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Country Introduction I.Pdf PART 1 Introduction Of Finland • Privatization Level • Maintenance Activities • Maintenance Costs Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Pekka Pakkala - Finnra Client Role Changes Drivers For Change: · Need To Outsource All Capital & Maintenance Projects · Need To Outsource Other Client Services (PMS & Others) · Fully Integrated Client Services & Cost Savings · Develop Project Partnering · Cultural Change & TRUST Between Client & Contractors · Developing Outcome Based Criteria (Performance Specs) · Changing to (Changing Skills) · Seeking Innovation & Better Asset Management · Aging Organization & Attracting New/Young Professionals · Hope => Young Professionals in IT Area · Risk Allocation - Which Ones to Transfer · Contractors Will be Responsible for Development & Innovation · Road User Satisfaction Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Pekka Pakkala - Finnra 1 Finnish Road Administration - 1 January 2001 n The Finnish Road Administration is a state agency operating in the administrative sector of the Ministry of Transport and Communications. n The Road Administration is responsible for public road management. Its task is to administer, maintain and develop public roads, traffic conditions and road transport services in Finland as a part of the entire transport system. n It is the duty of the Road Administration to promote well-balanced regional development through road management actions. Along with the main network, also the lower-standard roads must be kept in service and in proper condition. n The Road Administration must contribute to research and development and other expert tasks within the road transport system. n The Road Administration acquires services and products associated with road management from parties outside the agency. Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Pekka Pakkala - Finnra FINNRA Today Finnish Road Administration (FINNRA) is in charge of public roads, whose capital value is about 15 billion €. Public roads on 1 Jan. 2001 78,000 km * Paved roads, 64% 50,300 km ** Main roads 13,300 km *** Motorways 549 km * Pedestrian- and bicycle ways 4,300 km * Roads with lightning 10,700 km * Bridges 13,800 Public roads carry 65 % of all road traffic in Finland. At the end of 2000 the number of permanent personnel at FINNRA was 1 060. The allocation for public road management is about 770 million € in 2001. Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Pekka Pakkala - Finnra 2 Phases in Road Organization’s Reform Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Identify Separate Privatize Client Client Corporatize Client Client Client Client Agency & and and Production Producer Producer Corporatize Privatize (Deliverer) Producer Producer Road Fund Decreasing Government Involvement Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: World Bank, TNZ & Finnra THE CLIENT-PRODUCER CONCEPT at the Beginning of 2001 FINNRA Producer Head- Head- quarters quarters Regional Agencies Contract * Road policy, strategies Agreements Maint- Const- Service enance ruction Enterprises * Safety, Road programs * Procurement of design * Carries out business activity, construction and main- * Business planning * Design, construction and tenance works maintenance works * Client services. * Responsible for profitability Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Markku Teppo - Finnra 3 PAYMENT METHOD IN THE CONTRACTS Hybrid System • 75-80 % on lump sum basis • Winter maintenance as a whole • Gravel road routine maintenance • Pothole patching • Cleaning & Sweeping • Roadside vegetation control • Drainage & Culverts • 20-25 % on schedule of rates basis • Renewal of road signs • Guard rail replacement • Larger road surface repairs • Drainage repair • Renewal of gravel road surface • Repair of gravel road frost thawing sections Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Markku Teppo - Finnra MAINTENANCE EXPENSES MAINTENANCE COSTS BY SECTOR DRAINAGE GRAVEL UPKEEP ROADS 7 % 17 % CLEANING WINTER MAIN & CRACK 52 % REPAIR 8 % VEGETATION & TRASH 16 % Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Pekka Pakkala - Finnra 4 REGIONAL MAINTENANCE CONTRACTS Opening the Competition in 2001-2004 Ivalo Kittilä Term of Contract Sodankylä Pello 2001-2004 Rovaniemi Kemijärvi Ke mi Ran Posio Kuu- poh ua sam j. Kemi et. o 2002-2005 Taival Ii -koski Pudasjärvi Piispajärvi Oulu 2003-2006 Puolanka Suomussalmi Raahe Vaala Pulkkila Kajaani Kuhmo 2004-2007 Ylivieska Kokkola Iisalm Pietarsaa Pyhäjärvi Kiuru - i vesi Nurmes Oravainenri Veteli Nilsiä Lapua Pihti- Pielave Juuk pudas si a Vaasa Alajärvi Kuopi Sein Kars- Suonen o JoeIlomantsi ä- Alavus Viinijärvi tula - joki n- Kristiinan- Koskenjoki- Suolahti Leppä kaupunki suu Kauhakorva- Jyväskyl -virta Keuruu Kit joki Virrat Savon- ä länt Pieksä ee Kan- Park -mäki Jä Juva linna kaan- JkyläJkylä itit a-no m- Mer pää Orivesi Mikkeli i- sä Heino karv Har Kangas- Pada la iaPori Tampere Mäntyharju -ja- ala s- Imatra Huittinen Hämeen- Savitaipale valt joki Laitila Pöytyäa Forssa linna Kouvola Riihimä Lahti Lappeenran ki Ra ta i- Somero Num- MäntsäläLo Lieto Hyvinkää - Kotka si mi Por- vii o Es voo Paimio Salo Kar - Va sa - po n- Tam jaa o taa -mi- saar i Pekka Pakkala Linkoping, Sweden April 15-16, 2002 NRA/BRA Presentation Source: Finnra 5 Routine Maintenance in Latvia Aldis Lacis Road Maintenance Division, Latvian Road Administration 6/5/02 Aldis Lacis 1 State Road Management in 1990 Ministry of Transportation State Company “Latvijas autoceli” (Latvian Roads) 26 State Companies Regional Road 11 State Road Several small Administration Construction State Construction (Road Maintenance Companies Companies Enterprises) 6/5/02 Aldis Lacis 2 1 Stage 1 of State Road Service Reorganization (1991 – 1993) Ministry of Transportation Road Transport Department Latvian Road Administration Road MaintenanceSt Enterprises RegionalRegional Road Road Administration State Road Service Administration Contract Contractors 6/5/02 Aldis Lacis 3 Stage 2 of State Road Service Reorganization (1994 – 1995) Ministry of Transportation Road Transport Department Latvian Road Administration Road Regional Road Road Maintenance Enterprises State Service Administration Contract Contractors 6/5/02 Aldis Lacis 4 2 Stage 3 of State Road Service Reorganization (1996 –2002) Ministry of Transportation Road Transport Department Contract Latvian Road Administration District units of Latvian State Road Service Road Administration State Joint stock Company Contract Contractors 4 Road Maintenance JSC 6/5/02 Aldis Lacis 5 Asphalt pavement condition (Inspection Year 2001) 1600 1400 1200 1000 800 Good Km 600 Fair 400 Bad 200 0 Main 1th class 2nd class Road functional class 6/5/02 Aldis Lacis 6 3 Pothole patching on the state roads 6 5 5,03 4 4 3,92 3,86 3,81 3,76 3 3,03 3,05 3,02 2,95 2 1 0 1998 1999 2000 2001 Forecast 2002 Patched area (100 000 sq.m) Expenditures (million USD) 6/5/02 Aldis Lacis 7 Structure of routine maintenance works year 2001 Shoulders, drainagies Road and supervision Winter vegetation 3% 48% 10% Road safety Bridges and Pavements equipment coulverts 32% 5% 2% 6/5/02 Aldis Lacis 8 4 Patching technologies 1998 With paver With asphalt 12% With cold concreate winter mix throw and roll 5% 40% Witth asphalt concreat cutting edges 8% With bitumen emulsion and crushing stones 35% 6/5/02 Aldis Lacis 9 Patching technologies 2001 With cold winter mix With asphalt With paver 2% concreate 5% Witth asphalt throw and roll concreat 12% cutting edges 2% With bitumen emulsion and crushing stones 79% 6/5/02 Aldis Lacis 10 5 Revenues for the State Road Network, million EUR 129 Establisment of the SRF EC Funds 112 Loans 87.7 89.3 83.3 84.2 State Road 52.8 Fund 47.3 State 24.2 consolidated 14.3 budget 11 9 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 6/5/02 Aldis Lacis 11 Financing of road works 100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 expenditure million USD 10,0 0,0 93 94 95 96 97 98 99 00 01 Expenditures for routine maintenance per year Expenditures for periodic maintenance per year Expenditures for reconstruction per year Estimated routine maintenance per year Estimated periodic maintenance per year Estimates reconstruction per year 6/5/02 Aldis Lacis 12 6 Finances Needed to Eliminate Repair Backlog – 519 Million USD Gravel Asphalt pavements pavements 148 214 123 34 Bridges Traffic safety 6/5/02 Aldis Lacis 13 Latvian Road Administration 6/5/02 14 7 Performance based contracting for road marking. u Public wants to drive safe u Objective - road markings in accordance with standard always and everywhere 2000 km of state main roads... 6/5/02 Gints Alberins 15 Works contracting u Works specification based contract ð Best specification ð Best contractor ð Best price ð Best time 6/5/02 Gints Alberins 16 8 ð Almost good result ? is it according to specification ? shall it perform ? is it contractor’s fault ? ... 6/5/02 Gints Alberins 17 u Product performance based contract ð Product performance requirements ð Clear contract conditions ð Reliable contractor ð Good price ð Any time 6/5/02 Gints Alberins 18 9 Almost good process 6/5/02 Gints Alberins 19 Lessons of year 1 u Quality of road surface shall be respected u Quality related payment terms shall apply 6/5/02 Gints Alberins 20 10 The End ... 6/5/02 Gints Alberins 21 11 .
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