PPP IN HIGHWAYS WORKSHOP

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• PPP IN HIGHWAYS WORKSHOP
• WASHINGTON 3 APRIL 2006
• RECENT DEVELOPMENTS IN PRIVATELY- FINANCED
  HIGHWAY PROJECTS IN THE UK
• by
• ALEC BRIGGS
• SENIOR PROJECT LEADER, HIGHWAYS AGENCY

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THE ROLE OF THE HIGHWAYS AGENCYAn Executive
Agency of the Department for TransportResponsibl
e for operating, maintaining and improving the
strategic road network in EnglandIn conjunction
with the Highways Agencys Customer First
initiative, its primary aims are to provide

• Safe Roads
• Reliable Journeys
• Real-Time Information for Travellers

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Englands Strategic Road NetworkComprises
8,000 km / 5000 miles of motorways and trunk
roadsAsset valued at 72bnCarries a third of
all traffic and two-thirds of freight
trafficOver 170 bn vehicle-kilometres per annum
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Categorisation of Major Improvement Projects in
TPI (October 2005)
Key MW Motorway Widening TRW Trunk Road
Widening J Junction Improvements B Bypasses
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Speeding-up Delivery
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DBFO PROJECTS AWARDED TO DATE

• Tranche 1 Works Payment Contract
• Cost Mechanism Award
• A69 Newcastle to Carlisle 9.4m Shadow tolls Jan
  1996
• A1(M) Alconbury to Peterborough 128m Shadow
  tolls Feb 1996
• A417/A419 Swindon to Gloucester 49m Shadow
  tolls Feb 1996
• M1-A1 Motorway Link, Leeds 214m Shadow
  tolls Mar 1996
• Tranche 1A
• A50/A564 Stoke to Derby Link 20.6m Shadow
  tolls May 1996
• A30/A35 Exeter to Bere Regis 75.7m Shadow
  tolls July 1996
• M40 junctions 1-15 37.1m Shadow tolls Oct 1996
• A168/A19 Dishforth to Tyne Tunnel 29.4m Shadow
  tolls Oct 1996
• Tranche 2
• A13 Thames Gateway, London 146m Lane
  availability Apr 2000
• (Transferred to T f L in July 2000)
• A1 Darrington to Dishforth 245m Congestion Feb
  2003
• A249 Stockbury to Sheerness 100m Congestion Feb
  2004

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TYPICALCONTRACTUAL ARRANGEMENTS
Total No. of contracts 160
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Development of Payment Mechanisms in DBFO Projects
CONGESTION MANAGEMENT PAYMENT MECHANISM
Future M25 London Orbital likely to be
availability-based mechanism
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A1 Darrington to Dishforth DBFO Project

• Project includes
• 2 TPI Schemes
• A1(M) Ferrybridge to Hook Moor
• A1(M) Wetherby to Walshford

and new or upgraded Motorway Communications
Facilities throughout
Works cost 245m Concession period 33 years
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Congestion Management Payment Mechanism D2D
ContractComprises 2 separate key elements based
on
(a) Active management of traffic
congestion (i.e. minimising congestion)(b) Act
ive management of traffic safety (i.e.
minimising Personal Injury Accidents (PIAs))
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(a) Active Congestion Management

• Allocation of payment amounts and measurement of
  traffic
• Whole Project Road divided into 50 NO 2 KM LONG
  CARRIAGEWAY SECTIONS (25 NB and 25 SB)
• GROSS ANNUAL PAYMENT (as tendered) allocated to
  whole project road to give amounts for EACH HOUR
  on EACH CARRIAGEWAY SECTION pro-rata previous
  hourly traffic flows
• VEHICLE SPEEDS and VOLUMES measured AUTOMATICALLY
  using a MONITORING SYSTEM based on inductive loop
  detectors (in carriageway surfacing)

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Monitoring System Out-station Equipment

• Inductive loops GR Marksman 660 counters
• CCTV cameras for verification
• Dedicated fibre optic cables for signal
  transmission

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Congestion Management Payments
Minimum Condition Criteria must be met before any
payment made
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• (b) Active Safety Adjustment
• Criteria for Safety Payments or Deductions

Zone A no adjustments Zone B enhanced
adjustments Zone C standard enhancements
-8
-2
2
8
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Stepped-Up Construction Period Payments
of Full Payments
Note During construction period, lane closure
charges also apply
Time
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• CURRENT STANDARDS FOR OPERATION AND MAINTENANCE

• DBFO Co obliged to automatically adopt revised or
  new standards
• Only exception Step Change (remote
  unforeseeable change affecting whole motorway and
  trunk road network)
• Not applicable to design and construction
  (standards fixed)

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SOME LESSONS LEARNT FROM DBFO PROCUREMENT

• Schemes with large new-build elements more viable
  (more risk)
• Need to reduce tendering costs
• Need to reduce tendering / negotiation period
• Need for well-resourced DBFO companies
• Need to streamline contractual procedures

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FUTURE PRIVATELY-FINANCED / DBFO PROJECTS

• Motorway Widening Schemes
• M25 London Orbital circa 1.5bn
• M1 J21 - J30 circa 2bn
• M6 J11A - J19 circa 2bn (possible toll road)

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M25 London Orbital
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Thank You
HOLMFIELD INTERCHANGE (A1(M)/M62 Junction)