The financial arrangement defines the volume of investment required for the purchases and the capacity to raise the funds from financial partners. This arrangement must be supported by simulations relating to the fleet management strategy and the impact of new vehicles on the operating account (small balance of resources/operating expenses and big balance of the operating account including the amounts charged to capital).
The financial arrangement identifies the stakeholders that can contribute in whole or in part to the financing of the investment: public stakeholders, private stakeholders, financial backers. In most cases, the funds are raised through a combination of private or public equity, public subsidies and loans, that are associated with rigorous debt management.
As for public-private partnerships, they can be used to contribute funds in the same way as a loan; but the operating concession granted to the private partner makes it responsible for the smooth running of the project.
The driving cost/km:
On the financial level, the bids of the manufacturers that refer to the technical specifications will be accompanied by a financial proposal for the investment (unit selling price and according to the volume/tranche and the number of tranches). The manufacturer must also communicate physical (and/or financial) elements for the calculation of the driving cost/kilometre and any variability of this value according to local traffic conditions (configuration and state of the road network, congestion, etc.). This is so that estimates of the driving costs, that will impact the operator’s operating account (and its profitability), can be made for the purposes of comparison.
Related questions
- Is the renewal strategy properly defined and validated (linear, rapid or total renewal)?
- Have the simulations of the impact (short, medium and long term) of the new vehicles on the “small balance” of the operating account been carried out?
- Have the simulations on the “big balance” to the “small balance” simulations (taking into account the amounts charged to capital) been carried out?
- Has the total life cycle cost of the new vehicle in the financial arrangement been included?
- Does the financial arrangement clearly define the procurement schedule, the calendar for the raising of funds and the respective contributions of the various stakeholders?
The driving cost/km:
- Do the operator(s) know the driving cost/km of the vehicles they currently operate?
- If so, on what basis is it calculated?
- on fuel consumption/km (type of fuel, average price/L/year, etc.)
- on routine maintenance charges: oil change, tyres, brakes, etc., and other components depending on the service life of the wear parts;
- on the replacement/repair of doors, seats, etc.
- Have the tenderer manufacturers communicated the elements that are needed to calculate this driving cost/km for the vehicles they are proposing?
