Road project in Syria by Olivier CROUZIER

PPP in Syria PPP Workshop Road Case Study

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Case study 2

Road projects from ÂŤ Investment chart in Transport Sector Âť Projects

From-to

no1

Turkish BorderJordanian border

no2

Purposes

EDT(vpd)

Project cost (SP)

500

Substitution to current road Very important road for Land international transport from Europe to Arab Gulf

10 000 vpd (8% per year)

30 to 35 billion

Tartous - Homs Homs -Tanf - Iraqi border

96 269

Substitution to recent road Shorten the road distance between Homs and Tanf

11 000 vpd (+ 10%)

25 billion

no3

Damascus - Tanaf - Iraqi border

250

Replacement to the present road transit transport and tarnsit caravans to Iraq Transit traffic from Lebanon, Jordan and southern part of Syria

10 000 vpd

3 billion

no4

Grand Damascus switch over (around the city)

110

Diversion of traffic and transit caravans ouside the capital of Damascus to alleviate environmental damages

---

3 billion

Selected

Lattakia to Ariha

---

To be finished in 2009

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Lengh (km)

Syrian road network

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Syrian road context

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From MOT (Land Transport -2003)

Public Establishment for Roads Communications Roads Directorate of the MOT

Road Planning, Design, Maintenance and operation of the international and interurban highway system

2045 employees

Private contracts Road maintenance routine and recurrent and periodic

15 Central Directorates

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13 Branches in the Governorates

Actual allocation of responsibilities ? Responsibilities

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MOT Road Directorate

Central Directorates

Branches in Governorates

Private Co.

Syrian road context

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From MOT (Land Transport -2003) 8

Syrian road context

From MOT (Land Transport -2003)

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Syrian road context

To be completed

2005

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2006

2007

What the current strategy ?

Improving road safety Reducing road accidents

Ensuring new finance resources for the Establishment

n atio r r g o te r in rt sect e t a gre anspo a r ving land t e i Ach in the with

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Developing the Establishment and the continuous qualifying of its personnel

Developing the Central road network to meet the increasing demand on transport and the needs of road users

Syrian road context Project

Official DAMASCUS, Feb 21 (KUNA) -- The Kuwait-financed highway linking Lattakia and Ariha in the northern Syrian city of Aleppo is a vital economic project that would boost commercial traffic between Syria and the world, said an official here on Thursday. Ghazi Khadour an official in charge of following up the execution of the project said in a press release that the road will contribute to commercial activities as a connection of the Syrian industrial and oil production areas from northern provinces to export ports in the east of the country. A project financed by the Kuwait Fund for Arab Economic Development (KFAED), and executed by the Kuwaiti Al-Kharafi company, the raod costs is estimated at around USD 300 million. KFAED's bears 51 percent of the total cost while the Syrian government bears the remaining 49 percent. The project is expected to be finalized next November. Besides this highway, KFAED is also financing other projects in Syria for the development of electricity, water, sewage, communication, and industrial sectors at an estmiated value of USD one billion. mb KUNA 211752 Feb 08NNNN

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Syrian road context Project Lattakia-Ariha Motorway Project OverView : Project Cost: 175 Million U.S. $ Commencement Date: 1999 Completion Date (Design): 2000 Completion Date (Construction): 2006 Location: Syrian Arab republic, Lattakia - Ariha Engineering Services: Traffic Studies Modification of Design Final Design Construction supervision Project Description: Khatib & Alami was commissioned the design and Construction Supervision of the of Lattakia-Ariha Motorway in the Syrian arab republic. This motorway links Lattakia City to Ariha city near Aleppo. The Project length is 99 km and comprises of the construction of a dual carriageway 2to 3-lane each with inner and outer shoulders. A central median concrete barrier separates the two carriageways. More than 85 concrete structures such as viaducts, bridges, over and underpasses are to be constructewd along the road project. Furthermore, all types of interchanges will be provided at main crossings in addition to drainage, signing, marking and incidental works.

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Syrian road context Project

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Syrian road context Regional road context

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Prefered allocation of responsibilities ? Responsibilities

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MOT Road Directorate

Central Directorates

Branches in Governorates

Private Co.

Identify ÂŤ Tariffs covering operating costs Âť and define your subsidy policy

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PPP optionsâ&#x20AC;Ś

Works & Services Contracts

Management & Maintenance Contracts

Operation & Maintenance Concessions

Build Operate Transfer Concessions

High

Low Extent of private sector participation

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Full Privatization

PPP optionsâ&#x20AC;Ś Types of Contract

Asset Capital ownership Investment

O&M

Commercial Duration Risk (yrs)

Service Contract

Public

Private & Public

Public

1-2

Management Contract

Public

3-5

Lease

Public

Private

8-15

Concession

Public

Private

25-30

BOT / BOOT

Public & Private

Private

25-30

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Majors steps to be achieved

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CTROM Contract (*) (*) Comprehensive Toll Road Operations and Maintenance

Institutional requirements Technical feasibility (number of gates, localisation) Financing arrangements

Legal framework requirements Select an appropriate tolling model

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Technical feasibility (1/3) 1.1.1 Toll strategy and traffic volume estimates The following elements of the toll strategy were reconsidered: • • • •

Plaza locations, due mainly to geometric considerations and practical constraints Plaza operations (i.e. two-way versus one-way) The use of the Customs building to collect tolls at Ngwenya A more detailed assessment of the potential land requirements for plazas and control buildings together with the preliminary identification of sites  Plaza sizing due to different traffic volumes 1.1.1 Geometric considerations A detailed geometric design feasibility study (considering inter alia, topographical constraints) for plaza location was not previously carried out and is critical prior to commencing with other substantial traffic and financial modelling work. This study will consider the following: • Approach road alignment (to allow for safe stopping) • Sight distances • Control building location • Access to control building • Drainage considerations • Future expansion requirements • Impact on adjacent infrastructure (services roads, sub-surface services, etc) • Impact on existing land owners / users

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Routine road maintenance (2/3) 1.1.1 Routine road maintenance Routine road maintenance costs are generally included in the CTROM contract. Included in routine road maintenance are the following actions: • • • • • • • • • • •

Crack sealing and patching of road surface Control of vegetation Cleaning of drains and culverts Removal of debris and dead animals on and adjacent to the road surface Inspection / reporting of road furniture Guard rail repairs Repair / replacement of fencing Reinstatement of tarred/block/concrete walkway Inspection / reporting of streetlights Inspection / reporting of traffic signals Road marking

A detailed cost estimate of routine road maintenance has to be maid previously, which would remain relevant, and which has been cross-checked against current CTROM operator tender costs. This cost has been included in the CTROM tender cost estimate, which is reported on in a later section of the report.

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Tariff acceptation by the users (3/3) Tarrif vs Attraction (all traffic) 97,0%

Traffic Attraction (%)

96,8% 96,6% 96,4% 96,2% 96,0% 95,8% 95,6% draft final

base +20%

base +15%

base +10%

base +5%

base

95,4%

Tariff (Base = 2000 values)

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The draft contract should include different kinds of information: Technical information Description of the site location and access to the site, Detailed scope of work with responsibilities entrusted to the private contractor and those kept by the contracting authority ( Module 3 - Define Scope of Work), Available documents, investigations and studies assessing the initial road network and site condition. The following themes may be addressed: geology and geotechnics, water resources, weather conditions, traffic volumes, accident data, pavement structures, equipment and structures condition, past and recent maintenance or work programs etc. The documents should be as detailed and up-to-date as possible. The contracting authority may have a consultant carry out assessment surveys and studies before the bidding process if necessary, Design documents and plans for any rehabilitation or development works included in the contract, Description of the site location and access to the site (Module 3 - Set up standards) Feasibility study, if any (Module 3 - Economic Evaluation), International and national standards governing the expected services (works, maintenance, operation), Performance indicators for operation and maintenance with a clear definition of control and measurement methods, as well as performance requirements (Module 3 - Define Performance Indicators), Environmental impact assessment study (if any) and a detailed description of the environmental constraints during all project phases (Module 3 - Protecting the Environment), Quality assurance requirements, Documents to be provided by each party during the contract, Assistance and facilities to be provided by the government and contracting authority (Module 3 - Government support).

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CTROM TOLL CONTRACT

(i)

• • • • • • •

CTROM operations contracts generally includes the following items:

1.1

Toll operations and maintenance Included in toll operations and maintenance are:

(ii)

1.1.1 Toll operations and toll road services related to:

• • • • • • • • • • (i)

Operations and maintenance bond Final maintenance bond Fees taxes and duties Establishment and take-over at commencement date Take-over and maintenance of new assets during the Agreement period Hand-over and removal of establishment at the completion/termination of the agreement Implementation and maintenance of an asset management system Supply and maintenance of documents and drawings Provision of movable assets Insurance Responsibility for environmental matters Social responsibility Training Head office overheads Transport of personnel Other related costs Traffic and financial management at toll plaza including: • • • • • • • • • •

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Toll collectors Senior toll collectors Shift supervisors Plaza manager(s) Administrative personnel Service centre operation and maintenance Cash deposit fees Card commissions Cash collection services Other related costs

Supply of electricity Supply of fuel Supply of potable water Sewage and wastewater disposal Refuse removal Telecommunication services Other related costs

Toll road services: • • • • • • • • •

(a) Compliance to contractual requirements such as (detail for the MR3 project to be finalised): • • • • • •

Utilities, services and levies including:

IMS development IMS implementation Supervision of IMS Operation and Maintenance Emergency communications system: operations and maintenance Customer service call centre: Operations and maintenance Routine service patrols – all related costs Emergency cleanup Extraction consumables Other related costs

(iii)

Reporting

(iv)

Safety and security

(v)

Quality assurance system

(vi)

Any levies payable on turnover (if applicable)

1.1.2 General maintenance of equipment and facilities: Day to day maintenance of toll plaza and infrastructure includes : • • •

Painting and corrosion protection, expert investigation and maintenance Structures Gardens

• • • • • • •

Toll collection lane equipment: Maintenance MIS support Toll collection lane equipment: Software support MIS equipment and MIS peripherals: Maintenance Video grabbing: Maintenance Generator: Maintenance UPS: Maintenance

• • •

Electrical equipment: Maintenance (excluding UPS and generator) Mechanical equipment: Maintenance (excluding generator) Road lighting: Maintenance (including group lamp replacement)

•

Earthing tests

•

Emergency communication system: Maintenance

•

Other related costs

1.1.1 Discounts and exemptions The following needs consideration and analysis:

1.2

• • • •

Cost of police vehicles and defence force vehicles (warrants) Local and regional discounts Frequent user discounts Cost of run-through violations

•

Cost of all no-payment passages

Capital expenditure on equipment and facilities

1.2.1 Semi-fixed assets at the construction stage of the toll plazas The following semi-fixed assets are usually made the requirement of the Operator:

• •

Air conditioning and ventilation: Supply and installation – sometime provided by sponsor Mechanical: Supply and installation

• •

Install impact attenuators Training

1.1.1 Emergency communication system (ECS) and other items Finally, the CTROM operator is usually required to provide the ECS, including: • •

ECS: Roadside equipment and software ECS: Customer service call centre: Equipment and software: Supply and installation

• •

Customer complaints line: Equipment and software: supply and installation Toll system: compliance to account functionality

• • •

Toll system: compliance to GST business rules Toll system: Compliance to charge card acceptance Toll system: Software: ETC functionality (not necessarily initially)

•

ETC (if applicable at later stage): Supply, marketing, distribution and installation of ETC tags

•

Un-interruptible power supply (UPS) – sometime provided by sponsor

• • • •

Complete security system at plaza building Electrical installation inside toll booths Surge protection for distribution boards Fresh air supply system in building – sometime provided by sponsor

1.1.2 Any other capital expenditure

• • • • • • • •

Fresh air supply system in toll booths Air conditioning in building and toll booths Building telecommunication system Water treatment plants – sometime provided by sponsor Internal toll booth fittings and fixtures Impact attenuators: Appropriate system in line with regional best practice Equipment and toll system Other

1.1.3 PC sums: The operators overhead charges, profit and any other cost in respect of (as % of PC sum) the following

Any other capital expenditure deemed necessary by the Sponsor might be requested of the Operator, with his tender broken down sufficiently to enable evaluation.

The Operator is usually asked to tender his mark-up on PC sums, such as: •

Install road lighting at the plaza, if so required

• • •

Provision / repair / upgrade to electrical and mechanical assets Provision / repair / upgrade of fixed assets if so instructed Telecommunication connection fee at toll plazas

1.2.2 Items specific to plaza before lane expansion/reversible lane creation At that time the following need consideration: • • • •

MIS: BDMS software supply MIS: Software supply and installation Toll collection lane equipment: Equipment supply and installation Toll collection lane equipment: Software supply and installation

• Video grabbing system: supply and installation • Electrical: Road lighting installation/upgrade – sometime provided by sponsor • UPS: Supply and installation – sometime provided by sponsor Electrical: Supply and installation – sometime provided by sponsor

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1.1

Routine road maintenance The following actions are relevant to routine road maintenance: • • • • • • • • • • • •

Training schedule breakdown Crack sealing and patching of road surface Control of vegetation Cleaning of drains and culverts Removal of debris and dead animals on and adjacent to the road surface Inspection / reporting of road furniture Guard rail repairs Repair / replacement of fencing Reinstatement of tarred/block/concrete walkway Inspection / reporting of streetlights Inspection / reporting of traffic signals Road marking

Within the context of this project, most, if not all of these will be restricted to provision by Swazi nationals.

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