The Eurotunnel project was initiated in 1984 to construct a rail tunnel under the English Channel, connecting the UK and France. A consortium called Transmanche Link was formed to design, construct, test and commission the tunnel system over seven years. Construction began in 1986 and was expected to cost £4.8 billion to complete the twin-bore rail tunnel, terminals on both sides, and associated infrastructure. Project financing of £6 billion was planned through private equity offerings and bank loans to fund construction without government guarantees. Upon completion in 1993, the tunnel was intended to provide a fast and reliable rail link between the UK and mainland Europe.
Kotak Bank vs ING vyasya- amalgamation (merger)Akash Gupta
This document summarizes the merger between Kotak Mahindra Bank and ING Vysya Bank in India in 2015. It provides background on when each bank was established and their services. It details their shareholding structures pre-merger and the share swap ratio post-merger. The merger helped increase the combined branch network and customer base while saving on infrastructure costs. Key financial metrics like deposits, advances, and capital adequacy ratios were expected to improve due to the merger. Charts on deposit and share price trends over time are also included.
The document discusses Inter Gen's Quezon Power Project in the Philippines. Some key points:
1) Inter Gen built the 440-megawatt Quezon coal power plant in the Philippines, taking on most construction and operating risks.
2) Project financing of $808.9 million used a 75% debt to 25% equity structure. Inter Gen had majority ownership.
3) A new opportunity arose where another company offered to buy half of Inter Gen's remaining equity in the project. This presented Inter Gen with a dilemma on whether to sell or retain their ownership stake.
Kotak Mahindra Bank announced a merger with ING Vysya Bank in 2014 worth $2.4 billion. The merger provided synergies like increasing Kotak's branch network by 47% and ATMs by 35%, improving its geographic presence across India. However, integrating ING Vysya's unionized employees and different pay structures into Kotak posed human resource challenges. Completing the deal successfully in the face of potential employee union opposition would be a big test for Kotak.
Project Management is a discipline of planning, organizing, motivating, controlling resources to achieve specific goals. The presentation tell you about "Konkan Railway Project" undertaken by Indian government. It in details tells you about the challenges faced, problems occurred, Risk involved, new technology used and many other details.
This document discusses the Chad-Cameroon Pipeline Project, including a description of the project, benefits to the parties involved, proposed financial structure, costs, and risks. It also examines the revenue management plan and whether it would be successful. As a World Bank/IFC board member, the author would approve the deal due to the IFC/World Bank's crucial involvement, but would recommend addressing serious concerns and introducing oversight and accountability measures.
The document provides an overview of the Mumbai-Ahmedabad High Speed Rail Project in India. Some key points:
- The project aims to reduce travel time between Mumbai and Ahmedabad from 6.5 hours to 2.5 hours using high speed trains capable of 350 km/h.
- The 508 km route was chosen after evaluating three alternatives to minimize environmental and social impacts. It will be primarily elevated viaducts and tunnels.
- Construction is targeted to complete by August 2022 at a cost of 1.08 lakh crore rupees, funded by Japan and the Indian government.
- Benefits include increased connectivity, reduced emissions, and economic development along the corridor. Operation
The document outlines guidelines for the development of new Gati Shakti Multi-Modal Cargo Terminals (GCT) on both railway and non-railway land. Key points include: objectives are to boost investment and simplify procedures; applications can be made by various eligible entities; approvals will follow a standardized process with defined timelines; GCTs on non-railway land will be privately owned and maintained with railway collecting terminal charges; GCTs involving railway land will be developed through an open tender process.
Kotak Bank vs ING vyasya- amalgamation (merger)Akash Gupta
This document summarizes the merger between Kotak Mahindra Bank and ING Vysya Bank in India in 2015. It provides background on when each bank was established and their services. It details their shareholding structures pre-merger and the share swap ratio post-merger. The merger helped increase the combined branch network and customer base while saving on infrastructure costs. Key financial metrics like deposits, advances, and capital adequacy ratios were expected to improve due to the merger. Charts on deposit and share price trends over time are also included.
The document discusses Inter Gen's Quezon Power Project in the Philippines. Some key points:
1) Inter Gen built the 440-megawatt Quezon coal power plant in the Philippines, taking on most construction and operating risks.
2) Project financing of $808.9 million used a 75% debt to 25% equity structure. Inter Gen had majority ownership.
3) A new opportunity arose where another company offered to buy half of Inter Gen's remaining equity in the project. This presented Inter Gen with a dilemma on whether to sell or retain their ownership stake.
Kotak Mahindra Bank announced a merger with ING Vysya Bank in 2014 worth $2.4 billion. The merger provided synergies like increasing Kotak's branch network by 47% and ATMs by 35%, improving its geographic presence across India. However, integrating ING Vysya's unionized employees and different pay structures into Kotak posed human resource challenges. Completing the deal successfully in the face of potential employee union opposition would be a big test for Kotak.
Project Management is a discipline of planning, organizing, motivating, controlling resources to achieve specific goals. The presentation tell you about "Konkan Railway Project" undertaken by Indian government. It in details tells you about the challenges faced, problems occurred, Risk involved, new technology used and many other details.
This document discusses the Chad-Cameroon Pipeline Project, including a description of the project, benefits to the parties involved, proposed financial structure, costs, and risks. It also examines the revenue management plan and whether it would be successful. As a World Bank/IFC board member, the author would approve the deal due to the IFC/World Bank's crucial involvement, but would recommend addressing serious concerns and introducing oversight and accountability measures.
The document provides an overview of the Mumbai-Ahmedabad High Speed Rail Project in India. Some key points:
- The project aims to reduce travel time between Mumbai and Ahmedabad from 6.5 hours to 2.5 hours using high speed trains capable of 350 km/h.
- The 508 km route was chosen after evaluating three alternatives to minimize environmental and social impacts. It will be primarily elevated viaducts and tunnels.
- Construction is targeted to complete by August 2022 at a cost of 1.08 lakh crore rupees, funded by Japan and the Indian government.
- Benefits include increased connectivity, reduced emissions, and economic development along the corridor. Operation
The document outlines guidelines for the development of new Gati Shakti Multi-Modal Cargo Terminals (GCT) on both railway and non-railway land. Key points include: objectives are to boost investment and simplify procedures; applications can be made by various eligible entities; approvals will follow a standardized process with defined timelines; GCTs on non-railway land will be privately owned and maintained with railway collecting terminal charges; GCTs involving railway land will be developed through an open tender process.
Study ON Western Hinterland & Analysis of Indias Biggest Sea Port JNPTmanu786
This document provides an overview and business plan for the Jawaharlal Nehru Port Trust (JNPT) in India. It begins with an executive summary that outlines the importance of ports to India's growing economy and trade. It then discusses JNPT's role and the process undertaken to develop the business plan. The plan involved assessing JNPT's current operations and infrastructure, developing a vision and goals, and creating action plans to achieve the goals. Key goals identified include increasing container traffic to 10 million TEUs by 2015-16 and expanding JNPT's logistics capabilities. The document also provides traffic projections, development plans through 2020-21, and strategies around infrastructure, efficiency and organization.
Mr. Mukul Jain interacted with the members of the Infrastructure Expert Committee of ICC and informed the members about various activities and services that are provided by CONCOR. His presentation was very informative and same is attached herewith for the information.
The document discusses several major infrastructure projects underway in India and their potential economic benefits. It outlines plans for high-speed rail like the Vande Bharat Express, national 5G rollout, the Mumbai Trans Harbour Link bridge project, the development of small satellite launch vehicles, expansion of oil refining facilities like the Paradip Refinery, and the large Jaitapur Nuclear Power Project agreement with France. These initiatives aim to boost sectors like transportation, digital technology, energy independence, space exploration, and more to contribute to making India a $5 trillion economy by 2024-25.
It provides with a brief of Delhi Metro with emphasis on profitability, history, operation mechanism, construction and expansion, funding and it's challenges.
The Dhaka metro rail project in Bangladesh will consist of 16 lines currently under construction and 52 planned lines. It will have a total length of 20.10km and carry 483,000 daily riders when operations begin in 2019. The Dhaka Mass Transit Company will oversee construction and operation of the metro, with funding from the Bangladesh government, Japan International Cooperative Agency, Asian Development Bank, French Development Agency, and Global Environmental Facility Fund. The metro aims to provide affordable and sustainable public transportation that improves mobility and economic growth in Dhaka.
Atal tunnel is one of longest tunnel made over the 10000ft altitude. It significantly reduces travel time to Ladakh form Himachal Pradesh and will provide yeal long connectivity.
High Speed Rail- Need, Challenges, Key Issues and Options: Indian PerspectiveRajesh Prasad
A Paper titled:
"High Speed Rail- Need, Challenges, Key Issues and Options: Indian Perspective"
was presented during the 4th Annual South Asia Transport Infrastructure Conference 2016 held at Shanri-La's- Eros Hotel, New Delhi on 19-20 th september 2016 by Rajesh Prasad, IRSE, Chief Project Manager & Group General Manager, Rail Vikas Nigam Ltd, Kolkata
DFCCIL is a government corporation established in 2006 to oversee the development and operation of dedicated freight corridors in India. Its mission is to build high-capacity freight corridors to increase rail's market share of freight transport. There is a need for dedicated freight corridors as existing routes are oversaturated. The two corridors being developed are the Eastern Corridor from Punjab to Kolkata over 1839km, and the Western Corridor from Dadri to JNPT port over 1483km, covering four states. Various sections are being funded through different means including the World Bank, government budget, and public-private partnerships.
Dhaka Metro Rail is Bangladesh's first metro rail project in Dhaka. It will have 16 lines under construction and 52 lines planned. The first phase of the project from Uttara to Motijheel will open in late 2019 and be 20.1 km long. The metro rail is needed to address Dhaka's unprecedented traffic congestion and will provide a fast, efficient, and environmentally friendly mass transit option for the growing population. The project is jointly funded by the Bangladesh government and JICA and will aim to transport 483,000 passengers daily once completed.
The document summarizes key details of the proposed high-speed rail corridor between Ahmedabad and Mumbai in India. The 508 km line would cost approximately $15 billion to build, with Japan financing 81% through a 50-year loan. It would be owned by Indian Railways and operated by the National High Speed Rail Corporation. The bullet trains are proposed to have 10-16 coaches and carry 1300-1600 passengers, making the journey between the two cities in just under 2 hours. The line would have 11 stations along the route.
The document summarizes key details about the Bandra-Worli Sea Link project in Mumbai, India. The 5.6 km bridge project connecting Bandra and Worli was commissioned by the Maharashtra State Road Development Corporation and constructed between 2000-2010 at a final cost of Rs. 1653.25 Crore, significantly over its original budget of Rs. 665.81 Crore. The bridge aims to reduce traffic and travel time between the areas, and saw construction challenges including unstable ground and restrictions on work during monsoons. Since opening in 2009, vehicle counts have been lower than expected.
The Bandara Worli Sea Link is a cable-stayed bridge that connects the suburbs of Bandra in western Mumbai to Worli in south Mumbai. At 5.6 km long, it is one of India's most complex infrastructure projects. Construction began in 2000 but faced numerous delays and cost overruns due to technical challenges and monsoon restrictions, finally opening in 2009 at a cost of Rs. 1653.25 crore, over double the initial estimated budget. The sea link provides significant travel time savings and reduces pollution between the western and southern parts of Mumbai.
Metro and monorail infrastructure development in indiaBhavya Jaiswal
1. The document discusses the development of metro rail and monorail infrastructure in India. It provides an overview of the existing metro rail systems in major cities like Delhi and Kolkata, as well as future planned systems. Metro rail provides benefits like reduced traffic, pollution, and fuel consumption but also has high costs.
2. Mumbai will be the first city in India to implement a monorail system, with additional cities planning monorail projects. Monorail systems have advantages of using less space and having lower construction costs than metro rail. However, monorails also have limitations like lower passenger capacity.
3. As populations grow, transportation infrastructure needs to advance to provide efficient transit options. Both metro
The document summarizes key details about the Delhi Metro project. It discusses how the Delhi Metro was conceived as a social sector project to address Delhi's traffic and pollution issues. The Japanese government provided funding assistance, while the rest was contributed by the Government of India and Government of National Capital Territory of Delhi. Dr. E. Sreedharan was appointed as the Managing Director of DMRC and Project Manager of Phase 1. The document then outlines some of the challenges faced during planning and implementation, such as lack of funds, political interference, and property disputes, and how DMRC overcame these challenges through strict quality management and cost control.
STUDY ON BOT PROJECT WITH A CASE STUDY OF DELHI GURGAON EXPRESSWAYShabaz Khan
This document provides a case study of the Delhi Gurgaon Expressway project in India, which was developed as a public-private partnership using a build-operate-transfer (BOT) model. It describes the project background, financing and risks, construction delays, and lessons learned. The 27.7 km expressway was commissioned in 2018 after delays due to land acquisition issues and scope changes. It now carries over 180,000 vehicles per day, improving travel times between Delhi and Gurgaon.
An inland container depot (ICD) is a common user facility that handles and temporarily stores import/export containers under customs control. ICDs offer services like receipt/dispatch of cargo, stuffing/stripping containers, customs clearance, and temporary storage. Primary functions of ICDs include customs clearance, transit operations between serving ports and ICD by rail/road, and consolidation/desegregation of less than container load cargo. Benefits of ICDs include acting as concentration points for long-distance cargo, providing customs clearance near production/consumption centers, and issuing through bills of lading. The ICD at Tughlakabad in New Delhi is the largest dry port in South Asia, equipped with modern
This document summarizes a proposed $3.7 billion Chad-Cameroon petroleum development and pipeline project. It would involve extracting oil from fields in Chad and transporting it via a 1070 km pipeline through Cameroon to the coast for export. Major oil companies like Exxon, Petronas and Chevron would finance the majority of the project costs. The project could generate billions in revenues for Chad and Cameroon but also faces risks like political instability, corruption, and environmental issues that would require oversight and management. There is debate around whether the World Bank should approve financing and involvement given the risks and challenges of ensuring revenues are used effectively to benefit local populations.
Project management final report ENG3004 Griffith University Guri Dam & Chunne...peter747
3004ENG: Project Management Principles
Griffith School of Engineering
Griffith University Gold Coast
guri dam venezuela
chunnel project case study
The Chunnel Tunnel Project
project management report engineering
The UK government sold its 40% stake in Eurostar for £585.1 million in March 2015 to a Canadian-UK consortium. Eurostar also redeemed the government's preference share for £172 million. While Eurostar has been profitable since 2010, the total taxpayer investment in the Eurostar rail service and associated High Speed 1 project was over £8 billion, significantly more than the sale proceeds. The government achieved its objective of maximizing proceeds from the sale, but the financial returns for taxpayers remain negative overall given the magnitude of past losses and investment.
Study ON Western Hinterland & Analysis of Indias Biggest Sea Port JNPTmanu786
This document provides an overview and business plan for the Jawaharlal Nehru Port Trust (JNPT) in India. It begins with an executive summary that outlines the importance of ports to India's growing economy and trade. It then discusses JNPT's role and the process undertaken to develop the business plan. The plan involved assessing JNPT's current operations and infrastructure, developing a vision and goals, and creating action plans to achieve the goals. Key goals identified include increasing container traffic to 10 million TEUs by 2015-16 and expanding JNPT's logistics capabilities. The document also provides traffic projections, development plans through 2020-21, and strategies around infrastructure, efficiency and organization.
Mr. Mukul Jain interacted with the members of the Infrastructure Expert Committee of ICC and informed the members about various activities and services that are provided by CONCOR. His presentation was very informative and same is attached herewith for the information.
The document discusses several major infrastructure projects underway in India and their potential economic benefits. It outlines plans for high-speed rail like the Vande Bharat Express, national 5G rollout, the Mumbai Trans Harbour Link bridge project, the development of small satellite launch vehicles, expansion of oil refining facilities like the Paradip Refinery, and the large Jaitapur Nuclear Power Project agreement with France. These initiatives aim to boost sectors like transportation, digital technology, energy independence, space exploration, and more to contribute to making India a $5 trillion economy by 2024-25.
It provides with a brief of Delhi Metro with emphasis on profitability, history, operation mechanism, construction and expansion, funding and it's challenges.
The Dhaka metro rail project in Bangladesh will consist of 16 lines currently under construction and 52 planned lines. It will have a total length of 20.10km and carry 483,000 daily riders when operations begin in 2019. The Dhaka Mass Transit Company will oversee construction and operation of the metro, with funding from the Bangladesh government, Japan International Cooperative Agency, Asian Development Bank, French Development Agency, and Global Environmental Facility Fund. The metro aims to provide affordable and sustainable public transportation that improves mobility and economic growth in Dhaka.
Atal tunnel is one of longest tunnel made over the 10000ft altitude. It significantly reduces travel time to Ladakh form Himachal Pradesh and will provide yeal long connectivity.
High Speed Rail- Need, Challenges, Key Issues and Options: Indian PerspectiveRajesh Prasad
A Paper titled:
"High Speed Rail- Need, Challenges, Key Issues and Options: Indian Perspective"
was presented during the 4th Annual South Asia Transport Infrastructure Conference 2016 held at Shanri-La's- Eros Hotel, New Delhi on 19-20 th september 2016 by Rajesh Prasad, IRSE, Chief Project Manager & Group General Manager, Rail Vikas Nigam Ltd, Kolkata
DFCCIL is a government corporation established in 2006 to oversee the development and operation of dedicated freight corridors in India. Its mission is to build high-capacity freight corridors to increase rail's market share of freight transport. There is a need for dedicated freight corridors as existing routes are oversaturated. The two corridors being developed are the Eastern Corridor from Punjab to Kolkata over 1839km, and the Western Corridor from Dadri to JNPT port over 1483km, covering four states. Various sections are being funded through different means including the World Bank, government budget, and public-private partnerships.
Dhaka Metro Rail is Bangladesh's first metro rail project in Dhaka. It will have 16 lines under construction and 52 lines planned. The first phase of the project from Uttara to Motijheel will open in late 2019 and be 20.1 km long. The metro rail is needed to address Dhaka's unprecedented traffic congestion and will provide a fast, efficient, and environmentally friendly mass transit option for the growing population. The project is jointly funded by the Bangladesh government and JICA and will aim to transport 483,000 passengers daily once completed.
The document summarizes key details of the proposed high-speed rail corridor between Ahmedabad and Mumbai in India. The 508 km line would cost approximately $15 billion to build, with Japan financing 81% through a 50-year loan. It would be owned by Indian Railways and operated by the National High Speed Rail Corporation. The bullet trains are proposed to have 10-16 coaches and carry 1300-1600 passengers, making the journey between the two cities in just under 2 hours. The line would have 11 stations along the route.
The document summarizes key details about the Bandra-Worli Sea Link project in Mumbai, India. The 5.6 km bridge project connecting Bandra and Worli was commissioned by the Maharashtra State Road Development Corporation and constructed between 2000-2010 at a final cost of Rs. 1653.25 Crore, significantly over its original budget of Rs. 665.81 Crore. The bridge aims to reduce traffic and travel time between the areas, and saw construction challenges including unstable ground and restrictions on work during monsoons. Since opening in 2009, vehicle counts have been lower than expected.
The Bandara Worli Sea Link is a cable-stayed bridge that connects the suburbs of Bandra in western Mumbai to Worli in south Mumbai. At 5.6 km long, it is one of India's most complex infrastructure projects. Construction began in 2000 but faced numerous delays and cost overruns due to technical challenges and monsoon restrictions, finally opening in 2009 at a cost of Rs. 1653.25 crore, over double the initial estimated budget. The sea link provides significant travel time savings and reduces pollution between the western and southern parts of Mumbai.
Metro and monorail infrastructure development in indiaBhavya Jaiswal
1. The document discusses the development of metro rail and monorail infrastructure in India. It provides an overview of the existing metro rail systems in major cities like Delhi and Kolkata, as well as future planned systems. Metro rail provides benefits like reduced traffic, pollution, and fuel consumption but also has high costs.
2. Mumbai will be the first city in India to implement a monorail system, with additional cities planning monorail projects. Monorail systems have advantages of using less space and having lower construction costs than metro rail. However, monorails also have limitations like lower passenger capacity.
3. As populations grow, transportation infrastructure needs to advance to provide efficient transit options. Both metro
The document summarizes key details about the Delhi Metro project. It discusses how the Delhi Metro was conceived as a social sector project to address Delhi's traffic and pollution issues. The Japanese government provided funding assistance, while the rest was contributed by the Government of India and Government of National Capital Territory of Delhi. Dr. E. Sreedharan was appointed as the Managing Director of DMRC and Project Manager of Phase 1. The document then outlines some of the challenges faced during planning and implementation, such as lack of funds, political interference, and property disputes, and how DMRC overcame these challenges through strict quality management and cost control.
STUDY ON BOT PROJECT WITH A CASE STUDY OF DELHI GURGAON EXPRESSWAYShabaz Khan
This document provides a case study of the Delhi Gurgaon Expressway project in India, which was developed as a public-private partnership using a build-operate-transfer (BOT) model. It describes the project background, financing and risks, construction delays, and lessons learned. The 27.7 km expressway was commissioned in 2018 after delays due to land acquisition issues and scope changes. It now carries over 180,000 vehicles per day, improving travel times between Delhi and Gurgaon.
An inland container depot (ICD) is a common user facility that handles and temporarily stores import/export containers under customs control. ICDs offer services like receipt/dispatch of cargo, stuffing/stripping containers, customs clearance, and temporary storage. Primary functions of ICDs include customs clearance, transit operations between serving ports and ICD by rail/road, and consolidation/desegregation of less than container load cargo. Benefits of ICDs include acting as concentration points for long-distance cargo, providing customs clearance near production/consumption centers, and issuing through bills of lading. The ICD at Tughlakabad in New Delhi is the largest dry port in South Asia, equipped with modern
This document summarizes a proposed $3.7 billion Chad-Cameroon petroleum development and pipeline project. It would involve extracting oil from fields in Chad and transporting it via a 1070 km pipeline through Cameroon to the coast for export. Major oil companies like Exxon, Petronas and Chevron would finance the majority of the project costs. The project could generate billions in revenues for Chad and Cameroon but also faces risks like political instability, corruption, and environmental issues that would require oversight and management. There is debate around whether the World Bank should approve financing and involvement given the risks and challenges of ensuring revenues are used effectively to benefit local populations.
Project management final report ENG3004 Griffith University Guri Dam & Chunne...peter747
3004ENG: Project Management Principles
Griffith School of Engineering
Griffith University Gold Coast
guri dam venezuela
chunnel project case study
The Chunnel Tunnel Project
project management report engineering
The UK government sold its 40% stake in Eurostar for £585.1 million in March 2015 to a Canadian-UK consortium. Eurostar also redeemed the government's preference share for £172 million. While Eurostar has been profitable since 2010, the total taxpayer investment in the Eurostar rail service and associated High Speed 1 project was over £8 billion, significantly more than the sale proceeds. The government achieved its objective of maximizing proceeds from the sale, but the financial returns for taxpayers remain negative overall given the magnitude of past losses and investment.
The UK government sold its 40% stake in Eurostar for £585.1 million in March 2015 to a consortium of Canadian and UK investors. Eurostar also redeemed the government's preference share for £172 million. While Eurostar has performed well financially since 2010, the total taxpayer investment in the Eurostar service and related High Speed 1 rail link is estimated at over £3 billion, significantly more than the proceeds from this sale. The government held Eurostar as a financial investment and its sale was not expected to improve the company's efficiency, but was aimed at maximizing the sale proceeds for taxpayers.
The document provides an overview of developments in the European rail freight industry in the third quarter of 2012. It discusses:
1) An event hosted by UIRR and Combinant terminal to familiarize DG MOVE officials with developments in combined transport.
2) The completion of a public consultation on the proposed Fourth Railway Package before its publication.
3) A report published by the European Commission on the development of Europe's railway market in 2011 based on the Rail Market Monitoring Scheme.
4) Updates on activities by the European Railway Agency regarding the TAF TSI and development of registers and databases.
London Heathrow Airport underwent a major expansion with the completion of Terminal 5 in 2008. The expansion included a new air traffic control tower, tunnels for transport links, and road improvements. Terminal 5 is one of the largest airport infrastructure projects involving over 60 contractors. The expansion aimed to improve transport infrastructure to central London and handle the expected increase in passenger numbers.
The British railway system was fully privatized in the 1990s, splitting it into over 100 separate companies responsible for tracks, trains, and operations. However, this led to coordination issues and a lack of clear responsibility. In contrast, the Swiss railway remained a single, integrated public corporation managed under one roof. While the EU pushed for railway liberalization, Switzerland maintained high service quality and efficiency despite not fully separating operations from infrastructure management. Today, the fragmented British model is seen as poorly achieving EU goals, while Switzerland's integrated system is considered one of the best in the world.
Operation Bridgeguard, or Bridgeguard 3 (BG3), is the National Rail assessment and strengthening/reconstruction (or permanent mitigation) programme for public road-over-rail ‘overline’ bridges. This was instigated by the UK Government’s reaction
to adopting the European Council Directive 85/3/EEC12 , under the European Union (EU), that Member States must accept articulated vehicles and drawbar-trailer
combinations with 5 or more axles weighting up to 40 Tonnes (T – Metric) for international journeys on UK roads by 1st January 1999.
This document provides an overview of the progress made in developing work plans for the nine core network transport corridors in the European Union. Each corridor involves multiple EU member states and different transport modes. European Coordinators have been appointed for each corridor to develop a work plan by the end of 2014, outlining key projects and investments needed to complete each corridor by 2030. Consultants have also been hired to provide analysis to inform the work plans. Stakeholder participation is seen as essential to developing feasible work plans and gaining support for their implementation.
The document discusses the Float Inc. Security Port project. It received funding from the European Union Horizon 2020 program. The project involves constructing a multi-purpose floating platform that would serve as an offshore port. It would have areas for container ships, short sea shipping vessels, and other uses. Wave energy converters on the platform would generate renewable energy. The floating design aims to reduce shipping times and costs while promoting short sea shipping in Europe.
PPT that I prepared for Washington conference May 2009 (closed civil law countries) / Client: the National Council of Judicial Administrators and Receiver-Liquidators (Paris, FRANCE)
They had asked for a bit of humour so this was my best attempt.
CONCESSIONING IN SEAPORTS: CHANGING PRACTICES, CHANGING MARKET POWER?Cláudio Carneiro
This document discusses concessioning practices in seaports and how they have changed over time. It provides background on the changing roles and market power of port authorities versus terminal operators. Concessions are now an important source of revenue for port authorities and a factor in terminal operator decisions. The document analyzes concession characteristics and how ports differentiate themselves. It finds that concessions have become more important as costs and revenue sources for players, and ports are increasingly using concession specifications strategically. Case studies show some learning effects and differences across cargo types and geographies.
National Grid provides a response to the European Commission's Green Paper on energy strategy. They support completing the internal energy market through rigorous enforcement of existing legislation. Non-discriminatory access to energy networks is vital. Significant investment is needed to replace aging infrastructure and adapt to changes in energy sources and flows. Flexible funding mechanisms like long-term contracts and exemptions are important to support needed investments. Compatibility and cooperation between national energy systems is more important than full harmonization.
Dear student, Warm Greetings of the Day!!! We are a qualified team of consultants and writers who provide support and assistance to students with their Assignments, Essays and Dissertation. If you are having difficulties writing your work, finding it stressful in completing your work or have no time to complete your work yourself, then look no further. We have assisted many students with their projects. Our aim is to help and support students when they need it the most. We oversee your work to be completed from start to end. We specialize in a number of subject areas including, Business, Accounting, Economic, Nursing, Health and Social Care, Criminology, Sociology, English, Law, IT, History, Religious Studies, Social Sciences, Biology, Physic, Chemistry, Psychology and many more. Our consultants are highly qualified in providing the highest quality of work to students. Each work will be unique and not copied like others. You can count on us as we are committed to assist you in producing work of the highest quality. Waiting for your quick response and want to start healthy long term relationship with you. Regards http://www.cheapassignmenthelp.com/ http://www.cheapassignmenthelp.co.uk/
Innovative financing of transport infrastructure j. hensenEuropean Commission
This document is a speech manuscript for a presentation on the Danish State Guarantee Model for financing major transport infrastructure projects. The model involves establishing a state-owned company to oversee projects, raising loans guaranteed by the Danish state, and repaying debt through user fees. Key points made include:
- Denmark has over 25 years of good experience with this model financing major bridges and tunnels.
- It combines shifting funding from taxes to users, and from the state budget to off-budget investors, simply and with low costs.
- Major projects financed through this model include the Great Belt and Øresund fixed links, and the planned Fehmarn Belt link.
- EU support is important for cross-border rail
Nuclear energy provides around a third of the electricity consumed in the EU, with 145 nuclear power plants across 15 member states. Recently, many countries have decided to build new nuclear reactors or reverse earlier decisions to phase out nuclear energy. However, approaches towards nuclear energy development diverge across Europe due to differing views on issues like energy security, climate change, costs, and risk management.
This document provides an overview of a workshop on hydrogen trains. The workshop agenda includes presentations on fuel cell and hydrogen joint undertakings in Europe, current hydrogen pilot projects and the state of the art of hydrogen train technology, and hydrogen infrastructure projects in Belgium and the Netherlands. The presentations will discuss opportunities for using hydrogen to power trains, the potential market for hydrogen trains, and the need for further research and innovation projects to advance hydrogen train technology and deployment.
Rail transportation primarily moves raw materials and low-value manufactured goods over long distances. Rail can be classified into four categories based on shipment size: less than wagonload, wagonload, trainload, and intermodal. Developments in technologies like RO-LA systems have increased rail's use for intermodal shipping. The European Commission aims to shift 30% of highway cargo to rail and sea by 2030 and 50% by 2050 through infrastructure investments and policies. High-speed rail lines have reduced travel times between major cities in several countries.
EMR H2 Booster study, the current state of the H2 economy - 16 March 2023Cluster TWEED
Les partenaires du projet Interreg EMRH2 Booster, dont TWEED fait partie, ont organisé l'online meeting "EMR H2 Booster study, the current state of the H2 economy".
---
Webinar during which a first high level aggregated and anonymized feedback of interviews carried out has been presented as well as an helicopter view of what could be the deployment of hydrogen in Euregion Meuse-Rhine (current status / future tracks of developments).
An international comparison of railway organisational and planning frameworks...Erica Thompson
This document provides an overview and comparison of the railway organizational and planning frameworks in several countries, including the UK, France, Germany, the Netherlands, Switzerland, and Japan. It describes how each country structures their railway industry, including the roles of public and private entities. It also examines differences in their approaches to timetable planning and potential points of conflict between involved parties. The paper aims to investigate how each country's railway system is organized and how timetabling methodologies differ.
2005 - Public Private Partnership_Two Year ReviewDanny Myers
This document summarizes a report by the Transport Committee scrutinizing the progress of the PPP (Private Public Partnership) for London Underground two years after contracts were signed. Some aspects have improved like train availability and station environments, but engineering overruns have increased frustration. The Northern Line in particular has seen delays, leading Tube Lines to propose closures for repairs. The Committee supports conditional closures but not future reliance on them, and calls for accelerated investment and improved Infraco management to fully deliver the PPP's intended upgrades by 2010.
Similar to The Eurotunnel Project - Cam Ready.pdf (20)
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Easily Verify Compliance and Security with Binance KYCAny kyc Account
Use our simple KYC verification guide to make sure your Binance account is safe and compliant. Discover the fundamentals, appreciate the significance of KYC, and trade on one of the biggest cryptocurrency exchanges with confidence.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
2. Introduction to Team
01
Roll no. 22B
Nidhisha Mehta
Roll no. 4B
Amit Kumar
Roll no. 13A
Hemant Gosain
Roll no. 32A
Shashank Pawar
Roll no. 35B
Sumit Verma
Roll no. 6A
Ankur Kanda
Roll no. 16A
Kshitij Aren
3. The Eurotunnel Project was initiated in 1984.
The construction was planned as a twin-bore rail tunnel with
associated infrastructure, rolling stock, and terminals.
Scheduled for 1993, it would join the rail systems of the United
Kingdom, France, and the rest of mainland Europe upon completion.
Its comfortable, fast, frequent, and reliable service would furnish a
valuable link between the United Kingdom and France, beneath the
English Channel.
The project had symbolic value. It was initiated at about the time
when members of the European Economic Community (EEC) were
ratifying the Single European Act to create a single integrated
European economicsystem by 1992.
The project was also innovative since the method of financing,
which provided for private capital to bear the long-term
infrastructure developmentrisk, had not been tested in the world
capital markets for decades.
Case Introduction
02
4. Historical Background
03
1973: French President and British PM signed a treaty to construct a twin-bore rail
tunnel under the English Channel.
1980: Investigations probed the possibility of constructing a fixed link across the
English Channel (i.e., a bridge or tunnel), financed purely by private capital.
1984: The Banks subsequently teamed up with some of the largest construction
companies in the United Kingdom and France to form The Channel Tunnel Group
Limited in the United Kingdom and France Manche S.A. in France (CTG and FM,
respectively).
1985: Interested parties were invited to submit bids for the financing, construction,
and operation of a fixed link across the Channel without recourse to government
funds or guarantees.
1986: The Eurotunnel System was selected as the winning project.
1986: The British and French governments signed a treaty by which they authorized
construction of the Eurotunnel System and agreed to grantthe concession to
operate the Eurotunnel System(the “Concession”) to the winning bidders, CTG in the
United Kingdom and FM in France. CTG-FM then provided £50 million in seed
capital (referred to as “Equity Offering I”). The Concession gave CTG-FM the right to
build and operate the Euro- tunnel System for a period of 55 years from the date
the treaty was ratified
5. The Eurotunnel
System Provision
Twin rail tunnels and a service tunnel under the English Channel.
Two terminals, one at Folkestone near Dover in the United Kingdom and the
other at Coquilles near Calais in France.
Specially built shuttles to carry passenger and freight vehicles between the
terminals.
Inland clearance depots for freight at the French terminal and at Ashford
(near Folkestone) in the United Kingdom.
Connections to nearby roads and rail facilities.
Each of the two main tunnels would have an internal diameterof 7.6 meters
and a total length of approximately 50 km.
In addition, there would be a service tunnel or 4.8 meters internal diameter.
Cross-passages would link it to the main tunnels.
The service tunnel would provide ventilation to the main tunnels. It would also
facilitate routine safety and maintenance work and provide a safe refuge in
case of emergency.
Two crossovers were planned between the rail tunnels. These would allow
trains to continue to operate during periods of tunnel maintenance, albeit at a
reduced frequency on a single track.
The Eurotunnel System Provision
04
6. Project Ownership
Structure
The ownership Structure for the Eurotunnel Project could be described as a
dual-bodied transnational hybrid. It involves parallel group of companies
with common shareholders. The two groups are separately registered as :
Ø Eurotunnel PLC – located in the United Kingdom
Ø Eurotunnel S.A. – located in France
These two groups are joined together in a general partnership (hereafter
referred to as “Eurotunnel”).
05
The Ownership structure for the Eurotunnel
Project is shown above.
7. Construction
06
Construction was to be carried out by a consortium of construction firms known as
Transmanche Link. The consortium entered into a single general- obligation
contract to design, construct, test, and commission a fully operational rail system
within seven years of signing the construction contract. The construction contract
was signed in August 1986.Transmanche Link was a joint venture of Translink of the
United Kingdom, which consisted of five leading British construction firms, and
Transmanche Construction of France, which consisted of five leading French
construction firms.The construction contract was divided into three principal part.
The tunnels and underground structures would
comprise the target works. They would account for
about 50 percent of the con- tract price. The
contractors would be paid for the target works on a
cost-plus basis providing for a 12 percent profit
margin. The construction contract contained an
incentive structure: If the actual cost were less than
the target cost, Transmanche Link would receive 50
percent or the savings; if it were more, Transmanche
Link would pay 30 percent of the cost overrun, up to
a ceiling equal to 6 percent of the target cost
Target works.
8. Construction (contd...)
08
The terminals, the fixed equipment, and the
mechanical and electrical elements of the Eurotunnel
System would comprise the lump-sum works. They
would be paid for on a lump-sum basis.
Transmanche Link would realize all the savings ii the
lump-sum works were delivered under budget, but
would have to pay the full cost of any cost overrun.
The lump-sum words.
These items consisted of the locomotives and the
shuttles. Transmanche Link would subcontract for
these items. Eurotunnel would pay the subcontracted
bid price directly to the subcontractors. Transmanche
Link would oversee the bidding and supervise the
subcontractors. It would be reimbursed for its direct
costs and paid a profit margin equal to about 12
percent of the value of the procurement items.
The procurement items.
9. Construction (contd...)
08
Transmanche Link would be held liable for damages of
about £350,000 per day for delays up to 6 months, and
£500,000 per day thereafter if the Eurotunnel Project
breaches the completion deadline.
The obligations of Transmanche Link would be secured
by a performance bond equal to 10% of the total value
of the contract.
In addition, 5% of the amount due to Transmanche Link
as progress payments would be withheld or covered by
a performance bond during the construction period.
The payments or the bond would be released in two
installments, 12 months and 24 months
The five French and five British parent companies of
Transmanche Link would also give general guarantees
covering 100% of the contractual obligations. Joint
liability of each of the French parents and the several
liability or each of the British parents was limited to 50%
& 10%, respectively.
10. Construction (contd...)
09
Changes in specifications
Actions taken by the Governments
Bedrock conditions that turned out to be different
then expected.
Transmanche Link would not be entitled to any release
from obligations due to strikes by its own labor force
Transmanche Link would be liable for delays and cost
overruns caused by accidents or flooding. However, it
would not be liable for delays or cost overruns caused
by:
It was widely believed that construction of the
Eurotunnel System would not be a difficult technical
exercise. Conditions for construction of the Euro- tunnel
System were excellent.
The risk of interruption of service following completion
was low. Eurotunnel and Transmanche Link believed
that once the 3 tunnels were completed, only a major
earthquake could cause the tunnel to flood and
collapse.
11. Construction costs - 2.8 billion
Corporate and other costs - 0.5 billion
Provision for inflation - 0.5 billion
Net financing costs - 1.0 billion
Euro tunnel estimated that this project would
cost approx. £4.8 billion.
Where,
To meet these cost and cover possible cost
overruns, They planned to raise £6 billion (1
billion via equity and 5 billion via loans)
Project Financing
10
Arranging Banks obtained letters from 33 banks to underwrite loans of
approximately £4.3 billion.
Following the Eurotunnel Project's selection (1986), the founding shareholders
contributed equity of £50 million (which constituted Equity Ordering I).
The Arranging Banks then worked to increase the size of the underwriting
syndicate to 40 banks and to formalize their lending obligations in a collective
binding commitment to underwrite a £5 billion syndicated loan. The Arranging
Banks planned to complete syndication after the construction contract had been
signed and a further equity ordering (Equity Offering II) had been completed.
Eurotunnel planned a second issue of shares (Equity Offering II) in June 1986.
Eurotunnel hoped the issue would raise an additional £150 to £250 million.
The Arranging Banks would then syndicate the £5 billion project loan and enter
into the underwriting agreement.
A third equity offering, would raise the balance of the £l billion or equity. It was
planned for the first half of 1987.
So, to solve this problem of raising this much amount of fund for a greenfield venture
without any guarantee of third party, Eurotunnel planned to raise the funds in stages:
It was anticipated that during the Eurotunnel System's first full year of operation, 79%
of its total costs would consist of capital charges (i.e., interest and depreciation).
Capital charges as a proportion of total costs would decline steadily thereafter.
12. Economic Risk
11
Two largest direct customers of the Eurotunnel System:
Eurotunnel expected to have a competitive advantage over existing cross
Channel transportation—via ferry, hovercraft, and airline services.
Eurotunnel’s services would be less vulnerable to the adverse weather
conditions in the Channel that can seriously disrupt ferry and hovercraft
crossings
Eurotunnel commissioned various marketing studies. The marketing
studies concluded that the Eurotunnel System was eco- nomically
feasible. They projected that the total cross-Channel traffic market would
grow from 48.1 million passenger trips and 60.4 million tonnes of freight in
1985 to 88.1 million passenger trips and 122.1 million tonnes of freight by
2003. They concluded that the Eurotunnel System would be able to
capture a large proportion of this srowins market.
17 percent of cross-Channel freight traffic would go through the
Eurotunnel System, according to the studies.
The marketing studies also concluded that the Eurotunnel System’s
existence would lower the cost of travel and thereby generate a certain
amount of new traffic.
1. The two national-government-owned railway companies,
2. British Rail (BR) and Société Nationale des Chemins de Fer Francais
(SNCF), would be the.
13. Project Financial Results
12
United Kingdom gross domestic product would grow at 2.15 percent p.a. between 1985
and 2003 and at 2.00 percent p.a. between 2003 and 2013. The growth rate in traffic
was assumed to decrease each year after 2013, reaching zero in 2042.
No alternative fixed link across the English Channel would become op- erational before
the concession period ends in 2042.
The tariffs the Eurotunnel System charges would, on average, equal the ferry tariffs on
the Dover-Calais route and would remain constant in real terms.
Rail usage charges would conform to the specifications of the railway usage contract,
and the high-speed railway linking Brussels, Paris, and the Eurotunnel System terminal
in France would be operational by the time the Eurotunnel System opened.
Eurotunnel would be permitted to make duty-free and tax-free sales to shuttle
passengers
Traffic and revenues would conform to the traffic and revenue projec- tions prepared
by Eurotunnel’s traffic and revenue consultants.
Subject to restrictions contained in Eurotunnel’s loan agreement, all profits available
for distribution each year would be distributed as dividends to shareholders.
The sterlingiranc exchange rate would remain constant at Al:FF10 throughout the entire
concession period.
The rates of inflation in revenues, overhead, operating costs, and capital expenditures
would be identical each year. The specific annual inflation rates assumed in preparing
the projections were: 4.0 percentin 1987; 4.5 percent in 1988; 5.0 percent in 1989; 5.5
percent in 1990; and 6.0 percent in 1991 and thereafter.
14. Project Debt Financing
13
In February 1986, 5 banks ( National Westminster Bank, Midland Bank, Banque In-
dosuez, Banque Nationale de Paris, and Crédit Lyonnais ) were agreed to finance
Eurotunnel Project worth GBP 5 Billion and also been asked to give the pre-
underwriting commitments that would be conditional on several key events &
conditions.
The Arranging Banks had good reason to approach the market in this slightly
unorthodox manner. They felt it was essential for them to augment their underwriting
commitments—rumoured to be approximately £4.3 billion—in order to secure
commitments for the full £5.0 billion budgeted for total credit facilities.
The total loan amount would be denominated in three currencies:
Amount Sterling Equvalent
£2,600 million
FF21,000 million
US$450 million
£2,600 million
£2,100 million
£300 million
The sterling equivalent was: GBP 1.00 = FF10.00 = US$1.50.
80 % of the funds would be used to pay for budgeted capital costs and the other 20 %
would be available in the form of a stand-by cost overrun facility.
15. 14
Project Equity Financing
45.9 percent of the equity of Eurotunnel PLC (EPLC) and Eurotunnel S.A.
(ESA) to were offered to investors through the issuance of 220 million
paired shares with warrants attached (Units). Equity Offering III was
intended to raise GBP 770 million of equity to bring the total equity raised
for the Eurotunnel Project to GBP l.023 billion.
Equity Offering II, a private placement consisting of £200 million worth of
Eurotunnel paired shares, was launched in October 1986. It had been
undersubscribed in the United Kingdom, and demand in the United
States had been disappointing. Political and organizational
uncertainties, which had led to doubts about whether the Eurotunnel
Project would ever be built, were largely responsible. The British
subunderwriters had avoided significant losses due to (1)
oversubscription in France, Japan, and Germany and (2) the Bank of
Enqland’s pressuring investment houses in the City of London to
subscribe.
16. Projected Returns to Equity
Investors
The life of the Eurotunnel System, from the investors’ perspective, would have three distinct phases:2 (1) the construction period (1987—1992),
when equity funds would be invested; (2) the start-up period (1993—1995), when final testing would be conducted, operations would
commence, and dividend payments would commence; and (3) the main operating period (from 1995 to the end of the concession period in
2042).
15
In addition to dividends, Eurotunnel offered travel privileges to
individual subscribers’ to Equity Offering III
17. Sensitivity Analysis
Eurotunnel prepared a number of sensitivity analyses in addition to its “best guess” cash flow projections
(the “Best Case”). The sensitivity analyses tested the effects on project performance of changes in key
variables:
16
The above table summarises the results of these sensitivity analyses and compares them with the base case
18. Sensitivity Analysis (contd…)
17
Source: Eurotunnel P.L.C./Eurotunnel S.A., offer for sale of 220000000 units with New Warrants (November 16, 1987), pp. 56-
57; and R.C. Smith and I. Walter, “Eurotunnel-Debt,” p. 7.
19. THE EUROTUNNEL SYSTEM- ORIGINALLY SCHEDULED TO OPEN IN MAY’93 FINALLY OPENED IN MAY’94 WITH
REGULAR SERVICING OF PASSENGERS IN NOV’94
A
18
Sensitivity Analysis (contd…)
HEY WOUND UP COSTING £ 10.5 BILLION- DOUBLE THE ORIGINAL ESTIMATE OF £ 4.8 BILLION WHICH LED TO A
DISPUTE WITH TRANSMANCHE LINK WHICH IN TURN DELAYED CONSTRUCTION. THEY ALSO PAID AN EQUIVALENT
AMOUNT OF £ 532 MILLION IN A RIGHTS ISSUE IN 1990 WHICH WAS UNDERWRITTEN BY TEN LEADING ISSUING
HOUSED IN FRANCE AND U.K.
B
THE COMPETITION OF FERRY OPERATORS CUT FARES WHICH LED EUROTUNNEL TO BELIEVE THAT THEY WOULD NOT
BREAK EVEN BY 1998 AND SOON RUN OUT OF CASH.
C
THEY ANNOUNCED A CASH RAISE OF £ 1 BILLION HALF BY BORROWING FROM INTERNATIONAL CONSORTIUM OF 220
BANKS AND OTHER HALF BY A SECOND RIGHTS OFFERING.
D
THEY CONDUCTED AN UNDERWRITTEN OFFERING TO RAISE EQUIVALENT OF £ 816 MILLION AND AT THE SAME TIME
ARRANGED A £ 647 MILLION CREDIT FACILITY
E
THE 1994 THREAT OF FARE ERUPTING LED TO A LOT OF FERRY OPERATORS TO CUT FARES SHARPLY AND FURTHER
DELAYS OF PASSENGER SERVICE MEANT THEY WOULD FAIL TO MEET PROFIT PROJECTIONS OF MAY’94. THIS IN
TURN THREATENED TO PUT EUROTUNNEL IN VIOLATION OF CERTAIN COVENANTS IN ITS BANK LOAN AGREEMENTS
WHICH WOULD LEAD TO ANOTHER CASH CRISIS
F
EUROTUNNEL’S SITUATION WORSENED IN 1995 WITH AN AGGRESSIVE AIRLINE ADVERTISING TO PROMOTE
COMPETITION ON THE LONDON-PARIS ROUTE, A STRIKE BY FRENCH TRAIN OPERATORS AND A BRUISING FARE WAR
WITH ENGLISH FERRY OPERATORS
G
20. In Sept’95 Eurotunnel suspended
interest payments on more than £8
million in bank loans and hoped to
negotiate a debt-restructuring
agreement that would satisfy both-
225 creditor banks and 760000
shareholders- which was achieved
in 1998.
Eurotunnel struggled to manage
high leverage for 2 decades. A
French court in Aug’2006 placed
Eurotunnel in bankruptcy.
The main creditors and suppliers
approved a restructuring plan that
would reduce Eurotunnel’s debt by
54%, to £2.9 billion from £6.2 billion.
The French court approved the
restructuring plan in January 2007.
19
Sensitivity Analysis (contd…)
Subsequent Developments: Conclusion
The Eurotunnel Project illustrates the cost overrun
risk and economic riskthat accompanylarge,
ambitioustransportation projects. This is
particularly so when there are competing modes
of transportation—in this case, ferries—
whoseoperatorsmayreduce
faresinordertocompete.Eurotunnel
Project’sexperiencehighlightsthefinancialproblem
sthathighleveragecanbring. In spite of its
financial difficulties, as of the date regular
passenger servicebegan, the European financial
community generally felt that the
EurotunnelProject would continue to operate.
However, it recognized that Eurotunnelwould
require a financial restructuring to reduce its debt
burden. Ultimately, the twogovernments and the
creditor banks have so much at stake that the
EurotunnelProjectisprobablytoobig andtoovisible
tobeallowedtorail.