APPLYING PPP TO URBAN ROADS PORTSMOUTH PFI Fran

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APPLYING PPP TOURBAN ROADSPORTSMOUTH
PFIFrançois BIDARD
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Portsmouth PFI
Portsmouth Highway Management Contract
A first in the UK, a country that has pioneered
PPP schemes applying the PFI concept to the
whole road system of a city

• 480 km of streets and roads
• 19 000 street lighting units
• 84 structures
• including street cleansing, winter maintenance
  and emergencies fence to fence.

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Portsmouth PFI
The contract Some figures
An exceptional size about 400 M (650 M)
including works for

• initial rehabilitation (5 years)
• operations and maintenance (25 years)
• renewals (after the first five years)
• TOTAL 368 M

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Portsmouth PFI

• During the first 5 years the network must be
  brought to a certain standard

• Road Pavement
• Footways
• Street Lighting
• Bridges and Structures

This standard must be met each year during the
contract period (20 years)
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Portsmouth PFI

• During 25 years from day one the network must be
  managed according to specifications and minimum
  service standard

• Routine Maintenance
• Street Cleansing
• Street Lighting
• Bridges and Structures
• Winter Maintenance

In order to ensure the availability of the network
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Portsmouth PFI

• Availability Payment characteristics

• A monthly fixed fee, indexed, and subject to
  deductions in case of failure to satisfy the
  specifications
• During the first five years, this payment steps
  up as long as the network conditions improve
• The payment is subject to deductions for failure
  to meet minimum service standard
• The indexation is based on a composite index
  combining both CPI and a construction related
  index

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Portsmouth PFI

• The deduction/penalty regime is quite
  sophisticated

• Ensure the standard related to the network
  condition is met
• Ensure the level of services is met
• Ensure that contract is well monitored
• The contract is based on self controlling the
  performances