Operational issues when mixing public and private financing sources
THE GULF OF FINLAND PASSENGER FERRY COMPLEX THE GRAND PORT OF ST. PETERSBURG The Grand Port of St. Petersburg Projected cargo terminals of the Grand Port of St. Petersburg Passenger ferry complex LOCATION OF THE ORLOVSKI TUNNEL WITHIN THE STREET AND ROAD NETWORK OF ST. PETERSBURG
The Project Critical element of urban transport strategy: divert vehicle traffic from cultural heritage area in center of town, access to port Highly politically strategic First large privately financed PPP project Booming PPP market during project inception (2005 2007) with additional attraction of large Federal grant November 2007, Bid process launched Perfect timing for financial crisis June 2008, consortium selected as preferred bidder sole bidder Strabag, Hochtief, Bouygues, Egis, Basic Element, Mostoodryad 19 Negotiations failed, process cancelled in March 2009 Success! Now what
The Project 2.0 Splitting the project into three pieces: City funded first half of Southern (construction complete) Bond financing for second half of Southern and Northern (construction to be completed by end 2012) PPP for Central most technically complex Bond financing Infrastructure Bonds issued by a City owned entity - guaranteed by Federal Government Infrastructure bond law passed Three separate sources of funding raises different challenges: operation interfaces, maintenance obligations, allocation of revenues
Northern THE GULF OF FINLAND PASSENGER FERRY COMPLEX Central THE GRAND PORT OF ST. PETERSBURG Southern The Grand Port of St. Petersburg Projected cargo terminals of the Grand Port of St. Petersburg Passenger ferry complex LOCATION OF THE ORLOVSKI TUNNEL WITHIN THE STREET AND ROAD NETWORK OF ST. PETERSBURG
Operation Interfaces Split or joint operation Economies of scale using same Signage and other communication with vehicles Tolling technology Southern section already under operation City entity managing process Other facilities in the City to be tolled Orlovski Tunnel, Congestion charge, Metro, Parking Transport policy in the City evolving fast congestion management Current thinking City to manage Operations Solid team/entity for operation of Southern and Northern sections, Keep traffic, toll and transport policy decisions squarely in City s hands and coordination with other tolling mechanisms in the City
Managing Maintenance Split or joint maintenance Economies of scale equipment, machinery, spares, storage Warranty issues with different contractors and different specifications Current thinking PPP for construction and major maintenance of Central sections, City takes care of all else Keep traffic, toll and transport policy decisions squarely in City s hands and coordination with other tolling mechanisms in the City Keeps maintenance squarely in hands of party responsible for its construction
Revenue Management How are toll revenues used Support bond servicing or To private concessionaire to reassure bidder/lenders Traffic risk User fee based with minimum revenue guarantee Places risk on concessionaire of traffic and to some extent performance of service (attracting users) But requires assurances for concessionaire of traffic risk Availability payment Interface issues with City transport master plan Decision on toll levels Current thinking Availability fee basis, to avoid implications for cost of money and competition and to keep transport policy clearly in City control Tolls used to service bond payments, since City operating toll system, will make more sense, less need for monitoring
Northern THE GULF OF FINLAND PASSENGER FERRY COMPLEX Central THE GRAND PORT OF ST. PETERSBURG Southern The Grand Port of St. Petersburg Projected cargo terminals of the Grand Port of St. Petersburg Passenger ferry complex LOCATION OF THE ORLOVSKI TUNNEL WITHIN THE STREET AND ROAD NETWORK OF ST. PETERSBURG