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Devolution of commuter train services to the Catalan regional Government.

A state of the art.

Marc García, Technical Director, ATM

EMTA Conference

Birmingham, 11th November, 2011

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What?

Why?

At which cost?

Who will be paying?

Driving questions

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Railways : veins of RMB urban structure

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RMB railways in figures

Transports Metropolitans de Barcelona (TMB): underground services 381,2 Mpax in 2010

Public operator owned by AMB (local public administration entity whose major shareholder is the Barcelona municipality)

RENFE “Rodalies”: commuter train services 103,7 Mpax in 2010

Public operator owned by the Ministry of Public Works (Spanish State)

Ferrocarrils de la Generalitat de Catalunya (FGC): urban and commuter train services 79,9 Mpax in 2010

Public operator owned by Generalitat de Catalunya (Regional Government)

Tramvia Metropolità: tramway 23,8 Mpax in 2010

Private company operating under a 25-yr concession contract signed with ATM (delegated by Generalitat de Catalunya)

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RENFE “Rodalies” network (2010)

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Devolution of “Rodalies” to Generalitat : legal framework

Article 169.1 of Estatut d’Autonomia de Catalunya

Agreement of the Generalitat de Catalunya-Spanish State Bilateral Commission dated 21st July 2009 Generalitat in charge of RMB commuter train services since 1st January 2010 (technical coordination entrusted to ATM)

Tasks assumed by Generalitat de Catalunya replacing the State: regulation, planning, management, coordination and tariff setting

Transfer of competences on commuter train services from the State to an Autonomous Community was unprecedented in Spain. Very complex devolution of services provided by a state-owned company (RENFE) running on infrastructures administered by a state-owned infrastructure manager (ADIF)…

This framework implied a triple level of understanding:

With the Spanish State legal aspects of devolution and funding

With the infrastructure manager infrastructure availability and quality

With the operator provision of services with the requested standards

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Devolution of “Rodalies” to Generalitat : architecture

Agreements with the Spanish State:

Agreement to transfer functions and services of the Administration of the State on suburban rail passenger services to Generalitat de Catalunya, approved by the plenary of the Joint State-Generalitat Commission for devolution matters (CMT). Signed on 29 th December 2009, published as a Royal Decree on 31th December 2009.

Agreement on the appraisal and funding of suburban rail passenger services provided by Renfe in the Barcelona area, approved by the Joint State-Generalitat Commission for economic matters (CMAEF). Signed on 22th December 2009. Extremely important.

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CMAEF funding agreement dated 22th December 2009

This agreement guarantees that the State funds 100% of the compensation required to cover the operational deficit of RMB commuter train services ( (computed after common unit costs for all metropolitan areas serviced by RENFE). Generalitat de Catalunya only assumes the cost of “extras”..

In 2010, the compensation was delivered by the State directly to RENFE. It will be also the case in 2011.

In case Generalitat de Catalunya decided not to sign a new contract-programme with RENFE:

The State would transfer to Generalitat the budget required to pay for the deficit of RMB commuter train services no matter which operator is contracted to provide them.

Also CMAEF would agree upon the economic value of the technical resources (trains) and human means (workers) of RENFE that should be transferred to Generalitat de Catalunya according to the political agreement of the State-Generalitat Bilateral Commission dated 21st July 2009.

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Devolution of “Rodalies” to Generalitat : architecture (cont.)

Agreements with ADIF:

Agreement among Generalitat de Catalunya, the Spanish Ministry of Public Works and ADIF on the use of infraestructure capacity by commuter train services in the Barcelona area. Signed on 8th February 2010.

Agreements with RENFE:

Agreement between Generalitat de Catalunya and RENFE on the direction and management of “Rodalies de Catalunya”. Signed on 13th January 2010.

Agreement among the Spanish State, Generalitat de Catalunya and RENFE on the subrogation of Generalitat to the position of the State in the contract-programme 2006-2010 with RENFE as for commuter train services in the Barcelona area. Agreed with the Spanish Ministry of Public Works and RENFE (though no further official sanction by the Spanish Government)..

Contract-programme 2011-2015 between Generalitat de Catalunya and Renfe . Draft contract agreed by mid-December 2010.

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« A work in progress at full speed... » (somebody said last year)

??? And elections to the Catalan Parliament came…

And the Regional Government was replaced (end December 2010)…

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Murphy’s law

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An added difficulty: extension of devolution to all services provided by RENFE on non-high speed lines in Catalunya since 1st January 2011 (after a rush negotiation between the former Regional Government and the State). Rules for the devolution of regional services very similar to those for commuter train services.

A useless draft contract …

February 2011: ATM proposes to Generalitat to launch a comparative study on the praxis of contracting heavy rail passenger services in European metropolitan areas with the support of EMTA, and to derive a road map from it complying with the existing legal framework.

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ANSWERS PROVIDED TO THE ”EXPRESS QUESTIONNAIRE ON COMMUTER TRAIN SERVICES CONTRACTS IN EMTA METROPOLITAN AREAS”

1. South Yorkshire Passenger Transport Executive

2. Stadsregio Amsterdam

3. Brussels-Capital Region

4. VBB Verkehrsverbund Berlin-Brandenburg GmbH

5. London, Transport for London

6. Area metropolitana di Torino

7. Verband Region Stuttgart

8. County of Stockholm

9. Copenhagen

10. Syndicat des Transports d’Ille de France

11. ETM València*

12. ATM Barcelona

13. ZTM Warsaw

14. Centro-West Midlands

15. VOR Vienna

* ETM València: answer focusing on Line 2 of the Alacant Tramway network

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Awarding procedures

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Development and implementation of competitive awarding

The usual steps of an open tendering procedure are:

Public announcement Presentation of bids (or of expressions of interest) Final bid (when there is a negotiation or prequalification phase) Evaluation and award of the contract Mobilisation (since the start of the service)

In several cases (London Overground, Sheffield Northern Rail, Stuttgart S-Bahn), the contracting administrations have opted for a prequalification phase based on expressions of interest. Copenhaguen Oresund train and Stuttgart S-Bahn made 2 phases of bidding (initial and final) among which an extensive period of negotiations (in the case of Stuttgart, 8 months) took place.

The overall awarding process since the initial advertisement until the contract award takes about 1,5 years in average (in all cases, between 1 and 2 years).

On the other side, the time comprised between the initial call for tender and the real start of the contracted services ranges from 1 to 6 years. This period is longest for those cases where the services have been opened for competition for the first time. In average, the time between the initial call for tender and the beginning of operations is 2 years for cases with consolidated experience on tendering and of more than 4 years in novel or less experienced cases.

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In-depth study cases

Direct award of commuter train services continues to be the most frequent situation within EMTA. For this kind of awarding, Paris is an outstanding example given the extensive reach of the contract with SNCF.

Recent competitive tendering cases such as Stuttgart and Berlin are extremely interesting in order to gain insight into the changes derived from a new open contractual framework. The practical experience of these and other authorities in the preparation of the respective calls for tender is indeed relevant for the Catalan case.

As for the cases with a long-term experience on bidding, the case of Stockholm Pendeltag shows a great interest since the contract encompasses services on a comprehensive network and has a total demand similar to that of Rodalies. (like Stuttgart S-Bahn).

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Some lessons learnt

Paris

A very demanding contract can be established with the national railway operator.

Stuttgart Despite a very open call for tender, DB Regio was the only real competitor at the end. Time required for the negotiation of the new contract.

Berlin

Licitation prescriptions are crucial to promote effective concurrence... but the cake needs to be sufficiently small to get private companies bidding.

Time required for the negotiation of the new contract.

Stockholm If the awarding administration owns the “production means”, its position is optimal for

tendering and negotiating. After a (discontinued) contract with a private company, the national railway operator is

back (through a subsidiary enterprise). Trend to combine train + station services into single contracts in the future.

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This is why the Complementary Agreement nr. 1 to the Agreement to transfer functions and services of the Administration of the State on suburban rail passenger services to Generalitat de Catalunya, approved by the plenary of the Joint State-Generalitat Commission for devolution matters, stated that LSF and other rules had to be modified before 1 st January, 2011. But the State did not comply with this compromise...

Therefore, the Catalan Regional Government cannot make a free award of the Rodalies de Catalunya services as of today.

So negotiation of a contract with RENFE for the 2011-2015 period is now back after a several-month break…

Legal framework – Spanish railway law 39/2003 (LSF)

Spanish law 39/2003 envisages that RENFE will keep having a privative right to operate passenger services on the State-owned railway network until the internal market of passenger rail services is opened to competition (DT 3ª).

This legal statement backs the position of RENFE as operator of Rodalies de Catalunya no matter the services have been devolved to Generalitat and the Catalan Government wishes to have a different operator for these rail services.

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Proposed road map

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Draft PSO contract 2011-2015 : main features

Direct award of Generalitat de Catalunya to RENFE complying with article 5(6) of Regulation 1370/07 (Note: having to deal with the 2011 year means that full compliance with the PSO regulation will be impossible)

5-year contract extendable for 1-year periods (within the PSO regulation limits). Total or partial (=for some services) disengagement of Generalitat after 12 months possible at any time

Object: provision of commuter train services in RMB plus additional regional services in Catalunya (already declared public services by Generalitat de Catalunya)

24.1 M train x km per year (39.7 M branch x km per year) and 947 circulations a day in average

Main obligations of RENFE:

Provision of the required passenger rail services by a specific unit within RENFE (Dirección de Rodalies de Catalunya) with specified ascribed human means (ca. 1,200 workers) and rolling stock (256 trains). Same unit responsible for both commuter and regional services

Severe economic penalties for delayed, substituted or suppressed services

Attaining quantified values of regularity, train availability, perceived overall quality, accessibility, comfort and cleanness of trains and stations, attention to clients, passenger controls and perceived security

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Draft PSO contract 2011-2015 : main features

Main obligations of RENFE (cont.):

Carrying out a 81.7 M€ investment programme (total amount 2011-2015)

Replacement of 18 regional trains more than 30 year old by mid-life fully refurbished, accessible rolling stock

Full economic transparency (detailed P&L account, balance sheet)

Specific passenger information obligations including use of Catalan

Obligations of Generalitat de Catalunya:

Payment of compensation according to rules established in the PSO contract

Calculation of compensation:

Predicted itemized operational costs - corrected after the evolution of key indexes alien to RENFE

Plus a “reasonable industrial benefit” of 3%

Plus a “quality bonus” ≤ 0.75% (or minus a “quality malus” ≤ 0.75%) depending on quality levels attained (polynomial formula)

Minus predicted fare incomes - corrected after risk assumption rules

Minus penalties

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Draft PSO contract 2011-2015 : main features

TOTAL CONTRACTE

2011 2012 2013 2014 2015

COMPENSACIÓ PREVISTA (€) 142.135.000 143.806.000 156.301.000 167.565.000 164.298.000

Forecasted amount of compensation :

Split between commuter train services and regional services (2012) : 123,1 M€ vs. 19,0 M€

Added funding rule : Generalitat de Catalunya will pay RENFE only after reception of the corresponding State funding

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Draft PSO contract 2011-2015 : fluxes

Estat (AGE)

Generalitat de Catalunya

EMT

Ajuntament de Barcelona

Altres ajuntaments

RMB

ATM

Transport urbà

Ám

bit

Co

ntr

acte

-Pro

gra

ma

AGE

Generalitat de Catalunya

EMT

Ajuntamentde Barcelona

Altres Ajuntaments

Rodalies RENFE

TMB

FGC

Bus EMT

Bus DGTT

Tramvia

Infraestructura Tram

ATM

Transport Urbà

ESQUEMA DE FINANÇAMENT A PARTIR DE 2011

Generalitat de Catalunya

Conveni / Contracte-ProgramaGeneralitat - RENFE

Com

pens

ació

Inte

grac

ió

Tarif

ària

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« On the track again » ?