Toll Motorways BOT or PPP Projects: the Position of an Operator and Developer



Toll Motorways BOT or PPP Projects: the Position of an Operator and Developer

Authors

POLIAKOFF A, Egis Projects, France

Description

The key characteristic of infrastructure BOT or PPP projects is that they involve various different skills:

Abstract

The key characteristic of infrastructure BOT or PPP projects is that they involve various different skills:

traffic and revenue studies, engineering and construction, operation & maintenance, environmental studies, financing legal schemes, insurances, toll marketing, guarantees and sureties mechanisms.

The relevant risks have to be properly mitigated the principle is that all risks shall be allocated to the party who is best able to manage them and at the lowest cost.

Most of these projects need a public financial support which can take various possible forms. Furthermore, the selection and implementation process, from prequalification to financial close, is a long and uncertain one (and costly.too); from several candidates there will be only one winner and he is not sure to implement the project at the end. From our experience as a developer of such projects, we have set up a list of criteria to be checked before taking the decision to participate in a tender process or to be involved in a project of this type; they relate to:

* the country (legal & institutional framework~ financial standing, political stability);

* the project (technical & economic feasibility approvals, level of public support, real service to users);

* the authority or the client (who is the client, relations with other authorities, political willingness experienced advisors).

After taking the decision according to the above criteria to select a project, and in order to become the winner and to implement the project, several important steps need to be made by the developers (selection of partners, a proper agreement defining roles and responsibilities of each party, creation of a bid team with experienced persons,) with a focus on main issues (understand the deal, concentrate on main issues, be inventive and competitive in all parts of the bid).

Publisher

Association for European Transport