WORKSHOP ON INVESTMENT, FINANCIAL AND TECHNOLOGICAL ISSUES

OF MODEL HIGHWAY INITIATIVE (MHI) IMPLEMENTATION 6-8 March 2012,

Thessaloniki, Greece

SESSION 3: PUBLIC-PRIVATE PARTNERSHIP IN CREATION OF MHI – TECHNOLOGICAL ASPECTS

The development of Attica Tollway (Attiki Odos) in Athens, Greece:

Is this a successful PPP example?

Bill M. Halkias, PE, F.ASCE, F.ITECEO, Attica Tollway Operations Authority

President, Hellenic Institute of Transportation Engineers

What is a PPP in road transport?A cooperation between the public and private

sectors for the financing, development and operation of road infrastructure.

PPP or PFI or BOT or BOOT

Hybrid PPP's

PPP’s combined with EU funding are termed “hybrid” PPP’s.

Usually EU Grants are part of the State’s Financial Contribution.

Attributes for successful PPP’s

• Strong partnerships through agreed common goals.

• Adequate and sustained financing.• Effective organization and management.• Long term commitments of the Partners.• Timely development that incorporates results

into the transportation infrastructure.

OMC

TB

OMC: Operation and Maintenance Center

TB: Technical Base

TB

The Project In numbers

65 km Urban Toll MotorwayFully Access Controlled3 lanes per directionLink of 2 major National

Roads Link to 3 Ports (Piraeus,

Rafina, Lavrio)

AADT(2009): 307.300AADT(2010): 281.329AADT(2011): 250.491Toll Stations/Toll Gates:

39/195

22

Who is Who in Attiki Odos S.A.?When started: 14 small firms. Today: market leaders.

22

PANTECHNIKI

AKTOR AKTOR CONCESSIONSCONCESSIONS

Financing structure of Attica Tollway:A Typical Hybrid PPP

MCP Project Cost – 1,300 million Euros

Project Finance:• EIB LoanGuaranteed by International and Greek Banks until final

completion; then guaranteed by the State.• Commercial Loans

(Greek Banks)• Project Owner Contribution• Equity & Revenues

(Greek Contractors)• Standby Facility

(Greek & International Banks)

EIB43%

Commercial7%

POC34%

Equity13%

Revenues3%

Construction Joint Venture

Operator

Project Owner

EYDE/LSEP (a Special Service)

Main Contracting Parties

Concession Company

Project’s Owner Representative

MINISTRY OF INFRASTRUCTURE TRANSPORT & NETWORKS

MINISTRY OF INFRASTRUCTURE TRANSPORT & NETWORKS

Project History

The need was identified in the early 1960s

• Issuing of Tender Documents 14/02/1992• Tenders submitted(3 bids) 28/02/1995• Concession awarded 23/05/1996• Ratification of Contract 16/12/1996• Full Financial Close 06/03/2000• First Drawdown 04/08/2000• First section in operation 19/03/2001• Completion of the project 24/06/2004

Main Project ContractsProject Owner

Greek State PO

Attiki Odos JV

ΕΙΒ

Commercial Banks

Independent Engineer

Attikes Diadromes

Shareholdersof S.A.

Sub-contractorsSuppliers

IBI GroupMembers Sub-contractors Suppliers

Design – Build Contract Operation – Maintenance Contract

Concession Contract

I.E. Agreement

Shareholders’ Agreements

Shareholdersof A.D.

CJV AgreementExecution of works /

Supplies Agreements

ITTMS Consultancy Agreement

Provision of ServicesAgreements

Supplies Agreements

Know – HowAgreement

Shareholders’ Agreements

Finance Documents

Issues faced during Project Development

• Financial close took longer than expected.• Environmental design changed since tender

documents were issued.• Risk allocation problems were not reflected in the

concession contract.• Lack of legal framework in Greece created

difficulties.

Risk allocation problems

• Mechanism for partial delivery of the project with partial release of Commercial Banks guarantees was missing.

• In case of PO instructed variations, no mechanism for EoT was foreseen.

• Financial security structure was missing.

As a result the Commercial Banks could not participate in the project financing, unless the risk

allocation was better balanced.

Construction problemsConstruction problems occurred due to:

Archaeology Expropriations

Relocation of public utilitiesDesign variations for environmental reasons

Consequences

• Delays• Impossibility of achieving deadlines• Impact on finalization of documents and

starting of drawdowns• Concern of lenders

The success story

• Problems were solved through contract amendments.

• Financial close was reached in 2000 and money drawdown started.

• Construction completed within budget and on time for the 2004 Athens Olympic Games.

• Support to Greek construction industry and competitiveness.

Attica Tollway Operation: The Key elements

• Excellent road safety records: one of the safest roads in Europe.

• Incidents management plan and response.• Active traffic management.• Customer service policy and “customer”

treatment of users.

Annual Average Daily Transactions (March 2001-December 2011)

+38.6%

+22.0%

+25.6%+34.5%

+34.0% +33.9%+19.9%

+4.4%

avg.= 250.491

Anticipation versus reality

• The traffic forecasts for Attica Tollway during the bid phase have been surpassed.

• Actual annual average daily traffic is higher than the traffic levels initially foreseen.

• Reality permitted Actual Toll Rates to be substantially lower than the contractual Upper Toll Rate.

• Actual toll revenue in line with what was anticipated.

1st Prize European Road Safety AwardInternational Road Federation (IRF) European Road

Federation (ERF) Amsterdam, Netherlands

1st PrizeSpecial Achievement

in GIS Environmental

Systems Research Institute (ESRI)

San Diego, CA, USA

Global Road Achievement Award

in Environmental Mitigation

International Road Federation (IRF),

Washington DC, USA

Prize Décibel d’ Or Conseil

National de Bruit (CNB) Paris, France.

Prize Décibel d’ Or Conseil

National de Bruit (CNB) Paris, France.

Awards from International Organizations

1st Campaign Prize

CEO & CSR Convention,

Athens, Greece

1st Campaign Prize

CEO & CSR Convention,

Athens, Greece

Mega Ilios Award as the Top Brand in Greece

Corporate Superbrands, Athens, Greece

Mega Ilios Award as the Top Brand in Greece

Corporate Superbrands, Athens, Greece

“Green Leader – Carbon footprint Assessment and

Mitigation” Award

Centre for Sustainability and Excellence (CSE),

Athens, Greece

“Green Leader – Carbon footprint Assessment and

Mitigation” Award

Centre for Sustainability and Excellence (CSE),

Athens, Greece

1st Back Office Award

Hellenic Institute of Customer Service

(EIEP), Athens, Greece

1st Back Office Award

Hellenic Institute of Customer Service

(EIEP), Athens, Greece

Recognition of Excellence

Toll Excellence Award in the Category of Administration International Bridge Tunnel Turnpike Association (IΒΤΤΑ)

Chicago, IL, USA

International recognition

60,4

58,2

46,9

40,1

16,6

38,6

39,2

48,5

56,3

46,9

2,5

33,2 3,3

4,6

2,0

0,8

1,0

0,5

0,1

0 10 20 30 40 50 60 70 80 90 100

Toll Station cleaness

Road celaness

Road Surface qualitymaintenance

Patrol servicesresponce in incidents

Sufficiency andquality of green

areas

Very Satisfied Satisfied Not Satisfied Not at all

AprilApril 20201111

99,0%99,0%

95,4%95,4%

97,4%97,4%

96,4%96,4%

63,5%63,5%

Very satisfied/ Very satisfied/

SatisfiedSatisfied

The success of Attica TollwayWhat do the users think?

User satisfaction regarding Attica Tollway Safety (%)

45,447,3

5,7

0,7 0,9

45,9

49,2

2,6 1,8 0,53,2

0,2 1,0

46,349,3

0

10

20

30

40

50

60

Very Satisfied Satisfied Not Satisfied Not at all Not know/ Noanswer

Mar-09

May-10

Apr-11

Satisfaction level 2011: 95,6% very satisfied/ satisfied (vs. 95,1% in 2010).

Satisfaction level 2011: 95,6% very satisfied/ satisfied (vs. 95,1% in 2010).

User satisfaction regarding Customer Care (%)

72,0

26,0

1,5 0,5 0,0

67,2

28,1

3,20,3 1,2

65,6

31,9

1,0 0,0 1,40

10

20

30

40

50

60

70

80

90

100

Very Satisfied Satisfied Not so much Not Satisfied N/ A

Mar 09

May 10

Apr 11

97,6% of users are either very satisfied or satisfied (vs 95,3% in 2010)97,6% of users are either very satisfied or satisfied (vs 95,3% in 2010)

Thank you!

Contact:

Bill M. Halkias, PE, F.ASCE, F.ITE

CEO, Attica Tollway Operations Authority

President, Hellenic Institute of Transportation Engineers

Email: bhalkias@attikesdiadromes.gr