PG Funding and Management Strategies Overview of work done 6th meeting Friday, 18 January 2008 Paris La Défense

PG Funding and Management StrategiesOverview of work done

6th meeting

Friday, 18 January 2008

Paris La Défense

18.01.2008 2

Projects

• M1: To analyse public private partnership (PPP) for roads and road transport administration

• M4: Show the effect of road pricing on socio-economy• M6: Show how best to access EU financial support and

explore the financial procurement• M7: Develop a best practice guide for the cost

manangement for long-term investment

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First

• On the 4th meeting 19th April 2007 the group decided– Focus on M1: PPP and M4: road pricing

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M1: What has been done so far?

• At the first meeting 8th February 2006: we decided to send a questionnaire (in cooperation with PIARC group) to CEDR members countries.

• 15th March 2006: questionnaire was sent out to CEDR members countries.• At the second meeting 10th October 2006: 14 questionnaires had been filled out

by CEDR’s countries and 2 other questionnaires have been added to these 14 countries since then. (plus 7 questionnaires from other countries than CEDRs members countries).

• At the second meeting 10th October 2006: Wim Leendertse has been chosen project leader.

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• At the second meeting 10th October 2006: we decided following action plan:– Benchmarks out of the answers of the questionnaires (Nov 2006) - Wim Leendertse will

introduce the result on the 3rd meeting.

– Reference reports on PPP (Oct 2006) – Bernd Quakernack.

– Analyse own experience (Nov 2006) - Wim Leendertse will suggest an action plan for the analyses on the 3rd meeting

– Structure of report (Nov 2006) – Bernd Quakernack, Sophie Pochard, Wim Leendertse.

– Write the report (Feb 2007) – Kristín H. Sigurbjörnsdóttir will introduce the CEDR’s report structure and suggest action plan for writing the PPP report on the 3rd meeting.

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• At the third meeting 22nd February 2007: Wim Leendertse and Inge Veldhuis had bencmarked the answers from the questionnaire for 16 countries. Wim Leendertse have concluded from the overview of the data that many more questions were raised. Inge Veldhuis gave a presentation on the results of the benchmark analysis and the group discussed it.

• Wim Leendertse had written iterim report on PPP on 15th Mars 2007 which was sent to the EB members. He has also prepared a presentation for EB.

• At EB meeting in Vilnius 29th Mars 2007 Wim Leendertse gave a presentation on the results of the benchmark analysis.

• Bernd Quakernack had sent the reference report on PPP from Price Waterhouse Cooper 2nd April 2007.

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• At the fourth meeting 19th April 2007: Michel Egger gave the group some conclusion from EB meeting where Wim Leendertse had given a presentation on PPP. The presentation was appreciated and had raised a lot of interest among the EB members. They welcomed the proposal to have a PPP decision making support tool.

• At the fourth meeting 19th April 2007: Wim Leendertse gave a presentation on his proposal for the next steps. His proposal were to upgrade and finalize basic information based on the questionnaire, to further analyse the results and to establish the structure of the decision support model. The group had agreed on and decided following:

– Updated questionnaire will be sent out in May followed by interview by telephone or visit in June and July. Wim Leendertse’s colleagues Inge Veldhuis and one other will take care of these interviews.

– After the interviews analyse further the results.– Wim Leendertse will send to the group a first draft of the structure of the decision support

model for support and for exchange of reaction and comments from the group by e-mail.– The draft of decision support tool will be presented in EB meeting in September 2007.– The aim is to present final report to the EB in November 2007.

• 29th May 2007: Updated questionnaire was sent to EB members and PG Funding members. Return of the questionnaire was supposed to be 15th June 2007.

• July-September 2007: Some inteviews have been done and works on decision support model.

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• At the fifth meeting 24th September 2007: Wim Leendertse and Zoran Manovic presented a PPP decision support tool which is a web-based interactive tool with PPP information gathered from the various European countries.

– The object of the tool is to introduce the user to the right sort of questions to ask on PPP giving information on each step and examples of solutions from other countries.

– The organisation of a PPP support tool is based on design, build, finance, maintain and operate.

– The group discussed this interesting support tool and made remarks on few things like the risk and risk sharing as well as complexity of legal framework in different countries.

• At the fifth meeting 24th September 2007 the group had agreed on and decided following steps:

– The group reads trough the PPP decision support tool and sends any other comments to Wim Leendertse by 5th October 2007.

– Wim Leendertse will draw up a proposal for summary sheets on each country that reflect their experiences, reasoning and solutions with respect to PPP that he will send to the group within 4 weeks for their feedback.

– The group will finish final report in February 2008 and Wim Leendertse will give a presentation at the EB meeting the 21 February 2008.

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• At the second meeting 10th October 2006: Laurent Donato has been chosen project leader.

• At the second meeting 10th October 2006: we decided following action plan:

– Status of work by PIARC (Jan 2007) – 31.10.2006 Laurent Donato had sent to the group members main conclusions from PIARC seminar on road pricing which has been held in Cancun in April 2005.

– Road pricing in one’s own country (Jan 2007) – 26.10.2006 Laurent Donato had sent to the group members some key questions about the road pricing practice. He only has got answers from 6 members so far (Belgium, Finland, Germany, Iceland, Lithuania, Netherlands). Laurent will introduce the results on the 3rd meeting.

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• At the third meeting 22nd February 2007: Laurent Donato gave a presentation on his conclusion on Road Pricing after he had received answers from 6 contries.

• Laurent Donato had written iterim report on Road pricing 29th Mars in french.

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• At the fourth meeting 19th April 2007: Laurent Donato had prepared presentation on his iterim report which Kristín H. Sigurbjörnsdóttir presented in his absence. The group discussed the project for a long time and they agreed on that Laurent Donato had mostly done the work on an inventory of existing or planned road pricing system in the CEDR's states but the group need to do more work on socio-economic consequences of road pricing. The group decided that Anton Goebel from Finland and Morten Rannem from Norway would help Laurent Donato with that work in coming months. The group decided the following:

– Make a clear and extensive inventory of what exists in Europe. – Describe and analyse in far more depth what are the consequences of road pricing on

the society, economy and environment. – State the theories behind the decisions made on road pricing. – Discuss why some projects are a failure and why some populations are so opposed road

pricing.– Obtain more information from the other countries, ask far more questions and present

many more examples. – Obtain the pros and cons of the examples to provide for more analysis. – Incorporate questions into the report for discussion among the group at the next

meeting. – Incorporate the more detailed remarks and examples that have been sent separately to

the group on road pricing.– Answers have to come out from the report that give a way forward and help the Road

Administrations make decisions.– To have iterim report ready in October 2007 and introduce it on EB meeting in the end of

November 2007.– The aim is to present final report to the EB in April or in October 2008.

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• 2nd May 2007: Anton Goebel had sent to the group his comments on Laurent’s reports. One of his proposition is to create framework for evaluation of socio economic impacts based on “impact chain approach”.

• 21st May 2007: A demand came from the GB to the EB and TD/PG/TG to take in charge some strategic sessions during the next TRA (Transport Research Arena) conference that will take place in the end of April 2008 in Ljubljana, Slovenia. The PG Funding is asked to supervise one session Road Pricing and Tolling. Mr. Yvon Loyaerts has asked the group, to prepare the content of the session and find someone responsible who could also be the animator.

• 4th June 2007: Kristín H. Sigurbjörnsdóttir sent to the group the question of someone volunteering to be responsble and animate the session at TRA 2008 and she had proposed that Laurent Donato or Anton Goebel or Morten Rannem animate this work and would be responsble for the group’s contribution.

• 25th June 2007: Morten Welde, a colleague of Morten Rannem had sent to Laurent Donato his comments on Laurent’s reports. He also had started preparing the road pricing session at TRA 2008.

• 4th July 2007: Morten Welde had sent his first proposition on the road pricing session at TRA 2008.

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• At the fifth meeting 24th September 2007: Morten Welde presented his comments on Laurents Donato’s report as following:

– The scope is too wide: a decision should be made whether the report should cover one or more or fewer specific areas.

– The report appears very generic with a lot of general information but no new information.

• At the fifth meeting 24th September 2007: Anton Goebel had sent the group a document of his and his colleague work on Socio-economic impact chains which the group appreciated especially the definitions, the Government Policy flow chart, the impact chain approach and the instrument-impact matrix.

– The group questioned how comprehensive the chains should be and to add public acceptability, social equity and the judgement of social economic consequences of road pricing.

– The group thought that some other elements such as public acceptability should be added to the instrument impact matrix and also data on whether the road pricing instrument is for traffic management or for collecting funds.

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• At the fifth meeting 24th September 2007: The groups answers to Anton Goebel’s questions were following:

– The group agree with the chain approach and consider it a suitable way to analyse the impact of road pricing.

– Concerning the word impact, the group would like to know whether the impact is positive or negative and what are the levels and types of impact. Are there some case studies that portray whether the impact is positive or negative and that give examples of the types of impacts?

– The chains are logical though the group would need to look into them in more detail. Adding references to the chain will help to see if the chain is logical or not.

– Better to use the examples of the more thorough and well documented Road Pricing studies of London and Stockholm and perhaps Germany concerning the GPS truck tolls.

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• At the fifth meeting 24th September 2007: After discussion, the group agreed on following:

– Kristín H. Sigurbjörndóttir will contact Laurent Donato and Anton Goebel to determine the leader of the project.

– Morten Rannem and Morten Welde will contact Anton Goebel to organise a working meeting to plan the next steps and determine to what extent additional resources are required.

– Anton Goebel, Morten Rannem, Morten Welde will prepare a status report for the EB meeting the 22 November in Rome to raise questions and interest among the EB members.

– The aim is that the final report will be ready in April or in October 2008.

– The information already gathered in Laurent Donato’s report will be used.

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M4: What has been done so far? – TRA 2008

• At the fifth meeting 24th September 2007: Road pricing session at TRA 2008 was discussed

• 1. Morten Welde informed the group that he had been asked to organise this strategic session at TRA in April 2008 with the instructions that the strategic sessions are more policy orientated and open to a wider audience. In order to attract a wide audience to the session needed for a lively debate and to ensure the success of the session, he said he has already invited:

– Jonas Eliasson from the Royal Institute of Technology in Stockholm. Specialist in evaluation of the Stockholm congestion charging and equity effects of congestion pricing

– James Odeck, Professor at the Norwegian University of Science and Technology. Specialist in road pricing and transport in the field of economy.

– Anthony May from the Institute for Transport Studies at the University of Leeds, UK. Experienced in road pricing, in research schemes and EU financed projects.

• 2. The group had agreed on Morten Welde’s suggestion to have two ‘technical’ speakers from transport regulation, strategy and research and another speaker from the EU with a ‘counter’ point of view on Europe in general and on policy making issues. Each presentations 20 – 25 minutes and qustions will only be allowed at the end during a panel discussion organised by the moderator.

• 3. The group discussed how to cover cost of accommodation and transport of the speakers. The group agreed that it will draw up a formal request to the Organisation Committee of TRA 2008 to have the accommodation and transport paid for or to find some other solution. Otherwise the group has to change their plan.

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M4: What has been done so far? – TRA 2008

• 22 October 2007: Morten Welde had sent to the speakers invited to speak at the session Road pricing and tolling at TRA 2008 following session outline:

– "Scope and limits of charging as a means of promoting sustainable development" - Stephen Perkins, Joint Transport Research Centre of the OECD and the International Transport Forum

– "Road pricing and equity, experiences from Stockholm" - Jonas Eliasson, Royal Institute of Technology, Stockholm

– "What characterizes successful road user charging schemes?" - Professor Anthony May, Institute for Transport Studies, University of Leeds

• The session is 75 minutes will be chaired by Professor James Odeck from the Norwegian University of Science and Technology. Presentations will be of 15-20 minutes in length and then 15-20 minutes of questions and discussion.

• 14 November 2007: Kristín H. Sigurbjörnsdóttir informed the group that the former session outline would be presented on the next EB meeting in Rome the 22 November as the group's proposition and the speakers have all agreed to speak at the road pricing session and they will self cover their costs of travel and accommodation.

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• 14 November 2007: Kristín H. Sigurbjörnsdóttir informed the group that Anton Goebel has agreed on taken over the leadership of task M4, road pricing, as discussed on the groups last meeting. She also reminded the group what was discussed on the last meeting that everyone has to give his effort in the work.

At EB meeting in Rome the 22 November 2007 Anton Goebel had prepared some paper and presentation which Raimo Tapio, EB member from Finland, presented.

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• At the second meeting 10th October 2006: Donatas Dudonis has been chosen project leader.

• Short questionnaire was sent out to participants 06.11.2006 and the project leader has only got a few answers so far.

The questionnaire was resent to the participants on 13th Mars and the project leader hasn’t got more answers so far.

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• At the fourth meeting 19th April 2007: Vytautas Lingaitis gave a presentation on Lithuania’s experience on received EU financial aid. After discussion the group has agreed on following:

– Obtain more information to specify what criteria makes a country eligible to receive funds, which countries are eligible and from there approach only the countries who are eligible.

– The questionnaire should be tested within the group before it is sent out. – Michel Egger will contact Poland, Portugal and Spain to obtain more assistance. – The EU should have booklet on the Internet on how to apply for EU funds – Wim Leendertse will inform Michel Goppel that Vytautas Lingaitis will contact him to obtain

the booklet Partner for Roads. – Mr Janušauskas must have documented what the EU has asked from Lithuania. This

information must be obtained and used to draw up the procedure to follow to obtain funds from the EU.

– By the next meeting, the countries with experience on obtaining funds and who can contribute must have been contacted.

– The questionnaire must be redone with more specific questions and exclude questions where the answers can be found on the Internet.

– A new paper will be presented to the group at the next meeting.• 21st May 2007: Michel Egger announced to Vytautas Lingaitis that he had contacted the General

Directors of Poland and Spain concerning the involvement of their personnel in PG Funding.• 28th May 2007: Vytautas Lingaitis had sent questions to the Polish and Spanish members in the

PG Funding.• 16th July 2007: Catherine Lerta had sent more information on Greek’s experience on accessing

EU financial support and exploring the financial procurement.

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• At the fifth meeting 24th September 2007: – Vytautas Lingaitis informed the group that he had received no answer from Spain,

Portugal and Poland but had received information from Greece and the “Partners for Roads” book from Michel Goepel. However, when he contacted Michel Goepel for more information, he did not reply.

– Oscar Álvarez Robles and Sarantis Pantelias shared their experiences and factual information on how to access EU financial support with the group.

– The group discussed next steps and agreed to work on the new EU program: 2009 – 2015 since the types of funds, their objectives and rules for obtaining funds are changing. The allocations are becoming more strict and regulated. Any added value or guideline on ‘how to access funds’, must be based on the future. The group agreed also that the most interesting lessons to be learned are at a lower or micro level and should be incorporated into a report.

– Both Oscar Álvarez Robles and Sarantis Pantelias agreed to help Vytautas Lingaitis on the project. Sarantis Pantelias said he would try to find the contact from Ireland for information on their experiences. Wim Leendertse said he would provide the web site of the EU bank where information can be found.

• 25 November 2007: Oscar Álvarez Robles had sent to Vytautas Lingaitis some information on EU financial instrument.

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At the second meeting 10th October 2006: Bernd Quakernack has been chosen project leader.

At the third meeting 22nd February 2007: Bernd Quakernack has announced that he will not participate in the group from next month.

Information on Asset Management sent to the group on 30th Mars.

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• At the fifth meeting 24th September 2007: Kristín H. Sigurbjörnsdóttir has given a presentation on Asset Management which she had assembled from PIARC and the OECD

• At the fifth meeting 24th September 2007 – Sarantis Pantelias asked why developing assets was not discussed, since,

asset management did not concern only maintenance and upgrading. He also said that he considered accountability to be a key word. In most cases, he said that the road network belongs to the State who manages these assets and who are accountable towards the community and users. However, in most cases accountability was not being considered.

– Oscar Álvarez Robles considered that it is a question of cash flow: a huge amount may be invested initially to lower the operating costs, or if interest rates are high, a lower investment may be made initially that could increase the operating costs and be most costly in the long term. The level of interest rates will determine whether projects are feasible or not. He also remarked that assets are not necessarily based on monetary values. They also have a functional value: i.e. the use of a road network.

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• At the fifth meeting 24th September 2007 Kristín H. Sigurbjörnsdóttir inquired if someone from the group would be interested taking the leadership of this task. In reply, the group agreed that:

– One of CEDR members that has experience on subject should take the lead. Without the knowledge of the asset management issues, the task cannot be driven.

– Task leaders land up doing all the work which leads to a lack of volunteers. To avoid this, at the next meeting, the group will plan how to assist the future leader of this group.

• At the fifth meeting 24th September 2007 the groups conclusion was following:– The group will contact the TDC to ask him to ask for a volunteer at the next

EB meeting in Rome.– Wim Leendertse proposed to draw up a plan to work on at the next meeting.

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• 26 September 2007: Cathrine Lerta had send to the group Peter Graham’s presentation of Bridge Asset Management at Piarc technical commitee meeting in Salonica, Greece in October 2005.

• 1 October 2007: Kristín H. Sigurbjörnsdóttir had sent an e-mail to Yvon Loyaerts asking him to help finding specialist in asset management within:

– “Task M7 - Asset Management: We still need a task leader. The group will think until next meeting about some specialist in their country to participate in the groups work and I hereby ask you, would you please ask the EB members if they know about someone working in their institutions specialised in asset management who could participate in the group or give their effort on this task for the group.”

Documents

PG Funding and Management Strategies Overview of work done 6th meeting Friday, 18 January 2008 Paris La Défense