Patricio Mansilla - PPP in Urban Investment
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Patricio Mansilla - PPP in Urban Investment

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Patricio Mansilla - PPP in Urban Investment Patricio Mansilla - PPP in Urban Investment Presentation Transcript

  • Economic Policy Reform and Competitiveness ProjectAttracting Private Investment for Urban Infrastructure Ulan Bator – Mongolia June 11th, 2009
  • Economic Policy Reform and Competitiveness ProjectAgenda1. Private Participation: Understanding the Concept2. Private Investment in Urban Roads3. Urban Infrastructure Development4. Mongolian Urban Infrastructure Challenges
  • Economic Policy Reform and Competitiveness Project1. Private Participation:Understanding the Concept
  • Economic Policy Reform and Competitiveness Project Why to use PPP?• Excess of demand for the facility, product or service, managed by the public sector.• Potential increase of demand in the short/medium run for the facility, product or service.• Low capacity of the public sector (lack of financial resources or inefficiencies) to increase the level of investments to close the excess of demand or to improve the performance/efficiency and quality of the service.• Fast way to reach Social Responsibility/ Accountability in the allocation of resources and sustainability.• Cost recovery and private sector financing.• Creation of a new industry, new formal sector in the economy. Employment, wealth and economic growth.
  • Economic Policy Reform and Competitiveness Project Several Ways of Partnership Operation and Management ContractsJoint Venture Leasing PPP BOT Partial DBOT (DBFOT) Divestiture BOO
  • Economic Policy Reform and Competitiveness Project2. Private Investment in Urban Roads
  • Economic Policy Reform and Competitiveness Project Chile• The Concession Law establish that the Ministry of Public Works is the public agency in charge of the concession of public works process.• Establish clearly the mechanism and requirements to submit unsolicited proposals• Procurement procedures and bidding variables are clearly specifies.• Encourage a competitive biding process• Rights and obligations of the concessionarie• Conflict resolution procedures• Causes of contract suspension and extinction
  • Economic Policy Reform and Competitiveness ProjectChile
  • Economic Policy Reform and Competitiveness Project Santiago in the Nineties Population: 5 millionEconomic Development 10,3 Million of trips per day 135 cars / 1000 persons 65%: Public TransportationRate Growth: 6% annually 35% : Private Transportation Lack of Public Investment Transport System with huge operation problems
  • Economic Policy Reform and Competitiveness Project Santiago Infrastructure Plan• Public Transportation Modernization• Enlargement of the Metro System• Enlargement of Suburban Trains• PPP for the main urban roads• Economic regulation for the private transportation• Enhancement of the local transportation infrastructure• Traffic control system improvement
  • Economic Policy Reform and Competitiveness Project R-57PPP Urban Roads in Santiago-Chile1. Costanera North Highway2. North-South System R-68 R-683. Américo Vespucio South4. Américo Vespucio North5. Radial NorOrient6. South Urban Segment R-78 R-78 R-5 Sur R-5 Sur
  • Economic Policy Reform and Competitiveness Project Santiago Infrastructure Plan• Three tariffs: 1T Valley US$ 0,05/km Peak US$ 0,06/km Congestion US$0,12/km 2T• Tariff adjustment RPI + 3,5% annually.• Concessionaire can do tariff management. 3T
  • Economic Policy Reform and Competitiveness Project Bidding Mechanism• Concession Period: 30 years• Bidding Mechanism: • Tramo 1: “Payment for goods and rights (BD)" Payment by the sponsor of the concessionaire before to create the concessionaire company. • Tramo 2: Investment Plan • Tramo 3: Payment from the Government
  • Economic Policy Reform and Competitiveness Project Urban Road Concession: East-West Urban System Results •Investments: US$385 million •Lenght: 42 kilometers •Reduce gas emission •Reduce contamination •Reduce congestion •Reduce travel time from Las Condes to the Santiago Airport•Implementation of the electronic toll road system “free flow” which let to theusers go through the road without stop to pay tolls.•The number of accidents in the road is very low and it reach 8 in average permonth.
  • Economic Policy Reform and Competitiveness Project
  • Economic Policy Reform and Competitiveness Project
  • Economic Policy Reform andLos Proyectos – Sistema Oriente - Poniente Competitiveness Project
  • Economic Policy Reform and Competitiveness Project
  • Economic Policy Reform and Competitiveness ProjectUrban Roads Bidding Results
  • Economic Policy Reform and Competitiveness Project3. Urban Infrastructure Development
  • Economic Policy Reform and Competitiveness ProjectUrban PPP Projects in Chile 21
  • Economic Policy Reform and Competitiveness ProjectUrban PPP Projects in Chile
  • Inkosi Albert Luthuli Hospital Reform and Economic Policy Value to government: R4.5 billion Competitiveness Project Signed: Dec 2001 Term: 15 years BEE: equity 40%; subcontracting 40% 23 23
  • Economic Policy Reform and Competitiveness Project Montería Water PPP: The first Water PPP inPANAMA Montería VENEZUELA Colombia MONTERIA – year 2000 • Population: 300,000 (80% Low Income) • Water production: 600 lps. Bogota • Non revenue water: 55 % COLOMBIA • Metering: 0.7 % • Revenues: $4 M • Water Coverage: 70 % • Connections: 36,500 ECUADOR • Sewerage Coverage: 30 % BRASIL • Connections: 14,600 PERU • Capital investments: $70-80 mill 24
  • Economic Policy Reform and Competitiveness Project4. Mongolian Urban Infrastructure Challenges
  • Economic Policy Reform and Competitiveness Project Energy CHP5 PPP ProjectHeating demand is expected for increase by 1000 GCal and electricity demand- by 700 MWby 2020.First stage, requirement to construct and operate first unit of Co-generating Heating Plant #5(CHP- 5) in Ulaanbaatar with heating capacity of 700 GCal and generating electricity 300 MWis faced by 2012.International Competitive Bid was announced for procurement of Ulaanbaatar CHP-5 byformer Ministry of Fuel and Energy on August 01, 2008, requesting from Bidders to submitproposals to construct and operate coal fired CHP with terms of IPP or BOT or BOO includingFeasibility Study, Environmental assessment and Design Drawings.The technical proposal was opened on January 15, 2009. In spite of 26 Bidders wereexpressed their interest to participate in this Bid, only one Bidder- China Datang Corporationsubmitted it’s proposal.The Bid Evaluation Committee, appointed by the Ministry of Mineral Resources and Energy isworking on the selection of the Bid proposal. On evaluation of technical proposal, thefinancial proposal of the Bidder was opened on April 20, 2009. Decision from the BidEvaluation Committee is not yet issued at this moment.
  • Economic Policy Reform and Competitiveness Project Mongolia Challenges• Urban Roads Infrastructure• Energy Infrastructure• Parking Infrastructure• Public Buildings• Water System• Waste Management and Infrastructure• Jails
  • Economic Policy Reform and Competitiveness ProjectParking PPP Infrastructure