Contractual Structure
Alain François
September 10th, 2012
Agenda
• Our input :
some specifics re the Belgian tolling
contract
• Your input:
(foreign) tolling contract experience
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Type of contract
• DBFMO
Design, Build, Finance, Maintain and Operate equipment and
technical infrastructure for the provision of services in accordance
with the requirements of the Regions/Sofico
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Parties
• On the one hand
:
SSP
• On the other hand
:
Interregional Entity,
Flemish Region,
Brussels-Capital Region,
Walloon-Region and
Sofico (+ other
concessionaires)
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Contract matter
• Both Road Charge System and Road Vignette System
• Equipment and infrastructure for application and
enforcement of the two systems
• Application
– For both: CRM (call center …)
– For Road Charge System:
 Service points and logistics
 OBU’s
 Back office IT system for registration, verification, processing and billing
– For Road Vignette System:
 Sales channels foreign vehicles
• Enforcement
– Stationary and flexible roadside equipment
– Infrastructure Mobile teams
– Infrastructure back office
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Terms of payment
• No payments during design and construction period
(ESA 95 requirements)
• Availability payments during operational period
• Fixed and variable component
• Deductions based on KPI performance
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Availability fee
• Fixed component:
• Repayment and remuneration of financing facilities used to
fund the capital expenditures
• Fixed costs associated with project management,
maintenance and operation
• Costs associated with enforcement
• Variable component:
• Cost of vignettes and active OBU’s (including a/o data
communication costs)
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Time frame
• 1 to 1,5 years design and construction
• Fixed operational period of 12 years counting from
availability
• Possible extension by 3 periods of 1 year each
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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ESA 95 requirements
• ESA 95 neutrality of the tolling project: need for a sector
classification of the PPP assets and related financial
flows off the government’s balance sheet
• Possible impact on a/o:
– Risk allocation
– Clauses re liability, penalties, liquidated damages and deductions
– Clauses re early termination
• Advice INR-ICN and possibly Eurostat
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Liability of the SSP
• Basic principles of Belgian law
• Unlimited liability covering direct and indirect damages
• Freedom of contract limited by mandatory rules, rules of
public order and the general principles of good faith and fair
dealing
• Possible limitations of liability
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Remediation period
Qualification of errors
Penalties
Liquidated damages
Deductions
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Early termination of contract
• Breach by the Regions/IE/concessionaire
• Breach by the SSP
• Force majeure
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Risks allocated to the SSP
• re allocation contractual obligations
design, construction and planning, completion, maintenance,
availability, interfaces, financial risk
• re performance of the contract:
a/o misconduct under the contract, violation of legislation,
technical defect, security problems, loss of data, unpaid
registered kilometers, miscalculation of toll amounts, delays
and unavailability, creditor risk, vandalism
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Warranties
• Delay and liquidated damages
• Design and construction defects
• Default (warranty not exceeding the average monthly toll
transaction amount paid by the SSP: see Decision
2009/750/EC, Annex I.1)
• Final maintenance and renewal audit
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Agenda
• Your input!
Het Fairway consortium bestaat uit KPMG Advisory burg. CVBA , Eubelius burg. CVBA en Collis BV
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Important disclosure
This presentation is intended for market consultation purposes only and its
content may be subject to change. This presentation does not provide
technical, financial, nor legal advice and does not intend to grant any rights to
its addressees and readers.
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