Model Highway Initiative

Model Highway Initiative :

Implementation progress in South Caucasus and Central Asia

Co-ordination Meeting of International Organisations and Financial

Institutions

12 June 2013, Amman, Jordan

Elena Anfimova

Communications Officer,

IRU Permanent Delegation to Eurasia

Page 1

Model Highway Initiative (MHI)

Page 2 © International Road Transport Union (IRU) 2013

Model Highway Definition

“ Model Highway is a chosen section (2-3 stretches) of an internationally rated trunk road of 1500 – 2000 km in length, crossing the territories of several Eurasian countries and of strategic importance for interconnecting and promoting

Eurasian trade and transit by road to major world markets.”


MHI Key elements

1. Creation of modern ancillary roadside infrastructure

2. Institutional reforms and implementation of best practices in the road transport sector

3. Establishment of a multilateral investment mechanism


MHI-SC section

• Rest area

• Service area

• Parking lot

• BCP

(border crossing)

• Dry port

• (logistics

• centre)

MHI South Caucasus (MHI-SC) section:

Trabzon - Sarpi ( Georgia/Turkey BCP ) – Batumi – Tbilisi – Krasny Most ( Georgia/Azerbaijan BCP ) - Baku

Possible extensions: Baku port ( BCP ) - Turkmenbashi port ( BCP ) - Ashgabat; Trabzon – Samsun

Decision of the Ministers of Transport of BSEC Member States

8. Assist to the implementation of transport, auxiliary and logistic infrastructure development projects in the BSEC region in cooperation with other international organizations and financial institutions with involvement of the business community, particularly on the basis of the public-private partnership, notably by inclusion of the IRU Model

Highway Initiative (MHI) into the future project of the BSRH Master Plan and cooperation in preparation of required feasibility studies.


Prefeasibility Study on the development of MHI - SC

Pre-Feasibility Study presentations :

1.

Baku, Republic of Azerbaijan ,

October 30, 2012

2.

Tbilisi, Georgia ,

November 1, 2012

3.

Ankara, Turkey ,

November 14, 2012


Pre-Feasibility Study:

Main conclusions

1.

Analysis confirmed the existence of imbalance in development between the main road infrastructure (basically roads) and roadside service’s assets

2.

Governments and international organisations have been paying practically NO attention to the problem of roadside ancillary infrastructure

3.

Private business is keen to take the initiative in the field of providing ancillary services along the roads

4.

Regional Infrastructure Fund was identified as the most effective mechanism for the Model Highway Initiative implementation

5.

Full-scale Feasibility Study required (based on the results of Pre-

Feasibility Study)

6.

The effective way to facilitation of international road transportation is implementation UN conventions and agreements

© International Road Transport Union (IRU) 2013 Page 8

MHI-SC Joint Statement

Signed in Izmir, Turkey on 28 November 2012


First Meeting of the Working Group on creation of Model Highway on the Motor Road

Baku-Tbilisi-Batumi-Trabzon (MHI BTBT)

Page 10

MHI-CA section

• Rest area

• Service area

• Parking lot

• BCP

(border crossing)

MHI Central Asia section:

• Pol-eXomri - Nizhniy Panj

( Afghanistan/ Tajikistan BCP ) –

Dushanbe – Karamyk

( Tajikistan/ Kyrgyzstan BCP ) –

Bishkek – Kordai

( Kyryzstan/Kazakhstan BCP )

- Shimkent – Kzyl-Orda

Branches : Kordai – Almaty – Khorgos ( Kazakhsatn/China BCP ) Sarytash - Irkeshtam ( Kyrgyzstan/China BCP )

Prefeasibility Study on the development of Model Highway in Central Asia

Pre-Feasibility Study on MHI-CA presentations :

1.

Almaty, Republic of

Kazakhstan , 13-14 September

2012

2.

Dushanbe, Republic of

Tajikistan ,

17 September 2012

3.

Bishkek, Kyrgyz Republic ,

19 September 2012


Major types of transportation

PPP and risks

Asset Sale

Full Service Long-Term Concession or Lease

High

Multimodal Agreement (Public-Public Partnership)

Joint Development Agreement (JDA – pre-development)

Transit-oriented Development (TOD – post-development)

Build – Own – Operate (BOO)

Build – Transfer – Operate (BTO)

Build –Operate – Transfer (BOT)

Design – Build – Finance – Operate (DBFO)

Design – Build – Operate – Maintain (DBOM)

Design – Build with Warranty (DB-W)

Design – Build (DB)

Construction Manager at Risk (CM@Risk)

Contract Maintenance

Fee – Based Contract Service

Page 13

Alternative

Project delivery approaches

Low

© International Road Transport Union (IRU) 2013

MHI Investment Mechanism

Government

• Consumers

Operation and management costs

• Operator

Support / Assets

Fares / Tolls /

Fees

Investment company

• Insurance premium

• Insurers

Debt

• Lenders

• Investors

10%-30% Equity

•

Dividends

Capital

Construction costs /divid.

• Construction companies

•

70-

90%

• Loan

Equipment costs /divid.

Capital

• Suppliers


MHI what’s next?

1

Creation of the MHI coordination centres (Working

Group)

2

3

Consultations on the creation of the Regional

Infrastructure Fund (MHI RIF)

Preparation of the full blown Feasibility study

(Master Plan)

4

Intergovernmental Agreement negotiations

5 Development of national plans of administrative reforms


MHI: connecting Europe and Asia


www.iru.org


Model Highway Initiative

Model Highway Initiative :

Implementation progress in South Caucasus and Central Asia