UIC Regional Assembly for Middle-East

Transcription

1 Regional Assembly for Middle-East Amman, Jordan May 2008 Amman - Zarqa Light Rail system (LRS) By Eng. Zahi Bani Said Director of Monitoring and Licenses Directorate Public Transport Regulatory Commission(PTRC)

2 INTRODUTION Jordan is located in the heart of the Middle East. It has a total area of about 89,342 km². Development of the transportation sector is very vital to the integration of Jordan with its neighbor countries. Amman, the capital, is the most populated city with a total of more than 2 million people, followed by Irbid and Zarqa. Field survey indicated that about 60,000 public transport user passengers commuting in each direction between Amman and Zarqa on a daily basis. The Government of Jordan is decided to construct a light rail system (LRS) between these cities.

3 PT Main Routes Network In Jordan

4 Background This project is among the shortlist of top priority projects in Jordan. The first mass transit BOT project under implementation in Jordan. Jordan s s King Abdullah II stressed the need to expedite the implementation of the LRS project.

5 Importance A major step in addressing major issues facing the public transport sector in the sense that it would: Improve the Standard of Urban Transport in Greater Amman. Reduce Pollution from Vehicle Emissions. Introduce an Environmentally-friendly Transport System. Alleviate traffic congestion on Amman- Zarqa main highway.

6 Reduce car accidents. Importance Provide more efficient public transport services. Meet increased travel demands. Satisfy passenger requirements for fast, punctual, comfortable and safe travel.

7 FEASIBILITY STUDIES In 1998, PADECO Co. Ltd. (PADECO) of Japan and Consolidated Consultants (CC) of Jordan. In 2003, the 1998 feasibility study was updated by PADECO and CC. In 2006, the Royal Scientific Society (RSS) assessed the economic, social and environmental impact of the LRS project.

8 The Project The project includes the design, construction, procurement, commissioning, operation, maintenance and financing of the Amman - Zarqa light rail system (LRS) Project. The proposed system (26 km) is an electric powered, double track, standard gauge Light Rail System with the majority of the route constructed within the existing old Hejaz Railway right-of of-way.

9 The project Estimates of LRS rider ship in the opening year are on the order of 60,000 passengers per day per direction. The construction period for the LRS project is estimated to last two years. The construction phase is assumed to begin in 2008 and continue through 2009 with the first full year of operation in 2010.

10 LRS Description The LRS is to be operated using light rail vehicles on a double track standard gauge electrified track. The total length of the LRS system will be approximately 26km.

11 ROUTE DESCRIPTION The alignment of the LRS between Al-Mahatta and New Zarqa will follow the existing Jordan Hijazi Railway (JHR) right-of way. While the LRS link from Al-mahatta to Ragadan will be constructed at grade or elevated through King Abdullah Street.

12 LRS TECHNICAL STANDARDS and OPERATION The structures, track, vehicles and systems shall conform to the European Committee for Standardization standards and specifications, or other equivalent international standards.

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15 Table 4: Projected LRS Ridership (passengers per day per direction)

16 Project Costs / Financing (Based on IDC Proposal) The total Cost was estimated to be around US$ 235 million. Part of the financing will come from a grant made available by the Government of Jordan. The grant is to cover about US$ 85 million of the total financing requirements and will be directed towards the construction of the LRS infrastructure. The project sponsors will cover the financing balance by providing equity and raise loans from commercial lenders in Jordan or from abroad.

17 Project Costs / Financing (Based on Flex Proposal) The total Cost was estimated to be around 213 million. Part of the financing will come from a grant made available by the Government of Jordan. The grant is to cover about US$ 85 million of the total financing requirements and will be directed towards the construction of the LRS infrastructure. The project sponsors will cover the financing balance by themselves (25 % Social security, 25% Jordanian People for sharing company).

18 Economic Impact Based on economic study conducted by the RSS, The following benefits are expected from this vital project: Fuel : Saving JD 3.94 million /year Employment: the project will generate a minimum of 400 permanent new jobs,and about 1200 new jobs per year during construction period.

19 Travel Time: Value of Annual Saving from Travel Time JD 3.5 million /year Accidents: Reducing Accident cost by JD 2.0 million /year Environment: Reduction in CO2 Emission by about 27,347 ton/year

20 Traffic Impact The LRS Trains will carry about 100 thousand passengers per day in year In 2040,it is expected that this system will carry nearly ¼ million passengers per day. Implementation of this project will reduce traffic congestion and other negative effects on Amman-Zarqa corridor.

21 Economic Evaluation 12% Discount Rate: Without Government Subsidy = 1.16 With Government Subsidy = 1.5

22 Income from Investor (Based on IDC) From (Year 1 to Year 2): 2,886,000 JD Yearly From (Year 3 to Year 5):3,386,000 JD Yearly From (Year 6 to Year 30): 2,000,000 JD Yearly Total income JD million (JD 14.7 million in 2006 prices).

23 Income from Investor (Based on Flex) For (the first 7 years ): 2,000,000 JD Yearly From (Year 8 to Year 9): 2,500,000 JD Yearly From (Year 10 to Year 18):4,000,000 JD Yearly For (Year 19):4,500,000 JD Yearly From (Year 20 to Year 28):8,000,000 JD Yearly For (Year 29):8,500,000 JD Yearly Total income 140,000,000 JD million (JD 12.0 million in 2006 prices).

24 Project Implementation Structure The New Amman - Zarqa light rail system (LRS) project will be implemented by the private sector (Project Company) following a build-operate operate- transfer (BOT) approach. The Project Company selected through a competitive biding process. The duration of the proposed Construction and Operating Agreement will be 32 years (2 Y construction,30 Y operation)

25 GOJ Commitment to Success the LRS This commitment is demonstrated by the following: Significant reduction of permits to operate buses over the Amman-Zarqa route by 2008; Not issuing any new permits to other operators over this route, effective immediately; Exempting the investor/operator from payment of VAT, customs or other taxes, including income taxes during the first ten years of LRS operation; Covering the cost of any required land acquisition;

26 Facilitating a possible investment of up to 25% of the issued shared capital by the Investment Unit of the Social Security Development Corporation; Providing a Minimum Revenue Guarantee. Allowing the investor / operator to propose the fare for LRS users up to a maximum of 0.5 J.D per trip (at 2006 prices). To provide a subsidy of JD60 million to offset the project capital investment costs.

27 Important Dates In Oct. 2006: Call of Interest was issued. In Nov. 2006: Pre-qualification was undertaken. In Dec. 2006: The RFP was issued. In Feb. 2007: Conference for pre-qualified was arranged. On 30, April, 2007: Technical and financial proposals were submitted. On 8, May, 2007: Result of evaluation was announced.

28 Financial Proposals The selection process of the preferred bidder based on the highest net present value (NPV) of all fees paid to the Government over the 30 Years term of the Construction and Operating Agreement.

29 Project Status Three consortia were submitted their proposals: Dutch-Arab Consortium. IDC Consortium. Flex Consortium. Two consortia were technically qualified, namely, IDC and Flex resorts. Assessment of the two Financial Offers was later conducted. IDC was announced, on May 8th 2007 as the preferred bidder;

30 Project Status Memorandum of Understanding was signed during the World Economic Forum held at the dead Sea- Jordan, with IDC on May 19th Final negotiations with the winning IDC commenced on June 10th the IA (Implementation Agreement) was signed with IDC on October 18 th 2007, but the IA terminated on March 23 rd 2008 according to financial and legal issues. The GOJ invited the second qualified bidder (Flex Resorts) in order to begin negotiation.

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32 Thank you For your Listening