1. Federal Department of the Environment, Transport, Energy and Communications Federal Office of Transport FINANCING AND MANAGEMENT OF THE GOTTHARD BASE TUNNEL Dr. Rudolf Sperlich Swiss Federal Office of Transport NETLIPSE Network Meeting, October 20 th 2008

2. 2 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Introduction Traffic policy CH Financing: Public transport fund New Rail Link through the Alps (NRLA) Focus: Gotthard axis Supervision Conclusion

3. 3 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 The Alps A barrier for transportation

4. 4 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Rail Road Mio. Net Tonnes / year Status: 2008 Transalpine Swiss freight traffic: subdivision and modal split 71.6 6.1 11.5 36.1 25.2 12.9

5. 5 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Swiss Traffic evolution until 2030 + 54% + 24%

6. 6 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Elements of the Swiss transport policy Railway reform Heavy vehicle fee Heavy vehicle fee Shift from road to rail Shift from road to rail Modernization of railway Modernization of railway Agreement Switzerland-EU Agreement Switzerland-EU Large railway infrastructure projects: NRLA (NEAT) High Speed Links Railway 2000 Noise abatement FDR (ZEB) Agglo-projects

7. 7 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Expenses for infrastructure Road Rail Mio. sFr.

8. 8 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Improvement of the railway network (large-scale projects until 2030) Public Transport Fund (FinöV) Ordinary Budget 2007-2010 Infrastructure Fund for Agglomeration Projects

9. 9 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 High Speed Links RAIL 2000 NRLA (NEAT) Noise abatement Vote on public transport funding Popular vote on financing of public transport29.11.1998

10. 10 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Public transport fund (cross financing) Noise Abatement 0,8 bn € High speed Links 0,6 bn € RAIL 2000 and FDR 6 bn € NEAT (Alp Transit) 12,3 bn. € VAT (0,1 %) Mineral Oil Tax (25% for NRLA) 2/3 of Heavy Vehicle Fee Public Transport Fund 19,7 bn € Advances (max. 5,4 bn €)

11. 11 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Public Transport Fund advance / debtredemption paymentsearmarked revenues 0.5 Mrd 1.0 Mrd 1.5 Mrd 2.0 Mrd 2.5 Mrd 0.0 Mrd system change

12. 12 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 NRLA: The AlpTransit tunnels Lötschberg - Base Tunnel Gotthard - Base Tunnel Ceneri - Base Tunnel Bern Basel Lausanne Genf Steg Brig Frutigen Erstfeld Biasca Lugano Chiasso Arth-Goldau Zürich St. Gallen Luzern Zimmerberg - Base Tunnel

13. 13 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Overview Lötschberg base tunnel

14. 14 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Lötschberg base tunnel Beginning of construction: 2000 Opening: December 9, 2007 Trustworthiness of tunnel installations > 99,8% Costs: 4,3 billion € (+ 0.6 billlion price increase) Beginning of construction: 2000 Opening: December 9, 2007 Trustworthiness of tunnel installations > 99,8% Costs: 4,3 billion € (+ 0.6 billlion price increase)

15. 15 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Profile of the Gotthard axis. gradient 26 0 / 00 gradient max. 8 0 / 00 S N suspended

16. 16 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel

17. 17 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel: features Tunnel length: 57.0 km Two single track tubes Tunnel profile: EBV IV Connecting galleries all 300m Max. speed for passenger trains: 250 km/h Max. speed for freight trains: 160 km/h Culmination point: 550 m Maximum overlay: 2,300 m Cost of the Gotthard base tunnel: approx. CHF 9,7 bn / € 6,0 bn (1998)

18. 18 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel tunneling in progres excavated interior completed Tunnelling completed: 30 June 2008: 113,2 km (73,8 %) of 153 km

19. 19 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel – scheme of tunnel system

20. 20 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Sedrun - emergency station

21. 21 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 © AlpTransit Gotthard AG Sedrun - elevator

22. 22 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Bodio south portal: construction site

23. 23 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Ceneri Base Tunnel Tunnel length: 15.4 km Two single track tubes Tunnel profile: EBV IV Connecting galleries all 300m Max. speed for passenger trains: 250 km/h Max. speed for freight trains: 160 km/h Opening: 2019 At the end of 2009, the tunneling in the main tubes will begin out of the intermediate access.

24. 24 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Geological challenges Deformation of steel arches at the tunnel base in easily deformable rock formations and due to mountain overlay of more than 2000m.

25. 25 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel – geological section not excavated

26. 26 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 safety and technology progress improvements for environment and people awarding final costs: 11,874 bn SFR additional costs +4,158 bn SFR Gotthard axis: additional costs cost reference base 1998: 7,716 bn SFR geology politically related delays

27. 27 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 paid awarded probable final costs (price rises incl.) bn SFR Gotthard axis: cost development

28. 28 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Credit situation NEAT In the first years, NEAT was knowingly underfinanced. On 16.9.2008, Parliament authorized the new NEAT global credit. For the first time in its history, NEAT is fully financed (12 billion €) !

29. 29 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Kommissionen Gotthard axis: Organisation Federal Council contractor Parliament contractor SBB (operator) Commissions Fed. Office of Transport (FOT) = monitoring and audit Departement NEAT Supervision Delegation AlpTransit Gotthard Ltd (ATG) (constructor) Financial Control Experts

30. 30 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 The operator is not the constructor The organizational separation has  advantages: 1) cost cutting through contradictory interests constructor --> low investment costs operator --> high investment costs (lower costs for renewal and maintenance) 2) In case of problems, the autority can take a decision.  inconveniences: 1) supplementary interfaces 2) risk that project elements are „forgotten“ Important: Strong and „in time“ collaboration between constructor and operator

31. 31 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Management requires:  Objective  agreement on project requirements  Procedure  referential bases  Control  periodical comparisons between reality and forecasts  Instruments  modification reports, risk management, reports, controls, etc. Principles of project management Instruments

32. 32 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Constructors Standard - Reporting NEAT Controlling Directive auditing FOT Levels of project supervision

33. 33 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Conclusion Ensured financing = determining factor Organization model operator constructor Supervision functions require clear repartition of roles Establishing good control system Foreseeing costs for adaptation to technological progress

34. 34 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 The Alps - not only an obstacle!

35. 35 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008

36. 36 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Organisation: Fed. Office of Transport

37. 37 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 NEAT: Development of final costs (price level 1998, without risk share) Mrd. sFr. 11,6 bn € 8,0 bn € 1999 2008

38. 38 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 safety and technology progress improvements for environment and people awarding final costs: 12,4 bn € (estimation FOT, incl. risk share) additional costs +4,4 bn € NEAT - additional costs (estimation) cost reference base 1998: 8,0 bn € project extensions geology politically related delays

39. 39 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Time frame 19952000200520102015202020251990 NEAT (AlpTransit) FDR II ? Noise Abatement High Speed Links RAIL 2000/1 Future Development of the Railway Infrastructure FDR

40. 40 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Ceneri base tunnel

41. 41 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Gotthard base tunnel: bore width 8.60 – 8.80m9.20 – 13.08 m solid rock pressing rock

42. 42 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Management and controlling through the FOT

43. 43 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Objectives of the Neat Controlling Directive Transparency in project management  implementation of agreed objectives  riks /reserves Early warning system  The autorities have all the necessary information.  The necessary measures can be taken in time.

44. 44 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008. Bern - Milano With LBT Berne - Sion With LBT 3h 16‘ 0 12 3 2h 42‘ (- 38 Min.) 2h 23‘ 1h 45‘ (-34 Min.) Lötschberg axis: travel times

45. 45 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Public Transport Fund: estimate of expenses Investments price rises interests

46. 46 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Financing (1) Federal budget Aim: Maintain performance Regional transportFreight transportInfrastructure

47. 47 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Financing (2) Public Transport Fund Aim: Improve performance LötschbergGotthardMattstetten-Rothrist

48. 48 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Infrastructure fund: financing Mineral Oil Tax Highway vignette Completion of national road network (8.5 billion) Suppression of congestion nat. road network (5.5 billion) Substance maintenance in per. regions (0.8 billion) Agglomeration traffic (6 billion) One-time payment 2.6 bil. Fr. I- Fonds Investment volume 20.8 billion (2005)

49. 49 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Lötschberg south portal: Rhone bridges

50. 50 Dr. R. Sperlich / NETLIPSE Network Meeting 20 th October 2008 Construction site for rail technology