1 MINUTES OF PIARC TECHNICAL COMMITTEE 1.2 FINANCING ...

ATTENDANCE LIST
MINUTES OF PIARC TECHNICAL COMMITTEE 1.2
FINANCING
The first TC meeting was held in Paris, France on the
7 th and 8 th of March, 2012.
Gerardo GAVILANES GINERES Spain, Spanish-speaking Secretary and Acting Chairman
Marie-Hélène LEVESQUE Canada and English-speaking Secretary
Anne PLUVINAGE-NIERENGARTEN France and French-speaking Secretary
Miguel Ángel SALVIA Argentina
Christian NAGL Austria
Volker RUX Austria
Friedrich SCHWARZ-HERDA Austria
Dirk DE SMET Belgium
Gérôme ESSOMBA Cameroon
Chantal GIROUARD Canada-Quebec
Daniel TOUTANT Canada-Quebec
Jan Jozef JOOSTEN France
Chadi KHALED France
Norbert ULRICH Germany
Tunde KNAPNE HANYECZ Hungary
Istvan KOVESDI Hungary
Arpad SIPOSS Hungary
Maria Pia CERCIELLO Italy
Emanuela STOCCHI Italy
Takaaki NAMBU Japan
Mara KALPAKA Latvia
Issa Hassimi DIALLO Mali
Mory KANTE Mali
Edgar FABRIS RUBIO Mexico
Abdelhamid JANATI IDRISSI Morocco
Anna DOLOWA Poland
Alenka KOSIC Slovenia
Gema RAMOS SANZ Spain
Manfred ZBINDEN Switzerland
Ian PATERSON United Kingdom
Michael PATTERSON United States
ATTENDANCE FROM PIARC
Jean-François CORTE PIARC - Secretary General
Friedrich ZOTTER PIARC Strategic Theme 1 Coordinator
Miguel CASO FLOREZ PIARC Technical Advisor
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OPENING SESSION
Mr. Gavilanes warmly welcomed everyone to the first Committee meeting and expressed his thanks to
those members in attendance for their commitment to the work of the technical committee.
First he apologized on behalf of Mrs. Rallo. Due to the recent elections held in Spain and consequently
new Government, she has been nominated as chief of cabinet of the Secretary of Transport so,
unfortunately, she is no longer available for the post of chairwoman of the committee. Mr Gavilanes
pointed out that, for this meeting, he will be acting Chairman. It is very likely that, at PIARC´s next
meeting in Iceland, he will be officially nominated as Chairman of TC 1.2 and replaced as Spanish
Speaking Secretary by Mrs. Paloma Alonso. No objections were made.
He also thanked PIARC for organizing these first meetings.
Mr. Caso Florez, representing PIARC, extended a welcome on behalf of PIARC and also outlined the
agenda for the next 3 days.
Mr. Gavilanes introduced Mrs. Lévesque and Mrs. Pluvinage-Nierengarten as English and French
speaking secretaries of the committee, respectively.
TERMS OF REFERNCE FOR TC1.2
Mr. Gavilanes presented the terms of reference, as established by PIARC. A brief discussion ensued
about what is in the scope and what is out of scope for this committee. The terms were accepted with
no changes.
Issue 1.2.1
Funding strategies for a sustainable road system
Strategies Outputs
Investigate the new developments in funding State of practice including lessons learned.
strategies. Catalogue these new developments.
Analyse their objectives, implementation
processes and challenges (including
acceptability by payers), collection costs,
evolution of revenues raised (including fuel /
energy / carbon taxation measures), proportion
of collected revenues going to the road sector,
and sustainability. Examine whether these new
funding streams are additional or substitutional
to prior funding strategies for the road sector.
Issue 1.2.2
Private sector financing
Strategies Outputs
Investigate how key contractual aspects (i.e. Report and case studies, where appropriate,
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isk allocation and transfer, risk mitigation and
management, contract flexibility during
concession period, rules of anticipated ending
of concession, traffic and revenue risks,
financing risk, etc) have changed through time
(differentiating pre- and post-global financial
crisis) and their impact on project structure in
order to reach financial closure and value for
money.
Establish the costs of private financing, i.e.
expected equity rate of return and debt interest
rate, by payment mechanism and by geography
and how these have changed through time
(differentiating between pre- and post-global
financial crisis).
Benchmark capital costs of similar
infrastructure services (e.g. railways, and
power and water utilities) and identify reasons
for variances between these different sectors
and the road sector.
TC STRATEGY FOR THE PERIOD
adopted by countries at different development
stages, illustrating their evolutions and
achievements.
Report on costs of private financing in
comparison with public financing.
Review of benchmark results in comparison
with different infrastructure services.
It was agreed that the members of TC will create 2 subgroups each one devoted to each of the Issues
of the Terms of reference.
After a presentation and a brief discussion, it was agreed a draft list of outputs for the coming years.
Of course it will have to be fine tuned as a result of the work of the subgroups during the coming
months.
Mr. Gavilanes pointed out that it was very advisable for the members of the committee to peruse the
report produced by former committee A.2., especially to avoid duplicating the work of this committee.
There are versions available in English, French and Spanish.
Future TC Meetings and seminars
It was reported that PIARC wanted the committee to held at least 3 international seminars, one in
India, one in Romania and one in Latin America. The committee members discussed the location
options for those meetings.
As a result, it was proposed that meetings will take place twice a year following a spring-fall schedule.
So there was proposed, of course depending on what PIARC will suggest in relation to seminars, that
meetings will be held as follows:
1. Fall 2012 in Rome.
2. Spring 2013 in Morocco (maybe with a seminar)
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3. Fall 2013 in Argentina (or another SA location. It will be the first of 2 regional meetings)
4. Spring 2014 in Central America or Mexico together with regional seminar
5. Fall 2014 in India (seminar proposed by PIARC). Can be shifted with #4.
6. Spring 2015 in Romania (seminar proposed by PIARC)
The member from Italy, Mrs. Cerciello kindly offered to host the next meeting of the TC in Rome. It
will likely be held during the first half of October 2012. Mr. Gavilanes thanked the Italian members
for volunteering to host. Further information about the meeting will be circulated during the coming
weeks.
NOMINATION OF TC POSITIONS
The following persons were selected for the necessary posts within the committee:
• Mr. Nambu will be the leader of Subgroup 1.2.1. Once available, he will be replaced by Mrs.
Paloma Alonso.
• Mr. Nagl will be the leader of Subgroup 1.2.2.
• Mrs. Stocchi will be the terminology correspondent.
• Mr. Kovesdi will be TC webmaster. He was webmaster during last period.
It was agreed that no Vice President was needed. It also was agreed that FSS Mrs Pluvinage-
Nierengarten will act as secretary of Subgroup 1, and ESS, Mrs Levesque will act as secretary of
subgroup 2. They will help with the translation English-French in case it is needed.
Also all attendants decided which subgroup they wanted to be part of.
MISCELLANEA
Mr. Patterson from US, will get in touch with the Transport Research Board of the US, to find out
which of its committees or members should be invited to cooperate with our TC works. It was also
agreed that Mr. Nambu from Japan will do the same in relation to Road Engineering Association of
Asia and Australasia (REAAA).
Mr. Caso-Florez made a presentation about PIARC web page, the working space of the committee and
its use. It was much appreciated.
The presentations used during the meeting, together with the minutes will be sent to all TC members
in the coming weeks.
NEXT MEETING
The committee members agreed that the second meeting of TC 1.2 is set for Rome, Italy in
October 2012. The exact date and location will be communicated at the earliest convenience.
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