Rail Corridor IV: SOP-T Projects

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• Rail Corridor IV SOP-T Projects
• Rebuilding for 160 km/h
• Brief Overview of JASPERS Technical Assistance to
  PMUs of CFR
• JASPERS Framework Consultant Arup
• Richard H Brown CEng FICE (UK)
• Team Leader, Practical Consultations and
• On-the Spot Support to PMUs of CFR, Romania
• Oradea, 15 November 2013

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JASPERS Technical Assistance (TA) to CFR

• Our Role Practical Consultations and
  On-the-Spot Support to PMUs of CFR.
• JASPERS Project Team Team Leader and Site
  Engineer ( Backup).
• Team Leader is embedded within HQ CFR. Site
  Engineer is embedded on Site.
• We are Advisors, Mentors, Influencers,
  Catalysts and sometimes Change Agents.
• The main objective of our Technical Assistance
• To assist CFR (particularly the PMUs of CFR) in
  structuring efficient internal working procedures
  thus contributing to improved implementation of
  SOP-T projects and strengthening institutional
  capacities of CFR.
• Envisaged Duration April 2013 April 2014.

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Team Focus

• Working Alongside
• CFR FIDIC Engineer and Supervision Teams -
  training mentoring (pending award of external
  supervision contracts).
• PMUs DDGEP - reviewing mentoring within
  project implementation (feasibility through
  design programme to construction) - especially
  identification of gaps/deficiencies, need for PMU
  restructuring and improvement standardisation
  of PMU services.
• Key Output
• Development of Practical Guidelines for Project
  Implementation (Design through Construction),
  for general use on SOP-T Projects throughout CFR.
  

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Corridor IV, Sighisoara - Simeria The Main
Focus of TA

• Almost a total rebuild of rail infrastructure
  (171 route km)
• Five Works Contracts - four awarded, one
  contested
• One Signalling/ERTMS Contract - contested (Alstom
  v Thales)
• One Supervision Contract (FIDIC) - contested
• Works and Signalling Linked Physically
• Unlinked Contractually
• Total Value of Contracts 1.00 billion (works)
  0.12 billion (signalling)
• Works Contracts 2.5 - 3.0 year programmes
• FIDIC Red Book for Works Contracts
• FIDIC Yellow Book for Signalling Contract

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Current Statistics
Contract Contractor JV Amount Contracted Contract Period Elapsed Physical Progress Planned as at 31.10.13 Physical Progress Actual as at 31.10.13 Time Overruns (estimates) Current Eligible VOs (unpaid) Cost Overruns
Sighisoara - Atel FCC1 RON 873M 57 67 21 1.5 years 6M Very likely
Atel - Micasasa FCC2 RON 747M 46 25 14 1.0 years 3M Very likely
Micasasa - Coslariu AKTOR RON 722M 50 53 27 1.0 years 4M Very likely
Coslariu - Vintu de Jos PIZZAROTTI RON 767M 75 49 21 1.5 years 2M Very likely
Vintu de Jos - Simeria Contested / Retendered     0 Very late    
Signalling / ERTMS Contested RON 500M (estimate)     0 Very late  
Works Supervision Contested / Retendered     0 Very late  
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Main Issues

• Lack of Equitable Commitment between MT and CFR
  at Project Initiation (a major inter-institutional
  failure)
• Failure to Consider Implementation Options and
  Associated Risks Contingencies
• Failure to Acquire Land Ahead of Commencement of
  Contracts
• Failure to Conduct Adequate Geotechnical Site
  Investigations
• Failure to Identify Major Elements of Work
• Failed Procurement of One Works Contract
• Failed Procurement of Signalling/ERTMS Contract
• Failed Procurement of Works Supervision Contract
• Main Designer Unpaid
• Eligible VOs / Additional Works Blocked
• Capacity Deficits within CFR
• Reactive Corporate Leadership
• Departmental Entrenchment
• Boxed thinking throughout EPS
• Lite PMUs Staffing Ratios, Profiles
  (qualifications experiences), Motivation
  (salaries)
• Inexperience in FIDIC Supervision
• Potentially, No Signalling for the Foreseeable
  Future after Tracks are Switched

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The Response

• What Are We (TA) Doing?
• Monitoring Activities and Procedures on Site and
  at CFR HQ
• Training Mentoring of CFR FIDIC Supervision
  Staff
• Advising on Proposed Restructuring of Corridor IV
  PMUs
• Developing the Core Team Concept (through RWG)
• Facilitating Topical Workshops
• Preparing Practical Guidelines
• Short-Term Expert Advice on Key Ad-Hoc Issues
  (FIDIC Tunnel Design)
• Reviewing Implementation Plans for Simeria
  Km614
• What Can MA and CFR Do?
• Work proactively together to address all the
  issues - See through the Barriers, not hide
  behind them. Form a joint creative (no blame)
  Working Group. Ask JASPERS to help!
• Assign appropriate staff to PMUs (numbers of
  positions)
• Make use of financial stimulation SOP-T funds
  already allocated under each project budget to
  enhance the conditions for attracting,
  maintaining and motivating good quality staff

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Transferring Key Lessons Learned to Simeria -
Km614
  Item Sighisoara - Simeria Simeria Km614
       
1. Track Capacity Overprovision of recess loops and crossovers Too late to re-specify. Overprovision of recess loops and crossovers These could be re-specified but might compound delays in project commencement.
2. Project Commitment Absent. Pressure from MT to curtail project preparation was intense with adverse consequences for Implementation. No agreed arrangements for adequate project staffing. MT and CFR only interested in outputs not outcomes. Appears to be absent. No guarantees that all aspects of project preparation will be complete prior to award of construction contracts. No agreed arrangements for adequate project staffing. MT and CFR only interested in outputs not outcomes.
3. Project Risks Either not assessed or inadequately assessed. Options and contingencies not identified. Huge downstream consequences. Some improvements but in covering for previous inadequacies rather than analysing key options and making optimal selections.
4. Project Procurement Separate contracts for civil works and signalling works and then subsequent delays in awarding the signalling contract have led to an almost unworkable train timetable. Each contractor on each section of route will take full responsibility for civil works and signalling works this should insure against misalignment in completion. It will however, require superior project management by CFR to oversee highly complex technical interfaces.
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Conclusion

• Parting Thoughts
• Upgrading an existing railway is more complex and
  carries heavier risks than building anew.
• Attempting to do this on a large scale without an
  alternative operational plan is asking for
  trouble.
• Upgrading Simeria Km614 the same way (and now
  potentially at the same time) will just compound
  problems a snowballing effect may eventuate.
• Recommendations
• Actions are urgently needed to build/strengthen
  CFRs institutional capacities to manage SOP-T
  projects, with motivation through eligible funds
  - leverage from the EC could be very helpful.
• MA and CFR should undertake a proper assessment
  of options on all future projects (including
  Simeria Km614) with the aim of developing plans
  that mitigate principal risks both to the
  projects and to CFR.

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END

• DISCUSSION