Belgium

Details

  • Date: 20/09/2012

Emmanuel De Moyer, Advisory Partner

Emmanuel De Moyer, Advisory Partner

Head of Public Sector

+32 (0)27084486

Road Pricing in Belgium 

Road Pricing in Belgium
 

In the first phase of a long-term project involving multiple disciplines, multiple players and multiple regions, KPMG led a consortium that advised the regions on jointly implementing an electronic toll collection system for trucks and a road tax vignette system for passenger cars.

Context

At the beginning of 2011, the three Regions of Belgium (Flemish Region, Walloon Region and Brussels Capital Region) concluded a Political Agreement, introducing a kilometer charge for trucks and a road vignette for light vehicles.

 

The ultimate goal of this public sector agreement is to reduce road traffic congestion in Belgium and, in turn, decrease air pollution by cutting CO2 and particulate matter emissions.

 

Client Challenge

With this accord, the Regions have clearly committed to carry out the project by means of a single procurement procedure. This will be the first venture of such a scale undertaken by the three Regions together. As a result, the lessons learned during this project will contribute to future initiatives involving the Regions.

 

The project will be procured as a Public Private Partnership (PPP), which gives the private sector a key role in its implementation. The Regions will sign a DBFMO contract (Design, Build, Finance, Maintain and Operate) with a consortium of private companies. This will give the private sector players long-term involvement in the implementation of the system.

 

KPMG's role

KPMG, as financial advisor, is the leading member of the Fairway consortium, which also consists of a technical and a legal advisor. This consortium has been appointed by the Regions to assist them with the introduction of the Political Agreement.

 

The first phase of the project has now been finalized. During this phase, KPMG was primarily responsible for the following:

 

  • Strategical analysis on the financial-economic impact of the project
  • Advice on the design of the organizational model and on the set-up of the cooperation framework
  • Project management
  • Risk analysis
  • Financial feasibility study: computation of revenues and costs, and mapping of credit risk and bankability
  • Stakeholder and change management