivery
• AND
• Reduces Public Sector Resource Requirement

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CONTENT

• Brief introduction to Intertoll
• Road User Charging Systems
• Framework
• Technology
• Roles according to CESARE III.
• ETC Models
• Available Options for Financing
• Conclusion

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CONCLUSIONS

• TO SELECT THE BUSINESS MODEL BEST SUITED FOR
  POLAND
• Use the Experiences, and Future Plans, of
  Neighbouring Countries
• Accommodate EU Guidelines
• Consider the Advantages of a Turnkey Approach
• Apply a Flexible System to Allow for Future
  Development
• Identify the Risks and Place Them with the Party
  Best Able to Manage Them and
• Dont Rule Out a PPP Concession Structure It
  Does Have Advantages and Collects the Cash
  Sooner!

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THANK YOU FOR YOUR ATTENTION!
TOLLS R US!
For further information please visit
http//www.intertoll.eu Or contact ZOLTÁN
PAP  Project Development Director        
Intertoll-Europe ZRt. Fehérvári út 50-52, 1117
Budapest, Hungary Tel [phone] Fax
   (36 1) 215 6165 Mobile [phone]
8963 E-mail zoltan.pap_at_intertoll.hu