Municipality of Tirana / EBRD

Tirana Public Transport Terminal
Pretender Meeting
Tirana, 1st October 2013

1

The Feasibility Study
Raffale Marino (project manager)

2

PROJECT BACKGROUND

The Municipality of Tirana (MoT) intends to prepare a tender for the construction and concession of Tirana Public
Transport Terminal.

In structuring the project as a concession, the MoT will offer an 85,000 square meters land plot situated along the main
corridor leading north-westerly out of the city toward Durres to be contracted out on a long-term basis (+20 years) to a
future concessionaire to build, operate and maintain the terminal for the benefit of operators and passengers. In
addition, all bus docking fees, retail rental revenues, and parking fees, will be collected by the concessionaire to amortize
its initial capital costs, operational costs, and cover debt service.

3

The Terminal’s area

Terminal’s Area

Railway line Tirana – Durres

The area is near the border of the
Municipality of Tirana, within the
territory of the municipality of
Kashar, close to the Kthesa e
Kamzes intersection between
Rruga Kastrioti and Tirana-Durres
highway.
The current land use of the site is
open area and the surrounding
land use is shopping centers,
office buildings, hospital and
apartments.

Rruga Kastrioti

Highway TiranaDurres

4

Buses/Vans Terminal Transit
Public transport lines

Daily

Annual

International regular bus lines
Intercity regular bus lines
Tirana communes regular bus line
Subtotal buses
Taxi-Van (8+1) lines
Grand Total

236
865
500
1,601
298
1,899

86,140
315,725
182,500
584,365
108,770
693,135

International regular bus lines
Intercity regular bus lines
Tirana communes regular bus line
Subtotal buses
Taxi-Van (8+1) lines
Grand Total

287
1,052
608
1,947
362
2,310

104,776
384,030
221,983
710,789
132,302
841,354

International regular bus lines
Intercity regular bus lines
Tirana communes regular bus line
Subtotal buses
Taxi-Van (8+1) lines
Grand Total

398
1,458
843
2,699
502
3,201

145,218
532,262
307,666
985,147
183,369
1,168,516

International regular bus lines
Intercity regular bus lines
Tirana communes regular bus line
Subtotal buses
Taxi-Van (8+1) lines
Grand Total

551
2,021
1,168
3,741
696
4,437

201,271
737,711
426,422
1,365,404
254,148
1,619,552

International regular bus lines
Intercity regular bus lines
Tirana communes regular bus line
Subtotal buses
Taxi-Van (8+1) lines
Grand Total

1,059
3,883
2,244
7,186
1,338
8,524

386,636
1,417,121
819,145
2,622,902
488,210
3,111,112

Daily Passengers Terminal Transit
Departures
Year 2012
2,735
10,024
9,055
21,814
909
22,723
Year 2015
3,389
12,420
11,219
27,027
1,126
28,153
Year 2020
4,843
17,751
16,035
38,628
1,609
40,238
Year 2025
6,922
25,370
22,917
55,209
2,300
57,509
Year 2035
14,139
51,823
46,813
112,775
4,698
117,474

Arrivals

Annual Passengers Terminal Transit

Daily Total

Departures

Arrivals

The Terminal’s transits

Annual Total

3,094
11,341
10,245
24,680
1,028
25,709

5,829
21,366
19,300
46,495
1,937
48,432

998,254
3,658,854
3,305,136
7,962,244
331,712
8,293,956

1,129,404
4,139,553
3,739,364
9,008,321
375,293
9,383,614

2,127,658
7,798,408
7,044,500
16,970,566
707,005
17,677,571

3,695
13,543
12,234
29,472
1,228
30,700

7,083
25,963
23,453
56,499
2,354
58,853

1,236,808
4,533,218
4,094,971
9,864,997
410,982
10,275,979

1,348,668
4,943,212
4,465,329
10,757,209
448,152
11,205,362

2,585,477
9,476,429
8,560,300
20,622,206
859,135
21,481,341

4,966
18,203
16,443
39,613
1,650
41,263

9,809
35,954
32,478
78,241
3,260
81,501

1,767,685
6,479,015
5,852,659
14,099,360
587,389
14,686,748

1,812,723
6,644,089
6,001,775
14,458,587
602,354
15,060,941

3,580,408
13,123,104
11,854,434
28,557,946
1,189,743
29,747,689

6,675
24,466
22,101
53,243
2,218
55,461

13,597
49,836
45,018
108,451
4,518
112,970

2,526,430
9,260,010
8,364,802
20,151,242
839,514
20,990,756

2,436,450
8,930,210
8,066,886
19,433,547
809,614
20,243,162

4,962,881
18,190,220
16,431,689
39,584,790
1,649,129
41,233,918

12,059
44,200
39,927
96,186
4,007
100,193

26,198
96,023
86,740
208,961
8,705
217,667

5,160,743
18,915,434
17,086,793
41,162,970
1,714,877
42,877,847

4,401,595
16,132,964
14,573,317
35,107,875
1,462,617
36,570,493

9,562,337
35,048,398
31,660,110
76,270,845
3,177,494
79,448,339

All intercity and international bus
will stop in the terminal, where
passengers will exchange with
urban buses, taxis, taxi-van and
tram.

5

Facility of Terminal The phase B is optional and includes a shopping and cultural centre and a Tower with offices.Trasport Activity The phase A will guarantee the terminal full functionality Phase B .Trasport Activity Phase B .Facilities of Terminal Phase A . Hotel and Conference room 6 .Aerial Overview of the Terminal The Terminal will be built in two phases: Phase A .

7 . • Recognisability of the architecture. The new terminal features a network distribution of functions and a clear separation of pedestrian and vehicular routes. • making the terminal an intermodal node.Phase A Terminal functionality The terminal design has had the following objectives: • Best placement within the city. • Flexibility. • selecting suitable functions.

8 . are located along the two major boundaries of the lot. the second along the tracks of the new tram line. In this way. • to the east the garage and the fuel service station. • to the west the urban buses and the kiss and ride. • to the north and to the south the international buses. urban bus terminal and tram station. the first near the urban road network.Phase A The terminal yard The organization of the terminal yard includes: • the intercity buses in barycentric location. the two poles of urban transport.

Phase A The tram train station The Terminal will include a tram-train station. The tram-train station will replace the existing Tirana central station and it has been designed in order to be a main station. The station will be one of the two terminal stations of the future tram line that will connect the terminal to the Tirana’s center using the no longer in use railway. 9 .

retail shops. shelters.The station is organized on two levels : • on the ground floor is the hall and the railway equipment rooms • on the first floor there are the ticket office. The project also includes a tram depot and a motel. water works. and the offices of the railway management. waiting rooms. 10 . electrification. three stories high. signalling. etc.) is kept out from the project. The tram-train infrastructure (railway tracks and platforms.

The pedestrian pathways are above the terminal yard.Phase A The traveller buildings In order to guarantee safety. the vehicle tracks and the travellers’ pathways are kept separate. functionality of movement and comfort of passengers. inside two bridge-shaped traveller buildings and two footbridges. 11 .

12 . • etc. • food and beverage. • terminal operating offices. • Shops. • waiting areas. • equipment and maintenance rooms.The travellers buildings house a mix of services: • pedestrian tunnels. • travel agencies.

Facility of Terminal The shopping and cultural centre is housed in a L-shaped building.Phase B . 13 . as well as the other wing aligned with the Rruga Kastrioti. A tower forms the west end of the shopping centre. with a wing forming the continuation of the first traveller building.

14 . • a cultural centre. Hotel and Conference rooms. • A multilevel car parking. • a Tower with offices.The phase B includes : • a shopping centre.

which must be immediately recognizable in the city. concrete) will qualify the architecture of the terminal. glass. 15 .Recognisability architecture of the The close relationship with the urban place and the adoption of new construction technologies (steel.

Aerial Overview 16 .

Terminal View from Kastrioti street 17 .

Terminal entrance 18 .

functional organization. dimensioning. functional mix and surfaces. flexibility and acoustic properties. pedestrian pathways and vehicle tracks. plano-altimetric arrangement of services. The Exterior finishes must be energy efficient and provide low maintenance costs. durability and fitness for purpose. and confirm project concept. vehicle accessibility.MINIMUM TECHNICAL REQUIREMENTS The design of the Terminal must develop the Project description. All materials shall be selected considering factors such as price. 19 . maintenance. project skyline.

The Qualification criteria and awarding criteria Albert Kappers (procurement specialist) 20 .

5 million Operation of a public transport station and at least one experience in the operating. managing and maintaining of a real estate project as prime contractor Design Experience * Euro 1.8 million As prime contractor. management contractor or subcontractor in the design of at least one construction work * The Applicant or a specialised subcontractor 21 .QUALIFICATION CRITERIA (1 of 2) QUALIFICATION CRITERIA Construction Experience Road Works Experience * MINIMUM AVERAGE SUCCESFULL EXPERIENCE (of a nature and complexity ANNUAL TURNOVER comparable to the proposed project Phase A ) (over the last five years) Euro 36 million At least one in the execution of a Construction Project as prime contractor Euro 3 million Operational and maintenance experience Euro 2. joint venture member.

• Adequate sources to finance the cash flow requirements on works currently in progress and for future contract commitments. • Soundness of the Applicant’s financial position. To be prequalified an applicant must demonstrate: 22 . Tendering is open to firms and individuals from all countries.QUALIFICATION CRITERIA (2 of 2) FINANCIAL POSITION • Cash flow not less than Euro 8 million. taking into account the applicant's commitments for other contracts.

innovative techniques in the field of energy saving and compliance with environmental standards 4 TC4-3 . Criteria Max Score FC1 DURATION OF CONCESSION 30 FC2 CONCESSION FEE 5 20 FC3 TERMINAL CHARGES 15 Information systems 4 FC4 MINIMUM REVENUE GUARANTEE 5 TC4 Environmental and Social Acceptability 10 TOTAL FINANCIAL CRITERIA 55 TC4-1 .TENDER AWARDING CRITERIA No.internal security of the area and the buildings 4 CONSTRUCTION TIME 5 TC4-2 . TC1 Criteria Max Score Compliance with Minimum Technical Requirements 1 TC2 Technical and operational soundness TC3 No.reduction of impact on local traffic during the con-struc-tion activities 2 TC5 Implementation of Phase B Facilities of Terminal 5 TOTAL TECHNICAL CRITERIA 40 CTC1 TOTAL 100 23 .

24 .Quality of services and measures to ensure their continuity.Project Design . . .Preliminary Design Report : overall technical description of the construction and the installations.Business Plan .TECHNICAL AND OPERATIONAL SOUNDNESS Evaluated on the base of .Implementation Schedule .Report on Operational Efficiency.

Maximum single ticket fares Mode of Transport Taxi van (8+1) Intercity buses Municipal buses Bus park intercity international bus Kiss & Ride Car Parking (short stay) Car Parking shopping area Taxi (4+1) Urban buses Tram Bus parking Intercity / International busses ARRIVALS DEPARTURES (LEK) (LEK) 714 1.285 0 1.TERMINAL CHARGES .285 1.570 0 0 0 0 0 0 1.285 0 3.285 0 3.570 0 0 0 71 0 286 0 The Tenderer will offer a single discount during the tender phase that will be applied to all the above terminal charges. 25 .285 1.

MINIMUM REVENUE GUARANTEE Planned Annual Revenue for Phase A Transport Activity. The percentage should not be inferior to 42% and should not exceed 60%.873 1.376 1.734 1.326 1.232 1.802 1.428 1.669 1.025 26 . Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Planned Revenue (in million Albanian Lek) 879 902 925 1. Annually adjusted by the inflation rate.947 2.278 1. Year 1 is the first calendar year after the Terminal Opening Date.607 1. The Tenderer is asked to propose a percentage to be applied to the Planned Annual Revenue as a Minimum Revenue Guarantee.

Financial and Economic Analysis 27 .

as usual with this within this largely adopted approach. by means of the following indicators: • Net Present Value (MPV) • Benefits / Costs ratio (B/C) • Internal Rate of return (IRR) The discount rates adopted for the financial and economic analyses were 5. Therefore the financial profitability and the social effectiveness were estimated.0% and 5.5% respectively. as suggested by the commonly adopted year 2008 Guide to Cost-Benefit Analysis of Investment Projects.FINANCIAL AND ECONOMIC ANALYSES The financial and economic analyses were carried out with a Cost / Benefit Analysis (CBA) approach. 28 .

Different possibilities of investment were considered. and mainly: • Phase A Transport Activity • Phase B Facilities of Terminal The results were positive for both phases A and A + B Phase A (financial) NPV IRR B/C ratio 66.RESULTS OF THE FINANCIAL ANALYSIS ( 1 of 2 ) The financial CBA was carried over an operating period of 20 years on the basis of a detailed analysis of costs and incomes.97 29 .89% 1.59 15.25 Phases A + B (financial) NPV IRR B/C ratio 69.77% 2.28 17.

11 102.61 69.72% 13.61 58.58% 26.3 1.3 1.20 90.5 6.94 3.25 2.4 1.9 1 1.87 1.03 113.03 2.95 66.77% 16.46% 17.25 2.1 1.7 0.52 42.06% 23.30% 22.58 1.76 1.9 1 1.2 1.80 2.38 30 .95% 12.94% 21.4 1.93 3.8 0.98 1.57% 21.5 0.2 1.62 2.60 30.95 77.88% 17.84 2.RESULTS OF THE FINANCIAL ANALYSIS ( 2 of 2 ) The financial CBA was complemented with sensitivity analyses that demonstrated the strength of the investment D Investment D Parking revenues correction factor IRR NPV B/C correction factor IRR NPV B/C 0.12 2.69% 9.27 51.7 0.36 66.11 1.6 0.70 2.1 1.86 1.94 55.28 62.96% 24.68 18.06% 13.5 0.60 47.45 3.62 80.77% 19.18% 27.48 2.95 125.44 54.16% 6.13 1.32% 15.6 0.8 0.5 31.15 3.06% 84.36% 11.88% 15.28 73.67 0.28 78.95% 12.42 2.35 1.48% 19.

Phases A + B (economic) NPV IRR B/C ratio 92. hence some corrections were adopted in order to consider this requirements: • economic / financial corrections factors were introduced (in order to consider shadow prices. etc. taxes.37% 2.70 31 .77 21.) • the social benefit due to the reduction of time travel was also considered The results show the positive social impact of the investment.RESULTS OF THE ECONOMIC ANALYSIS The object of an economic analysis is the estimation of the social profitability of the investment.

The Concession. duration Mirko Daidone (legal expert) 32 . applicable laws.

APPLICABLE LAW AND CONCESSIONAIRE RIGHTS ( 1 of 2 ) • Albanian Concession Law no. 445 of May 22. 9663 of December 18. 2006 • Albanian Council of Ministers Decision no. 2013 • The Concessionaire will be granted with the sole and exclusive rights during the Concession Period to carry out the Project in particular. infrastructure and utilities necessary to complete the Phase A* Transport Activity of the Terminal in the Concession Area 33 . finance. commission and maintain buildings. construct. the rights to: – design. operate.

Transport Activity and Phase B . infrastructure and utilities necessary to complete the Phase B* Facilities of Terminal (including the hotel. construct. *Phase A . car and bus parking. – collect the fees to be levied and collected from the Terminal Users and retain such fee starting from the opening date of the Terminal till the Handover Date of the Concession. operate. finance. and all other facilities) within the Concession Area. commission and maintain other buildings.APPLICABLE LAW AND CONCESSIONAIRE RIGHTS ( 2 of 2 ) – design.Facilities of Terminal will be proposed by the Concessionaire in the Technical Proposal 34 .

and – 15 days after the date of publication with the Fletorja Zyrtare (the Albanian Official Gazette). 35 .DURATION OF THE CONCESSION • • • • Concession Period will be proposed by the successful tenderer in its offer Concession Period may be extended Concession Period will not exceed 35 years nor will be inferior to 15 years starting on the Effective Date Effective Date on the later to occur: – execution of the Concession Contract by the Parties. – the date of its approval by the Council of Ministers of the Republic of Albania.

and has been duly authorised to enter into the Financing Documents. such Guarantee to be substantially in form of Schedule 20 (Bank Financial Guarantee).CONCESSIONAIRE'S CONDITIONS PRECEDENT ( 1 OF 2 ) • Contracting Authority has received the documents and instruments listed below: – evidence that the Bank Financial Guarantee has been entered into by the Concessionaire and the Bank. and – evidence that the Concessionaire’s Contract Performance Security has been duly issued as required for the amount of 10% OF THE PROJECT VALUE 36 . – evidence that the SPV Company has been duly established under the laws of the Republic of Albania and in accordance with this Contract.

CONCESSIONAIRE'S CONDITIONS PRECEDENT ( 2 OF 2 ) • Concessionaire has obtained binding and satisfactory commitments for the provision of insurances from reputable insurers as specified in Schedule 7 (Insurance) • Such commitments are to be confirmed by the letter in the form of Schedule 18 Form of the Letter by the Concessionaire Regarding Insurances within 60 (sixty) days from the signature of the Concession Contract 37 .

MUNICIPALITY CONDITIONS PRECEDENT ( 1 OF 2 ) • Concessionaire shall have received by the Contracting Authority the documents and instruments listed below: – a legal opinion. dated the day preceding the Effective Date. any provisions of Applicable Law 38 . from ATRAKO of the Republic of Albania to the effect that: – Contract has been duly executed on behalf of the Contracting Authority by the legal representative having full power and authority to execute it in the name and on behalf of the Contracting Authority – execution. and is and is not in conflict with. delivery and performance of this Contract have to be ratified by the Council of Ministers of the Republic of Albania – execution and performance of this Contract by the Contracting Authority is permitted by.

confirming that Usufruct in favour of the Concessionaire related to the Concession Area and any related immovable.MUNICIPALITY CONDITIONS PRECEDENT ( 2 OF 2 ) • evidence that all Authorisations have been issued to the Concessionaire • evidence in the form of Schedule 15 confirming that the immovable property within the Concession Area is free from any Security Interests and Occupation. and that the ownership title over land in the Concession Area is under full ownership of the Contracting Authority in compliance with Applicable Law • evidence. in form of Schedule 23. fixed and movable assets under Applicable Law for the Concession Period of the Contract has been duly granted to the Concessionaire and duly registered and perfected in the Registry of Immovable Property 39 .

The Concession other aspects Iva Cucllari (legal expert) 40 .

OBLIGATIONS OF THE CONCESSIONAIRE ( 1 of 2 ) • • • • Design. the Terminal in compliance with the requirements set out in the Technical Proposal and Minimum Technical Requirements Prepare and provide for the benefit and review of the Project Implementation Unit. construct. Monthly Revenue Report showing the revenue performance of the collected fees generated each month from the Terminal Users Each Monthly Revenue Report has to be delivered to the Contracting Authority within and not later than the end date of subsequent month proceeding that month Ensure and procure that each material agreement and/or arrangement entered into by the Concessionaire in relation to the Concession shall include a provision entitling the Bank to step into such agreement at the discretion of the Bank when enforcing its step-in rights in place and substitution of the Concessionaire 41 .

and the Project Implementation Unit for the performance of the rights and obligations under this Contract Be responsible for safety. completion and commissioning of the Construction Work within the time construction the Concessionaire proposed in its technical proposal Commence construction of the Terminal not later than 6 months after the Effective Date 42 . soundness and durability of the facilities constructed or refurbished by the Concessionaire in relation to the Project. including all structures forming part thereof and their compliance with all the requirements set out in this Contract Ensure that the Terminal is managed and operated at all times in compliance with the Contract and Good Industry Practice Be responsible for carrying out.OBLIGATIONS OF THE CONCESSIONAIRE ( 2 of 2 ) • • • • • Co-operate with the Independent Engineer.

no agreement regarding the person of the Independent Engineer and/or the terms of the service agreement be reached. within 90 days from the Effective Date. after 90 days from the Effective Date.INDEPENDENT ENGINEER • • • A suitably qualified independent engineer shall be selected and agreed between the Parties on the basis of a transparent. the Bank will be asked to select the Independent Engineer to be appointed by the Concessionaire from the companies listed in Schedule 4 43 . The Concessionaire shall bear the costs and expenses of the Independent Engineer. The Concessionaire shall. The Concessionaire shall ensure that the Independent Engineer enters into a service agreement with the Concessionaire. in compliance with the summary of the scope of services to be performed by the Independent Engineer set out in Schedule 4 of the Contract. Should. appoint the Independent Engineer. and fair selection process amongst the companies listed in Schedule 4 (Independent Engineer).

CONCESSION AREA AND RIGHT OF USUFRUCT • • • • The ownership title to the Concession Area. the Concessionaire shall have sole and exclusive right of Usufruct over the Concession Area during the Concession Period Contracting Authority shall enter into agreement with the Concessionaire in the form of Schedule 1 (Deed of Usufruct) grating Usufruct right in favour of the Concessionaire over the Concession Area 44 . for the purpose of enjoyment of Usufruct by the Concessionaire with the sole purpose to develop the Project Starting from the Effective Date. remains and shall remain throughout the Concession Period with the Contracting Authority On the Effective Date. the Contracting Authority shall hand over the Concession Area to the Concessionaire.

MINIMUM REVENUE GUARANTEE • Contracting Authority shall guarantee that throughout the Concession Period the Concessionaire shall have a Minimum Revenue Guarantee equal to [the percentage proposed by the concessionaire in its offer] of the Planned Annual Revenue for the Phase A Transport Activity of the Terminal • When the revenue realized by the Concessionaire in a calendar year is less than Minimum Revenue Guarantee of the planned revenue of that year the Contracting Authority will pay that difference to the Concessionaire 45 .

MINIMUM REVENUE SECURITY OF MUNICIPALITY • Contracting Authority shall provide Minimum Revenue Security in substantially the form of Schedule 5/1. in the amount equal and not inferior to 50% of the Minimum Revenue Guarantee 46 . executed by one of the financial institutions listed in Schedule 6 Eligible Financial Institutions.

final aspects Redi Basha (legal expert) 47 .The Concession.

The payment date of the Concession Fee is the 31st of October of each year during the Concession Period 48 .CONCESSION FEE • The Concessionaire shall pay annually to the Contracting Authority a fee amounting to the percentage of the Gross Revenue proposed by the Concessionaire as part of its financial offer in the tender • Concession Fee shall be paid by the Concessionaire in favour of the Contracting Authority in priority to the distribution of dividends to the Shareholders of the Concessionaire.

without limitation. except for the Financing Documents and any rights relating thereto.HANDOVER • On the Handover Date* any right of use or Usufruct granted to the Concessionaire in respect of the Concession Area. the Assets at Handover. duties and liabilities of the Concessionaire with regard to the Assets at Handover. and – all documents in its possession relating to all Assets and New Facilities * Hand Over date means the date on which the Concession Period expires or the date of receipt of a duly served Termination Notice 49 . shall expire and the Concessionaire shall transfer and deliver at no cost or expense and without in exchange for payment to the Contracting Authority: – any ownership title it has to the New Facilities. – all rights. the Concession Area and the Concession. including.

– within 60 days after the acceleration of any debt following the declaration by the Bank of an event of default.BANK'S STEP-IN RIGHTS AND SUBSTITUTION • • Contracting Authority agrees that the Bank may exercise its step-in rights under the Contract: – within 60 days after the Contracting Authority has given notice to the Bank of the Concessionaire's breach of the Contract or Concessionaire Event of Default. upon written notice to the Concessionaire and the Bank. substitute the Concessionaire by the Substituting Entity which will benefit all the rights and assume all the obligations of the Concessionaire under the Contract 50 . Should the Contracting Authority is entitled to terminate the Concession Contract and the Bank does not enforce the agreement regulating the Bank’s step-in rights. within the period set out above the Contracting Authority may.

51 . The place of arbitration will be Milan. • The number of arbitrators will be three. • The language of the arbitration will be English. Italy.DISPUTE RESOLUTION • Dispute will be finally settled by arbitration in accordance with the ICC Arbitration Rules applicable at the time of signing of the Contract. The costs of arbitration will be determined by the arbitration tribunal. The appointment of the arbitrators shall be made in accordance with the ICC Arbitration Rules applicable at the time of signing of this Contract.

THE END THANK YOU FOR YOUR ATTENTION! 52 .