New railway link trough the Alps

Transcription

1 New railway link trough the Alps The Swiss approach for financing and contracting of large railway tunnel projects Heinz Ehrbar AlpTransit Gotthard Ltd. Chief Construction Officer March 22 23, 2012 / Athens 1

2 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 2

3 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 3

4 Urner Loch (1708) Length 64 m Excavated Volume 350 m 3 Contractor: Piero Morettini Construction period: Costs: - contract sum 1680 Taler - final costs 3080 Taler 4

5 Underground Construction in Switzerland 5

6 Important historic projects Simplon Railway Tunnel ( ) Gotthard Railway Tunnel ( ) 6

7 Contract for the Gotthard railway tunnel (1872) Louis Favre ( ) 7

8 Road tunnel (1980) 8

9 Road tunnel (1980) Mio. tons netto per year Opening Gotthard Road Tunnel Opening Huckepack- Corridor Gotthard Public vote on AlpTransit Project Changes 1970 / % (+8 Mio tons net) % (+11.3 Mio tons net)

10 New Railway Lines in Switzerland 10

11 Planned time schedule and investments (1998) Investments (billion CHF) Rail 2000 NRLA 1 st phase 2 nd phase Links to european hispeed net Noise protection Startup an finishing Main work 11

12 New Railway Link through the Swiss Alps (NRLA) 12

13 New railway link through the Swiss Alps (NRLA) Gotthard Base Tunnel (57.0 km, opening 2016) Lötschberg Base Tunnel (34.6 km, completed 2007) 13

14 Protection of the Alps - public votes year topic % yes 1992 Law Alpentransit 63.3 % 1994 Public Initiative Protection of the Alps 51.9 % 1998 Heavy road vehicle tax 57.2 % 1998 Financing model for public railway infrastructure (FinöV) 63.5 % 14

15 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 15

16 New railway infrastructure needs high investments Investment per Kilometre double track railway (Mio CHF) Double track open air Double track Tunnel based on Mayer SBB/

17 Cost increase of railway tunnel projects Switzerland Gotthard railway tunnel (1882) Lötschberg railway tunnel (1913) Furka railway tunnel (1982) Vereina railway tunnel (1982) Lötschberg base tunnel (2007) Engelberg railway tunnel (2011) Gotthard base tunnel and Ceneri railway tunnel (u.c.) +21 % +40 Mio +31 % +14 Mio +305 % +226 Mio +51 % +274 Mio +32 % Mio +142 % +97 Mio +59 % Mio 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% from Zurbruegg EFV/2010 percentage of additional costs in relation to original budget 17

18 Development of the financing concept *) Figures in billion CHF (1995) Investment n.a *) Financing - Refundable credits 75% 25% Oil Tax (NRLA) 25% 25% 25% 25% - Heavy road vehicle tax 2/3 2/3 2/3 - VAT 0.1% 0.1% 0.1% - Cumulated loan Cumulated Interests n.a Credits paid back until (year) from Zurbruegg EFV/

19 Actual financing by a fund model Heavy road vehicle tax (65%) Oil tax (25%) Value added tax (VAT) (10%) Fund for the financing of public transport infrastructure (~ 25 billion ) Credits/Loan NRLA (45%) New Rail Link through the Alps Rail 2000 Phase 1 and ZEB* (44%) (*ZEB: Future Development of the Railway Infrastructure) HSR (4%) European High-Speed Rail Network Noise abatement (7%) Interests 19

20 Loans (Billions CHF) Financing and Contracting of Underground Works Fund management years 30 years Concept 1998 (FinöV) Concept Revision 2005 from Zurbruegg EFV/

21 Debts and debts limits of the fund (billion CHF) Loans to fund Limit of loans to fund (parliament decision) 21

22 Financial planning Profit and Loss Account ( ) Loss withdrawal for projects Interests for loans Profit - Committed earnings (taxes) loans Cumulated loans by end of year Limit of loans

23 Conclusions The fund solution has generally proved of value Different aspects caused additional costs: Revisions of the financing concept became necessary Cost elements were shifted from the operator to the tax payer Loans became higher and had to be given on a longer term Additional costs for interests occurred The limits of the concept are achieved New concepts for the financing of the future railway infrastructure will be a must and are now under discussion 23

24 Railway 2030 Investment 21 billion CHF new financing concepts are in discussion (adapted fund solution) 24

25 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 25

26 Bid Financing and Contracting of Underground Works Delivery process: design bid - build Principal Decision-makers Principal Principal/Owner Contract manager Services Design engineer Design Owner s representative (design/supervision) consultant contracts Project manager Site supervision Geologist Surveying Build Contractor works contracts (SIA/OR) Contractors Contracts Organisation 26

27 Basic principles for all construction contracts Environment Construction work Principal - Project manager - consultants, Specialists - Site manager Project planning - Conceptual design - Structural analysis - Final design Preparation of construction Requirements for use Quality Management - Invitation to tender by the principal - Contractor s bid - Award of contract by the principal Contractor - Subcontractors - Suppliers Laws, standards and recommendations Service criteria agreement QM Agreement Documents Design criteria static calculations Reports, layout and detail drawings list of materials, cost estimate Tender documents, Construction inspection plan Contractor s tender offer Contract for work and services Execution - Construction methods - Time schedule - Quality control - Payment and cost control - Final inspection Operation - Operation - Maintenance Dismantling Documents for construction (drawings, lists, instructions,.) Test Plan Daily construction records Service instructions, Operation instructions Monitoring plan, Maintenance Plan Reports, drawings, records, Report of remedial measures 27

28 General Conditions SIA 118 Content and purpose of the standard The standard contains rules relating to completion, content and execution of contracts over construction. It clarifies the common terms in these contracts, provides an overview about the relevant legal issues and shows trimmed on practical experience of how this can be resolved adequately taking into account the interests of both sides. As far as the standard describes the rights and obligations of the partners, it becomes legally binding, as far as the partners declare it as a part of their contract. Rules that apply by law to have been marked in the standard by reference to the applicable laws. The standard is to facilitate the conclusion and the terms of the contracts. It is also intended to ensure that uniform terms and conditions are used in the construction industry. Thus the standard contributes to the promotion of economic construction. The standard is applicable for all types of construction. Technical provisions for the execution of the structures are defined by separate standards of professional associations. 28

29 Partnering Problem Resolution Partnering Mutual Objectives Benchmark Performance 29

30 Basic principles for construction contracts SIA 118: Article 5 1 The tender requires a sufficiently clear project. 2 Before the call of tender, the client determines the local conditions, particularly the ground conditions, according to the requirements of work to be executed. The client shows all the results of his investigations in the tender documents ( see Article 7); he indicates the detected dangers and the necessary regulations. For the contractor s obligations see article 25 paragraph 3. 3 Among the local conditions to be clarified by the client are the neighbouring buildings, transportation and other utilities, aquifers and springs, surface and underground facilities (such as high and low tension systems, gas and water, petroleum products), inasmuch as they hinder the contractor s work or could be endangered by them. 30

31 Speciality of underground construction construction materials well known construction material not well known 31

32 The ground is the main construction material Ground conditions may change rapidly Number/type of support measures may change Construction time may change } => Cost can change => Contracts for underground construction should therefore allow a rapid response to changed ground conditions 32

33 Uncertainties ask for fair risk sharing from SIA D014 Einführung in die neue Norm SIA 198 (1995) 33

34 Fair risk sharing determines the type of contract Owner s Risk Contractor s Risk Project Costs 0% Turnkey Lump sum, Fixed Price 100% Lump sum, Price escalation Unit Price Cost Reimbursement 100% 0% Kleivan 1988 Norwegian Tunnelling Society, Publ. No

35 Structure of a typical Swiss underground contract and ranking Laws, mainly: Swiss Code of Obligations 1. contract document including the contract sum, the contract schedule and the project specific definition of risk sharing 2. contractor s documents - contractor s technical report - bill of quantities - contractor s drawings - Q-agreement 3. owner s documents - special conditions - design report - contract drawings 4. geological-geotechnical documentation 5. relevant codes - general conditions for construction (SIA 118, SIA 118/198) - codes for tunnel design and construction (SIA 197/SIA 198) - dispute settlement process (VSS ) - other codes other regulations health and safety, environmental protection 35

36 Swiss Codes topic code Nr. Title last edition language general conditions for construction contracts underground work design and construction SIA 118 general conditions for construction work SIA 118/198 general conditions for underground construction work SIA 197 design of tunnels basic principles SIA 197/1 design of tunnels railway tunnels SIA 197/2 design of tunnels road tunnels 1977/1993 d / f / i / e 2004 d / f / e 2004 d / f / e 2004 d / f / e 2004 d / f / e SIA 198 underground construction execution SIA 199 ground description and assessment for underground construction works 2004 d / f / e 1998 d / f dispute review board VSS resolution of disputes 1998 d / f 36

37 General conditions for construction (SIA 118) 1. The contract for work and services in general 2. Payment of the benefits of the contractor 3. Change order 4. Construction 5. Measuring, down-payment, guarantees and final settlement 6. Acceptance of the work and liability for defects 7. Early termination of the contract and late payment of the client 37

38 General Conditions for Underground Construction (SIA 118/198) GENERAL PART 1 Works contract 2 Payment for works performed by the contractor 5 Furnishing of securities SPECIAL PART 8 Underground construction work, 9 Construction site equipment and 10 Exploratory measures 11 Drill & blast tunnel-driving in rock (D&B) 12 Tunnel-driving using tunnel boring machine in rock (TBM) 13 Mechanically assisted tunnelling in rock (MR) 14 Mechanically assisted tunnelling in soft ground (MSG) 15 Tunnelling using shield tunnelling machine in soft ground (SM) 16 Support measures 17 Auxiliary construction measures 18 Sealing 19 Dewatering measures 20 Dewatering 21 Permanent lining 22 Inner lining 38

39 Ground description and assessment for underground construction works (SIA 199) 0 Scope 1 Understanding 2 Description of the ground conditions 3 Assessment of the ground conditions 4 Geological, hydrogeological and geotechnical reports ANNEX A1 A2 A3 A3 1 A3 2 A4 A4 1 A4 2 A4 3 A5 A6 A7 General Structure of Annex Description of ground conditions Soil Soil: Simplified representation of ground conditions in the geological longitudinal profile Unconsolidated material : representation of ground conditions in the geological longitudinal profile (example ) Hard rock Hard rock : Simplified representation of ground conditions in the geological length profile Hard rock : Classification for the simplified graphic representation of the geological conditions Hard rock : representation of ground conditions in the geological longitudinal profile (example ) Hazards and hazard scenarios laboratory tests, field experiments and field measurements Publications 39

40 Alternative Dispute Resolution (Recommendation VSS ) A. General B. Proceedings C. Site decisions D. Dispute review board E. Arbitration F. References 40

41 Phase 3: Court Phase 2: DRB and Arbitration Phase 1: Decision making on site Financing and Contracting of Underground Works Settlement of disputes VSS Code Contractual dispute changes claims other Written announcement offer/claim letter Site meetings written agreement Meeting of joint management board written agreement Dispute review board no Dispute value low yes Arbitration tribunal Recommendation of the DRB Decision of arbitration tribunal both accept Arbitration agreement Public court Court decision 41

42 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 42

43 Standard solution for risk allocation (SIA 118/198 Art. 8.7) 8.7 Allocation of risks Risks in underground construction work General risks Drill & blast Tunnelling in rock (D&B) Tunnelling with tunnel boring machine in rock (TBM) Mechanically assisted tunnelling in soft ground (MSG) Tunnelling using shield tunnelling machine in soft ground (SM) 43

44 Standard solution for risk allocation (SIA 118/198 Art ) General risks The following belong to the risk sphere of the principal: Rock characteristics different from the tender documents, to the extent that the deviation lies outside the contractual limit Presence of gas Encountering contaminated ground Effects on existing structures within the area of influence of the cavity which occur despite proper execution of the work Major collapses due to geological conditions and exceptional inflow of water Encountering archaeological remains The following belong to the risk sphere of the contractor: Rock characteristics different from the tender documents, to the extent that the deviation lies within the contractual limits Contractually defined services. 44

45 Ground related risks (SIA 118/198 Art. 8.7) Contractor s risks: means and methods ground conditions within the contractual limits Owner s risks: changed ground conditions outside the contractual limits 45

46 Exceptional circumstances (SIA 118, Art. 59) Weather conditions (SIA 118, Art. 60) Owner s risks: exceptional circumstances, which could not be foreseen or which, hinder excessively the completion of the works. Contractor s risks: exceptional circumstances, which could be foreseen or which, do not hinder excessively the completion of the works. Weather conditions if not agreed differently in the contract. 46

47 Occupational health and safety (Federal laws and by-laws) Contractor and Owner Each one is responsible for occupational health and safety of their employees All partners are committed to coordinate their activities on health and safety Occupational health and safety should not be a matter of speculation => safety measures are listed in the bill of quantities and are paid by the owner 47

48 Bill of quantities Costs Contract sum Unit prices for chapters: Quantity dependent costs 261 Excavation by D & B 263 Excavation by TBM 265 primary support 266 drainage 267 drilling and grouting 271 Impermeabilsation and dewatering 272 Inner lining 273 Finishing 274 Cableducts Time dependent costs Global prices for 113 Installations (Equipment and Services) Time 48

49 Payment of the excavation: excavation classes A full face excavation A B B Excavation of top heading, then benches C Excavation of top heading in stages, then benches (in caverns only) C D D Side drifts, top heading, core, invert E Pilot tunnel; enlargement to full section in one stage or partial excavation E 49

50 Payment of the excavation: support classes SC 1 SC 3 A distinction is made between the following support classes: SC 1: the support causes insignificant hindrance to tunnelling operations SC 2: the support causes slight hindrance to tunnelling operations SC 3: the support causes considerable hindrance to tunnelling operations SC 4: the support causes severe hindrance to tunnelling operations (immediate support following each round) SC 5 SC 5: the support causes extremely severe hindrance and may necessitate immediate support of the face or auxiliary constructional measures SC T: the support is installed in the form of segments, installed inside the shield skin (TBM or SM). 50

51 Working areas 51

52 Support classes Financing and Contracting of Underground Works Standard definition of support classes (D&B) Working areas Number of support elements in the each area 52

53 Performance and payment of the excavation The contractor offers unit price and daily advance rate for each combination listed in the tender documents 53

54 Changed quantities distribu on of support classes length of occurence (m) SC I SC II SC III SC IV SC V SC VI SC VII support class forecast effec ve In the event of variations, the unit prices (rates) remain unchanged if the bill of quantities includes special items for the site equipment and installations. 54

55 Variable construction time Forecast of the owner in the tender documents (quantities) Given by the contractor with his bid (performances) Contradictory measurement contractor & owner s representative 55

56 Variable construction time 56

57 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 57

58 : Last break through : Last concrete for the inner lining of single track tubes 58

59 spätester latest start Beginn kommerzieller commercial Betrieb operation Beginn start kommerzieller Betrieb commercial operation frühester Beginn kommerzieller Betrieb Earliest start commercial operation Durchschlag Mär. 99 Jul. 99 Nov. 99 Mär. 00 Jul. 00 Nov. 00 Mär. 01 Jul. 01 Nov. 01 Mär. 02 Jul. 02 Nov. 02 Mär. 03 Jul. 03 Nov. 03 Mär. 04 Jul. 04 Nov. 04 Mär. 05 Jul. 05 Nov. 05 Mär. 06 Jul. 06 Nov. 06 Mär. 07 Jul. 07 Nov. 07 Mär. 08 Jul. 08 Nov. 08 Mär. 09 Jul. 09 Nov. 09 Mär. 10 Jul. 10 Nov. 10 Mär. 11 Signature of main contracts Evolution of main milestones since year optimisation main contracts +1 year contract award Faido / Bodio Start: generally 1 year later +1 year, geology southern side +1 year construction permission and ground conditions south +1 year higher risks to dams breakthrough 59

60 10'000 9'000 8'000 7'000 6'000 Mio CHF 5'000 4'000 3'000 2'000 1' Signature of main contracts Evolution of final costs and potential risks Gotthard Base Tunnel 5.1 % per year 1.1 % per year Tender Phase Excavation 1 st Phase/design changes political delays Excavation 2nd Phase inner lining Inner lining Completion civil work Final Costs Risks L3 Risks L2 Risks L1 Financing demand 60

61 Main reasons for cost increase (NRLA-Project) 0.8% 4.1% 2.5% 9.8% 11.5% 24.6% 100% initial cost estimate additional environmental requirements worse ground conditions additional saftey requirements political delay market (contract sum, final costs) project extensions 61

62 Effects on the bill of quantities Costs contract Quantity dependent costs Time dependent costs Time 62

63 Bill of quantities Costs Effective cost contract Quantity dependent costs Time dependent costs Time 63

64 Experiences from the Gotthard Base Tunnel: DRB 2420 Contracts for engineering services Construction contracts for civil work - 4 Contracts > CHF 100 Mio Contracts CHF Mio Contracts < CHF 10 Mio 3100 change orders => site decisions 13 DRB-cases (from CHF 0.7 Mio to CHF 84 Mio) no pending court cases! 64

65 1. The NRLA infrastructure in Switzerland 2. Financing of the NRLA infrastructure 3. Swiss contract model: General aspects 4. Swiss contract model: Special aspects 5. Swiss contract model: Experiences 6. Conclusions and recommendations 65

66 Conclusions and recommendations on financing A stable long term financing model was defined before the start of the main work The financing model had to be adapted during the realisation of the project. Design to cost became a necessity For future projects changes become necessary as the limits of the actual fund concept are achieved. But: The financing solution with a separate fund has generally proved of value. 66

67 Conclusions and recommendations on contracts The contracts based on the unchanged codes => less discussions on the site due to the known common practice Changes of standard solutions were made only in cases where the local conditions asked for Handling of several thousand positions in the bill of quantity caused no bigger problems Time dependent costs caused the main disputes The DRB helped to solve problems on the site and to anticipate court cases. 67

68 Thank you for your attention! 68