Aucun titre de diapositive

1
Atelier 1 Expériences nationales et
internationales de PPP
Pierre Mathieu Vice-président, Financement des
ventes et projets pour le Groupe Transport,
Bombardier
- Métro de Londres -
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London Underground PPP
The BCV and SSL Projects

• October 31, 2003

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Metronet

• Metronet has acquired two Infraco companies who,
  under a Service Contract, are responsible for the
  renewal, upgrade and maintenance of 9 of the 12
  lines comprising the London Underground Network
• The companies, Infracos BCV and SSL, are
  existing, performance-driven businesses
  accounting for 75 of the total underground
  network mileage

SSL
BCV

• District
• Circle
• Metropolitan
• Hammersmith City
• East London

• Bakerloo
• Central
• Victoria
• Waterloo City

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BCV
Route Stations Current Length Served Trains
for KM service Bakerloo 23 25 32 x 7
cars Central 74 49 72 x 8 cars Victoria 21 16
37 x 8 cars
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SSL
Route Stations Current Length Served Trains
for KM service Hammersmith City 27 28 17
x 6 cars Circle 21 27 14 x 6 cars District 64
60 74 x 6 cars Metropolitain 67 34 44 x 8 cars
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Bombardiers supply contracts is valued at 3.4
billion (Cdn 7.9 billion) over 15 years

• The contracts include
• Project management
• System integration
• Rolling stock (1,738 cars)
• Signalling systems
• Refurbishment (450 cars)
• Maintenance services
• The project is privately financed via a Public
  Private Partnership with Metronet and will bring
  significant benefits to Londons traveling public

7
Rolling Stock
Sub Surface rolling stock compared with the
smaller Tube stock
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Introduction to LUL PPP
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Introduction to LUL PPP

• Following the general election in 1997, the UK
  Government considered various options for LUL to
  reverse a generally acknowledged lack of
  investment in the Underground Network
• The Government concluded that full privatization
  was not the best solution and instead opted for a
  Public-Private Partnership (PPP)
• To facilitate the implementation of the LUL PPP,
  the infrastructure maintenance business of LUL
  was reorganized into three separate divisions
  responsible for different Lines of the
  Underground Network called Infracos
• On May 2, 2001, the Metronet Consortium was
  appointed preferred bidder for Infraco BCV. The
  same consortium was subsequently appointed
  preferred bidder for Infraco SSL on September 19,
  2001. The last Infraco JNP was awarded to another
  consortium (Tubelines)
• Financial Close was achieved on April 4, 2003

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London Underground Restructuring for Private
Public Partnership (PPP)
LUL in Brief 2002/03 Passengers
carried 942m Revenues 1244m Gross
Margin (420m) Capital Investment 510m Network
408 Km Stations 253 Cars 3954

• LUL- Opsco
• (approx 10,000 staff)
• Network Control
• Train Operations
• Timetabling
• Revenue collection
• Station management

Infraco - BCV (2585 staff) Metronet
Infraco - SSL (2510 staff) Metronet
Infraco - JNP (2014 staff) Tubelines
Metronet Consortium - Bombardier, Balfour Beatty,
WS Atkins, SEEBOARD, Thames Water

• Tubelines Consortium - Bechtel, Jarvis, Halcrow,
  Amey

11
Key Features of LUL PPP

• LUL retains core operations through Opsco
• overall management responsibility
• ticketing, drivers, timetabling, network control,
  patronage risk
• Metronet and Tubelines have acquired shares in
  the Infracos
• Infraco scope includes
• Maintenance of assets
• Financing
• Replacement of rolling stock and
• Upgrading of EM systems, structures, trackwork
  and stations

12
Statutory Framework

• The GLA Act established the new arrangements for
  the Governance of Greater of London by the
  Greater of London Authority
• TfL was formed as a statutory corporate body
  pursuant to the GLA Act to act as the executive
  arm of the GLA responsible for implementing the
  Mayors integrated transport strategy
• TfL is funded largely by a combination of
  internally generated sources (fare revenues), GLA
  grants and Mayors allocation to TfL of general
  purpose central government grant. There are other
  sources coming from the Mayors office

13
Statutory Framework

• The Secretary of State can also provide
  additional funding to GLA
• TfL was assigned a credit rating of AA by SP
  on June 6, 2000 and is currently rated AA with
  a negative outlook
• Under the Service Contract LUL has the obligation
  to ensure that when the ownership of LUL is
  transferred from LRT to TfL, the obligations of
  LRT under the Guarantee are also transferred to
  TfL
• A Letter of Comfort (not a guarantee) was also
  issued by the Secretary of State. Lenders viewed
  this implicit government support as central in
  their risk assessment

14
Service Contract

• The Service Contract is the centerpiece of the
  PPP contractual structure
• The Service Contract is for a period expiring 30
  years from Financial Close achieved on April 4,
  2003
• This 30-year period is divided into four (4)
  periods each of 7.5 years
• At the end of each of the first three (3) periods
  there will be a Periodic Review under which (and
  subject to certain limitations) LUL will be
  allowed to require changes to the services the
  Infraco will be required to provide and/or the
  terms on which they will be provided

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Metronet Service Contract obligations

• Maintenance
• Ensure (new/inherited) assets maintained to
  contractual standards
• Upgrade of Assets
• Deliver line upgrades (new trains and signals)
• Modernisation and refurbishment of stations
• Capability - JTC improvements to increase number
  of passengers carried
• Performance
• Availability - Improve reliability of trains,
  signals and stations based asset
• Ambience - Improve cleanliness of trains and
  stations
• Services Points - Improve rectification times for
  minor faults on trains and stations

In return for services provided, Metronet will be
paid monthly an Infrastructure Service Charge
(ISC)
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The Infrastructure Service Charge (ISC)

• The ISC is being adjusted to reflect the
  Infraco s performance
• The Infracos revenues will be increased if
  performance for Capability, Ambience and
  Availability exceeds the performance benchmark
  (capped bonuses except for Availability)
• Infracos revenues will be reduced if performance
  falls below the benchmark measures (uncapped
  abatements and twice the rate for increase of
  revenues for improved performance)
• The ISC is also subject to annual indexation
  based on RPIX and is being paid each four weekly
  periods
• The ISC is an amount that was fixed at Financial
  Close for the first 7.5 years

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Infrastructure Service Charge (ISC)

• At each Periodic Review, the ISC will be reset by
  agreement between the parties or, where the
  parties cannot agree, by direction from the
  Statutory Arbiter if abbreviated dispute
  resolution process fails
• The Arbiter is a central figure in this PPP and
  has been appointed by the Secretary of State
  under the GLA Act. He is independent of LUL/TfL

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Statutory Arbiter

• The role of the Statutory Arbiter
• To ensure that LUL has the opportunity to review
  and amend the requirements imposed or proposed to
  be imposed on the infraco under the Service
  Contract
• To promote efficiency and economy in the
  provision, construction, renewal, improvement and
  maintenance of the infrastructure
• To ensure that any rate of return incorporated in
  the Service Contract would, in the opinion of the
  Statutory Arbiter, be earned by a company which
  is efficient economic
• To enable an infraco to plan the future
  performance of its obligation under the Service
  Contract with reasonable certainty
• The Arbiter can be asked to intervene during
• Periodic Reviews and
• Extraordinary Reviews

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Periodic Reviews

• This periodic review concept distinguishes this
  PPP from a standard UK PFI/PPP
• This concept was introduced because
• (i) LUL required the flexibility to changes the
  service requirements (i.e. the Restated Terms)
• (ii) LUL recognized that it was not possible to
  obtain fixed prices for 30 years and
• (iii) It also provides a major mitigant against
  potential costs overruns.
• Each year Infraco may request the Statutory
  Arbiter that he confirms if Infraco is operating
  in an economic efficient manner

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Economic Efficient

• This concept is critical in several respects
• It will affect both Infracos recovery of
  additional costs or shortfalls in revenues at an
  Extraordinary Review and whether the level of ISC
  should be adjusted following the finalization of
  financing at a Periodic Review
• The direction by the Statutory Arbiter will
  affect the level of compensation payable upon
  Mandatory sale initiated as a result of a
  Periodic Review
• Infraco may request guidance from the Statutory
  Arbiter in the form an annual report. It will
  give Infraco an opportunity to remedy any
  shortcomings
• Infraco may also request from the Statutory
  Arbiters direction as to the level of costs or
  shortfalls in revenues which have up to that time
  qualified as Net Adverse Effects

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Extraordinary Review

• An Extraordinary Review can also be instigated by
  an Infraco when the Infraco has incurred, or
  expects to incur, additional costs or shortfalls
  in revenues which are in excess of an agreed Base
  Case level within any Review Period

22
The partners their respective scope
23
Metronets responsibility vis-a-vis London
Underground will be through a series of Supply
Contracts

Track Works Balfour Beatty
Trains Signalling Bombardier Transportation
(Total Transit Systems)
Stations Balfour Beatty Thames Water Atkins Seeboa
rd
Civils Balfour Beatty Thames Water Atkins Seeboar
d
Bombardier Transportation (Metros) Vehicles
Westinghouse Signalling
Bombardier Transportation (Services) Enhancement
s Refurbishments Train Maintenance
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Metronet An independent company owned by five
world class shareholders, each with equal
participation
Employees
Sales

• Bombardier Inc. 9.98 B (23.7 B Cdn) 75,000
• Bombardier is the global leader in the rail
  equipment manufacturing and servicing industry

• Balfour Beatty 2.6 B (6 B Cdn) 24,000
• Largest general and rail civil engineering
  contractor in the UK

• Atkins plc 0.6 B (1.4 B Cdn) 14,000
• Largest rail engineering consultancy in the UK

• SEEBOARD plc 1.0 B (2.32 B Cdn) 3,800
• One of the largest power utilities in the UK
  servicing London area. Parent EDF

• Thames Water 1.6 B (3.7 B Cdn) 12,000
• Largest water company in UK serves Greater
  London area. Owned by RWE

As of Jan. 31, 2003
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Capex Contract Principles

• The objective of the Capex supply chain strategy
  is to provide a program of capital expenditures
  that delivers the required contractual
  performance
• Number of supply contracts minimized
• Concept of band (low - High) for each category of
  Capex to allow program flexibility as long as the
  Capex limits (high and low bands) are not
  breached at any time
• Distinct work packages which include
• Rolling stock and signalling
• Tracks
• Stations
• Civils

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Performance measurements
27
Performance Revenue Measure

• Capability
• A measure of the passengers journey time from
  entering the Station to exiting on reaching his
  destination
• Availability
• A measure of the reliability of the Rolling
  Stock, Signalling, Track Station based
  equipment, assessed in terms of the impact on
  passengers  lost Customer Hours (LCH). The
  impact of failures and delays varies by location,
  time of the day and day of the week. Incidents
  are recorded daily with Availability scores
  determined as three month rolling averages

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Performance Revenue Measure

• Ambience
• A measure of the condition and cleanliness of
  Trains and Stations. Trains and Stations surveys
  by Mystery Shopper. Scores are weighted by
  Station and by Line to obtain an Infraco average
  score. Each is recorded at least once quarterly
  with an Infracos ambience score only being
  calculated once a quarter
• In addition, Services Points subject to a
  threshold could be incurred for failure to meet
  specific obligations under the Service Contract
  or failure to rectify certain faults promptly

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JTC Elements
Minimum runtime over the Line
Number of Seats on a Train
Track Condition
Minimum headway between trains
Train Door Opening / Closing
Number of Trains in service
Facilities on Platform for Driver e.g. Toilets,
Restrooms
JOURNEY TIME CAPABILITY (JTC)
A measure in minutes of passengers journey
from entering a station to leaving his
destination station
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A performance based revenue structure
Capability Journey time Consistency Control
Availability Train service Station service Lifts
escalators
Ambience Cleanliness Condition
Mileage Adjustment
Service points Run times Ambience Facilities Fault
rectification
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Funding Plan
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LUL Financing Requirements

• LUL requires that Metronet secure committed
  financing for Period 1 only (i.e. the first 7.5
  years) as the Infrastructure Service Charge (ISC)
  paid by LUL to Metronet will not be totally
  sufficient to support the Capex Opex program
• LUL did not require further committed funding on
  the basis that the costs of committing financing
  7.5 years in advance for additional support
  required in subsequent would have been
  prohibitive and not accessible in the capital
  market

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Financing worth 2.6 Billion

• Third party financing of Metronet is on a
  non-recourse basis to the shareholders
• Debt facilities include
• Bank Base Facility to fund the capital, operating
  and financing costs of Infraco in performing its
  obligations set out in the Service Contract
• Bank Liquidity facility to fund cost overruns or
  revenues shortfalls
• Protected Cost Facility to fund in each contract
  year of Infraco costs certified by LUL to be
  related to changes in safety requirements or
  qualifying changes in law

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Financing worth 2.6 Billion

• Equity from shareholders in the form of share
  capital and shareholders loans. Each shareholder
  committed 35 M per infraco
• Returns on investment will depend on Metronets
  performance. Such returns expected to be in line
  with other UK Private Finance Initiative projects

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Bombardiers Scope of Work
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Scope of supply - BCV

• Victoria Line
• 376 new cars - 47 eight-car trains
• 2 pre-production trains within 3 years
• Fleet delivery 2009-2011
• Project management and system integration
• New signalling and Control Centre, complete with
  safety case by 2009
• Maintenance of existing trains from 2007 and new
  trains from delivery through to 2018

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Scope of supply - SSL

• 1362 new cars
• Metropolitan Line 72 eight-car trains
• Circle and Hammesmith and City Lines 40 six-car
  trains
• District Line 78 seven-car trains
• 2 pre-production trains in 2008
• Fleet deliveries 2009-2015
• Project management system integration
• New signalling and control centre, complete with
  safety case by 2014
• Maintenance of existing trains from 2007 and new
  trains from delivery through to 2018
• Refurbishment/Enhancement District Line trains
  from 2003 to 2008 (75 six-car trains)

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A disciplined approach to rolling stock
development

• Our Metro Division will produce two
  pre-production trains for each contract to reduce
  the reliability and safety case risks
• Pre-production trains will be trial run for
  approximately three years to prove on board
  systems and interface with infrastructure
• On the Derby test track
• On London Underground track for 40,000 kms
• Trial runs will include passenger loading in
  service, as well as empty train running

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Maintenance and Services

• Refurbishment from 2003. A five-year programme to
  upgrade District Line fleet of 75 six-car trains
• Maintenance of existing rolling stock on Victoria
  and all Sub-surface lines from 2007
• Maintenance of new trains for Victoria Line and
  all Sub-Surface Lines from introduction onwards
• Rolling stock maintenance carried out at eight
  existing London Underground depots
• Extensive experience with LUL
• Piccadilly Line Refurbishment 1994 - 2000
• 522 cars - 87 six-car trains
• Metropolitan Line Refurbishment 1994 - 1997
• 432 cars - 54 eight-car trains

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Bombardier has selected Westinghouse as its
signalling supplier

• Over 50 years of supply experience with LUL and
  over 75 of installed signalling equipment on
  entire LUL network has been supplied by
  Westinghouse
• Proven equipment with Safety Case
• Key projects with LUL
• Victoria Line Worlds first automated railway
  signalled by Westinghouse (1968)
• Central Line - recently equipped with
  interlockings, track circuits, ATP, ATO and ATS
  by Westinghouse (ongoing)
• Jubilee Line - extension project equipped with
  Westrace interlockings, track circuits and
  Westcab backup control centre by Westinghouse -
  same components for BCV SSL

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Bombardier Transportation in the UK
Manufacturing
Services
Signalling (RCS)
Derby 2,000 staff (Metros HQ)
Haymarket
Glasgow (SIG)
Wakefield 400 staff
Derby (Bogie/SIG)
Crewe 1,000 staff (Services HQ)
York (SIG)
Doncaster
Dublin
Presence- Etches Park Tyseley Ruislip Hornsea Sal
isbury Ramsgate Slade Green Leeds (SIG) Horsham
(SIG)
Nottingham
Reading (SIG HQ)
Norwich
Ilford
Swindon
East Ham
U.K.No. of employees 5,200 No. of manufacturing
sites 3 Number of services sites
25 Headquarters Services, Crewe Rail Control
Solutions, Reading Metros, Derby
Central Rivers
Chart Leacon
Plymouth (SIG)
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Bombardier Transportation in the UK Mainline
trains
Electrostars for Connex and c2c Total Ordered
1614 Cars
Voyagers for Virgin CrossCountry Total Ordered
352 Cars
Turbostars for around the UK Total Ordered 353
Cars
Meridians for Midland Main Line Total Ordered 127
Cars
43
Bombardier Transportation in the UKTransit
systems

• Croydon Tramlink SystemA Private FI project that
  opened in 1999, Bombardier supplied, and now
  maintains, 24 trams
• Nottingham Express Transit (NET)Using a P3
  approach, the 14-km turnkey system (Line 1) will
  open in Spring 2004 with 15 trams
• Docklands Light RailwayBombardier supplied 70
  fully automated city-metro vehicles in the early
  1990s anda further 24 vehicles were ordered in
  2000

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A formidable reference for Bombardier
Transportation

• Massive improvements to London Undergrounds
  infrastructure privately financed via a Public
  Private Partnership deal which will bring
  significant benefits to Londons travelling
  public
• Metronet consists of five world class
  shareholders, each with equal participation
• Metronet financing of 2.6 billion (6 billion
  Cdn) is on a non-recourse basis to shareholders
• Bombardiers supply contracts valued at 3.4
  billion (7.9 billion Cdn) over 15 years proven
  technology, extensive pre-production testing,
  conservative scheduling
• These contracts build on Bombardiers extensive
  capabilities in the UK and reinforce our position
  as the leading provider of rail equipment
  manufacture and servicing, both in the UK and on
  a global basis

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Safe Harbour Statement

• This presentation may contain forward-looking
  statements reflecting the Corporations
  expectations regarding its future growth, results
  and performance. These forward-looking statements
  reflect the current views of the Corporations
  management and are subject to various risks,
  uncertainties and assumptions which could cause
  the Corporations future growth, results and
  performance to differ materially from those
  expressed in, or implied by, these statements.
  For additional information identifying
  legislative or regulatory, economic conditions,
  climatic, currency, technological, competitive
  and other important factors that could cause
  actual results to differ materially from those
  anticipated in the forward-looking statements,
  please consult the documentation filed by the
  Corporation with securities commissions,
  including the Managements Discussion and
  Analysis. However, the Corporation disclaims any
  intention or obligation to update or revise any
  forward-looking statements, whether as a result
  of new information, future events or otherwise.