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HSR Norway Commercial, Contractual, and Organisational

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HSR Norway Commercial, Contractual, and Organisational www.pwc.com 15 February 2011 HSR Norway - Long Distance Passenger Rail Transport in Norway Commercial, Contractual, and Organisational Report Phase 2 February 2011 15 February 2011 Disclaimer This report has been prepared solely for the Norwegian National Rail Administration (“NRA”)'s internal use for the purpose set out in the engagement letter dated 22 October 2010. The NRA has been mandated by the Government to undertake a study Programme to assess all aspects of developing High Speed Rail in Norway. The study Programme is to be done in three phases. The first phase comprises summarizing already established knowledge. The second phase is intended to form the basis and framework for the third phase, which is a detailed analysis on all aspects the specific potential corridors for HSR. Phase 3 is scheduled to be finalized during the fall of 2011. PwC has been appointed to do one of six different studies in Phase 2 – an assessment of Commercial and Contractual strategies and Organisational Aspects for HSR. Information supplied by NRA has not been independently verified by PricewaterhouseCoopers (“PwC”) and we therefore do not provide any assurance as to its completeness or accuracy. PwC has not performed any quality assurance or controls of NRA’s business. NRA is entitled to use information from this report within their business, in accordance with the Terms and Conditions attached to our engagement letter. The report and/or information from the report may not be used or distributed without PwC’s written consent. PwC does not accept any responsibility for losses suffered by NRA or others as a result of the distribution, reproduction or use of our final or draft report contrary to the specified conditions or engagement letter. PwC holds the property right and other intellectual property rights to the report and ideas, concepts, models, information and know-how that are developed in accordance with our work. Any actions based on the report are made on the persons own responsibility. PwC February 2011 PwC 2 15 February 2011 Content 1 Executive Summary ......................................................................................................................... 7 1.1 Introduction............................................................................................................................. 7 1.2 Scope of work in delivering a HSR .........................................................................................8 1.2.1 Key steps in delivering a HSR.............................................................................................8 1.2.2 Structure of the project delivery organisations................................................................10 1.3 Contractual strategy ...............................................................................................................11 1.4 Commercial strategy – scope for self-funding ..................................................................... 13 1.5 Organisational issues............................................................................................................. 14 1.5.1 Delivery organisations....................................................................................................... 14 1.5.2 Industry structure.............................................................................................................. 15 1.6 Lessons from case studies and market soundings............................................................... 15 1.7 Next steps............................................................................................................................... 16 2 Background .................................................................................................................................... 17 2.1 Introduction........................................................................................................................... 17 2.2 Background to the Mandate.................................................................................................. 17 2.3 Requirements of the Mandate .............................................................................................. 18 2.4 Purpose of this report............................................................................................................20 3 Methodology................................................................................................................................... 21 3.1 Structure of this report.......................................................................................................... 21 3.2 Background/limitations ........................................................................................................23 3.2.1 Review of previously prepared material...........................................................................24 3.2.2 Workshops, meetings and interviews...............................................................................24 3.2.3 Market sounding................................................................................................................24 3.3 Scenarios ................................................................................................................................25 4 Context for the study......................................................................................................................26 4.1 Introduction...........................................................................................................................26 4.2 Assumptions...........................................................................................................................26 4.3 Alignment of the study with transport policy ......................................................................27 5 Introduction to High Speed Rail ...................................................................................................30 5.1 Overview.................................................................................................................................30 5.2 Scope of a high speed rail project ......................................................................................... 31 5.3 Structure of the project delivery organisations....................................................................32 6 Contractual issues ..........................................................................................................................34 6.1 Introduction...........................................................................................................................34 6.2 Procurement Strategy............................................................................................................34 6.2.1 Principal steps....................................................................................................................35 6.2.2 The principal elements of a procurement strategy ..........................................................35 6.2.3 Key objectives.....................................................................................................................37 6.3 Legal and planning framework .............................................................................................38 6.3.1 Introduction.......................................................................................................................38 6.3.2 The Railway Act .................................................................................................................39 6.3.3 The Rail Regulations .........................................................................................................39 6.3.4 The Allocation Regulations ...............................................................................................40 6.3.5 Alignment of Norwegian law and regulations with EU-regulations...............................42 6.3.6 The “Agreement for purchase of passenger rail services” ...............................................43 6.3.7 The Planning and Building Act .........................................................................................44 6.3.8 The Nature Diversity Act...................................................................................................45 6.3.9 The Norwegian quality assurance schemes (KS1/KS2)...................................................46 6.4 External regulatory environment .........................................................................................47 3 15 February 2011 6.4.1 Legislation..........................................................................................................................47 6.4.2 Procurement ......................................................................................................................48 6.4.3 Specifications .....................................................................................................................49 6.4.4 Regulation of safety in the rail industry ...........................................................................50 6.4.5 Other considerations .........................................................................................................52 6.5 Contract strategy options ......................................................................................................53 6.5.1 Issue....................................................................................................................................53 6.5.2 Summary ............................................................................................................................63
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