CONTRACT INNOVATION THROUGH THE CONCESSION MODEL. Xavier Serra - Chief Operating Officer 85 th Annual IBTTA Meeting September 12, 2017

Transcription

1 CONTRACT INNOVATION THROUGH THE CONCESSION MODEL Xavier Serra - Chief Operating Officer 85 th Annual IBTTA Meeting September 12, 2017

2 Worldwide Tech Challenge Concession Model Agency Concession Agreement Contract - Long term (20-50 years). - Agency Own the Asset. - Concessionaire Operates it. What can a Concessionaire provide from Tech Challenge View Avoiding Usual Barriers - Long term strategy. - Financial resources. - Independent from political goverment. - Focus on users benefits delinked from political impact. - Worldwide Group Tech Expertise. - Potential Sinergies. Concessionaire Own It Or Rent It? Own It Or Rent It? Then, Agency/Concessionaire: Own it or Rent it?: - Same analysis from both options. - Key factors: internal knowledge, contractual relationship, transparency, future dependency, costs, service improvement, Tech Providers / Service Providers

3 Metropistas Concession Agreement Evolution PR 22 PR 5 In operation since: Municipalities: 11 1 Distance: 52 mi 4 mi Miles - Lane: Term (Amendment 5: ) Upfront Payments Concession Agreement (2011) $1,140M (Amendment 5: + $115M) Obligations Accelerate Safety Upgrades ( ) Exhaustive Operating Standards Federal & Local Regulations Conc. Agreement Amendments due to Tech Innovation Other Technical Innovations Results 2012: ETC Extension 2012: Dynamic Toll Lane Systems 2014: Full AET Conversion 2016: Bi Directional Tolling 2016: Full LED Conversion Improvement of service: safety, environmental, fluency, time response, time savings, quality, 4 Amendments in 5 years Trust, Relationship, Long Term View, Tech Oriented Agency, Users, Concessionaire, Providers Satisfied

4 Metropistas From Traditional Tolling to AET Concession Agreement Contract Design, Build & O&M Contract Canopy Demolition 2016 New Gantry 2017 New Bi Directional Gantry

5 Metropistas Managed Lane: Dynamic Toll Lane Km 10.1 Concession Agreement Contract 2nd Exit Design, Build & Maintenance Contract Km 12.3 Real time toll tariff applied every 5 minutes (range $ $4.90). Congestion and Time Saving Algorithms apply. Free Flow assured for the BRT and vehicles inside DTL. 1st Exit Km 12.9 Point of Decission Reduction from 1 hour to 7 minutes (DTL users) and 30 minutes (GPL users). Revenue Sharing DTOP & metropistas Km nd Entry Km st Entry

6 Metropistas LED Full Conversion of Lighting System Concession Agreement Contract Design & Build Contract Maintenance Contract Replacement of 2,674 luminaries. Reduction of 48.5% of energy consumption. Improvement on maintenance, life cycle and quality of lighting.

7 Present / Future Concession Model & Technology Challenge Traditional Concession Agreements: - Identified Mandatory Capex Projects. - KPIs and Opex based on Operating Standards. - Fixed upfront payments - Toll rates based on construction&finance and O&M costs + CPI formulas. Relationship Agency - Concessionaire: - Collaborative Operational Relationship. - Contractual Relationship based on: Compliance. Technology Evolution: New Solutions To Problems: Safety, Congestion, Environmental, Quality, Time Saving, Could be? Future Concession Agreements: - Identified Mandatory Capex Projects. - KPIs and Opex based on Operating Standards. - Initial & Future Upfront payments linked to LoS. - Toll rates based on construction&finance, O&M costs, Level Of Service + CPI formulas Relationship Agency - Concessionaire: - Collaborative Operational Relationship. - Contractual Relationship based on: Service. Technology Evolution: New Solutions To Problems: Safety, Congestion, Environmental, Quality, Time Saving, Amendment Negotiation: - Subject to the political momentum. - Long period of negotiations. - Initiative could not be implemented finally. Tech Implementationto Improve Service: - Continuous Incentive to invest in Tech. - Evolution of Business Models (+/-) linked with the service provided. - Users pay toll according to the service received.

8 Technology Challenge Own It or Rent It? Today Own It is the trend, but it will move to Rent It. Each Service will evolve different according to the service tech evolution by itself and the Agency/Concessionaire/Provider particular context. Rent It Own It There are several services offered in the toll operations (traffic management, tolling services, users information, facilities services, congestion management, environmental solutions, ). There are/will be Service Providers specialized on the different areas providing the ultimate and innovative Tech solution for offering the best service to Agency/Concessionaire. The evolution of several Key Parameters for each Service will define the change of Trend between Own It or Rent It: - Maturity of the Service. - Competence in the Market offering the Service. - Volume & Sinergies for Service Providers. - Local or Global investments. - Criticity of the Service. - Impact or Change on the Business Models. - Clear contractual framework and responsibilities. -

9 CONTRACT INNOVATION THROUGH THE CONCESSION MODEL THANK YOU!!!