Download - Estonia Report Infra
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HARMONIZED MARKETHARMONIZED MARKETESTONIA
KUNO MNNIKDIRECTOR OF TARTU ROAD OFFICE
KOIT TSEFELSDEPUTY DIRECTOR OF ESTONIAN ROAD ADMINISTRATION
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Allocations From The Road Budget
Ordinary maintenance25%
Rehabiltation and
repairs
51%
Design
3%
Other costs
11%
Construction
and reconst-
ruction
8%
Bridge reconstruction
and repairs
2%
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Competitive Bidding And Own Forces
85,0
15,07,8
15,3
84,7100,0 93,8 92,2
67,1
6,2
Total
Desig
n
Road
constru
ction
Road
repairs
Bridg
econs
tructi
onan
drep
airs
Maint
enan
ce
Bidding Own forces
32,9
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Domestic Value Treshholds For PublicProcurement:
(net of value added tax)
Purchasing of goods or contracting for services~ 20 000 EUR~ 20 000 EUR or more
Contracting for construction works~125 000 EUR~125 000 EUR or more
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Register Of Public Procurements
In the form of computer database and published on theweb site of register:
http://register.http://register.rharha..govgov.ee/.ee/
Only in Estonian!
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International Value Tresholds For Public
Procurement(in case of state authorithy)
Purchasing of goods or contracting for services
130 000 SDR130 000 SDR
Contracting for construction works5 000 000 SDR5 000 000 SDR
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Contractors On The Estonian Road MarketExamples
Via Baltica: Rehabilitation of Ikla-Tallinn-Narva Road I
Total 120,6 km
Contractor/ Consultant and contract price
Works Supervision
Estonian companies Finnroad OY (Finland)
Technical Center of EstonianRoads Ltd (Estonia)800 000
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Contractors On The Estonian Road MarketExamples
E 20 Tallinn-Narva Road, Reconstruction of Maardu-Valgeje
Total 62,7 km
Contractor/ Consultant and contract price
Works Supervision
Skanska Tekra OY
(Finland)
21 400 000
Nicholas
ODwyer&Company Ltd
(Ireland)
iproplanPlanungsgesellschaft mbH
(Germany)
AS Telora-E (Estonia)AS Taalri Varahaldus (Estonia)
640 000
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Contractors On The Estonian Road MarketExamples
Via Baltica: Vo-Maardu design No. 1
Consultant and contract price
COWI A/S (Denmark)EA Reng AS (Estonia)500 000
echnical Assistance for Reconstruction of Tallinn Ringroad and Tallinn-Paldiski Road
Consultant and contract price
WSP International AB
(Sweden)
WSP Sverige AB (Sweden)
K-Projekt AS (Estonia)
1 800 000
Of h i d k k
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Features Of The Estonian Road Work Market rather small, but offering attractive works with financing from EU
opened regulated with necessary legal acts, but needs improvements
reliable banking and financing
in works financed from the Eurpopean funds- speaking the
English language is compulsory in minor works understanding the Estonian language recommendable in big construction work Estonian contractors perform as a concern
of 3-4 companies to compete with competitors
bigger Estonian road construction companies have daugther-firms splitted territorially and dealing mainly with maintenance.
Depending on the location of road construction site their recourses
(experienced labour, machienery, gravel-pits) can be used in theform of subcontract.
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Annual Volume of Road Works
in Tartu Regional Road Office
8,3 MEURMitigation of Traffic
"Black Spots" 0,46New Pavement on
Gravel Roads 1,53
Facilities Repairs 0,15
Bridge Repairs 0,37
Gravel Road Repairs
0,22
Rehabilitation of Paved
Roads 1,92
Ordinary Maintenance1,60
In-House Maintenance
and Gravel Repairs
2,05
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Road Works on the Market Tendered by Tartu Regional
Road Office in 2005
0 0,5 1 1,5 2 2,5 3 3,5 4
Mitigation of Traffic "Black Spots"
New Pavement on Gravel Roads
Facilities Repairs
Bridge Repairs
Gravel Road Repairs
Rehabilitation of Paved Roads
Ordinary Maintenance
MEUR
On the Market In-House
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OBSTACLES
ON THE ROAD WORK MARKET
1. Public Procurement Act needs renewals.
Problems:
Low price prevails too much, quality criterianot considered sufficiently
Time-consuming settlement of protests by arbitration
Urgent seasonal road works should be procured faster
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2.Big road works financed from European Cohesion Fund
and European Regional Development Fund mostly engagethe capacity of domestic contractors and often minor
works cannot be accomplished on time
3.Shortage of road designers
4.Wages in Estonia are still much lower than in developedcountries and therefore foreign contractors with there own
labour have difficulties in competition for cheaper bidding
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Developments On The Market
Draft of the renewed Act for the Public Procurement is ready
New competitors from small- size firms (designers, consultants,
technical supervisors) are coming
Regular annual increase of wages 5-10% in Estonia decreases the
advantages of domestic contractors in comparison with foreigners
Preparation of big road and bridge works (Tallinn ring road, Tartu
ring road Saaremaa fixed link) possibly attract a foreign contactor
more than earlier.
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THANK YOU FOR YOUR ATTENTION!THANK YOU FOR YOUR ATTENTION!