Ruta del Sol. Ruta del Sol: Lessons learned PPP Days 2012

Transcription

1 Ruta del Sol: Lessons learned PPP Days

2 Project Context Colombia's main corridor: 1,071 km Connects interior with the Caribbean 78 km Greenfield 993 km Rehabilitation, geometry improvement expansion, O&M US$ 3 bn Capex 11 toll stations with historic counts ADT: 5,300 vehicles (57% trucks) Availability payments 2

3 Government s objectives Explicit Improve the existing infrastructure to increase competitiveness, promote economic growth and improve the quality of life of the population Create a road concession model that enables long term financing Optimize the use of public resources and risk allocation between the public and private sector Consolidate best international practices in bidding processes Implement an efficient, swift and transparent bidding process Non explicit Avoid contentious bidding processes Prevent contract renegotiations Improve credibility of road concessions Attract international competition 3

4 Main challenges Very large project with some history Several changes of scope (new routes; new scope) Lack of technical studies Extremely tight timetable Tension among government entities Tension between the sector and the market INCO s reputation 2008/09 Global financial crisis Competitors actions and behaviors High profile project Media 4

5 Timetable: 2 years, 9 months Mandate signed: Oct 2007 Consultants hired: Nov 2007 Jan 2008 Due diligence: Jan Sep 2008 Project restructured: Sep Dec 2008 Roadshow: Dec 2008 Bidding process Mar Oct 2009 Awarding: Dec 2009 Re-bid Section 3 Mar Jul 2010 Financial Crisis 1,400 questions, limited technical consultants, GM dismissed 5

6 Road Concessions 3 Existing road (465 km) San Roque Y de Cienaga Carmen de Bolívar Valledupar 3 2 Existing road (528 km) Puerto Salgar San Roque 2 1 New road (78.3 km) Villeta - El Korán (7 km N of Pto Salgar) 1 6

7 Bid results Sector 1: Three bidders Consorcio Helios: Colombia (75%); Argentina (25%) Total Availability pyt: US$771 m (20% under cap) Sector 2: Three bidders Concesionaria Ruta del Sol SAS: Brazil (60%); Colombia (40%) Total NPV (Availability pyt + toll): US$1,047 m (6.5% under cap) Sector 3: Seven bidders Yuma Concesionaria: Italy (40%); Colombia (60%) Total NPV (Availability pyt + toll): US$1,040 m (9.5% under cap) Five qualified bidders (Brazil, Colombia, Mexico, Spain, Korea, Portugal, Italy) 7

8 Lessons Learned Political will Mapping of stakeholders Government and advisors organization Due diligence Competition and market monitoring Exposure to media Post awarding 8

9 Political will Structuring: Technical & financial decisions Marketing: Dialogue with investors Bidding process: Facing tensions with the market Interaction with other agencies: Leading difficult discussions Relationship with media: Government speaker Mapping of stakeholders Potential winners & losers, relationships: 12 in RDS Design strategies for all Early coordination 9

10 Organization - Government INVIAS MOE Steering Commitee MOF MOT MOP Investors INCO President Office Financiers 10

11 Organization - Advisors Communications Advisor Transport Advisor Engineering Advisor - World Bank Capital Markets Advisor- World Bank Engineering Traffic Legal Finance Environmental Social / land acquisition Euroestudios Steer Davies & Gleave Posse, Herrera & Ruiz Abogados Structure S.A. Banca de Inversión Ambiental Consultores / TAU / Sanchez Herrera Incoplan Palacio, Jouve y García 11

12 Due diligence Complete studies, high internal and external scrutiny Independent studies to enhance project credibility Competition and market monitoring Be prepare, sophisticated experienced players Understand bidders strategy to promote competition Monitor bottlenecks during due diligence Be aggressive in promotion: ads are not enough to sell Include financiers not only sponsors 12

13 Exposure to media High profile project will attract media whether you like it or not Get professional advice: Consultant with good contacts with media Help to prepare Q&A; talking points; press releases; interviews Work with the client s PR office, define government speaker Better to give information than letting the media be creative Be cool: Don t try to kill a fly with an atomic bomb, it could become Godzilla 13

14 Post awarding Hire strong supervisors Build institutional memory Be ready for renegotiation attempts 14

15 Annex 15

16 Structure Term Design Environmental risk Land acquisiton Construction term Construction risk Availability payments Traffic risk Performance Standards Sector 1 7 years Pre feasibility 1:5,000 provided Final design by concessionaire within 1 km of reference design Concessionaire (license) Shared (budget) 3 4 yrs (tranches) Partial geological risk coverage Construction index 1% index increase entitles payment Government Road conditions and O&M 16

17 Structure Term Design Environmental risk Land acquisiton Construction term Construction risk Availability payments Traffic risk Performance Standards Sectors 2 & 3 NPV of revenue (max 25 yrs) 1:25,000 provided Final design by concessionaire Concessionaire (license) Shared (budget) Significant resettlement needs 2 6 years (tranches) Concessionaire 10 km of new construction or geometry improvement Concessionaire Road conditions and O&M 17