"Yard Stick" for Monitoring Toll Road Operators By

A Sensible KPI System is
the "Yard Stick" for Monitoring
Toll Road Operators
By:
Bill M. Halkias, P.E.
Chief Executive Officer
Attica Tollway Operations Authority
Slide: 1
Presentation Contents
• Infrastructure Procurement Business Models
• Key issues in the PPP business model
• Toll Road Concession Project Model
• Operational Strategic Objectives
• Monitoring and Measuring Performance
• KPI as a Measurement Tool
• KPI Characteristics
• KPI implementation - The case of Attica Tollway
• Conclusion
Slide: 2
1

Infrastructure Procurement Business Models
Public Works
& Procurement
Contracts
Management
& Maintenance
Contracts
Brownfield:
Operation &
Maintenance
Concessions
Greenfield
project, user
financed
Full
Privatisation
(BOO)
Extent of Private Sector Participation & risk
Low
High
Q: What is a Concession project in the transport
sector?
Ans: A cooperation between the public and private sectors for
the financing, development and operation of transport
infrastructure.
BOT/BOOT/DBFO/PFI = PPP Model
Slide: 3
Key issues in the PPP business model
• Precise definition of the tasks assigned to each
party – Risk allocation.
The greater is the risk allocated to the private party
the smaller is the public involvement.
• Measuring the project’s performance, as set by the
contract.
Above depends on the extent to which the State and
the Lenders can control and monitor the agent’s
performance in the various phases of the contract.
Slide: 4
2

Example of Main Project Contracts in the Concession Model
138
contracts
Project Owner
Greek State
PO
ΕΙΒ
Finance
Documents
Halcrow
Banks TA
Commercial
Banks
Independent
Engineer
I.E. Agreement
Concession Contract
Shareholders’
Agreements
Shareholders
of S.A.
Shareholders
of A.D.
Design – Build Contract
Attiki Odos JV
Operation – Maintenance Contract
Attikes Diadromes
Shareholders’
Agreements
CJV Agreement
Execution of works /
Supplies
Agreements
ITTMS
Consultancy Agreement
Know – How
Agreement
Provision of Services
Agreements
Supplies
Agreements
Sub-contractors
Members IBI Group
Sub-contractors Suppliers
Suppliers
Slide: 5
For Operation: Model Complexity requires clear Strategic Objectives
Enhance safety
Improve mobility
Preserve the assets
Increase customer satisfaction
Slide: 6
3

A Successful approach
Aim for Business Excellence
• Identify the need / problem
• Set the target
• Design of Integrated Operating Procedures
• Implementation and Level of Service
• Monitoring and Measurement of achievements
Slide: 7
Monitoring and Measuring Performance. For Who?
An information and communication tool with…
Management
Shareholders
Builds a relation of “TRUST”
Public Administrations
Public
Slide: 8
4

Monitoring and Measuring Performance. Why?
…..TRUST BUT VERIFY…..
a famous political phrase
a valuable business approach
“…man's deeds not words.”
DEMOSTHENES
“…doveryai, no poveryai”
RONALD REAGAN
Slide: 9
KPI Advantages
Efficiency
Pays attention to the actions and
resources on organizational results,
and the process of operation.
Improvement
Improves efficiency of
the system over time by
monitoring over desired
intervals.
KPI
Communication
Effectiveness
Correlates the outcome of
policy decisions related to
the immediate actions
taken by the company.
Communicates useful information to
the stakeholders (users, management,
authorities, etc)
Slide: 10
5

KPI Characteristics
Sensible
Measurable
KPI
Verifiable
Interlinked
Slide: 11
The case of Attica Tollway PPP Model
Elefsina
•65 km (130 km both ways)
•24 I/Cs
•39 Toll Stations
•195 Toll Gates
•16 km of tunnels and cut and
covers ~ 12%
•AADT 300.000 veh/day
City Center
Slide: 12
Athens
International
Airport
6

Slide: 13
Attica Tollway - KPI Implementation Approach
• Strategy definition at the Operational level
• Discrete set of Indicators for each operational activity
• Target Values for each indicator
• Time based Indicators Evaluation
• Problem recognition and corrective actions
Slide: 14
7

Attica Tollway – KPI
Slide: 15
Attica Tollway – KPI (continued)
Slide: 16
8

Attica Tollway – KPI (continued)
Km x Hours
Month
Slide: 17
Attica Tollway - The KPI Business Excellence Approach
….it requires continuous measurement and
improvement of the operation’s effectiveness.
Especially when this “effectiveness” is strongly
related with the safety and the convenience of
300.000 users per day !!!
Slide: 18
9

Attica Tollway – The Contractual Obligation
This is a choice….
extending above and beyond
any contractual obligation…
Only 4 of the 33 Indicators used is a contractual obligation !!!
Slide: 19
Attica Tollway- KPI Monitoring Results
2008 Users satisfaction level from Toll Collectors Behavior: 99,0%
68,4
Very satisfied
74,3
90,3
Rather satisfied
27,3
24,0
99,0%
8,7
Not so satisfied
0,4
0,5
0,5
2008 Users satisfaction level from Call Center Service: 94,9%
0,4
Not satisfied at all
0,1
0,2
3,3
Do not know 0,5
0,3
1,2
Do not have any
0,6
opinion
0,1
Apr 06
Mar 07
Mar 08
100
90
80
70
60
50
40
94,9%
63,263,9
59,1
44,5
41,1
June 05
Apr 06
Mar 07
Mar 08
30
27,7
31,0
24,7
20
10
0
7,4 8,0
6,3 5,8 5,7
4,4 4,3
2,0 0,8
Very satisfied Rather satisfied Not so satisfied Not satisfied at all Do not know/Do not
have any opinion
Slide: 20
10

Attica Tollway- KPI Monitoring Results (continued)
2008 Users satisfaction level from the Attica Tollway Safety: 94,9%
80
94,9%
70
60
50
40
54,3
48,547,5
40,9
54,0
48,9
45,6
39,1
June 05
Apr 06
Mar 07
Mar 08
30
20
10
0
5,6 5,2
3,1 3,9
0,8 0,6 0,5 1,2 0,1 0,2 0,1 0,1
Very safe Rather safe Not so safe Not safe at all Do not know/Do not
have any opinion
Slide: 21
Attica Tollway KPI Implementation Scheme
In conclusion an integrated and sensible KPI system is the best
“yard stick”
for monitoring the toll road operations.
Slide: 22
11

THANK YOU!
Contact:
Bill M. Halkias, P.E.
Chief Executive Officer
Attica Tollway Operations Authority
Email: bhalkias@attikesdiadromes.gr
Slide: 23
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