Experience in accounting for roads infrastructure - SANRAL

advertisement
Asset Management Workshop
November 2010
#424282v1
AGENDA
•
•
•
•
•
•
•
SANRAL Mandate
Corporate Governance
Budgeting
Funding
Financial Reporting
Revaluing assets
Open Road Tolling (not discussed)
The SANRAL mandate
Who Is SANRAL
•
•
Established in April 1998 by an
Act of Parliament as an
independent operating company
to operate South Africa’s
national road network
Established in terms of the
National Roads Act of 1998 as a
public company with a share
capital within the requirements
of the South African Companies
Act
•
Governed by a board of
directors (8 members) of whom
7 must be appointed by the
Minister of Transport
•
Eighth member of the board is
the CEO by virtue of office
•
Responsible for strategic
planning with regard to South
African national road system
•
Finance, plan, construct,
provide, operate and maintain
roads in neighbouring countries
upon request from the Minister
of Transport and in agreement
with the respective countries
•
Commercial principles, but not
profit driven
Vision and Mission
Vision:
To be recognised as a world leader in the provision of a
superior primary road network in Southern Africa.
Mission:
As the custodian of a public good we are committed to the
advancement of the Southern African community through: a highly motivated and professional team;
 state-of-the-art technology;
 proficient service providers; and
 promoting the ‘user pay’ principle.
SANRAL’s Core Values
E-xcellence
P-roactiveness
P-articipativeness
I-ntegrity
C-are
2
EP IC
SANRAL RELATIONSHIP
TO MINISTER and DOT
Minister (Regulator)
MOT
Board
Governance and Control
Chief
Executive Officer
Day to Day Business and
Operations Management
SANRAL Staff
Planning, Design, Construction,
Operation, Management, Control,
Maintenance & Rehabilitation of
National Roads
Regulation
The South African National Roads Agency Limited and
National Roads Act, No 7 of 1998
Public Finance Management Act, No 1 of 1999
External Auditor: Office of the Auditor-General
Internal Audit: Outsourced to Pricewaterhouse Coopers
& BI Group (SAB&T)
Bankruptcy remote – may not be placed under judicial
management or in liquidation except if authorised
by an Act of Parliament
Exempt from Income Tax but toll portfolio is a vendor in
terms of the VAT
What Do We Do?
 Responsible for proclaimed national roads: Toll and NonToll Network
 Obligated by legislation to keep separate accounts for Toll
and Non-Toll activities
 Design, fund, maintain, operate and rehabilitate national
roads
 Manage approximately R18.5bn of annual spend
 Manage toll road concessionaires
 Levy tolls for the purposes of funding the Toll Road
Network – with annual adjustments subject to the approval
of the Minister of Transport
 Provide safely engineered, well maintained roads
The Bigger Picture
• Road user is our client – SANRAL objective is
to provide a safe well engineered road to the
user – movement of people, services and
goods
• Value of time – Time is valuable, both
commercial and private
• To enable the economy to grow – creating
wealth and job opportunities, saving on road
user costs – sufficient infrastructure is
required
The Bigger Picture
• In order to provide above, there are different
focus areas:
– As minimum, roads must be well maintained:
• Routine road maintenance (crack sealing, pothole
repair, grass cutting, road signs and markings,
guardrails, etc)
• Periodic maintenance – reseals and overlays
• Rehabilitation
• Available funding optimized using tools such as
pavement management systems, HDM4
– Capacity improvements (combine with rehabs):
• Additional lanes
• Paved shoulders
• Climbing lanes
NATIONAL ROAD NETWORK (km)
Description
Dual
Carriageway
Non Toll
State Toll
BOT
Total
610
520
443
1 573
11
299
240
550
2-Lane
Single
12 429
1013
605
14 047
Total
13 050
1 832
1 288
16 170
81%
11%
8%
4-Lane
Undivided
% of SANRAL Network
Corporate Governance
Governance
 Board and Top Management – Control and
Direction
 Enterprise-wide Risk Management
• Risk Management Cluster
• Board Ultimately Accountable
 Measures against Fraud and Corruption: Zero
Tolerance
• Fraud Hotline (Whistle blowing)
• Tip-Offs Committee
• Forensic Investigations
Procurement Process
• Transparent and consistent
procurement process
• International standards for terms and
conditions: FIDIC
• Promotion of SMME’s and BEE
• Segregation of duties as per SCM policy
– Evaluation, recommendation, award
Budgeting for national roads
Cost Of Maintenance Delay – Sanral
Repair Cost = X /
km
Repair Cost = 6X /
km (Ratio 1:6)
Good
Road Condition
100
80
Fair
60
Poor
Repair Cost = 18X
km (Ratio 1:18)
3-5 Years
40
20
Very Poor
5-8 Years
0
2008
2013
2018
Year
2023
2028
Cost Of Maintenance Delay –
Road User (2008r)
R 20
R 18
Road User Cost (R/km)
R 16
R 14
R 12
Toll 1 - Car
Toll 2 - Small Truck
R 10
Toll 3 - Med Truck
Toll 4 - Long Truck
R8
R6
R4
R2
R0
0
2
Good
4
6
8
10
12
International Roughness Index (m/km)
14
Poor
16
Based on HDM-4 Modeling
Asset Preservation - Data
Roughness
Rut Depth
Macro Texture
Cracking
Ravelling
Video
Surface
Friction
Unit Costs
Traffic
DGPS
Centralised
Database
Bridge
Structural
Strength
SANRAL Budgeting Procedure
Instrumental Data
Bridge Inspections
Traffic
RUE
RDME
RUE
PMS
BDME
CBA
Priority
List
Pavement Management
System
BMS
CBA
Priority
List
Bridge Management System
Proj e cte d
Tota l
Sm. Sy s t ems
Med. Sy s t ems
Lg. Sy s t ems
Tot al
Vol um e (Si te s)
No. Americ a
Europe
12, 000
6, 600
6, 200
3100
2, 650
1850
20, 850
11, 550
As ia-Pac ific
2, 100
560
180
2, 840
Government
3, 000
950
400
4, 350
Tot al
23, 700
10, 810
5, 080
39, 590
Re ve nue (bi l l i ons of $)
No. Americ a
Europe
$1. 12
$0. 62
$1. 59
$0. 80
$1. 80
$1. 26
$4. 52
$2. 67
As ia-Pac ific
$0. 20
$0. 14
$0. 12
$0. 46
Government
$0. 28
$0. 24
$0. 27
$0. 80
Tot al
$2. 21
$2. 78
$3. 46
$8. 45
Super Project List
Proj e cte d
Tota l
Sm. Sy s t ems
Med. Sy s t ems
Lg. Sy s t ems
Tot al
Budget Optimisation
Projected Total Volume (Sites)
No. America
Europe
Asia-Pacific Government
Sm. Systems
12,000
6,600
2,100
3,000
Med. Systems
6,200
3100
560
950
Lg. Systems
2,650
1850
180
400
Total
20,850
11,550
2,840
4,350
Total
23,700
10,810
5,080
39,590
Projected Total Volume (Sites)
No. America
Europe
Asia-Pacific Government
Sm. Systems
12,000
6,600
2,100
3,000
Med. Systems
6,200
3100
560
950
Lg. Systems
2,650
1850
180
400
Total
20,850
11,550
2,840
4,350
Total
23,700
10,810
5,080
39,590
Projected Total Volume (Sites)
No. America
Europe
Asia-Pacific Government
Sm. Systems
12,000
6,600
2,100
3,000
Med. Systems
6,200
3100
560
950
Lg. Systems
2,650
1850
180
400
Total
20,850
11,550
2,840
4,350
Total
23,700
10,810
5,080
39,590
Projected Total Volume (Sites)
No. America
Europe
Asia-Pacific Government
Sm. Systems
12,000
6,600
2,100
3,000
Med. Systems
6,200
3100
560
950
Lg. Systems
2,650
1850
180
400
Total
20,850
11,550
2,840
4,350
Total
23,700
10,810
5,080
39,590
Projected Total Revenue (billions of $)
No. America
Europe
Asia-Pacific Government
Sm. Systems
$1.12
$0.62
$0.20
$0.28
Med. Systems
$1.59
$0.80
$0.14
$0.24
Lg. Systems
$1.80
$1.26
$0.12
$0.27
Total
$4.52
$2.67
$0.46
$0.80
Total
$2.21
$2.78
$3.46
$8.45
Projected Total Revenue (billions of $)
No. America
Europe
Asia-Pacific Government
Sm. Systems
$1.12
$0.62
$0.20
$0.28
Med. Systems
$1.59
$0.80
$0.14
$0.24
Lg. Systems
$1.80
$1.26
$0.12
$0.27
Total
$4.52
$2.67
$0.46
$0.80
Total
$2.21
$2.78
$3.46
$8.45
Projected Total Revenue (billions of $)
No. America
Europe
Asia-Pacific Government
Sm. Systems
$1.12
$0.62
$0.20
$0.28
Med. Systems
$1.59
$0.80
$0.14
$0.24
Lg. Systems
$1.80
$1.26
$0.12
$0.27
Total
$4.52
$2.67
$0.46
$0.80
Total
$2.21
$2.78
$3.46
$8.45
Projected Total Revenue (billions of $)
No. America
Europe
Asia-Pacific Government
Sm. Systems
$1.12
$0.62
$0.20
$0.28
Med. Systems
$1.59
$0.80
$0.14
$0.24
Lg. Systems
$1.80
$1.26
$0.12
$0.27
Total
$4.52
$2.67
$0.46
$0.80
Total
$2.21
$2.78
$3.46
$8.45
Eastern
Programming
Northern
Programming
Southern
Programming
Western
Programming
Funding
Toll and Non-Toll
 In terms of the SANRAL Act the it is obliged to operate its
toll roads separately from its other national roads
 SANRAL maintains separate accounting records for Toll
and Non-Toll related operations
 There is no cross subsidisation between the Toll and NonToll businesses
 Toll roads are deemed to be self-funding and for financial
analysis are deemed to amortise over a period of 30 years
SANRAL Funding
 Monies appropriated through grants by
Parliament (Non-Toll)
 Debt Capital Markets for toll roads (Toll)
 Toll road funding is supported by toll
revenue income (Loan Supportable by
Revenue Principle)
 Raised in ZAR
J- curve
FIGURE 1: Gauteng Freeways - Phase 1; Existing Sanral Funded Toll Roads; N 17; R30;PWV 3/N4;
N3 PMB to DBN; PROJECTED CUMULATIVE DEBT LEVEL AT 4% P.A. REAL INTEREST RATE
5
0
-5
2025
2024
2023
2022
J-curve
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
END
OF FIN YEAR:
RAND (BILLIONS)
-10
-15
8% p.a. inflation
rate
-20
6% p.a. inflation
rate
-25
-30
-35
-40
-45
-50
YEAR
Rating
Moody’s
National Scale Issuer Ratings:
(Non-guaranteed notes)
Long-Term:
Short-Term:
Aa2.za
P-1.za
Global Scale Issuer Ratings:
Long-Term: A3
Short-Term: P2
BORROWING CAPACITY
• Initial R6 billion guaranteed funding (SZ
bonds)
• R1 billion N1 loan – separate guarantee
• R10 billion – non guaranteed funding
(NRA bonds)
• R31.91 billion guaranteed funding
(HWAY bonds & others)
Total Borrowing capacity = R48.91 billion
Total Guarantee = R38.91 billion
{R31.91 billion (H Way) & R6 billion (SZ)}
TOTAL DEBT
MATURITY OF DEBT as at 31 August 2010
12,000
11,024
Rand Millions
10,000
9,166
8,000
6,000
4,000
3,447
2,004
2,000
579
0
Short Term (<1 year)
1 to 5 Years
6 to 10 Years
11 to 15 Years
Over 15 years
THE SANRAL SUITE (Aug 2010)
Spire Awards: BEST BORROWER 2008 & 2009
BEST ISSUER 2009 (HWAY20)
BOND
COU- MATURITY
PON
COUPON DATES
ISSUE AMT TYPE
(million)
NRA013
4.25
31 October 2013
30 April
31 October
1 560
CPI
NRA014
11.25
30 April 2014
30 April
31 October
140
Fixed
NRA018
12.25
30 November 2018
31 May
30 November
2 556
Fixed
NRA022
12.25
31 October 2022
30 April
31 October
2 200
Fixed
NRA023
5.00
31 May 2023
31 May
30 November
515
CPI
NRA028
12.25
30 November 2028
31 May
30 November
2 671
Fixed
HWAY20
9.75
31 July 2020
31 January 31 July
5 762
Fixed
HWAY23
5.50
07 December 2023
30 June
December
521
CPI
HWAY34
9.25
31 July 2034
31 January 31 July
1 779
Fixed
HWAY24
5.50
07 December 2024
30 June
December
211
CPI
HWAY35
9.25
31 July 2035
31 January 31 July
647
Fixed
31
31
Current & Proposed Concessions
Current Concessions
 N4 East, Maputo Development Corridor – 420km
 N3 Cedara, Heidelberg – 512km
 N4 West, Platinum Highway – 484km
Proposed Concessions
 N1/N2 Winelands Toll Highway (Tenders closed 1
Nov 10)
 N2 Wild Coast Toll Highway (ROD received)
 R300 Ring Road
Financial Reporting
Financial Reporting
Statutory Reporting (Financial
Statements)
• International Financial Reporting
Standards
• Special approval from NT due to
publicly traded debt & international
funding sources
Financial Reporting
Management Reporting
• Non-toll and Toll separate
• Forecasts done on monthly basis per
project on mySAP (ERP)
• Non-toll balanced to zero for budget
• Toll allowed to budget for deficit due to
finance charges and ‘J-curve’ effect
Reporting Challenges
• Going Concern: technically insolvent
– Established with nominal asset value
– Incorporated roads at zero cost
– Toll roads > J-curve effect
– Deferred Income: Non-current liability
ito IAS20
• Completeness of assets
– SANRAL Act > ownership
– Registration of property cumbersome
Revaluing our assets
Asset Revaluation
• Investment Property
– 1500 properties
– Normal valuation (NPV) method
– R1.1 billion (2009)
• Road Reserve Land
– 126 153.9 ha
– Corridor method > Legal opinion
– Using comparable sales of ‘across the
fence’ properties
– Adjusted for services & access
Asset Revaluation (continued)
• Road Reserve Improvement
– 16 170km, 3 000 bridges & culverts
– R 144.8 billion
– Standards for road building given specific
traffic and topography
– Pavement & Bridge condition
Depreciated replacement cost
Impairment
• Toll roads: Loan Supportable by
revenue (LSR) methodology
– Recoverable amount over a rolling 30 year
period
• Non-toll: Depreciated replacement
– Non-cash generating unit, therefore no
guidance in IFRS
– IPSAS 21: value in use for non-CGU =
depreciated replacement cost
Comprehensive Asset register
• Property verification project
– ITIS (maps, RDS, status of each property)
– Identification & Verification, then transfer
– Valuation of all properties
• Condition of roads & bridges
– Condition survey every 2 years
– Bridge inspection every 3 years
– Detailled loaded into ITIS
Open Road Tolling
(ORT)
Project Extent:
PLANNED LANE
ADDITIONS: 185
km (2010)
FUTURE
UPGRADES:
(223 KM)
PLANNED NEW
ROUTES:
158 km
FINAL
SCHEME:
561 KM
Cape Town FMS Operations
Inge Mulder
Fraud hotline
[email protected]
www.nra.co.za
0800 204 558
Download
Related flashcards

Banking

21 cards

Banking

30 cards

Banks of Germany

43 cards

Payment systems

59 cards

Finance ministries

62 cards

Create Flashcards