safe roads, reliable journeys, informed travellers ppp in highways workshop washington – 3 april...

Safe roads, Reliable journeys, Informed travellers

PPP IN HIGHWAYS WORKSHOP

WASHINGTON – 3 APRIL 2006

RECENT DEVELOPMENTS IN PRIVATELY- FINANCED HIGHWAY PROJECTS IN THE UK

by

ALEC BRIGGSSENIOR PROJECT LEADER, HIGHWAYS AGENCY


THE ROLE OF THE HIGHWAYS AGENCY

An Executive Agency of the Department for Transport

Responsible for operating, maintaining and improving the strategic

road network in England

In conjunction with the Highways Agency’s ‘Customer First’ initiative,

its primary aims are to provide:

●S

afe

Ro

ads

●R

elia

ble

Jo

urn

eys

●R

eal-

Tim

e In

form

atio

n f

or

Tra

vell

ers


England’s Strategic Road Network

Comprises 8,000 km / 5000 miles of motorways and trunk roads

Asset valued at £72bn

Carries a third of all traffic and two-thirds of freight traffic

Over 170 bn vehicle-kilometres per annum


Categorisation of Major Improvement Projects in TPI (October 2005)

Typ

e MW

TR

W J B

To

tal

No. £

(bn)

No. £

(bn)

No. £

(bn)

No. £

(bn)

No. £

(bn)

EC

I

21 2.7

18 1.7

17 0.7

15 1.0

71 6.1

DB

FO

7 3.4 1 0.1 0 0 0 0 8 3.5

D&

B

3 0.5 9 0.3 5 0.1

17 0.6

34 1.5

Tot

al

31 6.5

28 2.1

22 0.8

32 1.7

113

11.1

Ke

y:

MW

= M

oto

rwa

y W

ide

nin

g

TR

W =

Tru

nk

Ro

ad

Wid

en

ing

J

= J

un

cti

on

Im

pro

ve

me

nts

B

= B

yp

as

se

s


Speeding-up Delivery


Tranche 1 Works Payment ContractCost 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

DB

FO

PR

OJ

EC

TS

AW

AR

DE

D T

O D

AT

E


D2D DBFO ContractOverall Organogram

Secretary of StateHighways Agency

Department's Agent(BCL / PFC)

Department's Representative(Highways Agency)

DBFO Company(RMS)

Contractor (RMG)(AMEC, A. McAlpine, Dragados, KBR)

Designer(Mouchel-Parkman)

Design sub-consultants(KBR, Carl Bro)

Operation and Maintenance(A. McAlpine)

Funders(Shareholders)

(Bond Finance)(Bank Loans)

DBFO Agreement(inc. Direct Agreement)

Finance Company

ConstructionContract

O & M Contract

Design Contract

TY

PIC

AL

CO

NT

RA

CT

UA

L A

RR

AN

GE

ME

NT

S

To

tal N

o. o

f co

ntr

acts

: 16

0


Development of Payment Mechanisms in DBFO Projects

Tranches 1 & 1A

shadow tolls

safety payments

lane closurecharges

congestionpayments

safetyperformance

availability

safetyperformance

A13 D2D & A249

Fu

ture

M25

Lo

nd

on

Orb

ital

lik

ely

to

be

avai

lab

ilit

y-b

ased

mec

han

ismCO

NG

ES

TIO

N M

AN

AG

EM

EN

T P

AY

ME

NT

ME

CH

AN

ISM


Project includes:

2 TPI Schemes:

● A1(M) Ferrybridge to Hook Moor

● A1(M) Wetherby to Walshford

and

new

or

up

gra

ded

M

oto

rway

C

om

mu

nic

atio

ns

Fac

ilit

ies

thro

ug

ho

ut A1

Da

rrin

gto

n t

o D

ish

fort

h D

BF

O P

roje

ct

Wo

rks

cost

: £2

45m

Co

nce

ssio

n p

erio

d:

33 y

ears


Congestion Management Payment Mechanism – D2D Contract

Comprises 2 separate key elements based on:

(a) Active management of traffic congestion(i.e. minimising congestion)

(b) Active management of traffic safety(i.e. minimising Personal Injury Accidents (PIAs))


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)

(a) Active Congestion Management


Mo

nit

ori

ng

Sys

tem

Ou

t-s

tati

on

Eq

uip

men

t•

Ind

uct

ive

loo

ps

& G

R M

arks

man

660

co

un

ters

•C

CT

V c

amer

as f

or

veri

fica

tio

n

•D

edic

ated

fib

re o

pti

c ca

ble

s fo

r si

gn

al t

ran

smis

sio

n


Minimum Condition Criteria must be met before any payment made

Co

ng

esti

on

Man

ag

eme

nt

Pa

yme

nts


(b) Active Safety Adjustment

Criteria for Safety Payments or Deductions

Cap

Benchmark

+PIAs

£ Deduction

£ Bonus

C B A B C

-PIAs

Cap

Zo

ne

A –

no

ad

just

men

ts

Zo

ne

B –

en

han

ced

ad

just

men

ts

Zo

ne

C –

sta

nd

ard

en

han

cem

ents

-8 -2 2 8


Time

% of Full Payments

100

80

35

10

Pt U North Part

Pt U South Part

Total completion

Construction Period

Stepped-Up Construction Period Payments

No

te:

Du

rin

g

con

stru

ctio

n

per

iod

, la

ne

clo

sure

ch

arg

es

also

ap

ply


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)


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


Motorway Widening Schemes:

● M25 London Orbital – circa £1.5bn

● M1 J21 - J30 – circa £2bn

● M6 J11A - J19 – circa £2bn (possible

toll road)

M1

M25

M6

FUTURE PRIVATELY-FINANCED / DBFO PROJECTS


M2

5 L

on

do

n

Orb

ita

l

M1

M25

M6


Thank YouThank You

HO

LM

FIE

LD

IN

TE

RC

HA

NG

E(A

1(M

)/M

62

Ju

nc

tio

n)

safe roads, reliable journeys, informed travellers ppp in highways workshop washington – 3 april...

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