This document summarizes an innovative public-private partnership (PPP) for railway signaling and telecommunications in Spain. The 165 km Albacete-Alicante section involved mixed public and private funding. Construction was completed in 2 years and maintenance will occur over 20 years. The PPP used a quick implementation process, with the request for proposals issued in February 2011 and contract awarded in December 2011. The total cost was €156.8 million. The document suggests this project provides best practices for PPPs, including a focus on maintenance over construction risks and coordination between civil works and signaling/telecommunications. More standardized contracts and innovative financing could boost deployment of the European Rail Traffic Management System across Europe.

1. Arnaud de Monts
23/06/2015
Innovative financial instruments for innovation and
traffic management systems
Riga

2. © ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or
correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without
notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Presentation title - 30/06/2015 – P 2
Albacete-Alicante: showing the way forward in PPP for
railways (by ADIF in Spain)
Albacete-Alicante
165 km section
1. Signalling & telecommunications:
 Along 165 km HSL double track, railway stations and
passing tracks – 2 years to construct
 20 years maintenance
CDC Infra 44%; ICO 16%; Alstom 12%; ADIF 10%; EMTE 8%; ISOLUX 8%; CAF 3%
3. Quick implementation process
2. PPP financial robustness via mixed funding
Aug 2010
PPP procurement
procedure
Feb 2011
RFP
June 2011
Tender
delivery
October
2011
BAFO
December
2011
Contract
award
May 2012
Financial
close
Total: € 156,8 mln

3. © ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or
correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without
notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Presentation title - 30/06/2015 – P 3
Replicability
1. Project structuring: public sector considerations
2. Best practices
• Technology-based PPP: focus on maintenance instead of civil construction risk
• One contract covering installation and maintenance to avoid interface risks
• Coordination of civil and S&T works important but manageable
• Cost reduction due to detailed design in private scope
• Deferred CAPEX over 15 years
• EIB early involvement
• Limited scope: limits technology/project risks
• Suitable risk allocation public/private
• Pre-qualification based both on financial and technical capabilities
• Team approach : all parties in SPV
More standardized contractual procurement & increased use
of innovative financial instruments can boost ERTMS deployment .

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