1 WORKSHOP ON ROAD USER CHARGING SYSTEMS BEYOND TECHNOLOGY Warsaw: June 12, 2007 Presentation by: Zoltan Pap, Intertoll-Europe

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WORKSHOP ON ROAD USER WORKSHOP ON ROAD USER CHARGING SYSTEMSCHARGING SYSTEMS

BEYOND TECHNOLOGYBEYOND TECHNOLOGY

WarsawWarsaw: : JuneJune 12,12, 2007 2007

Presentation by:Presentation by:

Zoltan Pap, Intertoll-EuropeZoltan Pap, Intertoll-Europe

12 June 2007 ROAD USER CHARGING SYSTEMS- BEYOND TECHNOLOGY

2Workshop on Road User Charging Systems, WarsawZoltan Pap

CONTENT:

Brief introduction to Intertoll

Road User Charging Systems:

Framework

Technology

Roles according to CESARE III.

ETC Models

Implementation Options

Conclusion



INTERTOLL EUROPE IS AN INDEPENDENT TOLL AND MOTORWAY INFRASTRUCTURE DEVELOPER AND OPERATOR.

OUR MISSION IS TO:

• Successfully Develop And Manage Motorway Infrastructure

Projects;

• Pursue Road User Charging, Tolling And Allied Activities As A

Specialist Integrator And Operator;

• Effectively Manage The Diverse Activities Necessary For The

Operation And Maintenance Of Concession Motorways.



PROJECTS (OUTSIDE EUROPE)• SOUTH-AFRICA

• Toll collection, motorway operations and maintenance

• 13 toll collection location over the country

• INDIA / Delhi – NOIDA bridge• Toll collection

• Bridge, motorway operations & maintenance

• Toll collection equipment supply

• BANGLADES / JAMUNA bridge• Toll collection



• BRAZIL / Linha Amarela, Rio Teresopolis• Toll collection equipment supply

• Consultancy appoitments

• USA / Bob Sikes bridge• Toll collection



• CANADA, Vancouver Gateway project• Consultancy appoitment



INTERTOLL EUROPE



The A1 Project in Poland

Gdansk to Torun

Links ports of Gydnia and Gdansk to Silesia Industrial Area

North South Heavy Vehicle Traffic

Closed Toll network



A1 Contract Structure

State Treasury

Minister of Infrastructure (MoI)

GTC

Direct Agreements

EPCContractor

MESCOContractor

Intertoll

O&MContractor

Intertoll Polska

Shareholders LendersSenior Debt

Equity and Sub debt

Concession Agreement

EPC Contract

MESCO Contract

O&MContract



CONTENT:



Framework

Technology


ETC Models


Conclusion



FRAMEWORK

• DIRECTIVE 2004/52/ECTo obtain agreement on European Electronic

Toll Service (EETS)Target is common service in EC using:-

– One OBU per User

– Single contract - i.e. one invoice?

• CESARE III – Definition of common charging and/or

payment services



TECHNOLOGY

• 2 Basic Technologies proposed in Directive 2004/52/EC– GNSS/GPRS as a future objective for all systems

– Microwave 5.8GHz

• Other technologies that do not discriminate against non-equipped users are also provided for

• Directive prohibits specifying technologies



ROLES - CESARE III



TOLL LEGAL STATUS

• USAGE FEE (Austria)– Fee for a service provided i.e. right to access domain– Tolls subject to VAT

• TAX/DUTY (Germany, Switzerland)– Charged on the basis of public law and considered

revenue to the state– Toll not subject to VAT

• Usage Fee or Tax defines the business model of the EP



ETC MODELS

• RESALE MODEL– Electronic Toll Service Provider (EP) “buys” tolls

from Toll Charger (TC) and invoices to Service User (SU )

– Not applicable where Toll is regarded as a tax

• AGENCY MODEL– Toll Charger (TC) sells Toll directly to Service User

(SU) and:• EP acts as agent to TC – issues invoices in name

of TC, or• EP acts as agent of SU – ensures payment to TC

by SU– Applies to Tolls that are both fees and taxes



Country A Country B Country C

Toll Charger Toll Charger Toll Charger Toll Charger

EFCO B1

Road Owner A

Road Owner B

EFCO B2EFCO* A

Road Owner B1

EFCO B4 EFCO B4

EFCO B4

Concessionaire

Electronic Toll Service Provider Electronic Toll Service Provider

Electronic Toll Service Provider

Tolling Agent

Operator X

Back Office Y (BO)

Country A Country CCountry B

Country B

Country A

Country C

Country X

Operator and BO

Operator Z

BO Y C C

Operator SPV

DSRC

* Organisation that operates infrastructure and/or receives toll on behalf of Road Owner

GNSS DSRCGNSS & DSRC

BO

OBE

CS

EF

LS

COMBINATIONS

Operator SPV

CS OBE

Operator

BO

LS

Call Centre

C C

EF



CONTENT:



Framework

Technology


ETC Models


Conclusion



IMPLEMENTATION OPTIONS:

• Public Procurement Implemented and Operated by

Private SPV Company on Service Contract

• Traditional Public Procurement for System Supply

with Operation by Public Sector

• PPP Concession Structure




1. PUBLIC PROCUREMENT IMPLEMENTED AND OPERATED

BY PRIVATE SPV COMPANY ON SERVICE CONTRACT

• Private Sector tenders technology solution and price

• Private Sector paid on tendered system delivery milestones and time

based fee for operations and maintenance of system varied by

performance regime

• All tolls collected paid to Public Sector




2. TRADITIONAL PUBLIC PROCUREMENT FOR SYSTEM

SUPPLY WITH OPERATION BY PUBLIC SECTOR

• Private Sector tenders technology solution and price

• Private Sector paid on tendered system deliverability milestones

• Requires Immediate Transfer of Expertise from Private Sector to

Public Sector Operator

• Public Sector operates and maintains system and collects tolls




3. PPP CONCESSION STRUCTURE

• Private Sector tenders to design, implement, finance and operate the

system

• Tender adjudication on basis of retained Toll Income to repay loans and

operate and maintain system. Balance of Toll Income paid to Public

Sector

• Private Sector takes risk of system deliverability and performance

• Private Sector returns based on system performance



IMPLEMENTATION OPTIONS: FACTORS TO CONSIDER

1. Public Sector Decides Level of Toll and Routes to be Tolled.

• Traffic & Revenue Risk should be with Public Sector

2. Private Sector has Necessary Technical Skills & Experience

• Deliverability and System Performance Risk should be with Private

Sector

3. Complex Technology & Interoperability

• Public and Private Sectors need to work together to resolve these issues



PPP Concession Structure – Can it Work?

• Uses Private Finance to Implement System

• Places Risks with the Party Best Able to Manage Them

• Uses Proven Know How of Private Sector

• Uses Proven PPP Track Record of Better Delivery

AND:

• Reduces Public Sector Resource Requirement



CONTENT:



Framework

Technology


ETC Models

Available Options for Financing

Conclusion



CONCLUSIONSTO SELECT THE BUSINESS MODEL BEST SUITED FOR POLAND:

• Use the Experiences, and Future Plans, of Neighbouring Countries;

• Accommodate EU Guidelines;

• Consider the Advantages of a “Turnkey” Approach;

• Apply a Flexible System to Allow for Future Development;

• Identify the Risks and Place Them with the Party Best Able to Manage Them;

and

• Don’t Rule Out a PPP Concession Structure – It Does Have Advantages – and

Collects the Cash Sooner!

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THANK YOU FOR YOUR ATTENTION!

For further information please visit: http://www.intertoll.eu

Or contact

ZOLTÁN PAP Project Development Director Intertoll-Europe ZRt.Fehérvári út 50-52, 1117 Budapest, HungaryTel: (+36 1) 371 0762; Fax: (+36 1) 215 6165Mobile: (+36 30) 349 8963E-mail: [email protected]

TOLLS R US!

Documents

1 WORKSHOP ON ROAD USER CHARGING SYSTEMS BEYOND TECHNOLOGY Warsaw: June 12, 2007 Presentation by: Zoltan Pap, Intertoll-Europe