1. Successful PPP models for road infrastructure Various Models in different countries 28.03.2011 Prof. Dr. Markus Schmidt

2. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 2 Agenda General aspects of PPP1 German success with A-Models2 International success with V-Models3 Conclusion4

3. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 3 Agenda General aspects of PPP German success with A-Models2 International success with V-Models3 Conclusion4 1

4. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 4 Development of a optimal concept concerning completion of demand, operating costs, after use and marketing Planning Private commercial achievement of building works enabled the optimization from costs, time and quality through free placing of companies and negotiation Building Relief from public budgets by private financing and funding through fees and charges Financing Transfer of management and operation, concentration of the public administration on their core competence, realisation from synergy benefits Operating General aspects of PPP Fundamental components

5. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 5 General aspects of PPP Organisation chart Authorities as lisencer (awarding authority) Contracts with subcontractors about the completion of service Associates as investor external finance SPV Project company as concession holder (operator) Partnership agreement Credit argeement planning construction maintenance

6. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 6 Agenda General aspects of PPP1 German success with A-Models International success with V-Models3 Conclusion4 2

7. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 7 German success with A-Models Model description  Derivated from: Autobahnausbaumodell (Highway extention model)  Building of additional lanes, maintenance and operation of all lanes as well as financing all measures to private business companies  The operating company achieves dues from the truck road charge for this highway section

8. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 8 German success with A-Models Truck road charge system Road charge bridge as part of the charge system: „Toll Collect“

9. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 9 German success with A-Models Overview assigned concessions current bidding expected bidding (2011-2012)

10. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 10 German success with A-Models Case study A8 Munich - Augsburg Project data:  52km operation route  37km extension route, widen 4 lanes to 6 lanes  54 passages and undergrade crossings  7 bridge constructions Project costs:  Building costs: > 150 m €  Operate-, maintenance-, financing costs: > 500 m € 10

11. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 11 Agenda General aspects of PPP1 German success with A-Models2 International success with V-Models Conclusion4 3

12. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 12 International success with V-Models Case study (V-Model = Availability Model) M51 Kliplev – Sonderborg (Denmark):  26 km new road-construction  69 engineering constructions  3 high span bridges Project data:  Building costs: > 100 m €  Operate-, maintenance-, financing costs : > n.a. m €  30 years operation and maintenance  Service payments from government for availability of infrastructure

13. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 13 International success with V-Models Case study (V-Model = Availability Model) E18 Koskenkylä–Kotka motorway (Finland)  53 km new road-construction  27 km improvement of roads (e.g. converting two-lane highway to motorway)  87 km construction of traffic telematics Service:  15 – 20 years maintenance and operation  Service payments from government for availability of infrastructure

14. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 14 Agenda General aspects of PPP1 German success with A-Models2 International success with V-Models3 Conclusion4

15. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 15 Conclusion Examination of different models  PPP models are a good alternative for the realization of infrastructure projects  The A-model, the V-model and the other models are successful PPP models for road infrastructure in Germany and in Europe  The models must be adapted to each country and to each situation  Drees & Sommer is advising the German ministry of transport in terms of creating new PPP models in Germany  Important steps: 1. Understand boundary conditions 2. Select the right model type 3. Create and execute the project

16. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 16 Discussion Thank you for your attention! Questions?

17. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 17 Drees & Sommer Infra Consult und Entwicklungsmanagement GmbH Prof. Dr. Markus Schmidt Str. Lt. Av. Serban Petrescu Nr. 15, Et.2 011891 Bucuresti (Sector 1) / Romania phone +40 31 690-8001 markus.schmidt@dreso.com Drees & Sommer Infra Consult und Entwicklungsmanagement GmbH Dr. Jürgen Laukemper Str. Lt. Av. Serban Petrescu Nr. 15, Et.2 011891 Bucuresti (Sector 1) / Romania phone +40 31 690-8001 juergen.laukemper@dreso.com Any Queries? We will assist you!

18. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 18 www.dreso.com

19. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 19 Backup

20. Drees & Sommer, Successful PPP models for road infrastructure, Prof. Dr. Markus Schmidt, 28.03.2011 20 Conclusion Efficiency drivers and success factors of PPP Appropriate distribution of risks between private sector and public authority  Risk transfer from public authority to private sector  Basic principle: everyone bears the risk he can influence best Life-Cycle-Management of the project  Without this: during planning and building, operation and maintenance is not considered  Interaction between planning, building, maintenance and operation taken into account Output specification of the service  Giving the benefit to the private company of specialisation and efficiency advantages  Not describing the input of the service but the output Performance-oriented payment  Bonus – malus systems due to availability of the service  Direct connection output specification and risk distribution