PPP

Politicians and public authorities are faced with the issue of how to keep their urban areas liveable and accessible. What has already happened to metropolises, is now threatening to occur in medium-sized cities as well: traffic congestion and the infringement of environmental standards. Light rail connections can assist in reversing this trend. After all, they cause less pollution and occupy less space than road traffic. Strukton advocates Public-Private Partnerships (PPP) in light rail as a successful approach to realise public transport service in a more efficient and effective way.

TramTeam

Strukton is an experienced manager of PPP projects. We have formed a consortium called TramTeam which, together with public authorities, develops integrated light rail solutions for urban transport problems.

The benefits of PPP in light rail

In a PPP-project authority and private party each bear their own responsibilities, while doing what they are good at. The former implements policy and monitors quality, while the latter designs, builds, maintains, finances and operates. The risks are borne proportionately, while aspirations are shared. The aim is to resolve an urgent traffic problem as quickly as possible by means of sustainable solutions.

Traditional approach

Public-Private Partnership

The authorities divide the total task: planning, design, construction, management, maintenance and operation. They conclude contracts with engineering firms, contractors, infrastructure managers and transport companies for each consecutive phase.
The authorities define their wishes and requirements clearly and functionally. The private party develops an integrated technical and commercially viable solution allowing for the entire life cycle.
The government authority is responsible for the coordination and bears the inherent risks.
The private party bears the responsibility for the interfaces between technical systems and the various project phases of the development process.
The government authority has to invest, while government budgeting structures do not make matters any easier. It can take quite some time to get such projects up and running.
The private partners provide for the financing. The banks will conscientiously see to it that the best solution will be achieved, because reliable revenue from the project will be the only way for them to make sure that the financing will be repaid.
Possible consequences: fragmentation, technical problems and running over budget and schedule. The probability of the schedule and budget being exceeded is reduced because such events would increase the pressure on the project revenue. Transport and infrastructure will be optimally aligned, as any disruption would have a negative impact on the concession’s profitability.

 

Light rail

Leaflet

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