Lado Prah, univ. dipl.inž. Družba za avtoceste v Republiki Sloveniji, d.d., Ulica XIV. Divizije 4 , 3000 Celje, Slovenija

Helena Garzarolli, univ.dipl.inž. DDC svetovanje inženiring, Družba za svetovanje in inženiring, d.o.o., Kotnikova 40, 1000 Ljubljana, Slovenija

Sažetak: V letu 1995 je državni zbor Republike Slovenije sprejel Nacionalni program izgradnje avtocest v Republiki Sloveniji. S sprejemom tega dokumenta, ki je opredelil cilje in obseg izgradnje slovenskega avtocestnega omrežja, organizacijske in institucionalne pogoje ter predvsem finančno strukturo, je postavil temelje za izvedbo tega velikega nacionalnega projekta. V dvanajstih letih je realizacija nacionalnega programa sledila političnim in gospodarskim spremembam, se prilagajala napredku stroke ter evropskim usmeritvam in izkušnjam s področja organiziranosti in financiranja velikih infrastrukturnih projektov. V prispevku so predstavljeni ključni izzivi iz obdobja od 1994. leta do danes, ki so vplivali na obseg, strukturo in vire financiranja avtocestne izgradnje v Sloveniji. Ključne riječi: nacionalni program, avtoceste, financiranje Abstract: In 1995 the Parliament of the Republic of Slovenia adopted National Motorway Construction Programme in the Republic of Slovenia. This document was the basis for one of the biggest national projects. It has set goals and scale of Slovene motorway construction as well as organisational, institutional and financial structure of the project. In the past twelve years the realisation of the programme followed political and economic changes, took in consideration the development of the knowledge and industry as well as European directives and experiences in the field of organising and financing large infrastructure projects. In this article main challenges that affected scale, structure and financial sources for Slovene motorway construction from 1994 to this day are presented. Key words: national programme, motorways, financing

The programme and financial sources for its realisation experienced several changes from 1993 to this day. traffic and financial presumptions National programme was based on. New connecting roads and some other measures were added to the original motorway cross that resulted in prolongation of planned new roads to 554 km. In 1993 all these efforts were focused to a so called “national project of the century”. In case of Slovenia. In 1995 the National Motorway Construction Programme (NPIA) was adopted by Slovene National Assembly.INTRODUCTION Important. national infrastructure projects such as motorways are always a challenge from financial point of view. The preparation and the debate on numerous documents took place and contacts with international financial institutions were established to prepare consistent motorway construction programme. to loans. such as optimisation and development of tolling system. 1. In 1993 Slovenia signed Transport Agreement with EU that encouraged the preparation of Slovene motorway construction programme. Each country is confronted with limited budget and multiple needs as well as with limited options and opportunities for additional financial sources for project realisation. organisational solutions. The programme was enlarged and the focus moved from “petrol tolar”. The resolution is in force from 2004 and forecasts the construction of 640 km of roads for 3. The National Assembly suggested the adoption of a so called law on “petrol tolar” (with tolar being the Slovene currency at the time) to assure financing and the study on possible long term financial sources for programme realisation. a small country that got its independence only recently. A preparation and adoption of a new resolution on NPIA (ReNPIA. The draft programme for construction of a so called east-west motorway direction was prepared in 1993 and construction began. were also included. see Figure 1) followed a thorough analysis of the programme realisation in period 1994 – 2002. A new estimated investment value grew to 4. a national motorway construction programme. such projects require huge efforts in terms of political wisdom. bond and other sources that are becoming more and more important. By today altogether 374 km of new motorways were built. The challenge how to assure Slovenia with modern motorway network is changing into a challenge how to assure financial sources for programme completion and debt servicing. The programme was financed from the following sources: “petrol tollar”. Strategic role of some traffic directions resulted in change of Slovene traffic policy. tolls. The programme anticipated faster construction of new motorways on priority direction connecting Šentilj on the Slovene – Austrian border and the port of Koper with connections to Italian and Hungarian borders. Programme was to be realised from 1994 to 2004. The new Slovene development needs in economy and traffic as well as financial feasibility demanded to revise the economic. After 1996 the strengthening of traffic flows from Northern Europe through Slovenia to south-east began. As a consequence changes and additions to NPIA were adopted by Slovene Parliament in 1998. professional expertise and prioritising. 2 . Total length of planned new motorways was of 500 km and the investment value was estimated to 2. To the draft from 1993 a new motorway direction from south to north was added. including EU funds. NATIONAL MOTORWAY CONSTRUCTION PROGRAMME IN THE REPUBLIC OF SLOVENIA After 1990 geopolitical changes in middle and eastern Europe had an important influence on changes in traffic flows and traffic loads within Slovene road network. loans and bonds and other sources.476 millions € by 2013. being prevailing source for programme realisation at the beginning. Some investments.100 millions USD (without financing costs) and the programme was supposed to be finished by 2004.170 millions USD (without financing costs).

170 mio EUR 4.2004 1994 .100 mio USD 3. In 1994 two contracts were signed between the state and DARS that redefine responsibilities allocation for motorway programme realisation. DARS was in charge of financial engineering.2013 The Slovene Parliament and government. a joint-stock company established by law in 1993. 1998 and 2004 Planned new roads lengths (km) 500 554 640 Estimated programme investment value 2.Table 1: The comparison between Slovene motorways construction programmes. In accordance with the decisions of the National Assembly of the Republic of Slovenia. Figure 1: National Motorway Construction Programme in the Republic of Slovenia from 2003 . All the investors’ tasks were trusted to a Motorway Company in the Republic of Slovenia (DARS). and is responsible for the management of motorways in the Republic of Slovenia. numerous ministries and local community administrations are included in program realisation. adopted in years 1995. stimulation of further economic growth and development and better safety for all road traffic participants.2004 2003. organising and managing construction and maintenance of the motorway network. 3 .2013 NPIA 1995 NPIA 1998 ResNPIA 2004 Main strategic goals that Slovenia is planning to achieve with programme realisation are the assurance of suitable and effective inner and outer road connection of the state. preparing.476 mio € Planned program construction period 1994 .

065 mioUSD ReNPIA 2004* 2003 . too. In this context the importance of tolls becomes crucial.960 million € * petrol tolar will be used for loan repayments even after 2013 (likely till 2019) Tolls A share of collected tolls is allocated to cover investment costs of motorway construction. The importance of tolls as a direct financial source for motorway construction is only marginal. 1998 and 2004 Planned amount of loands Planned issued amount of bonds NPIA 1995 596 mio USD NPIA 1998 1.783 mio USD . Financial sources for this achievement are shown in Table 4 4 . loans by international financial institutions. In 1998 the NPIA allowed the addition of bonds to the financial sources and in 2004 the ReNPIA included the possibility of Petrol Tolar Act on the Provision of Funds Earmarked for the Construction of National Roads was adopted in 1993.112 mio € * loans and bond will be an important financial source even after 2013 (likely till 2033) Other sources Local governments participate in financing the construction of those motorways that are solving traffic problems of large cities (Ljubljana. adopted in years 1995. In 2004 the ReNPIA included the possibility of concessions and cohesion funds among other sources.2006 From the beginning of the programme realisation in 1994 to the beginning of 2007 a total of 370 km of new motorways were constructed in Slovenia. In 1998 NPIA the possibility of issuing bonds for domestic and foreign sale was allowed. PLANNED FINANCIAL SOURCES FOR NATIONAL MOTORWAY CONSTRUCTION PROGRAMME REALISATION concessions and cohesion funds among other sources. 1998 and 2004 Planned period in which petrol Planned amount of petrol tolar tolar is a source for programme realisation NPIA 1995 1994 -1999 1. The NPIA from 1995 envisaged the following financial sources for motorway construction: petrol tolar. loans from commercial banks and other sources.2007 3. It established that a part of the fuel tax will be transferred from the state budget for the purpose of motorway construction.(allowed) ReNPIA 2004* 494. Nova Gorica etc). 3. The comparison between planned amount of loans and bonds issued in Slovene motorways construction programmes. Table 2: The comparison between planned amount of petrol tolar in Slovene motorways construction programmes. some loans from domestic and foreign commercial banks were planned. adopted in years 1995. Table 3: Loans and Bonds In NPIA 2005 favourable loans from EIB and EBRD were envisaged. NATIONAL MOTORWAY CONSTRUCTION PROGRAMME REALISATION 1994 .2013 1.240 mio USD NPIA 1998 1998 .2.3 mio € 2. Besides for financing the ReNPIA however toll is intended for the maintenance and operation of motorways and financing of the loans.

55 mio USD 126.10 mio € 24.88 mio USD 257.00 mio € 99.685 millions USD.2006 Realised in 1994 .21 mio USD 181.216 1. The law on »petrol tolar« Under the low on petrol tolar the state provides funds earmarked for state roads construction within the state budget.46 mio USD 115.1.6 100 Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 5 . In 1998 changes to this law were adopted and a 16 % share was taken up to 20 %.12 mio USD 137. 1.00 mio € 158.52 77. In 4.18 66.12 mio USD 168.053 * only the share of tolls.36 54.e.20 mio € 24.20 mio USD 135.09 52.264 millions USD.731 VAT refunded 64 151 Other sources 63 27 Total 5.2006 Planned Petrol tolar 119.53 mio € 79.29 mio USD 149.Table 4: Planned and realised financial sources for motorway construction in the period 1994 . The planned amount of petrol tolar in the period 1994 – 2002 was 1.537 Kohesion Funds 8 27 Tolls* 784 580 Loans and bonds 2.9 48.85 mio USD 139.68 101.44 mio USD 160. The period in which petrol tolar will be a source for programme realisation was linked to the programme needs (till 2019). This time the amount earmarked for construction was fixed for the year 2003 (to 37 billion SIT) with the provision that in the future the annual amount should reach at least the real value of the 2003 amount.199 4.76 mio € Realised petrol tolar 120.95 95.91 109.95 mio USD 135.45 mio USD 235.9 62.2006 Realisation % 74% 338% 74% 78% 236% 43% 78% Financial source Planned in 1994 . The comparison between planned and realised annual amount of petrol tolar is shown in Table 5.50 mio USD 242.86 mio USD 134.064 1.32 mio USD 159. earmarked for construction 4.38 mio USD 239.76 mio € Realised share (%) 100. At firs the amount resulted to 16 % of retail price of every litre of motor and diesel fuel sold on the annual basis in the period 1993 – 1999. CHALLENGES IN THE PERIOD 1994 2007 provision that this financial source can be also used for loan repayment after 2004. actual sum of petrol tolar earmarked for construction in that period was only 75 % i. The period of financing was prolonged to 2007 with the 2002 the law was changed again.20 mio € 163.18 94.2006 Petrol Tolar 2.15 46.50 mio USD 249. Table 5: Planned and realised annual amount of petrol tolar for motorway construction in the period 1994 .22 mio USD 141.

4. the financing of motorway construction would have been seriously endangered. on the other hand.2 millions €. where environmental issues are of great importance. 4. 4. In fact. DARS assures all activities that has to be done for motorway construction. To assure professional expertise DARS uses public procurement procedures to choose the qualified consultants and engineers. is a result of numerous other investment and development needs of the county. The concessionaire is the one to collect tolls which represent his income. the state guarantees for them. Maintenance and toll collection is executed by DARS itself. If any of these two elements should fail. from today’s point of view. i. DARS was in charge of financial engineering. Slovenia decided to assure state guaranties for loans raised even though this has had a direct influence on public debt. The main challenge in raising loans for motorway construction was how to compete with other applicants for state guaranties. 2004. Another challenge was – and still is – to succeed in negotiations with banks. National motorway construction programme benefited from EU cohesion fund. organising and managing construction and maintenance of the motorway network. Terms under which loans were granted were always negotiated and different results were obtained. public procurements execution and construction survey. preparing. and was responsible for the management of motorways in the Republic of Slovenia. In addition to loans DARS issued three series of bonds in 2004 and 2005 for trade on the secondary capital market.2. Loans and Bonds Ever since the first NPIA the role of foreign and domestic loans raised for motorway construction was very important. Current situation. Slovenia has access to financial resources that – under certain conditions . but repayments does not burden the state budget. signed between the state and DARS in 1994. In consequence. one could say the assurance of petrol tolar was the crucial decision for successful start-up of the programme. Concession and agent agreements From the beginning of the programme to 1994 all the investors’ tasks were executed by a Motorway Company in the Republic of Slovenia (DARS). To this day two motorway sections were co financed from EU cohesion fund in an amount of 27.Table 5 clearly shows that except in the firs three years of the programme realisation of petrol tolar does not keep up with plans. This trend is especially noticeable in the last few years. EIB). What was once main financial source for motorway construction now became rather insignificant in comparison to other financial sources. In order to receive the EU financial participation a challenging procedure was carried out. The loans for motorways construction are raised by DARS.are available only to EU member states. but by the year 2005 this share fell to 45 %. That is why limited budget financial sources are distributed in a different way. with drastic fall in 2006. 4. The limit to a public debt was set not only by the government but also by European Union through conditions that were imposed to candidate countries waiting to become EU member states. The other contract. At the beginning of the programme the economic and political circumstances were in favour of such solution.3. 6 . In the period 1994 – 2002 petrol tolar represented 56 % of all financial sources spent for motorway construction. From 1994 till now several laws on state guaranties were adopted and loans were raised from international financial institutions (EBRD. defines DARS as the investor in the name of the Republic of Slovenia regarding the National Motorway construction Programme completion. In accordance with the decisions of the National Assembly of the Republic of Slovenia. a joint-stock company established by law in 1993. The concession contract between the state and DARS was signed in 1994.e. Tolls are the source for covering the costs of maintenance and toll collection as well as for debt servicing for loans raised for construction. foreign banks (KfW etc) and consortium of domestic banks. EU funds Slovenia became a member state of European Union on May 1st. as well as public procurement procedures. On top of it DARS is in charge of financial engineering to assure financial sources for programme continuation and completion by raising loans and issuing bonds. designing of motorways.

Tolls were an important financial source for motorway slovene legislation on NPIA and DARS 7 .4. The open toll system has been introduced on all new motorway sections. The National Motorway Construction Programme. The efforts for implementation of a modern toll collection system. set in 1993. In circumstances where petrol tolar is reduced to a marginal sum and debt repayments are growing the assurance of tolls as a permanent. Last revisions of NPIA were done in the right direction by recognising the toll system as a modern. accepted in ReNPIA has the most positive joint impact. DARS. the system enables a much faster. decreased negative effects on the environment. The open system makes it possible to use motorways without paying tolls within the regions.8 % per year. The study showed that in case NPIA would not have been realised in 1994 – 2002 period. ETC) has been used at all toll stations in Slovenia. This is consistent also with the European Union's Directives . the costs of the transport of goods and people. permanent. The most interesting findings support the opinion that the realisation of this large investment project has a strong positive impact on the Slovene economy. the total investments would be smaller for 7. The European Union's Directives concerning traffic promote the principle that the users should cover. to the largest extent possible. 5. Sources used: various internal documents and reports.91 % per year.dars. Slovene experience with NPIA realisation is satisfactory. Past experiences suggest authorities are not always aware of the responsibility connected to those decisions. The present system of toll collection on the Slovenian motorways is the result of the conditions prior to NPIA. studies based on these standpoints and of taking into account the European Union's Directives. In addition. Toll stations are situated on region borders. together with interoperability assurance. The impact of NPIA to the Slovene economy In 2003 a study on “Macroeconomic and development consequences of motorway construction in Slovenia” was performed. The study showed that the programme. in Slovenia are growing and are supported by decision makers.68 % per year and there would be no positive effects on other sectors of economy. easier and more comfortable way of paying tolls. stable and long-term source of financing the management and maintenance of the motorways. The completion of construction is near but the time when the debt will be repaid is distant and sets new challenges in front of decision makers. maintenance and operation from the beginning of NPIA. with the users staying completely anonymous. 4.6. Authorities decide on toll collection system(s) as well as on toll amount and by this they have a great impact on tolls collected. The number of ABC users has been constantly growing. GDP would be smaller for 0. Since 1995 the ABC system (Electronic Toll Collection. Substituting the cash tolling with the electronic toll collection system has increased the lane fluency. covering mainly long-distance transit. we need to assure it keeps this judgement by the time all loans will be repaid. the open and closed systems of toll collection are used. The EU Directives on paying the use of toll roads define that tolls should depend on both real distance travelled by users on toll roads and the damage that a vehicle makes on the road.stemming from the EU's Green Book on efficient transport pricing policy. It is also the consequence of the standpoints of the authorities. stable and long-term source is of vital importance. CONCLUSIONS The construction of Slovene motorway network is a great challenge for a young county. and http://www. can be called a relative success despite numerous changes in scale and financial structure.5. Tolls Slovenia is among those European countries which have rich experience in collecting tolls on motorways. as well as their construction and the repayment of loans. During the programme realisation toll collection became more and more important as a source for loan servicing. employment would be smaller for 0. Tolls on the Slovenian motorways have been collected since 1973.

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