Eoi melbourne metro1

1983

λ = 5 dwellings

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

1997

3,763dwellings

λ = 5 dwellings

λ convenience storeRMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

λ = 5 dwellings

λ convenience store

2002

9,895dwellings

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

Melbourne @ 8 millionRMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

1900 1950 2000 2050

.7bn

.2bn

2.9bn

6.4bn

20103.5bn

70%oftheworldspopulationwillliveincities

Citiesareresponsiblefor75‐80%oftheworldsgreenhousegases

and70‐80%ofNationalGDP’s

SourceJebBrugmann

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

QUALITY PUBLIC INFRASTRUCTURE

Bordeaux

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

SHIPYARDS TO SUSTAINABILITY

Malmo Bo01

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

ARCHITECTURE AS CHANGE STRATEGY

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

MONOFUNCTIONAL TO MULTIFUNCTIONAL

Melbourne

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

© 2012 Ernst & Young Australia. Liability limited by a scheme approved under Professional Standards Legislation.

Melbourne Metro

►  City-shaping project that will overhaul Melbourne's rail network, resulting in major improvements in capacity, reliability and travel times across the bulk of the metropolitan rail lines.

►  9 kilometre rail tunnel through inner Melbourne that will link the Sunbury and Pakenham/Cranbourne rail lines.

►  5 new underground stations to be located at Arden, Parkville, CBD North, CBD South and Domain.

Scope elements ►  Portals (tunnel entrances) ►  Tunnel ►  Stations ►  Rail systems

►  Track, power, signalling hardware ►  Signalling systems and software

►  Station maintenance and operations ►  Train operations and ticketing

17 RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

© 2012 Ernst & Young Australia. Liability limited by a scheme approved under Professional Standards Legislation. 16

Exercise – Melbourne Metro

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

*  The  number  of  train  trips  in  Melbourne  has  increased  by  a  94  per  cent  the  since  1998.  

Melbourne  in  numbers  

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

MM1  –  Domain    

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

MM1  CBD  South  

* Major  overhaul  of  rail  network  resulting  in  major  improvements  in  capacity,  reliability  and  travel  times  across  the  bulk  of  the  metropolitan  rail  lines  

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

* Metro  rail  systems  are  designed  to  meet  high  levels  of  demand  for  travel  in  and  around  cities  by  running  high  capacity  services  

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

http://www.youtube.com/watch?feature=player_embedded&v=U6p8YuyVir4

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

Melbourne  Strategies  

* Metropolitan  Planning  Strategy  (under  development)  * Metropolitan  Rail  Network  Development  Plan  2012  

Return RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

© 2012 Ernst & Young Australia. Liability limited by a scheme approved under Professional Standards Legislation.

Social Infrastructure PPP – The Concept

Continuing Public Sector Spending Support

Government §  Specify requirements

§  Deliver Core Services (eg teaching)

Private Sector §  Build / Renew facilities

§  Support Services

Services Payments for Performance

D&C Skills FM Skills

Finance

Ø  Concession contract (30 years+) Ø  Government responsible for:

Ø  Land acquisition Ø  Approvals Ø  Service payments

Ø  Private sector responsible for: Ø  Supply and maintenance of

social infrastructure asset (School, Hospital, Prison)

Ø  Financing Ø  Remunerated based on Performance-

based payments

RMIT PPP Club 2013 - MELBOURNE METRO 1 as a PPP

© 2012 Ernst & Young Australia. Liability limited by a scheme approved under Professional Standards Legislation.

Typical Project Finance Structure “Social Infrastructure” PPP Transaction

State Government

PPP Company (Usually an SPV)

Project Finance Debt

Equity

Example Sources •  Bank debt

•  Capital markets (bond debt) •  Institutional (super funds)

Example Sources

•  Contractor •  Super funds

•  PPP investment funds •  International pension funds

Facilities Maintenance Provider(s)

Design & Construction Contractor(s)

Example Providers •  Spotless

•  Honeywell •  DTZ/UGL

•  Serco •  MTR Corp

Example Providers

•  John Holland •  Leighton Group

•  Lend Lease •  McConnell Dowell

Advisers •  Financial

•  Legal • Technical (Design, QS etc)

Advisers •  Financial

•  Legal • Technical (Design, QS etc)

Service Payments

FM Payments

D&C Payments

RMIT – Construction, Planning and Design 3 PPP Operations Phase Chris Clifton, 13 August 2013