||Titel der PräsentationUntertitel der Präsentation02.12.20091 Financing of Road Infrastructure PPPs with Electronic Toll Schemes III Astana Economic Forum

|| Titel der Präsentation Untertitel der Präsentation02.12.2009 1

Financing of Road Infrastructure PPPswith Electronic Toll Schemes

III Astana Economic ForumCrisis Lessons and Post-Crisis Models of Economic Development in Globalization Conditions

July 1st – 2nd, 2010

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Agenda

Overview Kapsch

PPP Principles

Tolling and PPP

Case Studies

Conclusions

02.07.2010 2Financing PPP with Electronic Tolling

Schemes


What does Kapsch actually do?


Schemes

Kapsch TrafficCom - Experience

80% of Multi Lane Free Flow (MLFF) Systems worldwide are supplied by Kapsch TrafficCom

100 cars per second are passing through Kapsch TrafficCom’s MLFF tolling points

12 Million drivers that use our OBUs (On Board Units) as a means of payment

3 of 5 National truck tolling schemes in Europe use Kapsch TrafficCom’s technology and services

12 Months (average) to deliver complete national truck tolling schemes (for the Czech Republic and Austria)

250 Projects in 36 countries


Schemes

Kapsch TrafficCom: Road Traffic Telematics Portfolio

Highway tollingArea tollingE-VignettePlaza tollingToll enforcement

TollingSolutions

City tollingAccess restrictionLow emission zonesOpen zone parking

Urban TrafficSolutions

Road Safety & SecuritySolutions

Speed monitoringWeigh in motionIncident detectionTraffic surveillance

Add-on Applications


Schemes


PPP Models, Financial Crisis


Schemes

Credit crisis impact on the PPP market

Reduced Liquidity & increased Bank margins - The collapse of the inter-bank lending market has drastically reduced liquidity. Bank margins

have increased substantially

Competing capital allocation - Project finance and PPP lending is competing for scarce regulatory capital allocations with

more attractive corporate opportunities. This is testing the viability of the current PPP model

Shrinking international Project Finance market & Relationship banking- Some banks have partially or totally withdrawn from the Project Finance market. Active

international players have become more orientated to their domestic markets. “Relationship banking” is back in force

Wrapped bond market - No viable capital market solution has emerged to replace the wrapped bond market

However, the PPP market has not collapsed. Deals are still being brought to market and closing, albeit more slowly. There is a high degree of selectivity on the part of banks and a general lack of consistency in the terms and conditions required by funders.

* Source: EPEC (European PPP Expertise Centre), The financial crisis and the PPP market, August 2009

7 02.07.2010 7Financing PPP with Electronic Tolling

Schemes

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Why PPP / BOT / PFI / … ?

Mobilize (additional) financing of infrastructure

Risk-sharing between public and private sectors

Using private sector skills

Cost Saving

Source: Wordl Bank Tollokit for PPP in Highways


Schemes

Financing Models

Public Funding- Risk of design, but full control of process

Operations contract - Limited influence, but no upfront investments

Concessions- Lower risk, but loss of control?

Revenue sharing models - Lower level of investment, but smaller share of

income

PPP’s- Shared responsibility between the Public & the

Private?- Risk sharing?- Economic, legal, political obstacles?


Schemes

What Tolling Model ?

Build

Finance

TransferOperate

Design

Shadow Toll

Availability Payments

User Pays


Schemes

Why PPPs for Road Infrastructure Projects

• Reduce financial bottlenecks to build new or maintain existing infrastructure

• Create synergies

• Utilise innovations

• Increase planning security

• early implementation

• maintain roads quality on high levels

• include industry in state duties


Schemes

Public-Private Partnerships are very common in Europe and Asia


Schemes

Toll Modes

Public Spending

Private Spending

Efficiency

Shadow Tolls Low

Avalibility Payments Low

User Tolls High


Schemes


Tolling Schemes as Part of PPPs


Schemes

• Investors in PPP schemes are rewarded through revenues from toll schemes

• The tolls are collected from the road users (the „User Pays“ Principle)• Toll scheme must not obstruct traffic flow (high user acceptance)• Toll tariffs help to optimise road use, and environmental impacts• The toll scheme may serve also as a traffic management tool• Toll Scheme to suit all PPP kinds: concessions, operations contract,

etc.• Risks of modern toll schemes are very low

Toll Financed Mechanisms and Requirements


Schemes

Questions for Toll Schemes

Political Goals?

Tariff ?Traffic

Management impacts

Legal Framework

for Enforcement

Tax or Toll?

Risks?

Scaleability and

Integration

Technology ?


Schemes

Integrated approach and design required

Road Users

Politics

Government

Road Authorities

Police

Media

Professionals

Scientific

Banks

Industry

Organizations

Standardization


Schemes

Players for PPP - Tolling Projects

• Toll Regulatory Board

• Department of Public Works and Highways

• National Economic and Development Authority

• Department of Finance

• Department of Budget and Management

• Department of Trade and Industry


Schemes

Mode of Operations in Tolling

Toll Plaza - vehicles need to stop

High Cost CAPEX and OPEX

Multi-Lane Free-Flow / ORTvehicles drive with normal speed

No obstruction of traffic

Convenient for road users

Lowest cost

Avoid accidents because of stopping


Schemes

Typical Toll System Overview

On Board Unit in Car

Kommunikationszone

Tolling Stations

Kommunikationszone

Enforcement Stations

Call Center

Mobile Enforcement

CRM Central System

Enforce-ment Processing

Points of Sale (POS)

Self Service Terminals


Schemes

Easy to Use

Lowest cost for erection and operation, incl. management, contracting and billing

High scalability, high automation, and no fraud

High charging and enforcement quotas

Support of flexible charging schemes & tariff structures

Best technologies (proven, standards)

Toll Performance Key Factors


Schemes

Toll based PPP Projects with Kapsch TraffiCom Toll Schemes

Austria - Truck Tolling System

Melbourne City Link

Czech Republic Nationwide Truck Tolling Scheme

Santiago de Chile - Urban Scheme


Schemes

Toll based PPP Projects with Kapsch TraffiCom Toll Schemes

Attica Tollway, Greece


Schemes


Summary & Conclusions


Schemes

Summary & Recommendations for Tolling

Tolling is an efficient financing tool for PPPsFinance new infrastructure, or upgrade existing

Make scheme simple Mandatory On Board Unit, no cash payment

Tolling Scheme must generate maximum revenuesBusiness oriented tariffs, no fraud

Ensure best performancelow cost, proven technologies, standards, experienced partners, low risk, ...

Must not cause congestionFree-Flow mode of operation,

Must be sustainableScalable, environment, interoperable, inter-urban and urban, ...


Schemes

IRF PPP activities, and Working Groups

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Schemes

IRF Publications

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Schemes

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chemes

Thank you for your attention!

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Josef A. CzakoGroup Director, International Business

Development

Kapsch TrafficCom AGAm Europlatz 2 | A-1120 Vienna | Austria

Phone +43 50 811 2150Mobile +43 664 628 2150

Email [email protected]

02.07.2010

Documents

||Titel der PräsentationUntertitel der Präsentation02.12.20091 Financing of Road Infrastructure PPPs with Electronic Toll Schemes III Astana Economic Forum