working in partnership with

The Future of Local Transport Delivery: Birmingham road show

Birmingham Council House, 27 September 2011

working in partnership with

Mike Notman

Amey

Project Director

working in partnership withOverview - project structure

AVAHL/Uberior/Equitix

working in partnership withProject overview

• ‘Capex’ in Core Investment Period (CIP) Years 1 - 5:• 2,547 km of carriageway – 40% treated• 4,923 km of footways – 15% treated• 95,107 street lights – 50% replaced in CIP• 27 structures strengthened in CIP• 3 tunnels refurbished• Upgrade UTC to UTMC standards

• ‘Opex’ in Years 1 - 25• Surveys and inspections• Routine, cyclic, emergency and winter maintenance• Running UTMC • Dealing with customers via Help Desk in Operational Control

Room • Lifecycle programme to maintain network to ‘performance

standards’• Replacing up to1,000 trees each year

working in partnership withFunding and payments

• Approx £330m of capital funding borrowed • Amey receive increasing monthly (unitary) payments as

capital works are delivered• Receiving full payment each month is dependent on

achieving specified performance targets

Years

100% UCCIP

5 25

£100m

Opex cost

Capex cost

Lifecycle£55m

60% UC

Years

100% UCCIP

5 25

£100m

Opex cost

Capex cost

Lifecycle£55m

60% UC

working in partnership withDoing PFI – highway assets

Understand and define the assets within the scope that you have. This includes:

• What kind of assets you have• How many of each asset type• Their current condition• Their likely condition at contract commencement• Defining the standards you require during the concession

period• Identifying the condition you would like them handed back in• Recognising these assets will grow (and shrink) in volume

and the need for a mechanism within the contract for inventory change

working in partnership withDoing PFI – highway assets

• Identifying other assets that are currently used to deliver services within the scope e.g. employees, depots, vehicles and plant, external contracts

• The same criteria are equally applicable for these assets

• The need to “place” these assets within the contract framework in such a way as to get value for money; this may mean not wholly including them

• The need to consider how services are delivered outside of the scope that are currently delivered using some/all of part of these assets

Challenges - allocation and transfer of risk

• Contract assesses risks carefully and has allocated to party best able to manage

• Transferring risks gives incentives for Service Provider to improve delivery through innovative and more efficient ways of working

• Optimum risk transfer reduces cost and gives greatest value for money

• Payments aggregated into single lump sum contract• Risks that cannot be managed attract a premium• Asset, pricing, energy, weather and inflation risk all passed to

Amey

working in partnership withAchievements so far – one year on

• Full highway network survey covering 2,500km of roads

• Full tree survey identifying 76,000 trees

• 160km of roads resurfaced• 190km of pavements resurfaced• 30,000 trees pruned• 2,600 street lights installed• 7,000 potholes repaired

working in partnership with

Achievements so far – one year on

• 300 new jobs have been created• Up to 80 highways emergencies responded

to each day within an average of 28 minutes and 20 seconds

• Over 60,000 calls and enquiries received from members of the public

• 130,000 utility and highway works co-ordinated

• 1,200km of roads gritted each night during bad weather

• 1,200 grit bins filled and placed around the city

• Total of 48,000 miles of roads gritted

working in partnership withAchievements

• Innovation - use of LED lights• Energy and carbon reduction

through:- Increased optical control- Ability to dim street lights- Efficient light source

• Energy savings of 50% (£2m p.a)• Increased reliability, less outages

leading to reduced maintenance costs and better service

• Uniform lighting appearance leads to improved visibility and feeling of safety

• Reduction in sky glow and obtrusive light