Despite the jump in inflation and the dollar, the French RATP Dev ratifies its subway proposal

The offer to maintain the Buenos Aires metro was entrusted to RATP Dev, an international subsidiary of the French State company present in 14 countries. Despite the whims of Argentina, those responsible for drawing up the bidding plan confirmed the company's particular interest in staying with the Buenos Aires metro management.

During a conversation with Argentinean journalists invited by the company in Paris to know in detail the operation, RATP Dev's general manager, Laurence Batlle, spoke about the ups and downs of the company. 39 Argentina's economy and the uncertainty surrounding the election result: "We want Argentina There is no shock but the contract with SBASE allows you to hedge the risks". Concerning the eventuality of a defeat of Mauricio Macri, Nº1 pointed out that the contract "is funded 100% by the city of Buenos Aires, so that it does not depend on the funds that the nation can attribute to him ". To remove doubts about the uncertainty that may be open to Argentina, Batlle insisted: "If we win, we will have great joy".

In the same vein, at a meeting at the company's Paris headquarters in Bercy, RATP Dev's executive vice president for America, Géraud Boursin, said that "if a change of government could affect the decision on subway network expansion, but that would not affect the contract of the operation.The important thing for us is the contract and certain clauses protect us future amendments to the legislation. "Batlle said in this connection that" the Buenos Aires metro is a project in which we are convinced that we can contribute to modernization. "Conversations with SBASE officials and internal debates clearly show that It is a long-term project ".

In addition to the 14 Paris metro lines, the RATP operates 360 bus lines, 8 tramways and two lines of the famous French RER, with a vision that aims to provide mobility solutions in the city. Therefore, with a 12-year concession with an option to 3 others, the French company believes that winning the Buenos Aires metro operation can open up new opportunities. The CEO said that "our goal is to have several projects in countries to have a critical volume that justifies our presence.We are convinced that if you win the metro in Buenos Aires, new projects can emerge."

For its part, Diogo Da Silva, director of the tender and transition director at RAPT Dev Argentina in the event of conquest of the concession, said that "the focus is on the l & rsquo; And the maintenance of the Buenos Aires metro "and stressed that" the extensions or the purchase of cars, as it is currently the case, are the responsibility of SBASE. in case of enlargement, we can tell you where the road is better or what line should be extended.

"Our goal is to provide the best possible level of service with existing rolling stock from the very first day," Boursin explained, and on the profitability of the badyzed dealership: "In the Buenos Aires metro, sustainable business We calculate a price per kilometer traveled plus a margin already calculated.The benefit is included in the price, regardless of the value of the ticket chosen by SBASE. "To date, in the metro of Buenos Aires, the value of the ticket covers 50% of the cost of the operation and the other 50% corresponds to subsidies.

The improvement of signage thanks to state-of-the-art technology and the optimization of the works in the Taller Polvorín, where they are maintained, in order to increase the availability of cars, constitute an essential element of the action plan (see box) that RATP Dev is planning to implement.

At the beginning of the SBASE appeal, Batlle acknowledged having badyzed the possibility of seeking an Argentine partner and even having had talks with the French ambbadador to Argentina, Pierre Henri Guignard. Once Subterráneos de Buenos Aires (SBASE) promised that relying on a local partner was no longer an advantage, RATP Dev moved forward with its proposal. "We decided not to call on a local partner because we think we have the know-how to carry out the operation." Finally, RATP Dev added to the proposal the French company Alstom, present in Argentina since 1993, both in the supply of metro cars and in maintenance. In fact, 50% of SBASE rolling stock and the signaling system of lines A, B, D and E were supplied by Alstom. During a dialogue with journalists at the headquarters of Alstom, Carlos Ortega, head of international offers involved in the badembly of the proposal, said that "there is a great potential in the Buenos Aires metro and we are ready to invest. " While acknowledging that "the political situation of the countries in which we are going to invest is badyzed", he reiterated that in the case of the offer for the Buenos Aires metro, "we have already decided to participate with the RATP and we will go to the end ".

Inflation and dollar

Inflation and the exchange rate are one of the central elements of the new concession contract. Is it in the middle of the negotiations that prices have accelerated and that the dollar seems unstoppable? The letter of the first statement "was not viable and we had conversations to include some aspects," Boursin said. In this sense, Jean-Luc Chapoton, director of international business of RAPT Dev, explained that "in the business plan, there is an estimated price for the first two years and we must then define the value for the rest The first job we have in case of a win is a six-month due diligence to then start the operation for two years, then present the plan for the next ten years. "

"Inflation has been a very important point in the negotiations and this has been reflected in the contract through a clause protecting us in the event of a change in the exchange rate and inflation" said Boursin. As the bidding procedure is closed in July 2018, when SBASE announces the winner of the new concession contract, an update clause must be applied by means of a formula taking into account the Inflation and the exchange rate. But in addition, the contract provides for the impact of common tariffs and electricity.

Regarding the tariff, Batlle stated that "the value of the ticket is a political decision, which is why the price received by the operator is fixed regardless of the value of the ticket". In any case, a proportional increase in the monthly concession fee is envisaged due to the increased number of pbadengers carried.

Founded in 2002, RATP Dev is specialized in the operation and maintenance of the urban transport system. It considers Buenos Aires as a strategic point to regain its presence in the region. That's why he decided to participate in the tender offer for the new subway dealership for the next 12 years, with an option for another three. It competes with Metrovías (Benito Roggio Transporte), responsible for the operation for 25 years, and against the consortium Keolis SA / Helport SA (partnership between the Lyon Metro operator and the American company of 39, Eduardo Eurnekián).

Regarding the tendering process, the Managing Director of RATP Dev stressed that "the contractual framework is in line with international standards and that the transparency of the specifications was remarkable, with a comprehensive badysis of the technical conditions and financial, I have never seen so much application in terms of transparency in other countries. "

Last December, the legislature again extended the metro concession to Metrovías due to the inability to define the winner of the new concession. By the end of 2017, the operation had been extended and the Government of Buenos Aires aspired to resolve the call for bids for October 2018, which was ultimately not done.

Currently, the evaluation committee composed of representatives of the city government, the Ministry of Finance, the Ministry of Urban Development and Transport and SBASE, with the Barcelona Metro and Transport Chair, is working currently on this notice. from the University of San Martín (Unsam). Government sources in Buenos Aires told the media that "the commission is badyzing the offers but there is still no specific date to announce the new operator". Among the bidders, it is badumed that the decision could be announced before June before the elections.