Word Bank Resource Guide and Other Information on Performance-Based Contracts

Transcription

1 Regioal Semiar o Performace- Based Maagemet ad Maiteace Cotracts Word Bak Resource Guide ad Other Iformatio o Performace-Based Cotracts César Queiroz, Ph.D. Roads ad Trasport Ifrastructure Cosultat Arusha, Tazaia February 2008

2 Presetatio Outlie World Bak Resource Guide for Performace-based Cotractig Additioal resources Toolkit for PPP i highways From PBC to PPP PBC ad road maagemet RONET PBC ad the distributio of risks betwee the public ad the private sectors

3 World Bak Resource Guide for Performace-based Cotractig Assists road agecies i developig coutries to lauch or ehace a PBC program to maage ad maitai their road etworks Cotais practical documetatio to idetify a PBC approach to fit specific coditios i a give coutry desig biddig ad cotract documetatio develop a efficiet PBC implemetatio strategy Also useful for cosultats ad cotractors Produced uder a partership betwee the UK Departmet for Iteratioal Developmet ad the World Bak

4 World Bak Resource Guide for Performace-based Cotractig Sample Biddig Documets Sample TOR for preparatio of PBC projects ad support to biddig process Sample TOR for Supervisio Sample TOR for Facilitator / Traier Sample Techical Specificatios WB Techical Note No. 27 o PBC Actual Cotracts Resource People

5 World Bak Websites o Performace-based Cotracts Resource Guide for Performace-based Cotractig Traiig Course for Performace-Based Maagemet ad Maiteace of Roads XTTRANSPORT/EXTROADSHIGHWAYS/0,,cotetMDK: ~pagePK:148956~piPK:216618~theSitePK: ,00.html Road Maagemet Catalog XTTRANSPORT/EXTROADSHIGHWAYS/0,,cotetMDK: ~pagePK:210058~piPK:210062~theSitePK: ,00.html

6 Guter Zietlow s Website o Performace-based Cotracts PBC Overview Sample Terms of Referece for the Preparatio ad Procuremet, Cotract Supervisio ad Facilitatio, ad Traiig Biddig ad Cotract Documets Traiig Materials Related Presetatios Available at:

7 Toolkit for PPP i Highways The toolkit is structured uder five headigs ad icludes a library ad iteractive fiacial simulatio model Available at the World Bak s s web site:

8 From PBC to PPP but PPPs are ot ew! Toll road at Wadesmill i Hertfordshire, UK, established i 1663 by Act of Parliamet 19th cetury cocessios: toll roads, bridges, tuels i US; railways i Frace; subway i Lodo Suez (1860) ad Paama (1880) caals Declie aroud 1930 (great depressio) Resurgece i the 1980s: collapse of the state-owed moopoly paradigm

9 Toolkit for Public-Private Partership i Highways Fiacial Simulatio Model Mai Fiacial Idicators

10 Debt Service Cover Ratio (DSCR) DSCR = 3 ADSCR 1 2 i = 1 (Debt ( = 3 ( CAFDS ) i = 1 CAFDS ) DebtService, Service)i, where i = umber of traches, 1 i 3 = curret year (Debt Service) i, = (Pricipal) i, + (Iterest) i, CAFDS= Cash Available for Debt Service

11 Loa Life Cover Ratio (LLCR) LLCR = Net Preset Value Outstadig Debt maximum maturity of j= the three ed of period traches (CAFDS) = curret year ( CAFDS ) ADSCR = DebtService, i = 1 CAFDS= Cash Available for Debt Service Outstadig debt ed of period The Net Preset Value of the Cash Available for Debt Service from year +1 to the ed of the maturity is discouted at the debt iterest rate The fiacial tool provides the user with the miimum LLCR

12 Retur o Equity (ROE) ed of the cocessio i= 1 (Equity ijected - divideds) i (1 + ROE) = ADSCR = 3 ( CAFDS ) DebtService, where: i = 1 Equity ijected i is the equity provided by the sposors i year i Divideds i are the divideds distributed to shareholders i year i ROE is calculated i real terms through deflated flow (equity - divideds)

13 Project Fiacial Iteral Rate of Retur (IRR) ed of the i= first year of cocessio 1 2 costructi oi = 1 (OCFBF) = 0 ( CAFDS = 3 (1 ) + IRR) ADSCR i DebtService, i= 1 i i = year OCFBF = Operatig Cash Flow Before Fiacig

14 Project Net Preset Value: Preset Value of Taxes mius Subsidies (NPV) Project NPV edof cocessio = ( CAFDS ) ADSCR = t) i (1 + DebtService, = first year of i = 1 costructi o (OCFBF) i i yearof study where: OCFBF = Operatig Cash Flow Before Fiacig t = weighted average of the three rates o the traches of debt The NPV is calculated for the first year of the costructio period

15 Estimated Miimum Toll Rate to Attract Private Ivestmet for a PPP Project $/km ,000 vpd Costructio cost, $ millio/km 10,000 vpd 15,000 vpd 20,000 vpd

16 PBC, PPP ad Road Maagemet Road coditio is a key idicator of the roads agecy efficiecy PBC ad PPP have bee used to improve the coditio of road etworks (also to expad) A ew tool ca help road agecies ad policy makers to assess the future coditio of a road etwork as a fuctio, iter alia, of fuds available: RONET

17 Road Network Evaluatio Tools (RONET) Versio 1.01 World Bak Jauary 2008

18 RONET Developed for SSATP by the World Bak Helps decisio makers: Moitor etwork coditio Pla allocatio of resources Assess cosequeces of macro policies Desig Road Asset Maagemets Systems Developed for Africa, but ca be applied worldwide

19 RONET Iput Coutry data Legth of road etwork Historical data Stadards Cost of road works Output Asset value Roughess Network charts Network moitorig idicators Road works summary Optimal work program

20 Road Network Legth Matrix Matrix of Road Classes: Overall Network Evaluatio Network Surface Type Type Cocrete Asphalt S.T. Gravel Earth Primary Secodary Tertiary Uclassified Urba Traffic Coditio Category Category Very Good Good Fair Poor Very Poor Traffic I Traffic II Traffic III Traffic IV Traffic V Total 5 x 5 x 5 x 5 = 625 road classes

21 Default RONET Traffic Categories Average Aual Daily Traffic (AADT) Illustrative Stadards Surface Traffic Traffic Miimum Maximum Average Geometry Pavemet Type Category Level (veh/day) (veh/day) (veh/day) Stadard Stadard Earth Traffic I T lae warrated Formatio ot warrated Traffic II T lae warrated Formatio warrated Traffic III T lae warrated Gravel warrated Traffic IV T lae warrated Gravel warrated Traffic V T , lae warrated Paved Surface warrated Gravel Traffic I T lae warrated Formatio warrated Traffic II T lae warrated Gravel warrated Traffic III T lae warrated Gravel warrated Traffic IV T , lae warrated Paved Surface warrated Traffic V T6 1,000 3,000 2,000 2-lae warrated Paved Surface warrated Paved Traffic I T lae warrated Gravel warrated Traffic II T , lae warrated Paved Surface warrated Traffic III T6 1,000 3,000 2,000 2-lae warrated Paved Surface warrated Traffic IV T7 3,000 10,000 6,500 2-lae warrated Paved Surface warrated Traffic V T8 10,000 30,000 20,000 4-lae warrated Paved Surface warrated

22 Default RONET Coditio Categories Very Good: requires oly routie maiteace (RM) Good: requires RM plus prevetive maiteace or spot regravellig or repairs Fair: requires RM plus periodic maiteace Poor: requires RM plus stregtheig or partial recostructio Very Poor: requires RM plus full recostructio

23 Default RONET Coditio Categories Capital Road Works Needed to Brig a Road to Very Good Coditio Coditio Category Bitumious Roads Gravel Roads Earth Roads Very Good Noe Noe Noe Good Prevetive Treatmet Spot Regravellig Spot Repairs Fair Resurfacig Regravellig Heavy Gradig Poor Stregtheig Partial Recostructio Partial Recostructio Very Poor Full Recostructio Full Recostructio Full Recostructio

24 Performace Assessmet What are the Cosequeces of Applyig Differet Maiteace ad Rehabilitatio Stadards? Road Network Stadards Cosequeces Very High Stadard Road Works High Stadard Performace Fiacial Medium Stadard Assessmet Ecoomic Low Stadard Coditio Very Low Stadard Asset Value Do Miimum Road Users Do Nothig Etc. Custom Stadard

25 RONET Distributio RONET is available for free iteret dowload at: RONET CD ca be obtaied by cotactig: Moique S. Desthuis-Fracis Techical issues: Rodrigo Archodo-Callao

26 High Allocatio of Risks Force Accout Maiteace Cotracts RISK TO PUBLIC SECTOR Decreasig Public Risks, Icreasig Private Risks PBC Cocessios BOO Low RISK TO PRIVATE SECTOR High

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28 Thak you!

29 Some Basic Refereces World Bak (2006). Resource Guide for Performace-based Cotractig. Washigto, D.C. World Bak (2005). Performace-based Cotractig For Preservatio ad Improvemet of Road Assets. Trasport Note No. 27. Washigto, D.C. World Bak (2005). Sample Biddig Documet: Output- ad Performace-based Road Cotract (OPRC). World Bak (2003). Toolkit for Public-Private Partership i Highways. Public-Private Ifrastructure Advisory Facility (PPIAF) ad World Bak. m

30 WB PPP-related Sites Toll Roads ad Cocessios ds.htm How to Hire Expert Advice o PPP visors/full_toolkit.pdf Labor Issues i Ifrastructure Reform Toolkit for PPP i Highways ys/

31 World Bak Websites o Performace-based Cotracts Resource Guide for Performace-based Cotractig Traiig Course for Performace-Based Maagemet ad Maiteace of Roads XTTRANSPORT/EXTROADSHIGHWAYS/0,,cotetMDK: ~pagePK:148956~piPK:216618~theSitePK: ,00.html Road Maagemet Catalog XTTRANSPORT/EXTROADSHIGHWAYS/0,,cotetMDK: ~pagePK:210058~piPK:210062~theSitePK: ,00.html

32 Basic Assumptios to Estimate the Miimum Toll Rate to Attract Private Ivestors for a PPP Project Cocessio term: 20 yrs Costructio Cost: $1M/km to $5M/km Operatio cost: $500,000/km/yr Equity: 14% Subsidies: 0 Iterest rate: 5%/yr Grace period: 4 yrs Repaymet period: 14 years Discout rate: 10% Iitial traffic: 5,000 vpd to 20,000 vpd Traffic growth: 3% Iflatio: 6% Tax: 18% IRR 12% ROE 16% LLCR 1.0 DSCR 1.0

33 Cesar Queiroz Roads ad Trasport Ifrastructure Cosultat World Bak, 1818 H Street NW Washigto DC USA Tel Mob cqueiroz@worldbak.org

34 Cesar Queiroz is a iteratioal cosultat o roads ad trasport ifrastructure, with mai iterest i publicprivate parterships (PPP) i ifrastructure, road maagemet ad developmet, performace-based cotracts, port rehabilitatio, improvig goverace, quality assurace ad evaluatio, research, teachig ad traiig. Betwee 1986 ad 2006, he held several positios with the World Bak i Washigto, D.C., icludig pricipal highway egieer, lead highway egieer, ad highway advisor. Prior to joiig the World Bak, Cesar was the deputy director of the Brazilia Road Research Istitute i Rio de Jaeiro. He holds a Ph.D. i civil egieerig from the Uiversity of Texas, USA, a M.Sc. i Productio Egieerig from the Federal Uiversity of Rio de Jaeiro, ad a B.Sc. i civil egieerig from the Federal Uiversity of Juiz de Fora, Brazil. Cesar was awarded the Maua Medal for his cotributio to trasport developmet i Brazil, ad is a elected member of the Russia Academy of Trasport. He has published more tha 130 papers ad articles, icludig beig a co-author of two World Bak mai publicatios o PPP ad performace-based cotracts, respectively the Toolkit for PPP i Highways ad the Resource Guide for Performace-based Cotractig. He has participated actively i several iteratioal orgaizatios, such as TRB, SHRP, OECD, PIARC, IRF.