estonia report infra

8/14/2019 Estonia Report Infra

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HARMONIZED MARKETHARMONIZED MARKETESTONIA

KUNO MNNIKDIRECTOR OF TARTU ROAD OFFICE

KOIT TSEFELSDEPUTY DIRECTOR OF ESTONIAN ROAD ADMINISTRATION


2/17

Allocations From The Road Budget

Ordinary maintenance25%

Rehabiltation and

repairs

51%

Design

3%

Other costs

11%

Construction

and reconst-

ruction

8%

Bridge reconstruction

and repairs

2%


3/17

Competitive Bidding And Own Forces

85,0

15,07,8

15,3

84,7100,0 93,8 92,2

67,1

6,2

Total

Desig

n

Road

constru

ction

Road

repairs

Bridg

econs

tructi

onan

drep

airs

Maint

enan

ce

Bidding Own forces

32,9


4/17

Domestic Value Treshholds For PublicProcurement:

(net of value added tax)

Purchasing of goods or contracting for services~ 20 000 EUR~ 20 000 EUR or more

Contracting for construction works~125 000 EUR~125 000 EUR or more


5/17

Register Of Public Procurements

In the form of computer database and published on theweb site of register:

http://register.http://register.rharha..govgov.ee/.ee/

Only in Estonian!


6/17

International Value Tresholds For Public

Procurement(in case of state authorithy)

Purchasing of goods or contracting for services

130 000 SDR130 000 SDR

Contracting for construction works5 000 000 SDR5 000 000 SDR


7/17

Contractors On The Estonian Road MarketExamples

Via Baltica: Rehabilitation of Ikla-Tallinn-Narva Road I

Total 120,6 km

Contractor/ Consultant and contract price

Works Supervision

Estonian companies Finnroad OY (Finland)

Technical Center of EstonianRoads Ltd (Estonia)800 000


8/17


E 20 Tallinn-Narva Road, Reconstruction of Maardu-Valgeje

Total 62,7 km

Contractor/ Consultant and contract price

Works Supervision

Skanska Tekra OY

(Finland)

21 400 000

Nicholas

ODwyer&Company Ltd

(Ireland)

iproplanPlanungsgesellschaft mbH

(Germany)

AS Telora-E (Estonia)AS Taalri Varahaldus (Estonia)

640 000


9/17


Via Baltica: Vo-Maardu design No. 1

Consultant and contract price

COWI A/S (Denmark)EA Reng AS (Estonia)500 000

echnical Assistance for Reconstruction of Tallinn Ringroad and Tallinn-Paldiski Road

Consultant and contract price

WSP International AB

(Sweden)

WSP Sverige AB (Sweden)

K-Projekt AS (Estonia)

1 800 000

Of h i d k k


10/17

Features Of The Estonian Road Work Market rather small, but offering attractive works with financing from EU

opened regulated with necessary legal acts, but needs improvements

reliable banking and financing

in works financed from the Eurpopean funds- speaking the

English language is compulsory in minor works understanding the Estonian language recommendable in big construction work Estonian contractors perform as a concern

of 3-4 companies to compete with competitors

bigger Estonian road construction companies have daugther-firms splitted territorially and dealing mainly with maintenance.

Depending on the location of road construction site their recourses

(experienced labour, machienery, gravel-pits) can be used in theform of subcontract.


11/17


12/17

Annual Volume of Road Works

in Tartu Regional Road Office

8,3 MEURMitigation of Traffic

"Black Spots" 0,46New Pavement on

Gravel Roads 1,53

Facilities Repairs 0,15

Bridge Repairs 0,37

Gravel Road Repairs

0,22

Rehabilitation of Paved

Roads 1,92

Ordinary Maintenance1,60

In-House Maintenance

and Gravel Repairs

2,05


13/17

Road Works on the Market Tendered by Tartu Regional

Road Office in 2005

0 0,5 1 1,5 2 2,5 3 3,5 4

Mitigation of Traffic "Black Spots"

New Pavement on Gravel Roads

Facilities Repairs

Bridge Repairs

Gravel Road Repairs

Rehabilitation of Paved Roads

Ordinary Maintenance

MEUR

On the Market In-House


14/17

OBSTACLES

ON THE ROAD WORK MARKET

1. Public Procurement Act needs renewals.

Problems:

Low price prevails too much, quality criterianot considered sufficiently

Time-consuming settlement of protests by arbitration

Urgent seasonal road works should be procured faster


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2.Big road works financed from European Cohesion Fund

and European Regional Development Fund mostly engagethe capacity of domestic contractors and often minor

works cannot be accomplished on time

3.Shortage of road designers

4.Wages in Estonia are still much lower than in developedcountries and therefore foreign contractors with there own

labour have difficulties in competition for cheaper bidding


16/17

Developments On The Market

Draft of the renewed Act for the Public Procurement is ready

New competitors from small- size firms (designers, consultants,

technical supervisors) are coming

Regular annual increase of wages 5-10% in Estonia decreases the

advantages of domestic contractors in comparison with foreigners

Preparation of big road and bridge works (Tallinn ring road, Tartu

ring road Saaremaa fixed link) possibly attract a foreign contactor

more than earlier.


17/17

THANK YOU FOR YOUR ATTENTION!THANK YOU FOR YOUR ATTENTION!

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