MC30 March 2007 Quarterly Report Final€¦ · submitted the Phase 1 Due Diligence report, where the MLAs were advised on all the technical aspects involved in the project. During

MADRID CALLE 30 Monitoring Phase - Quarterly Report March 2007

This is a confidential report prepared for the benefit and use of the Banks and any subsequent parties following syndication of the facility. The contents should not be disclosed to or relied upon by any party (other than the syndicated participants) without the express permission of the Mandate Lead Arrangers.

1

Dexia Sabadell Société Genérale Caja Madrid Monitored quarter: November’06 – January’07

Technical Assistance for Madrid Calle 30 Project

Monitoring Phase - Quarterly Report March 2007



2

IMPORTANT NOTICE This report analyses the technical aspects of the Madrid Calle 30 Project.

It has been developed through the documents received from Madrid Calle 30; meetings held with the Project Managers of the Project, SECOIM, Main Contractors and Technical Assistances and site visits. The information provided to Currie & Brown and Scott Wilson has been considered as valid, and neither independent verification, nor audit of the aforementioned information has been undertaken.

This is a confidential report prepared for the benefit and use of the Banks and any subsequent parties following syndication of the facility.

The contents should not be disclosed to or relied upon by any party (other than the syndicated participants) without the express permission of the Mandate Lead Arrangers.

Currie & Brown and Scott Wilson will not be held liable to any third party in respect to information or opinion that is or is not contained in this report.

Any queries regarding this report should be addressed to:

Santiago Klein Director Currie & Brown 140 London Wall London EC2Y 5DN United kingdom Tel: +44 207 600 8787 Fax: +44 207 726 2398 [email protected]

Christian Rinkel Director Scott Wilson 15 Francis Street London SW1P 1DH United kingdom Tel: +44 207 798 5213 Fax: +44 207 798 5201 [email protected]



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TABLE OF CONTENTS

IMPORTANT NOTICE _______________________________ 2 INTRODUCTION ___________________________________ 6 1. EXECUTIVE SUMMARY _________________________ 7 1.1 Progress of construction works _________________________________________7 1.2 Monitoring of Project Costs ____________________________________________9 1.3 Other Key Aspects to Report during the Quarter ___________________________10 2. METHODOLOGY______________________________ 12 2.1 General approach __________________________________________________12 2.2 Information Provided by MC30 ________________________________________13 2.3 Meetings held______________________________________________________13 2.4 Site Visits _________________________________________________________13 2.5 Panel of experts agenda for February 2007 ______________________________13 3. WORKS PROGRESS FORMS ___________________ 14 3.1 Completed Works __________________________________________________14 3.2 Project 7.1: By-Pass Sur, Northern tunnel________________________________15 3.3 Project 7.2: By-Pass Sur, Southern tunnel _______________________________17 3.4 Project 8. Embajadores – M40 connection _______________________________19 3.5 Project 9: Avda. Portugal Cut and Cover_________________________________20 3.6 Project 10.1: M. Monistrol-Puente de Segovia Cut and Cover ________________22 3.7 Project 10.2: Puente de Segovia – Puente de San Isidro Cut and Cover ________24 3.8 Project 11.1: Puente de San Isidro – Puente de Praga Cut and Cover __________26 3.9 Project 11.2: Puente de Praga – Nudo Sur Cut and Cover ___________________28 3.10 Control Centre _____________________________________________________30 4. MONITORING OF PROJECT COST_______________ 31 4.1 Project costs ______________________________________________________31 4.2 Quarterly drawdown against the loan ___________________________________35 4.3 LTA Opinion_______________________________________________________41 5. E & M INSTALLATIONS AND SYSTEMS __________ 43 5.1 The Design of the Tunnel E&M Installations ______________________________43 5.2 Power Supply______________________________________________________44 5.3 LTA’s Opinion _____________________________________________________44 6. CONSTRUCTION MANAGEMENT________________ 45 6.1 Management organisation chart _______________________________________45 6.2 Health & Safety Quarterly Report ______________________________________45 6.3 Structures and soil settlement monitoring ________________________________47 6.4 Environmental Protection Control ______________________________________48 7. TUNNELS OPERATION MANUAL ________________ 50 7.1 Introduction _______________________________________________________50 7.2 Volume I – General Operational Framework V 4.0 – Feb 07__________________50



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7.3 Volume II – Traffic Management Plan V 3.0 - Feb 07 _______________________50 7.4 Volume III – Surveillance Plan V 5.0 - Feb 07 _____________________________51 7.5 Volume IV – Emergency Plan V 5.0 - Feb 07 _____________________________51 7.6 Volume V – Maintenance Plan V 1.0 Dec 06______________________________53 7.7 Volume VI – Implementation Plan V 1.0 Nov 06 ___________________________53 7.8 LTA Opinion_______________________________________________________53 8. OTHER ISSUES ______________________________ 55 8.1 Safety Compliance and Design Liability__________________________________55 8.2 Tunnels Traffic Management Plan______________________________________55 8.3 LTA Opinion_______________________________________________________63

APPENDIX A: PHOTOGRAPHIC REPORT APPENDIX B: DOCUMENTS PROVIDED BY CALLE 30 APPENDIX C: MEETINGS HELD APPENDIX D: FEB 2007 PANEL OF EXPERT’S AGENDA APPENDIX E: SITE VISIT FORMS



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FIGURES

Figure 1 - Projects Progress and Status ..................................................................................................8 Figure 2 - General methodology proposed for the monitoring phase ....................................................12 Figure 3: Investment increase after modifications and additional works per contract ...........................41 Figure 4: Power Supply Capacity ...........................................................................................................44 Figure 5: MC 30 accident rates (published by SECOIM) .......................................................................45 Figure 6: Comparison of MC30 statistics against national average.......................................................46 Figure 7: Comparison between the number of workers and the incidence rates Source-SECOIM.......46 Figure 8: Comparison between the number of workers and the frequency rates Source-SECOIM......47 Figure 9: Tunnel Evacuation Procedure.................................................................................................52 Figure 10: Communication Channel- Source Madrid Calle 30...............................................................61 Figure 11: The action’s protocol between the CGT and the CCT – Source MC30................................62

TABLES

Table 1 - Investment value at Financial Close (UPDATED JUNE 2006) ...............................................31 Table 2 - Updated investment figures (February 2007) .........................................................................31 Table 3 - Updated list of Change Requests for Construction Contracts, Jan 2007. SOURCE: MC30 ..32 Table 4 – Change Requests for Other Projects, January 2007. SOURCE: MC30 ................................33 Table 5 –List of Additional Works, January 2007. SOURCE: MC30......................................................33 Table 6 – Change Requests for Quality Control & Supervision Projects, Jan 2007. SOURCE: MC30.34 Table 7 - Price Escalation and Final Settlements. SOURCE: MC30 .....................................................34 Table 8 - Investment increase during the monitored quarter .................................................................35 Table 9 - Approved investment figures (January 2007) .........................................................................35 Table 10 - Progress of Project’s payments (incl. Price Escalation) .......................................................36 Table 11 - Final Settlements and Price Escalation ................................................................................37 Table 12 - Approved Additional Works’ payments progress ..................................................................37 Table 13 - Payments for supervision of works contracts’ progress........................................................38 Table 14 - Payments for quality control contracts’ progress ..................................................................39 Table 15 - Payments - Other Technical Assistance Contracts ..............................................................40 Table 16 - Itemised quarterly payments summary (VAT Incl.)...............................................................40



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INTRODUCTION Currie & Brown and Scott Wilson were appointed by the Mandated Lead Arrangers (MLA) - Dexia Sabadell, Société Genérale and Caja Madrid as Lenders’ Technical Advisors (LTA) for the Madrid Calle 30 project (either MC30 or Project) in accordance with the agreement dated 7th August 2005. In November 2005, and prior to the financial close, the LTA submitted the Phase 1 Due Diligence report, where the MLAs were advised on all the technical aspects involved in the project.

During Phase 2, the scope of the LTA is to perform all the tasks related to construction monitoring, including those regarding to physical progress of the works, construction management, and cost disbursements. On a quarterly basis, the LTA will be submitting to the lenders a report that informs of the overall status of the project, providing details related, mainly, with the construction schedule and budget and providing specific advise on other technical aspects of major significance arising during this stage.

Regarding technical aspects, the LTA will be analysing the major issues and risks to works schedule and investment figures originally considered.

As for monitoring of project costs, the LTA will be drawing attention to the following issues:

- New changes and additional works requests (modificados y complementarios) and their approval status

- Monitoring of contingency thresholds included in MC30 financial model

- Eventual application of the contract’s economic balance restoration clause included in the concession contract between MC30 and the Madrid City Council

- Other construction overruns

Finally, this report includes specific sections stating the opinion of the LTA on different issues arising during the monitored quarter with an impact on the technical or economical definition of the project.



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1. EXECUTIVE SUMMARY 1.1 Progress of construction works

1.1.1 Introduction

The civil works for the various contracts for Phase 1 were virtually completed by January 2007, having overcome some initial delays on a number of the contracts.

In general, the outstanding civil works include: surfacing of a number of sections, installation of kerbs, finished to the drainage systems and the support to the installation of E&M equipment. The individual components of the E&M tunnel equipment are being delivered to site, erected and finally integrated into the extensive systems network, for the control of road traffic safety, and the management of operational safety and environmental standards.

At this stage, the critical activities are the integration and testing of all the E&M systems, which will have to be fully integrated and commissioned, to meet the handover by the constructor on time.

Recent experience with the commissioning of completed projects, has shown that making the E&M systems fully operational and fully integrated, may take a few weeks after the opening of each section to public use; and that the de-bugging and snagging of the project may take even longer.

It is possible that during the initial operational period of the various new sections some training, and also occasional overnight or even day-time working, may take place. Some traffic management may be in place, under local surveillance and involvement of mobile units to maintain traffic safety.

Previous accumulated delays in all the contracts have been overcome, including those in Project 8 – Embajadores.

The good progress in the Control Centre works made it possible to start managing and controlling the operation of the tunnels from the new Madrid Calle 30 Control Centre.



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(1) (2) (3) (4)

CONTRACTUAL

COMPLETION DATE

PARTIALOPENING

FINALOPENING

DATE FOR THE OPENING OF THE LAST

SECTION

1st Q

UARTER

2nd Q

UARTE

R

3rd Q

UARTER

4rh Q

UARTER

5th

QU

ARTER

6th

QU

ARTER

F M A M J J A S O

1Remodelación del enlace entre la M-30 (Nudo La Paloma) y las calles Pío XII y Avda Burgos

22/03/2006 20/02/2006 100%

2Remodelación de la c/. Costa Rica y Pza. José Mª Soler y sus entronques con M-30

22/11/2005 21/12/2005 100%

3 Remodelación enlace M-30 con Avda. de América / A2 22/10/2005 28/09/2005 100%

4 Enlace entre el Eje N-100 -O´Donnell y la M-30 22/11/2005 26/10/2005 100%

5 Enlace de la M-30 con la N-III 31/03/2007 30/04/2006

7.1Bypass Sur. Túnel Norte N-III – Sta. Mª Cabeza. Calzada Izquierda.

16/05/2007 * 15/03/2007

7.2Bypass Sur. Túnel Sur N-III – Sta. Mª Cabeza. Calzada Derecha

16/05/2007 * 10/04/2007

8 Conexión de la C/ Embajadores con la M-40 15/06/2007 * 20/04/2007

9 Avda. Portugal 10/05/2007 02/03/2007

10.1 Marqués Monistrol - Pte. Segovia 20/05/2007 * 09/03/2007

10.2 Pte. Segovia - Pte. San Isisdro 20/05/2007 * 09/03/2007

11.1 Pte. San Isisdro - Pte. de Praga 10/05/2007 10/04/2007

11.2 Pte de Praga - Nudo Sur 10/05/2007 10/04/2007

12Remodelación de la Vía de Serv M-30 zona NO y amp a 3 carriles parte Oeste de la M-30

05/10/2006 30/08/2006

14Construcción de un nuevo acceso de la Av. de la Ilustración con la Ctra. De Colmenar M-607

05/06/2006 27/06/2006

CONTROLCENTRE CC

Redacción del proyecto y construcción del centro de control de túneles de la M-30

30/07/2007 20/12/2006

COMPLETE PROJECT 30/07/2007 20/04/2007

IN SERVICE

PARTIALY OPENED, IN SERVICE

93%

100%

100%

WORKS ON SCHEDULE

EXTERNAL WORKS OPENED, WORKS ON SCHEDULE

PARTIALY OPENED, WORKS ON SCHEDULE





IN SERVICE

91%

93%

94%

80%

WORKS ON SCHEDULE

91%

94%

92%

2007

EASTERN PROGRAMME

SOUTHERN PROGRAMME:

BY PASS SUR & EMBAJADORES

PROJECT NUMBER & NAME

99%

90%

89%

2005

IN SERVICE

* Last date approved for additional works

* Last date approved for additional works

2006

NORTH PROGRAMME

WESTERN PROGRAMME

IN SERVICE

IN SERVICE

IN SERVICE

IN SERVICE, EXCEPTION TUNNEL CONNETING BY PASS SUR

Figure 1 - Projects Progress and Status 1st Quarter corresponds with August, September and October 2005 2nd Quarter corresponds with November, December 2005 and January 2006 3rd Quarter corresponds with February, March and April 2006 4th Quarter corresponds with May, June and July 2006 5th Quarter corresponds with August, September and October 2006 6th Quarter corresponds with November, December 2006 and January 2007 1.1.2 Eastern Programme

All projects have been opened, and are, to date, in use, with the exception of the tunnel which connects the junction with the By-Pass Sur (projects 7.1 and 7.2.).

Overall completion will not be achieved until the interfaces with this project are complete.

1.1.3 Southern Programme: By-Pass Sur

The exceptional performance of both tunnel-boring machines recovered all the time lost due to the late start of the tunnel works. The road surfacing in the tunnels is advancing well. Virtually all the concrete platforms forming the lower, middle and upper chambers of both the tunnels are completed.

The progress of the remaining works, which is mainly the E&M installations and the testing and commissioning of the control and safety systems, plus some minor civil works, is advancing at an impressive pace.

The only critical E&M activities, which could delay the completion of all the works, are the installation and testing of the large fans in the By Pass Tunnels, the connection to the power supply for the By Pass Tunnels (and Embajadores) and the integration of all the E & M components and finalisation of the Operational and Maintenance aspects. However, these



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critical activities are unlikely to delay the staged inauguration of these remaining contracts and their opening to the public.

1.1.4 Southern Programme: Project 8, Embajadores - M40 connection

The progress made on this section has been considerable, with such good performance, that the constructor has been able to catch up with the works program.

1.1.5 Western Programme

The contractual deadline for the completion of all work is 10th of May 2007 and the works currently show no sign of delay.

Following the completion of all the necessary tests, the infrastructure is now partially in use. Av Portugal is now fully operational, with further openings being expected after the soon-to-come completion of the connections with project 10.1.

The internal river main road tunnel was open to the public during the current quarter and further openings are expected progressively.

The external main carriageway towards Bypass Sur will be the last step within the mayor openings phase. This, in fact, currently represents the critical path, due to the technically challenged conditions, and geotechnical and structural works that are being carried out under the “Puente de Praga” bridge.

In general terms, the installation of E&M systems and surfacing tasks are yet to be completed. Nonetheless, these are progressing according to the scheduled programme.

The complex and advanced drainage and sewerage systems along the river are also close to completion. These comply with the requirements set by the River Catchment Authority (Confederación Hidrográfica del Tajo), including combined water system, drainage, sewage, storm tanks, etc.

In general, following the opening of the various sections of the project, some minor works will be undertaken by the main contractor i.e. demolition of temporal structures, restitution of public services, landscaping, final architectural works in Technical rooms, drainage system integration.

1.1.6 North Programme

All projects have been completed and commissioned along the Northern section of the M-30.

1.2 Monitoring of Project Costs

1.2.1 On new Change Requests and Additional Works

Compared to the original tender designs and investment, Change Requests and Additional Works represent significant increases in the scope and capital investment.

The LTA acknowledges that these changes have led to significant improvements that will benefit the long-term traffic capacity and controls, operational safety, environmental performance and quality of the new infrastructure.



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1.2.2 On construction overruns due to Final Settlements

Since the last Change Requests and Additional Works have been approved recently, towards the end of the construction contracts, no major deviations are expected for this item.

1.2.3 On construction overruns due to Price Escalation

The total average Price Escalation being invoiced amounts a substantial increase of 4.8% of the total contracted investment.

This figure has soared in comparison to previous quarters, due to the increase of Price Indexes. The LTA is aware that MC30 has updated the final project investment figures taking into account this situation, in order to accommodate any impact initially unforeseen.

1.2.4 On general progress of project payments

The works and the management of the certification process are both being performed efficiently. The latter is confirmed by the optimum progress of the works currently at 93% completion for construction projects, including Change Requests; and 66% completion for Additional Works.

1.3 Other Key Aspects to Report during the Quarter

1.3.1 E&M Installations and Systems

At these final stages of construction there is clear evidence of a determined effort by all concerned to achieve the planned target dates set for the supply, erection and testing of the E & M works. Despite this determination, it might possible that not all the remaining works will be completely finished by the planned inauguration dates. For example, there could be some final works to carry out in the incorporation of some of the tunnel equipment section into the project-wide integrated systems. Indeed, final refinements and testing problems are to only be expected in a project of this magnitude and complexity.

As before, the LTA was pleased to note that the remaining ongoing construction activities were well planned and executed intensively, yet safely. Good progress has been made by the contractors in the erection and testing of the individual E&M installations in the remaining sections 7.1, 7.2, 8, 10.1, 10.2, 11.1 and 11.2. The erection and testing of project-wide monitoring and safety control equipment, is being handled directly by MC-30, some under SICE’s contract for the Control Centre.

1.3.2 Heath and Safety

The last fatal accident occurred in November 2007. Since the dates overlapped with the previous quarterly report, this was already included in it.

Statistical figures seem to follow a positive downwards trend in the number of accidents.

1.3.3 Settlement monitoring

As the civil works are virtually complete, so is the ground settlement monitoring. It must be noted that the lack of significant problems with ground settlement along the tunnel routes, is a credit to the relevant workforce.



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1.3.4 Environmental Control

The Environmental Control manuals approved by SECOIM for all the works contracts are being duly put into practice. No significant environmental issues arose during the current quarter.

Regarding the issue of compliance with the EU’s Environmental Impact Assessment (EIA) legislation, this LTA believes this issue is moving towards a positive resolution and that once the project is completed, and Madrid City Council carry out the environmental actions that have been, the sanction file will be officially closed.

The environmental actions include:

- Madrid City Council will carry out a general environmental study for those contracts already completed or under construction in order to identify accumulated effects derived from them.

- Madrid City Council will revoke the former authorisation (2004, June the 4th) to complete the three remaining projects in Phase II (North By-Pass and its connection with The N-I).

- Madrid City Council will resume the drawing up of an Environmental Impact Assessment (EIA) for the Madrid Calle 30 aforementioned projects.

1.3.5 Operational Manual

The LTA believes that Madrid Calle 30 is making significant progress towards the aims and objectives required to manage the infrastructure’s traffic. This impression has been reinforced with the progress in the development of the Operational Manual observed in the period up until February 2007 In the last visit the LTA was given a presentation on the traffic control measures and procedures that will be applied to the new project, in particular to the tunnels, as well as the adjoining existing urban road network. The main objectives of the traffic control system are:

- Safety

- Traffic congestion alleviation

1.3.6 Safety compliance and future design liabilities

A Safety Commission provides high-level advice, and an independent fire risk analysis has been undertaken for some critical elements of the project.

It appears that the responsibility for the remedial of any future design-related problems will be shared by Madrid City Council, MC-30 and their consultants; or by the contractors and their consultants, jointly or as a combination of the parties involved. The actual degree of responsibility for any design problem is likely to depend on the corresponding contractual arrangements and responsibilities established during the tender and construction periods.

MC-30 will archive systematically all the technical and contractual data to provide a readily accessible record of all the design, planning and construction of the project. The technical data will be handled by a GIS system.



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2. METHODOLOGY 2.1 General approach

For the monitoring phase, the LTA’s approach is based on the following generic process:

- Monthly data request to Calle 30

- Monthly or quarterly analysis and collation of the data provided by MC 30

- Dispatch of site visit forms to site responsibilities, prior to the site visit, with the key issues to be analysed during the forthcoming inspection

- Dispatch of Expert Panel meetings agenda

- Quarterly site visits by the monitoring team

- Quarterly report preparation

For each of the construction projects, the LTA is following a three stage process:

- Site inspection, to review physical progress monitoring

- Site offices’ visit, to monitor construction management aspects

- Meetings with an Expert Panel to discuss key technical aspects

Site inspection and office visits apply for all the works monitored, while meetings with the Expert Panel are only held for the tunnel projects and, at the request of the LTA or the lenders, for those specific issues that might eventually arise.

Figure 2 - General methodology proposed for the monitoring phase

After the site visit, the LTA team compiles all the documents and information provided. The LTA collates the outputs in the Works Progress Forms (included in Section 4, these forms state works’ physical and financial progress) and Site Visit Forms (included as an Appendix E, these forms check the compliance with legal construction management duties).



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2.2 Information Provided by MC30

Appendix B includes the list of the documents requested to MC 30. The highlighted items are those submitted by the company to the LTA before the preparation of this report.

2.3 Meetings held

Appendix C includes the list of the meetings, showing major information such as dates, attendance and agenda.

2.4 Site Visits

On 14th February 2007, the LTA visited projects 7.1, 7.2 and 8. Due to unforeseen circumstances, only a general visit of projects 10.1, 10.2, 11.1 and 11.2 was carried out.

2.5 Panel of experts agenda for February 2007

Appendix D includes the panel of experts’ agenda.

According to the general methodology, and based on the main concerns identified during the quarter, the LTA drew-up a proposed agenda for the panel of experts meeting.

The meeting was held in Madrid on 13th February 2007. The LTA met O&M systems, Road Operation and Construction expert members of Madrid Calle 30, SICE, TRN and Eme30 SA.



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3. WORKS PROGRESS FORMS 3.1 Completed Works

There are 7 projects that have been completed so far. These are project 1, 2, 3, 4, 5, 12 and 14.

Although Project 5 is completed, it has not been commissioned fully due to its connection to the By-Pass Sur tunnels that are not yet operational. Since no further significant work has been carried since the last quarterly visit, the LTA didn’t carry out a site visit, and therefore no Site Form will be made available.

Figure 4 – Photographs of finished works. Source MC30

Project 3: A-2 (28/09/05) Project 14: Av Ilustración-

Colmenar (27/06/06) Project 1: Nudo de la Paloma (20/02/06)

Project 4: O’Donnell (26/10/05)

Project 5: A-3 (03/04/06) Project 2: Costa Rica (21/12/05)

Project 12: Enlace Oeste M30 (30/08/06)

Control Centre (19/12/06) Main River section-Internal way Pte San Isidro-M.Monistrol (30/01/07)

Regarding Project 9: Avenida de Portugal, the works have been virtually finished since the last quarter. Respective sections have been gradually brought into service and no technical visits have been arranged for this quarter as the openings are a matter of the interfaces with the project 10.1 (M. Monistrol-Puente de Segovia).



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3.2 Project 7.1: By-Pass Sur, Northern tunnel

7.1 Title of the Project: Calzada Izquierda de la conexión del Paseo de Santa María de la Cabeza – NIII, correspondiente al By-Pass Sur de la M-30 (By-Pass Sur tunel Norte) By-Pass Sur, Northern tunnel

CONTRACTOR: UTE ACCIONA – FERROVIAL COMPLETION DATE: 28th March 2007

CONTRACT AWARD VALUE: € 331,449,358 VAT incl. TIME OF COMPLETION: 30 months

VALUE AFTER CHANGES (Modificado 1): € 388,196,449 VAT incl. TIME OF COMPLETION 30 months


VALUE OF ADDITIONAL WORKS (Complementario): € 66,270,528 VAT incl. TIME OF COMPLETION: 6 months

SUPERVISION CONTRACT:

INTEMAC GINPROSA with Vazquez Ofitep (E&M) VALUE: € 4,096,622.36 VAT incl.

QUALITY CONTROL CONTRACT: EPTISA - EUROESTUDIOS VALUE: € 2,802,618 VAT incl.

MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: [ Progress witnessed by LTA 13 Feb 2007, see Report by UTE, INTEMAC GIMPROSA, January 2007]

Tunnel − Tunnel Drive was completed in July 2006. − TBM dismantling completed. − Connection to cross passages from South tunnel completed. − Final sealing of leaking tunnel segments and painting of tunnel lining (2 coats ceramic

white paint).

Running and Upper Platforms − Placing of running platform completed. − Placing of supports for upper platform completed.

Passages for Vehicular and Pedestrians

− Miscellaneous metalwork. − Asphalt pavement being laid in layers and tested. − All passages completed apart from galleries 19 & 23 − Installation of fire doors

Launch Chamber and Access Ramp

− 70% civil works complete. − Removal of temporary works. − Civil construction to cover over launch area. − Excavation and lining − Complete ramps, with cladding, metalwork, minor finishing works and install filter

station.

Ventilation Shaft − Minor civil works, gallery connection to Southern Tunnel completed, erection of air filters.

− Construction for fans and filter chamber and transformer bays ongoing.

Emergency Exits and Shaft (PK3 + 150)

− Completed.

Monitoring of movements − No significant ground and structural movement were recorded.

E&M Installations − Installation of testing of E&M equipment ongoing, progress to date given in O&M general section of this report.



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Quarterly certification: €103,972,962.12 VAT + Price Escalation Incl.

Cumulative value: € 386,619,037.22 VAT + Price Escalation Incl.

Cumulative Price Escalation: € 33,407,548.10 VAT Incl.

Percentage over Total value: 89.68 %

Additional Works quarterly certification: € 37,687,711.06 VAT incl.

Supervision of works quarterly certification: € 538,180.35 VAT incl.

QUARTERLY CERTIFICATION:

Quality control quarterly certification: € 312,206.45 VAT incl.

COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: Critical Activities / Delays Identified and Reasons

Key Activity Planned Date (Tender) Actual Comment / Reason

Start of Installations erection

September 2006 September 2006

End of installations erection

March 2007

-

There were some major changes of scope that have delayed the start of the installation work, see section 7.5 of this report for further discussion. Completion is planned to occur no later than project week 64 (15 March 2007). Cable tray laying and power and earthing cabling started in September 2006. Installation work ongoing. Testing of most equipment planned in parallel with installation.

The critical activities are now: - Supply, erection, testing and commissioning of the tunnel’s E&M installations and connection to project wide control

system. Critical items – fan starters. Design Changes The TA’s report (Supervisor) does not comment on any design changes in the civil works or on the E&M installations. The LTA was advised by MC-30 at the end of February 2006 of new specifications for the E&M Installations for the overall Traffic Control and Safety Systems for all the contracts, including the tunnels and for the Control Centre. Design changes and refinements were discussed with MC-30 in all previous visits. The final cost of these design developments was discussed in meetings and exchanges with MC-30. The LTA’s due diligence report (November 2005) highlighted the risk of cost over-runs due to design changes, stating “part of the risk can be transferred by MC-30 to the City Council and to the Contractor”. The Traffic and Safety Systems and Installations are discussed in this report and previous reports. OTHERS:

Additional works have been officially approved (Nov 2006).



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3.3 Project 7.2: By-Pass Sur, Southern tunnel

7.2

Title of the Project: Calzada derecha de la conexión del Paseo de Santa María de la Cabeza – NIII, correspondiente al By-Pass Sur de la M-30 (By-Pass Sur tunel Sur)

South Bypass, Southern tunnel CONTRACTOR: UTE FCC – DRAGADOS COMPLETION DATE: 28th March 2007 CONTRACT AWARD VALUE: € 409,293,819 VAT incl. TIME OF COMPLETION: 30 months




U.T.E. AEPO, S.A. / IBERINSA, IBERICA DE ESTUDIOS E INGENIERIA, S.A.

VALUE: €3,842,422.35 VAT incl.

QUALITY CONTROL CONTRACT:

U.T.E. AZIERTA GEOTEYCO, S.A. / EUROCONTROL, S.A

VALUE: € 3,219,000.0 VAT incl.

MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: [Progress witnessed by LTA 13 Feb 2007 and based on UTE report, Jan 2007]

Tunnel Drive - Tunnel drive was completed 30 October 2006. - Construction of cross passages to North Tunnel completed. - Final sealing of leaking tunnel segments.

Running and upper platforms and passage ways for traffic and pedestrians

- Placing of prefabricated concrete slabs for running platform virtually completed. - Placing of prefabricated concrete slabs and steel supports for upper platform 90%

completed. - Asphalt pavement being laid in layers and tested. - Completion of pedestrian and vehicular passages. - Erection of fire doors to follow. - Miscellaneous metalwork.

Launch chamber and access ramp

- Works about 70% complete. - Placing of running platform structures. - Final civil construction for road connections. - Removal of temporary works. - Civil construction to cover over launch chamber and install filter station.

Branches to M30 and A-30 - Civil works continuing.

Ventilation Shaft - Excavation and lining of shaft and connecting galleries completed. - Construction of fan supports and stairway. - Reinforced concrete works for filter station.

Emergency Shaft - Work in shafts at PK 2+083. - Excavation and lining completed. - Metalwork in progress.

E&M Installations - Ongoing.



18

Quarterly certification: € 104,275,426.00 VAT + Price Escalation Incl.

Cumulative value: € 423,170,732.40 VAT + Price Escalation Incl. Cumulative Price Escalation: € 32,191,567.01 VAT Incl.

Percentage over Total value: 88.89 % Additional Works quarterly certification: € 33,514,601.22 VAT incl.




COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: Delays Identified and Reasons

Key Activity Planned Date (Tender) Actual Comment / Reason

Start of Installations erection September 2006 October 2006

End of installations erection

April 2007 (March 2007) -

There are some major changes of scope of the installation work. Completion planned for project week 68 (10 April 2007). Installation work being done, with testing in parallel.

The critical activities are now: - Supply, erection, testing and commissioning of the tunnel’s E&M installations and connection to project wide control

system. Critical items – fan starters. Design Changes The TA’s report (Supervisor) does not comment on any design changes in the civil works or on the E&M installations. The LTA was advised by MC-30 at the end of February 2006 of new specifications for the E&M Installations for the overall Traffic Control and Safety Systems for all the contracts, including the tunnels and for the Control Centre. Design changes and refinements were discussed with MC-30 in all previous visits. The final cost of these design developments was discussed in meetings and exchanges with MC-30. The LTA’s due diligence report (November 2005) highlighted the risk of cost over-runs due to design changes, stating “part of the risk can be transferred by MC-30 to the City Council and to the Contractor”. The Traffic and Safety Systems and Installations are discussed in this report and previous reports.

OTHERS:




19

3.4 Project 8. Embajadores – M40 connection

8

Title of the Project: Conexión de la Calle Embajadores con la M-40

Embajadores – M-40 connection

CONTRACTOR: DRAGADOS S.A. COMPLETION DATE: 21st May 2007 CONTRACT AWARD VALUE: € 133,141,648 VAT incl TIME OF COMPLETION: 18 months

VALUE AFTER CHANGES (Modificado 1): € 133,141,648 VAT incl TIME OF COMPLETION 18 months

VALUE AFTER CHANGES (Modificado 2) € 143,806,292 VAT incl TIME OF COMPLETION 18 months

VALUE AFTER CHANGES (Modificado 3) € 159,761,987 VAT incl TIME OF COMPLETION 25 months

VALUE OF ADDITIONAL WORKS (Complementario): € 26,617,678 VAT incl TIME OF COMPLETION: 7 months

VALUE € 2,446,254.40 VAT incl SUPERVISION CONTRACT:

UTE EPTISA – EUROESTUDIOS VALUE (after changes): € 2,935,455.40 VAT incl.

QUALITY CONTROL CONTRACT:

UTE PAYMA COTAS – ICAES VALUE: € 1,175,000.00 VAT incl.

MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER:[Progress witnessed by LTA 16 Feb 2007] - Civil works in tunnels complete, both cut and cover and traditional methods - The exterior structures have been completed - Road surfacing works in the exterior roads, base layer dressing completed, the top layer will be finished as soon as a

suitable weather conditions allow. - Work on the widening of the N-IV highway (Ampliación 1, 2, 3) has been completed. - E&M Installations and Systems implementation on the tunnel sections has started. - Civil works in the four technical rooms are in progress. - Emergency exits structures are complete, cladding in progress.


Cumulative value € 158,943,739.38 VAT + Price Escalation Incl.


Percentage over Total value: 90.93 % Additional works quarterly certification: € 15,027,962.85 VAT incl.




COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: Structural activities regarding the tunnels are finished; Significant progress has been made in the main works during this quarter. The LTA considers this project to be on schedule, no further delays are considered likely The completion of the uncertain tunnelling excavation activities minimises the risk of delays due the behaviour of the soil. The last two visits this LTA noticed a considerable volume of water flowing through the diaphragm walls in a section close to the main tunnel south, this matter is being studied by the direction of the contract and main contractors in order to sort it out, the LTA will inform in future reports about the measures implemented. The main contractor is managing with the E&M systems implementation, it is clear that a big effort is being made nonetheless these activities are still running on a tight schedule. As stated in the last reports, delays of the completion are not likely to affect the core works of the By-Pass Sur and River Project contracts; therefore, the unforeseen delays would not have a significant impact on the Madrid Calle 30 Project as a whole.

OTHERS:

Additional works have been officially approved (Nov 2006)

Technical Assistance Contracts modified (Nov 2006)



20

3.5 Project 9: Avda. Portugal Cut and Cover

9

Title of the Project: Soterramiento de la Avenida de Portugal entre el Paseo de Extremadura y la M-30

Avenida de Portugal Cut and Cover

CONTRACTOR: SACYR S.A. COMPLETION DATE: 10th May 2007 CONTRACT AWARD VALUE: € 166,288,144 VAT incl. TIME OF COMPLETION: 24 months





UTE AEPO-SENER-IBERINSA VALUE: € 3,377,757.83 VAT incl.

QUALITY CONTROL CONTRACT: INTEMAC S.A. VALUE: € 1,547,894.96 VAT incl.

MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: This project has not received a witnessing visit and the information has been provided by the works director of the project and the TA report Issued regarding this report’s respective months.

Slip way M-30 Av Portugal in service (20/12/06), Cuesta de san Vicente - Avenida de Portugal finished and opened to the public (08/02/07). Regarding the unopened sections the following works are being carried out:

- Civil Works have all been completed with the exception of exterior parking ramps which were affected by the traffic diversions.100% of sewers have been completed.

- Finishings on the Technical rooms and emergency exits in progress. - O&M elements working test for the sections due to be opened and external test are being carried out. - Exterior landscaping The January Technical report summarizes a non conformities list in the report that represents junk list of finishing works to be carried out by the Main Contractor.



21


Cumulative value € 188,679,543.50 VAT + Price Escalation Incl. Cumulative Price Escalation: € 5,374,655.21 VAT Incl.

Percentage over Total value: 94.19 % Additional works (complement.) quarterly certification:

-


QUARTERLY CERTIFICATION


COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: The asset is prepared to be in use following finalization of the relative internal and external tests.

As stated in last quarter report, this project’s carriage ways will gradually be brought into service as the main and slip roads in

project 10.1 interacting with this project are finished.

Gradual opening of the roads have been satisfactory and no mayor incidents have arisen.

The LTA is aware that the MC30 Technical Assistant has carried out, since the commencement of the construction works, a list of “non conformity aspects”. This is incorporated into the contractual Quality procedures for the works, and will help make up a “Snag List”. Items on this action list will need to be completed promptly by the Main contractor, remedying any defects that may arise before the final settlements and thereafter through contractual defects liability. It is recommended that apart from the non conformity procedures, MC30 should produce a final snag list for this final stages. During this quarter, problem with damp emerged, and reparation works are being carried out. This situation has created

immediate response by the main contractor starting remedy works, however there is not cause for alarm. The LTA will report

back on this in following reports.

OTHERS:



22

3.6 Project 10.1: M. Monistrol-Puente de Segovia Cut and Cover

10.1

Title of the Project: Soterramiento del nudo del Puente del Rey – Avenida de Portugal entre el Paseo de Marqués de Monistrol y Puente de Segovia

Marqués de Monistrol – Puente de Segovia Cut and Cover

CONTRACTOR: DRAGADOS S.A. COMPLETION DATE: 10th May 2007 CONTRACT AWARD VALUE: € 371,671,965 VAT incl TIME OF COMPLETION: 24 months




VALUE OF ADDITIONAL WORKS (Complementario): € 74,259,885 VAT incl TIME OF COMPLETION: 6 months


UTE PROSER – PROINTEC – INOCSA VALUE: € 5,098,200.83 VAT incl.

VALUE: € 3,447,462.34 VAT incl. QUALITY CONTROL CONTRACT:

UTE AEPO – IBERINSA – SGS TECNOS. VALUE after

Changes € 3,597,395.53 VAT incl.


Slip way M-30 Av Portugal in service (20/12/06), Internal Way (30/01/07) and Cuesta de san Vicente - Avenida de Portugal finished and opened to the public (08/02/07).

Regarding the un opened sections the following works are being carried out:

- Excavation completed both general tunnel civil and “special crossings” works concluded.

- 100% of sewers have been completed. The storm tanks have also been completed.

- Structural work on the emergency exits has been completed and finishing works on schedule.

- Technical rooms in progress.

- Implementation of Medium Voltage cable trays.

- Ventilation elements and placing of O&M systems are in progress.

Road surfacing works, base layer dressing completed

Structures build to hold the traffic diversions will be dismantled after further sections are opened.





Additional works (complement.) quarterly certification: € 31,348,058.80 VAT incl.


QUARTERLY CERTIFICATIO:

Quality control quarterly certification: € 453,981.94VAT incl.



23

COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: Once the more challenging works have almost been finalized, no significant delays are foreseen by the LTA.

The O&M systems Installation’s implementation progress adequately. This process has been outstandingly efficient, respective

teams for these activities were nominated in earliest stages of the works; this matter has brought a significant positive progress

in later stages.

Sections of the tunnels are being gradually opened as work finishes, and the implementation of the E&M equipment and

required tests are complete in order to gradually channel the incoming traffic to its final allocation.

The LTA also gives a positive view on the opening of the completed sections to the public, this meaning lower impact on the

users and the team responsible for the operation of the infrastructure, thus allowing for a longer and hassle free adaptation

period.

After the last section opening further works will be required to dismantle the provisional structures for the diversions along with

the placement of the services on the definitive location.

OTHERS:

Additional works have been officially approved by Madrid City Council (Nov 2006).

Quality Control Contracts modified (Nov 2006)



24

3.7 Project 10.2: Puente de Segovia – Puente de San Isidro Cut and Cover

10.2

Title of the Project: Soterramiento de la M-30 entre el Puente de Segovia y el Puente de San Isidro

Puente de Segovia – Puente de San Isidro Cut and Cover

CONTRACTOR: FERROVIAL – CÍA. DE OBRAS CASTILLEJOS

COMPLETION DATE: 10th May 2007

CONTRACT AWARD VALUE:

€ 247,324,636 VAT incl.

TIME OF COMPLETION: 24 months

VALUE AFTER CHANGES (Modificado 1):

€ 247,324,636 VAT incl.

TIME OF COMPLETION 24 months


€ 254,793,840 VAT incl.



€ 296,775,958 VAT incl.


VALUE OF ADDITIONAL WORKS (Complementario):

€ 22,021,184 VAT incl.

TIME OF COMPLETION: 6 months


UTE INCOYDESA – INGENIERÍA BÁSICA VALUE: € 3,953,385.33 VAT incl.

VALUE: € 2,050.000.00 VAT incl. QUALITY CONTROL CONTRACT:

UTE LCC- PROGEOTEC S.A. – SERGEYCO S.A.

VALUE after Changes € 2,457,228.92 VAT incl.


Internal Way (30/01/07) finished and opened to the public.

Regarding the unopened sections the following works are being carried out:

- Excavation completed both general tunnel civil and “special crossings” works concluded.

- Civil works have been completed during this quarter.

- During January 2007 there was concluded the last lower slabs works.

- The civil and finishing works of 16 out of the 18 emergency exits are now complete. Two out of the 18 have not yet been started due to difficulties with their location and the compulsory permission to start the works.

- Sewers have been completed; the four storm tanks have been finished and are just awaiting some finishes.

- In the technical rooms, civil works have been completed and architectural and system implementation work is now ongoing.

- Road surfacing works on schedule.

- All the O&M Installations implementation works are due to finish on schedule.



25





Additional works (complement.) quarterly certification: -




COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: No outstanding matters have been outlined during the quarter.

During this quarter, work progress has remained on schedule and expectations have been fulfilled by the main contractor;

O&M implementation of elements works are still going ahead, surpassing the contractual delivery dates.

This LTA will inform in next reports regarding the two last emergency exits to obtain the permissions to start the civil works.

OTHERS:


Quality Control Contracts modified (Nov 2006)



26

3.8 Project 11.1: Puente de San Isidro – Puente de Praga Cut and Cover

11.1

Title of the Project: Soterramiento de la M-30 entre el Puente de San Isidro y el Puente de Praga

Puente de San Isidro – Puente de Praga Cut and Cover

CONTRACTOR: NECSO S.A. COMPLETION DATE: 10th May 2007 CONTRACT AWARD VALUE: € 227,830,604 VAT incl. TIME OF COMPLETION: 24 months





SUPERVISION CONTRACT: GINPROSA VALUE: € 4,020,864.27 VAT incl.

VALUE: € 2,157,567.27 VAT incl. QUALITY CONTROL CONTRACT: UTE GEOCISA - CIESM VALUE after


MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: This project has received an onsite witnessing visit, regarding the monitored quarterly information it has been provided by the works director of the project and the TA report Issued on a monthly basis.


Regarding the unopened sections the following works are being carried out: - Excavation in the tunnels executed, last lower slabs concreted up to 94% of the total.

- “Puente de Toledo” bridge, excavations under the arches have been progressing normally: external way crossings

finished, just remaining the excavation for internal slipways (Ramales 1 and 4) the starting date is conditioned to the

finalization of the mine excavation for the sewer cross under the bridge ramp.

- Works over Underground Line 5 finished.

- Continuing works on the mine excavation for the sewer crossing under “Puente de Toledo” bridge’s West ramp in

the external carriageway.

- There are reflected 22 Emergency Exits in the reviewed Project, civil works due to finish and architectural elements

being soon after implemented.

- Works are ongoing in the 15 Technical Rooms. This activity is critical for the implementation of the Systems and

Equipment on schedule.

- In the finalised sections the specialist company part of the main contractor’s group is carrying out the preparation

works and the lay out of M&E and systems and Equipments.



Cumulative value: € 261,512,675.10 VAT + Price Escalation Incl.


Percentage over Total value: 93.25 % Additional works (complement.) quarterly certification:

€ 954,803.81 VAT Incl.





27


COMMENTS OF THE LENDER’S TECHNICAL ADVISOR: At this stage there are no existing interfaces with other networks or supplies that could alter the progress of the remaining

activities and given the advanced state of the works no delays are to be expected for that reason.

Resources for the works in the technical rooms and emergency exits should be encouraged to provide enough time for

equipment set up and tests for the correct running of the tunnels.

In a different note, respect of the M&E related activities, all the purchase and installation contracts have been placed and

agreed and its implementation is commencing as the Civil Works are being finished.

OTHERS: Quality Control Contracts modified (Nov 2006)



28

3.9 Project 11.2: Puente de Praga – Nudo Sur Cut and Cover

11.2

Title of the Project: Soterramiento de la M-30 entre el Puente de Praga y el nudo Sur

Puente de Praga – Nudo Sur Cut and Cover

CONTRACTOR: FCC CONSTRUCCIÓN S.A. COMPLETION DATE: 10th May 2007

CONTRACT AWARD VALUE: € 231,852,972 VAT incl. TIME OF COMPLETION: 24 months






UTE INTECSA-GEOCISA-TYPSA VALUE: € 4,039,851.96 VAT incl.

INITIAL VALUE: € 1,997,244.57 VAT incl. QUALITY CONTROL CONTRACT:

UTE EPTISA - EUROESTUDIOS VALUE after


MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: This project has received an onsite witnessing visit, regarding the monitored quarterly information it has been provided by the works director of the project and the TA report Issued on a monthly basis.


Regarding the unopened sections the following works are being carried out:

- The execution of Diaphragm walls for the main and slip roads is 100% complete intermediate slabs in progress.

- Last structural works under Puente de Praga external way in progress and carrying out excavations; Last 50,000M3

remaining, This activitie representing the critical path along with the technical rooms’ systems implementation

works.

- The new Puente de la Princesa Bridge is complete and under service.

- Work on the drainage and main sewers network and the 3 storm tanks are complete.

- Contiguous pile walls for emergency exits have been completed.

- E&M Systems: The teams are onsite to anticipate the possibility of the early delivery and implementation of the

systems close to the civil works finishings.




29


Cumulative value € 269,872,518.94 VAT + Price Escalation Incl. Cumulative Price Escalation: € 7,947,011.02 VAT Incl.


Additional works (complement.) quarterly certification: € 2,845,308.24 VAT incl.




COMMENTS OF THE LENDER’S TECHNICAL ADVISOR:

Meeting the date of completion depends upon the civil works taking place in the exterior way under Puente de Praga as

exposed by the project’s Technical director.

Nevertheless the works carried out in the technical rooms are tightly on program to host the systems for the technical and

safety operation in the external way.

As was revealed in the last reports, this progression of the projects at this advanced phase is now less dependent upon

external factors which may, at one point, have impeded the works on the first stages of the activities. Is for that the remaining

excavations represents a time uncertainty more that a technical one that could be the case in later stages of the project.

The asset is being opened on successive stages, the external way connecting Bypass Sur Tunnel Sur represents the later and

at the same time the longer of the sections open to public service thus it is recommended to take all the available measures to

allow for adaptation periods able to manage the compulsory previous opening test.

OTHERS: Quality Control Contracts modified (Nov 2006)



30

3.10 Control Centre

CC Title of the Project: Control Centre

CONTRACTOR: SICE DRAGADOS COMPLETION DATE: 30th July 2007 CONTRACT AWARD VALUE: € 39,254,949.53 VAT incl. TIME OF COMPLETION: 8 months

VALUE AFTER CHANGES (Modificado 1): € 45,414,051.11 VAT incl. TIME OF COMPLETION 14 months

VALUE: € 2,560,930.84 VAT incl. SUPERVISION CONTRACT:

TRN ING. Y PLANIFICACION DE INFRAESTRUCTURAS VALUE after Changes € 2,388,808.32 VAT incl.

MAJOR ACTIVITIES CARRIED OUT ON SITE DURING THE QUARTER: − Civil works and Internal partitions concluded − The communications main gallery built to connect trough the By-Pass Sur Tunel Norte ventilation shaft concluded − M&E (ventilation, lighting, etc) concluded − Exterior urbanization − Finishes on going − Systems and traffic management equipment: Basic implementation complete, the premises are in use for the

monitoring and operation of the tunnels. The Control Centre building is in the last phase of construction. The computer room is finished and Eme30 SA staff is covering all day answering requests and solving problems to set in motion.

At the moment, the team is working with the minimum of equipments to cover all opened sections receiving digital signals and images of the traffic travelling across the tunnels

Quarterly certification: € 19,804,839.12 VAT Incl. Cumulative value € 28,747,758.14 VAT Incl.

Percentage over Total value: 73.23 % Additional works (complement.) quarterly certification: -



Quality control quarterly certification: -

COMMENTS OF THE LENDER’S TECHNICAL ADVISOR:

The works at the Control Centre started in May 2006. This is a 3-storey building with some 3,600m2 of total area. The control and communications centre, as well as the operation and equipment maintenance services, will be hosted here.

As was stated on last quarter report, considerable progress and good output have been achieved. The works are clearly ahead of schedule.

Notable advance on works during the quarter made possible to operate the tunnels from the Madrid Calle 30 Control Centre.

Following the finalization of the relative tests on the Control Centre, the tunnels have gradually being put into service.

This LTA witnessed the tunnel control teams working on the asset, those were not placed on definitive positions thus final touches works were in progress.

OTHERS:



31

4. MONITORING OF PROJECT COST 4.1 Project costs

4.1.1 Updated capital investment value

The table below shows the reference investment value at Financial Close, where no additional modifications have been made since the last update in June 2006.

Table 1 - Investment value at Financial Close (UPDATED JUNE 2006)

Summary table. Updated investment amounts previous to March quarterly report (Updated) Amounts in € % over (1)

(1) Construction contracts 2,468,756,281.23(2) Approved additional works(complementarios ) 55,433,784.62 2.25%(3) Approved change requests (modificados ) 84,430,472.74 3.42%(4) Supervision of Works contracts 40,024,883.01 1.62%(5) Quality Control contracts 21,507,638.58 0.87%(6.1) Control centre systems. Tender documents drawing up contract 137,228.00(6.2) Control centre systems. Design&build contract 30,314,274.20(7) Health and Safety coordination contract 244,999.99(8) Works Final settlement(*) 1,042,602.58(Tr) INVESTMENT REFERENCE TOTAL AMOUNT OCTOBER 2005 (UPDATED) 2,701,892,164.95

(*) Reported by Calle 30 on May 2006

The following table includes the investment figures provided by MC30 to date. The amounts in black are not subject to changes. The amounts in blue are estimated figures based upon calculations made by MC30´s, thus will eventually be subject to change reaching the final stages of construction works.

Table 2 - Updated investment figures (February 2007)

Amounts in €% over

(1)

(1) Initial Construction contracts 2,468,756,491.09(2) Additional works (complementarios ) 414,530,615.89 16.79%(3) Change requests (modificados) 382,351,936.66 15.49%(4) Supervision of Works contracts 40,517,133.89 1.64%(5) Quality Control contracts 23,005,467.08 0.93%(6) Control Centre 48,144,692.27(7) Health and Safety coordination contract 315,417.57(8) Landscaping 10,000,000.00(9.1) Works final settlement (Approved) 14,583,820.88(9.2) Works final settlement (Pending Approval) 80,969,308.51(10.1) Price Escalation (Official pulished Indexes) 112,631,029.85(10.2) Price Escalation Estimation 103,924,692.97

(T) FINAL INVESTMENT ESTIMATED BY MC30 IN FEB 2007 3,699,730,606.66

Figures include VAT. SOURCE: Madrid Calle 30

The main categories in which the total investment figure is divided into are:

1) Construction costs as per the initial construction contracts subscribed by Madrid City Council between 2004 and 2005.

2) Additional works arisen during the construction period and approved by Madrid City Council.

3) Changes arisen during the construction period and approved by Madrid City Council.

4) Supervision of works contracts subscribed by Madrid City Council for each construction contract.



32

5) Quality control contracts subscribed by Madrid City Council for each construction contract.

6) Late Control Centre contract commissioned by MC30 for the development of all the systems specifications and the design and erection of MC30 headquarters and traffic control facilities.

7) Health and safety coordination contract managed by SECOIM. 8) Later to the opening of the tunnels Madrid Calle 30 will have to carry out

general Landscaping works for which MC30 has allowed for a lump sum of €10 million, albeit this amount has not been yet officially approved.

9) Final settlements reflect final payments made by MC30 to reconcile payments with the final quantities of the works undertaken by the contractor. Amounts in blue (9.1) show MC30´s own estimations.

10) Amounts allowed for price escalation in blue (10.2) reflect MC30´s estimations derived from its own assumptions on construction price indexes where these are not available yet. Amounts under category (10.1) reflect figures calculated using officially published fixed indexes therefore not subject to change.

MC30 has confirmed that neither changes, nor new additional projects are expected from now until the completion of the project.

The only new investment that is expected has been requested by Madrid City Council. This request is for general landscaping of the areas surrounding the tunnels. A lump sum of €10 million has been allowed for this purpose. The LTA is still to be informed of how these works will be commissioned.

4.1.2 Updated list of approved Change Requests and Additional Works

Construction contracts

No Change Requests for Construction Projects have been submitted or approved in the last quarter.

Table 3 - Updated list of Change Requests for Construction Contracts, Jan 2007. SOURCE: MC30

IMPORTE DIFER. IMPORTE DIFER. APROBACIÓN IMPORTE DIFER.MODIFICADO EN % MODIFICADO EN % MODIFICADO MODIFICADO EN %

1 42,895,561.00 € -7,100,078.28 € -14.20% 49,688,838.01 € 6,793,277.01 € 13.59%

2 29,039,149.33 € 4,729,528.45 € 19.45%

3 21,466,483.31 € -1,497,695.15 € -6.52%

4 19,725,366.81 € 3,230,889.28 € 19.58%

5 160,176,696.52 € -10,550,969.28 € -6.18% 176,915,741.52 € 16,739,045.00 € 9.80%

7.1 388,196,448.90 € 56,747,090.56 € 17.12% 397,698,547.50 € 9,502,098.60 € 2.87%

7.2 443,871,597.09 € 33,577,778.02 € 8.18% N.A. N.A.

12 33,526,741.08 € 3,042,283.08 € 9.98% 36,514,217.94 € 2,987,476.86 € 9.80%

14 25,735,602.06 € 2,251,646.06 € 9.56% 28,013,545.79 € 2,277,943.73 € 9.70%

15.1 N.A. N.A. N.A.

8 N.A. N.A. N.A. 143,806,292.80 € 10,664,645.92 € 8.01% 5-Oct-06 159,761,987.76 € 15,955,694.96 € 11.98%

9 N.A. N.A. N.A. 171,244,297.93 € 4,956,153.69 € 2.98% 5-Oct-06 194,946,465.22 € 23,702,167.29 € 14.25%

10.1 N.A. N.A. N.A. 380,892,347.86 € 9,220,382.81 € 2.48% 25-Oct-06 434,639,193.90 € 53,746,846.04 € 14.46%

10.2 N.A. N.A. N.A. 254,793,840.91 € 7,469,204.89 € 3.02% 25-Oct-06 296,775,958.20 € 41,982,117.29 € 16.97%

11.1 N.A. N.A. N.A. 239,276,671.72 € 11,446,067.12 € 5.02% 25-Oct-06 273,388,822.88 € 34,112,151.16 € 14.97%

11.2 N.A. N.A. N.A. 248,181,594.57 € 16,328,622.57 € 7.04% 25-Oct-06 278,219,174.70 € 30,037,580.13 € 12.96%

1,164,633,646.10 € 84,430,472.74 € 2,127,025,936.55 € 98,384,918.20 € 1,637,731,602.66 € 199,536,556.87 €

Completed projects

MODIFICADO 3DIFERENCIA

MODIFICADO 1 MODIFICADO 2DIFERENCIANº

ACTUACIÓN DIFERENCIA

The Control Centre for the Tunnels also had a Change Request approved within the last quarter. Details are shown in the following table.



33

Table 4 – Change Requests for Other Projects, January 2007. SOURCE: MC30 ADJUDICACIÓN OTROS

FECHA PRESUPUESTO IMPORTE APROBACIÓN IMPORTE ADJUDICACIÓN LICITACIÓN ADJUDICACIÓN MODIFICADO MODIFICADO

Redacción Pliegos - Centro Control de TúnelesCoordinador de Coordinadores en Seguridad y Salud (todas las obras)Centro Control de Túneles 21/04/2006 36,304,520.00 € 39,254,949.53 € 25-Jan-07 45,414,051.11 € 6,159,101.58 €

TOTAL 36,304,520.00 € 39,254,949.53 € 45,414,051.11 € 6,159,101.58 €

MODIFICADO 1TITULO

PROYECTO OBRA

DIFERENCIA

Since the LTA was aware that Projects 7.1, 7.2, 8, 10.1 and 10.2 had Additional Works approved in November 2006, by the time the December 2006 quarterly report was issued, these projects were mentioned in that report, although they belong to the quarter currently being reviewed. These Additional Works amount to a total further investment of €257.24M

Details on the date of approval and amount of each Additional Works can be found in the following table. The table also shows the submission of the Final Settlement invoice for the Additional Works for Project 12.

Table 5 –List of Additional Works, January 2007. SOURCE: MC30

IMPORTE COMPLEMENT.

1 29-Jul-05 9,923,944.18 € 6

2 29-Jul-05 4,674,032.14 € 4

3 29-Jul-05 3,701,343.07 € 4 14-Feb-06 363,940.82 €

4 29-Jul-05 3,125,514.16 € 4 21-Feb-06 309,314.46 €

5 29-Jul-05 34,008,951.07 € 11

7.1 16-Nov-06 66,270,528.78 € 6

7.2 16-Nov-06 68,077,372.93 € 6

12 23-Feb-06 6,095,334.23 € 8 17-Nov-06 609,347.63 €

14 23-Feb-06 4,401,938.98 € 4 1-Sep-06 218,790.30 €

15.1

8 15-Nov-06 26,617,678.04 € 7

9

10.1 20-Nov-06 74,259,885.91 € 6

10.2 20-Nov-06 22,021,184.97 € 6

11.1 27-Feb-06 45,127,750.80 € 12

11.2 24-Mar-06 46,225,157.36 € 9

414,530,616.62 € 1,501,393.21 €

APROBACIÓN DEL PROY.

PLAZO (Meses)

Nº ACTUACIÓN

LIQUIDACIÓNFECHA CERT.

FINAL IMPORTE

COMPLEMENTARIO

Supervision of Works and Quality Control

Quality Control contracts for projects 10.1, 10.2, 11.1 and 11.2 have had Change Requests approved in the last quarter. In total, these increase the initial investment some €1.38M further.

The Supervision Contract for Project 8 also had a Change Request approved in quarter being monitored. This increases the original investment some €2.93M further.

Details of the Change Requests for Quality Control and Construction Supervision are found in the following table.



34

Table 6 – Change Requests for Quality Control & Supervision Projects, Jan 2007. SOURCE: MC30

FIRMA DEL IMPORTE FIRMA DEL IMPORTE ADJUDICACIÓN CONTRATO MODIFICADO ADJUDICACIÓN CONTRATO MODIFICADO

1 488,399.44 € 12.00% 27

2 215,180.00 € 20.30% 18

3 210,012.00 € 18.60% 14.5

4 156,520.00 € 14.00% 18

5 1,552,100.00 € 17.00% 24 20-Dec-06 N.A. 2,772,197.64 € 12.50% 27 20-Dec-06 N.A.

7.1 2,802,618.00 € 17.40% 30 4,096,622.36 € 8.51% 33

7.2 3,219,000.00 € 25.00% 30 3,842,442.35 € 14.19% 33

12 278,640.00 € 14.00% 24 2-Jun-06 398,830.00 €

14 210,000.00 € 16.00% 18

15.1 10,500.00 € 5

8 1,175,000.00 € 18.30% 18 2-Oct-06 N.A. 2,446,254.40 € 14.07% 21 30-Nov-06 2,935,455.40 €

9 1,547,894.96 € 12.50% 24 3,377,757.83 € 6.55% 30

10.1 3,447,462.34 € 14.60% 24 29-Nov-06 3,597,395.53 € 5,098,200.00 € 11.03% 30

10.2 2,050,000.00 € 22.58% 24 29-Nov-06 2,457,228.92 € 3,953,385.33 € 11.93% 30

11.1 2,157,567.27 € 11.00% 24 29-Nov-06 2,586,479.91 € 4,020,864.27 € 10.42% 30

11.2 1,997,244.57 € 19.00% 24 29-Nov-06 2,388,808.32 € 4,039,851.96 € 10.00% 30

21,507,638.58 € 17.83% 11,428,742.68 € 40,027,883.01 € 11.30% 2,935,455.40 €

PLAZO (Meses)

% BAJAPLAZO (Meses)

PRESUPUESTO % BAJA

27

26

27

14.75%2,224,198.87 €

12.03%2,203,304.00 €

13.03%1,942,304.00 €

Nº ACTUACIÓN

CONTROL DE CALIDAD INSPECCIÓN Y VIGILANCIAPRESUPUESTO

MODIFICADO 1MODIFICADO 1

4.1.3 New overruns due to Final Settlements and Price Escalation

Project 12 submitted a Final Settlement invoice in November 2006. This is shown in the table 5 overleaf. This table also shows the current level of investment incurred by Price Escalation until January 2007.

All the live and completed projects have now submitted Price Escalation invoices, except for projects 3, 4 and 15, which were not subject to Price Escalation, due to their short duration.

Table 7 - Price Escalation and Final Settlements. SOURCE: MC30

REV. PRECIOS

1 1,721,896.81 €

2 837,215.01 € 28-Feb-06 2,582,723.64 €

3 4-Jan-06 2,112,047.82 €

4 2-Jan-06 1,957,782.81 €

5 10,262,387.89 €

7.1 33,407,548.10 €

7.2 32,191,567.01 €

12 2,611,795.46 € 17-Nov-06 3,046,278.31 €

14 2,780,798.82 € 1-Sep-06 2,340,992.56 €

15.1 3-Oct-05 1,042,602.58

8 15,027,962.85 €

9 5,374,655.21 €

10.1 13,723,640.44 €

10.2 9,490,368.26 €

11.1 7,062,430.59 €

11.2 7,947,011.02 €

142,439,277.46 € 13,082,427.72 €

LIQUIDACIÓNFECHA

CERT. FINAL IMPORTEIMPORTE a Ene-07Nº ACTUACIÓN



35

4.1.4 Updated Investment Values (January 2006)

The table below shows the investment increases that have occurred in the last monitoring quarter (November 2006-January 2007). These increases total €19M (VAT included), where Price Escalation is clearly the largest factor to have an impact on investment.

The Additional Works for projects 7.1, 7.2, 8, 10.1 and 10.2, amounting to a total further investment of €257.24M are not shown in Table 5, for they were already accounted for in the previous report.

Table 8 - Investment increase during the monitored quarter New investments during Nov 2006 - Jan 2007 Amounts in €

(4a) Approved change request Supervision of Works contracts <difference> <489,201.00>(5.1) Approved change request Quality Control contracts <difference> <1,377,638.50>(8.1) Works final settlement 3,046,278.38(9.1) Approved additional works final settlement 609,347.63(10) Price escalation <difference> <55,941,027.64>(T1) INVESTMENT INCREASE DURING MONITORING QUARTER 61,463,493.15

The up-to-date approved investment that results from the increases broken down above, is summarised in in the following table.

Table 9 - Approved investment figures (January 2007)

UPDATED INVESTMENT SUMMARY Amounts in € % over (1)

(1) Construction contracts 2,468,756,281.23(2a) Approved additional works (complementarios ) 414,530,616.62 16.79%(3a) Approved change requests (modificados) 382,351,947.81 15.49%(4) Supervision of Works contracts 40,517,084.01 1.64%(5) Quality Control contracts 23,005,467.07 0.93%(6.1) Control centre systems. Tender documents drawing up contract 169,710.32(6.2) Control centre systems. Design&build contract 39,254,949.53(6.3) Control centre systems. Supervision of works contract 2,560,930.84(7) Health and Safety Coordination Contract 315,417.57(8) Works final settlement 13,082,427.72(9) Approved additional works Final Settlement 1,501,393.21(10) Approved price escalation 142,439,277.47(T) TOTAL INVESTMENT JANUARY 2007 3,528,485,503.40

4.2 Quarterly drawdown against the loan

4.2.1 Projects (including approved Change Requests and Price Escalation)

This section covers the quarterly payments being met by MC30, and compares the cumulative amounts against the contracted amounts, in order to show the work progress. Currently, the percentage of work paid over contracted work stands at 93%.

Table 10 below shows that the total certification for Projects in the last quarter has been €613.4M (VAT included).

It should be noted that any calculations in the table below, have been carried out using the awarded amounts, including the 2nd (5, 8, 7.1 and 7.2) and 3rd (9, 10.1, 10.2, 11.1, 11.2) Generation of Change Requests.

As in previous reports, specific project information on progress on payments is included in the “Works progression forms” in Section 4 of this report.



36

Table 10 - Progress of Project’s payments (incl. Price Escalation)

NºAWARDED AMOUNTS ((Incl. Change

Requests 1, 2 & 3, and Approved Price Escalation) Jan 07 (2)

CUMULATIVE PAYMENTS (INCL. APPROVED PRICE ESCALATION)

Jan 07 (1)

Pendingpayment

% (1) / (2)

CURRENTQUARTERPAYMENT

1 51,410,734.83 € 51,410,635.35 € 99.48 € 100% -

2 29,876,364.34 € 29,876,364.34 € - 100% -

3 21,466,483.31 € 21,466,477.12 € - 100% -

4 19,725,366.81 € 19,725,366.69 € - 100% -

5 187,178,129.42 € 187,116,129.19 € 62,000.23 € 100% 580,277.23 €

7.1 431,106,095.60 € 386,619,037.22 € 44,487,058.38 € 90% 103,972,962.12 €

7.2 476,063,164.10 € 423,170,732.40 € 52,892,431.70 € 89% 104,275,426.00 €

8 174,789,950.61 € 158,943,739.38 € 15,846,211.23 € 91% 42,976,557.20 €

9 200,321,120.94 € 188,679,543.50 € 11,641,577.44 € 94% 28,476,859.60 €

10.1 448,362,834.34 € 414,666,140.05 € 33,696,694.29 € 92% 93,780,331.20 €

10.2 306,266,326.47 € 279,554,387.59 € 26,711,938.88 € 91% 93,390,958.15 €

11.1 280,451,253.46 € 261,512,675.10 € 18,938,578.36 € 93% 67,515,740.11 €

11.2 286,166,185.72 € 269,872,518.94 € 16,293,666.78 € 94% 75,840,090.53 €

12 39,126,013.42 € 39,126,013.46 € - 100% 2,611,795.46 €

14 30,794,344.61 € 30,794,344.61 € - 100% -

15 10,443,139.08 € 10,443,139.08 € - 100% -

Total 2,993,547,507.06 € 2,772,977,244.01 € 615,559,742.35 € 93% 613,420,997.60 €

CUMULATIVE PAYMENTS AGAINST TOTAL AWARDED AMOUNTS(Including Price Escalation)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

1 2 3 4 5 7.1 7.2 8 9 10.1 10.2 11.1 11.2 12 14 15

Thou

sand

s €

Awarded Amounts(Incl Price Escalation)

Cumulativ epayments Jan'07(Incl Price Escalation)

NorthEastern Programme Western Cut&CoverBy Pass

Since July 2006, MC30 has been including the certification of Price Escalation within the certification of construction projects. In order to monitor the former, the LTA has been separating the two components.

Price Escalation details are shown in table overleaf. It shows that the total Price Escalation paid until January 2007 was €142.4M.



37

Table 11 - Final Settlements and Price Escalation

NºAWARDED

AMOUNTS (Included Price Escalation) January 07

FINAL SETTLEMENTPAYMENTS

Jan 07%

PRICE ESCALATIONCUMULATIVE PAYMENT

January 07

% Over Awarded Amount


1 51,410,734.83 € - - 1,721,896.81 € 3.35% -

2 29,876,364.34 € - - 837,215.01 € 2.80% -

3 21,466,483.31 € - - - - -

4 19,725,366.81 € - - - - -

5 187,178,129.42 € - - 10,262,387.89 € 5.48% 50,337.93 €

7.1 431,106,095.60 € - - 33,407,548.10 € 7.75% 11,771,144.06 €

7.2 476,063,164.10 € - - 32,191,567.01 € 6.76% 11,210,555.42 €

8 174,789,950.61 € - - 15,027,962.85 € 8.60% 15,027,962.85 €

9 200,321,120.94 € - - 5,374,655.21 € 2.68% 1,418,356.21 €

10.1 448,362,834.34 € - - 13,723,640.44 € 3.06% 4,670,947.43 €

10.2 306,266,326.47 € - - 9,490,368.26 € 3.10% 4,651,553.80 €

11.1 280,451,253.46 € - - 7,062,430.59 € 2.52% 3,362,778.42 €

11.2 286,166,185.72 € - - 7,947,011.02 € 2.78% 3,777,392.03 €

12 39,126,013.42 € 3,046,278.31 € 7.79% 2,611,795.46 € 6.68% 2,611,795.46 €

14 30,794,344.61 € - 2,780,798.82 € 9.03% -

15 10,443,139.08 € - - - - -

Total 2,993,547,507.06 € 3,046,278.31 € 0.1% 142,439,277.47 € 4.8% 58,552,823.60 €

This quarter, all projects except for the completed projects (1, 2, 3, 4, 14 and 15), have submitted Price Escalation invoices.

Table 11 shows Price Escalation at 4.8% of the total awarded amount. This is a significant rise compared to the previous quarter (2.9%).

4.2.2 Approved Additional Works (complementarios)

The following table presents the progress of payment for approved Additional Works, which are currently 66% complete.

Table 12 - Approved Additional Works’ payments progress

Nº AWARDEDAMOUNTS

CUMULATIVEPAYMENTSJanuary 07

PENDINGPAYMENT %


1 9,923,944.18 € 9,923,944.18 € - 100.00% -

2 4,674,032.14 € 4,672,606.12 € 1,426.02 € 99.97% -

3 3,701,343.07 € 3,701,343.07 € - 100.00% -

4 3,125,514.16 € 3,125,514.16 € - 100.00% -

5 34,008,951.07 € 34,002,541.77 € 6,409.30 € 99.98% -

7.1 66,270,528.78 € 37,687,711.06 € 28,582,817.72 € 56.87% 37,687,711.06 €

7.2 68,077,372.93 € 33,514,601.22 € 34,562,771.71 € 49.23% 33,514,601.22 €

8 26,617,678.04 € 10,115,557.94 € 16,502,120.10 € 38.00% 10,115,557.94 €

9 - - - - -

10.1 74,259,885.91 € 31,348,058.80 € 42,911,827.11 € 42.21% 31,348,058.80 €

10.2 - - - - -

11.1 45,127,750.80 € 34,406,671.42 € 10,721,079.38 € 76.24% 954,803.81 €

11.2 46,225,157.36 € 45,630,747.40 € 594,409.96 € 98.71% 2,845,308.24 €

12 6,095,334.23 € 6,095,335.18 € - 100.00% -

14 4,401,938.96 € 4,401,938.96 € - 100.00% -

15 - - - - -

Total 392,509,431.63 € 258,626,571.28 € 133,882,861.30 € 65.89% 116,466,041.07 €



38

ADDITIONAL WORKS PROJECTS (complementarios)CUMULATIVE PAYMENTS AGAINST TOTAL AWARDED AMOUNTS

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1 2 3 4 5 7.1 7.2 8 9 10.1 10.2 11.1 11.2 12 14 15

Thou

sand

s €

Awardedamounts

CumulativepaymentsJan'07

4.2.3 Contracts for Supervision of Works

The following table and chart show the payments due to Technical Assistance related to supervision of works contracts and their progress against total awarded amounts.

Cumulative payments to date have been proportional to the progress and completion of works. Up until this quarter, the total cumulative payments represent 82% of the awarded amounts.

Project 8 is the only one, so far, that has submitted any Change Requests before the contract’s time extension.

Table 13 - Payments for supervision of works contracts’ progress

NºAWARDED

AMOUNTS (Incl. Change Requests)


Pendingpayment %


1/2 2,203,304.00 € 2,203,176.40 € 127.60 € 100% -

3/4 1,942,304.00 € 1,942,304.00 € - 100% -

5 2,772,197.64 € 2,748,852.52 € 23,345.12 € 99% 28,384.76 €

7.1 4,096,622.36 € 3,144,086.54 € 952,535.82 € 77% 538,180.35 €

7.2 3,842,442.35 € 2,894,483.02 € 947,959.33 € 75% 406,866.75 €

8 2,935,455.40 € 2,213,297.40 € 722,158.00 € 75% 692,090.80 €

9 3,377,757.83 € 2,450,051.60 € 927,706.23 € 73% 743,430.54 €

10.1 5,098,200.00 € 3,657,000.05 € 1,441,199.95 € 72% 328,251.00 €

10.2 3,953,385.33 € 3,297,878.73 € 655,506.60 € 83% 456,576.70 €

11.1 4,020,864.27 € 2,972,594.14 € 1,048,270.13 € 74% 424,411.67 €

11.2 4,039,851.96 € 3,324,243.36 € 715,608.60 € 82% 390,807.06 €

12/14 2,224,198.87 € 2,224,198.87 € 0.00 € 100% 74,345.73 €

15 10,500.00 € 10,500.00 € - 100% -

Total 40,517,084.01 € 33,082,666.63 € 7,434,417.38 € 82% 4,083,345.36 €



39

SUPERVISION OF WORKS CONTRACTS. PERCENTAGES OF CUMULATIVE PAYMENTS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1/2 3/4 5 7.1 7.2 8 9 10.1 10.2 11.1 11.2 12/14 15

Pending paymentsCumulative Jan'07

By pass Sur Western cut&cover programme 4.2.4 Quality Control Contracts

The following table and chart show the payments due to Technical Assistance contracts related to quality control and their progress against total awarded amounts

Cumulative payments to date have been proportional to the progress and completion of works. Up until this quarter, the total cumulative payments represent 81% of the awarded amounts.

Projects 8, 10.1, 10.2, 11.1, 11.2 (all between October-November 2006) and 12 (June 2006) submitted a Change Request for its Quality Control contracts.

Table 14 - Payments for quality control contracts’ progress

NºAWARDED

AMOUNTS (Incl. Change Requests)


Pendingpayment %


1 488,399.44 € 487,697.18 € 702.26 € 100% -

2 215,180.00 € 215,175.02 € - 100% -

3 210,012.00 € 210,012.00 € - 100% -

4 156,519.99 € 156,519.21 € - 100% -

5 1,552,100.00 € 1,253,739.94 € 298,360.06 € 81% 91,845.41 €

7.1 2,802,618.00 € 1,244,017.74 € 1,558,600.26 € 44% 312,206.45 €

7.2 3,219,000.00 € 1,917,106.74 € 1,301,893.26 € 60% 211,828.09 €

8 1,175,000.01 € 1,005,806.68 € 169,193.33 € 86% 230,481.80 €

9 1,547,894.96 € 1,063,236.63 € 484,658.33 € 69% 41,224.19 €

10.1 3,597,395.53 € 3,480,456.86 € 116,938.67 € 97% 453,981.94 €

10.2 2,457,228.92 € 2,272,482.56 € 184,746.36 € 92% 257,327.20 €

11.1 2,586,479.91 € 2,538,713.38 € 47,766.53 € 98% 413,192.56 €

11.2 2,388,808.32 € 2,137,538.38 € 251,269.94 € 89% 160,148.78 €

12 398,829.99 € 398,829.99 € - 100% -

14 210,000.00 € 210,000.00 € - 100% -

Total 23,005,467.07 € 18,591,332.31 € 4,414,129.00 € 81% 2,172,236.42 €



40

QUALITY CONTROL CONTRACTS. PERCENTAGES OF CUMULATIVE PAYMENTS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 7.1 7.2 8 9 10.1 10.2 11.1 11.2 12 14

Pending paymentsCumulative Jan'07

By pass Sur Western cut&cover programme

4.2.5 Other contracts

Finally, the remaining construction and Technical Assistants, and the Control Centre construction contract have invoiced the following amounts during this quarter.

Table 15 - Payments - Other Technical Assistance Contracts AWARDEDAMOUNTS

AWARDEDAMOUNTS (Incl

Change Request)


Pendingpayment %


Control Centre Systems. Tender documents drawing up contract 169,710.32 € 169,709.92 € - 100% -

Heath and Safety coordination contract 315,417.57 € 278,541.63 € 36,875.94 € 88% 51,249.99 €

Control Centre Systems. Construction Contract 39,254,949.54 € 28,747,758.14 € 10,507,191.40 € 73% 19,804,839.12 €

Control Centre Technical Assistance 2,560,930.84 € 1,375,210.74 € 1,185,720.10 € 54% 641,765.94 €

Total 42,301,008.27 € 30,571,220.43 € 11,729,787.44 € 72% 20,497,855.05 €

4.2.6 Total quarterly payments Oct-Nov ’06 and Jan‘07

The following table shows the total quarterly payments itemised by major cost components.

The LTA has verified that this figure coincides with the construction costs include in the loan drawdown requested by MC30 dated 15th March 2007.

Table 16 - Itemised quarterly payments summary (VAT Incl.)

ITEM PAYMENTS

Projects (incl. Approved Price Escalation) 613,420,997.60 €

Projects final settlement 3,046,278.31 €

Additional Works (complementarios) 116,466,041.07 €

Additional Works Settlement 609,347.64 €

Supervision of works contracts 4,083,345.36 €

Quality Control Contracts 2,172,256.42 €

Other Technical Asistance contracts 20,497,855.05 €

TOTAL 760,296,121.45 €



41

4.3 LTA Opinion

4.3.1 On new Change Requests and Additional Works

- Change Requests and Additional Works represent significant increases in the scope and capital investment compared to the original tender designs and investment. Nonetheless, the LTA believes that these changes have led to significant improvements that will benefit the long-term traffic capacity and controls, operational safety, environmental performance and quality of the new infrastructure. Improvements in the tunnel installations were particularly necessary to integrate the control and monitoring systems in order to meet the newest safety standards.

19.2%

9.6%

23.5%24.8%

0.0%

17.2%

39.8% 39.9% 39.8% 38.0%

28.9%

36.9%40.0%40.0%38.5%38.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Figure 3: Investment increase after modifications and additional works per contract

- To date the LTA has not been advised yet on how general landscaping works will be commissioned, thus no opinion can be provided for this matter. Madrid City Council has requested an extra allowance of €10 million to undertake these works.

4.3.2 On construction overruns due to Final Settlements

- The LTA believes that, since the last Change Requests and Additional Works have been approved towards the end of the construction contracts, no major deviations should be expected for final settlements, unlike settlements invoices raised in the past.

4.3.3 On construction overruns due to Price Escalation

- The total average Price Escalation being invoiced amounts a substantial increase of 4.8% of total awarded amounts.

- This figure has soared in comparison to previous quarters, due to the increase of Price Indexes, the LTA is aware that MC30 has updated the final project investment figures taking into account this situation, in order to afford any impact initially unforeseen.



42

4.3.4 On Updated Investment Values

- The LTA is aware that Madrid Calle 30 has submitted an application for the restoration of the contract’s economic balance, and negotiations are currently taking place.

4.3.5 On general progress of project payments

- Contractors are performing efficiently; this is reflected in the minimal overall delay of the projects.

- A good example is the recovery of important delays in the construction of the tunnels in the Southern By-Pass, first during the excavation phase, and later during the civil works phase.

- The good work progress is confirmed by the 93% cumulative payment of the construction projects, including change request; and the 66% cumulative payment of additional works, that have been achieved up to January 2007.



43

5. E & M INSTALLATIONS AND SYSTEMS

5.1 The Design of the Tunnel E&M Installations

The LTA was advised that all the design specifications are approved. The Hi-Fog fire suppression system will be employed in ten short areas of the tunnel contracts 10.1 and 11.2 where there is a risk that major fires could result in a major incident. A cross section showing the installation of the Hi-Fog system together with all the other installations is given in Appendix B. The total length of tunnel protected by Hi-Fog is about 100 m. This is a much shorter section than the 500 m length proposed by MC-30 in early visits.

As discussed in detail in previous LTA reports, the completion of the E&M installations and traffic and safety systems remains a major challenge and will probably remain critical right-up to the contracted end date, as was forecasted. The E&M installations in the tunnels are proceeding well. Although the By Pass tunnels remain the most critical as in week 60 (12 to 18 Feb 07) there was a substantial amount of work still outstanding in the By-Pass North tunnel.

Other specific points were raised in the LTA’s last site inspection and expert panel meeting held between the LTA and MC-30 and their consultants, which include the following:

- The integration of the E&M works, plus the power supplies to the project and the connections to the overall systems controlled by the Control Centre, will also be critical and may require some time after opening of the tunnels to finalise all the testing, commissioning and snagging. The completion of the Control Centre is planned for July 2007, although the intention is that the Control Centre should be provisionally available in January 2007.

- The power transformers, low voltage cubicles and lighting and ventilation controls are also critical elements. The methods and deadlines for the installation of the power cables along the asset by the power supply companies Iberdrola and Union Fenosa has been agreed.

- It is expected that the Control Centre (CC) will be fully ready until July 2007 deadline. MC-30 plan that the Phase 1 project will be initially controlled by the Control Centre, in a provisional state, and by the duplicate control room being set-up in the City Council’s “Centro de Gestion de Movilidad” (CGM).

- The respective contractors coordinate the activities of the E & M suppliers and erection specialists. The Technical Supervisors have appointed specialized companies to provide cross–contact supervisory support of the E & M installations.

- Some of the E & M installations in the tunnel related to the Control Centre are being undertaken by SICE on behalf of MC-30. Bureaux Veritas / TRN control this work for MC-30.

- There are no reported dimensional or structural conflicts between the E&M plant and the completed civil works.

- The specifications for the tunnel emergency exits and cabling were revised in the last quarter, as were the commissioning protocols.



44

5.2 Power Supply

The total capacity of the power supply available for the project is 68 MW and is provided from 7 substations as follows:

Capacity Normal service requirements Substations

MW MW

Mazarredo 23.5 23.2

Melancolicos 8.0

Puente de la Princesa 15.5 15.4

Antonio Leyva (SOS) 12.0 0

Embajadores 25.0 18.0

Cerro de la Plata 7.0 0

POL 38 2.0 0

Figure 4: Power Supply Capacity Two of the sections in which the project has been divided into are connected to the local supply grid. The other two remained unconnected by the site visit date. Nevertheless MC 30 representatives expect it to be fully connected during the next month..

5.3 LTA’s Opinion

- The LTA recognises that since the last quarterly report there has been notable further progress in the E&M works and the finalisation the OM manuals, reports and analysis for the Tunnel Safety, Traffic Operational Systems.

- In the next visit the LTA will enquire about the actual status of the E&M works and the control rooms in the CC and CGM.

- It is recognised that some remaining activities will be undertaken in the future months. The LTA will enquire about the expected completion dates for this work, which includes:

• The incorporation and synchronisation of all the various E&M installations along the Phase 1 route into one integrated system.

• The comprehensive training of the operatives in the CGM and CC and the introduction of the working protocols that govern the rules and responsibilities of the two centres (bearing in mind that the CGM will be manned by the City Council’s appointed officials and the CC will be manned by MC-30 own employees).

• Detailed planning of how major plant, such as the various types of large fans, will be overhauled or renewed.



45

6. CONSTRUCTION MANAGEMENT 6.1 Management organisation chart

Generally speaking, the structure of the construction group remains the same: Project managers are supported by engineers and coordinators of Madrid Calle 30, as well as supervision and surveillance teams’ onsite.

It is important to highlight the significant work being carried out on the projects by the Technical Assistants onsite in order to control the work.

As stated in the last report, the main contractor management teams are being supplemented by teams of E&M experts, appointed to deal with the installation of E&M equipment and systems.

Members of Eme30 SA (the Company created by the Private Partner to undertake maintenance activities) are increasingly taking place in the roles to manage the maintenance and operating works and were part of the panel of experts meeting held.

6.2 Health & Safety Quarterly Report

6.2.1 Quarterly statistics

This section is based upon the information extracted from SECOIM’s quarterly report, the Contract’s monthly report and the observations of the LTA from the visits made to sites visits on the third week of February 2007.

It is important to emphasise that SECOIM supervises and monitors all aspects of Health and Safety for the MC-30 contracts, in addition to compulsory work, under Spanish law, with appointments being made for each individual contract (ie Health and Safety Coordinator, Heath and safety Manager Onsite, etc).

Statistical figures regarding accidents which have occurred on the MC-30 project are published by SECOIM).

Figure 5: MC 30 accident rates (published by SECOIM)



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This information has been analysed and compared with data published by The National Institute for Occupational Health and Safety (INSHT), 2004 (as shown in Error! Reference source not found.). It can be seen that during this quarter, the MC30’s accident rate has slightly increased in comparison with the previous quarter.

In addition to the aforementioned, Madrid Calle 30 figures have been compared with the later official available national statistical information. In order to introduce a simplified comparison, the LTA has chosen to only compare the Frequency Index figure.

It can be seen that during this quarter, the frequency of accidents occurring on the MC-30 project (based on the number of accidents (A) x 1,000,000 / (H) hours worked during that period) is still below the national average for construction work.

Construction Sector Spain

(2004)

MC30 Projects (Nov07)

MC30 Projects (Dec07)

MC30 Projects (Jan07)

MC30 Projects

(This Quarter)

MC30 Projects

(Last Quarter)

MC30 Projects

(Cumulative)Frequency Rate 78.9 72.7 62.9 62.2 65.0 51.5 54.2Fatal Frequency Rate 0.09 1.02 0.00 0.00 0.34 0.31 0.37

Figure 6: Comparison of MC30 statistics against national average

As mentioned in the previous report, another fatal accident occurred during the last quarter: a serious accident occurred on one of the river projects, where the worker suffered severe damage. The death of the worker was confirmed later.

Figure 7 and Figure 8 were obtained from SECOIM’s report and compare the total number of workers suffering (factored) non-fatal accidents every month (number of accidents (A) x 100,000 / (T) number of workers per the month). The subsequent figure also indicates the corresponding frequency of (factored) non-fatal accidents (number of accidents (A) x 1000,000 / (H) hours worked in the month).

These figures show that, whilst the number of workers has not changed significantly during the quarter, the accident rate has decreased, thus indicating a positive downward trend.

Figure 7: Comparison between the number of workers and the incidence rates Source-SECOIM



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Figure 8: Comparison between the number of workers and the frequency rates Source-SECOIM

As the aforementioned statistics show, the average amount of accidents onsite that saw a move away from the negative trend of the last quarter has suffered a noticeable increase in November 2006 unless it has decreased on the two last months December 2006 and January 2007.

6.2.2 LTA’s Opinion

The safety statistics for the last quarter reflects stabilization in the number of accidents for all contracts. In addition to this, another more fatal accident has occurred during this quarter, mentioned on the last report, bringing the total number of fatal accidents, since the start of the project, to six.

As mentioned before, at this stage, respective construction works require different technical skills, however, whilst the type of dangers on site may vary, the potential risk of fatal and serious accidents remains the same, that is unless strong measures continue to be implemented. It is for this reason that the established safety objectives must continue to be on the agenda in a sustained, determined and proficient manner.

6.3 Structures and soil settlement monitoring

As reported previously, a very extensive set of instruments for recording settlement and ground movements have been regularly read during the construction of each section of the Phase 1 project. As the civil works are due to finalization the monitoring works will gradually be finished.

As given in the report sent to the LTA by Madrid Calle 30 before the site visits in February 2007, the remaining monitoring are being undertaken with no evidence of significant problems in the following sections:

- Project 8 Embajadores

- Project 11.1 Puente de San Isidro Puente de Praga

- Project 11.2 Puente de Praga Nudo Sur

The most technically difficult and risky sections of the works have been completed and no important settlements or damages have arise during the whole construction period.



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As given in the individual monitoring plans for the contracts, the measurement devices of the completed tunnel structure have not been removed immediately. The captured data confirmed that the global structures and the surrounding areas are entirely stable. This confirmation, if considered totally complete, will allow the settlement monitoring devices to be removed.

6.3.1 LTA’s Opinion

- The LTA remains satisfied with the due care being taken in monitoring the settlement and movements of the Phase 1 works. No significant problems with damage to existing structures and infrastructure are foreseen.

6.4 Environmental Protection Control

This section is based on the quarterly report published by SECOIM for the quarter of October 2006 to December 2006 information obtained by the LTA during site visits of the projects surrounding the river course (Project 7.1, 7.2, 8, 11.1 and 11.2) and a special summary isssued by Secoim to the LTA on the first week of February.

6.4.1 Regular SECOIM’s Report

As was explained in the last quarter reports, Madrid Calle 30 is expected to prepare quarterly environmental reports according to the terms and conditions included in the works permit issued by the Environment Agency of Madrid Regional Government (Consejería de Medioambiente y Ordenación del Territorio). SECOIM is responsible for drawing-up these documents through its Environment Control Unit.

A brief summary of some of the key sections is outlined as follows:

- Environmental Management

- Eventual negative effects on the River Manzanares

- Drainage system of the Area

- Surface water control

- Groundwater control

- Preventive measurements and urgent issues

- Relations with the Basin Authority, Confederación Hidrográfica del Tajo (CHT)

At the same time civil works are progressing, the impact of the works on the river is decreasing.

No special requirements before the definitive finishing of the works are needed, other than restoring the river to its initial state and removing all provisional elements inserted around the river in order to carry out the works.

Madrid Calle 30 has confirmed that, in due course, they will prepare and provide competent organisations with notification of the finalization of the works.



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In July 2005, SECOIM issued the following document: “Protocolo General de Actuaciones de las Obras del Ayuntamiento de Madrid”. The works located in the surrounding areas of the river course have their own Plan for Environmental Monitoring (PVA). This Plan was revised and approved by SECOIM.

As of January, 2006 to date, monthly PVA monitoring reports by the individual contracts began to be released.

No inspections carried out by the Regional Government.

6.4.2 Legal aspects

Madrid City Council submitted a proposal for MC30 project to comply with all the European Environmental Regulations. On January the 4th the European Commission communicated its official approval to this proposal, contains the following actions:

• Madrid City Council will carry out a general environmental study for those contracts already completed or under construction in order to identify accumulated effects derived from them.

• Madrid City Council will revoke the former authorisation (2004, June the 4th) to complete the three remaining projects in Phase II (North By-Pass and its connection with The N-I).

• Madrid City Council will resume the drawing up of an Environmental Impact Assessment (EIA) for the Madrid Calle 30 aforementioned projects.

Based on this agreement the legal department considers that the First Written Warning expedient will be closed and that no further measures will be carried out by the European Court. After the completion of the above mentioned commitments the infraction procedure will be closed.

6.4.3 Technical Advisor’s Opinion

- No significant environmental issues arise during the quarter.

- Environmental control manuals approved by SECOIM for all the works contracts are dully put into practice.

- As for legal aspects, the LTA considers the last favourable answer of the European Commission proves it is unlikely that further risks will arise derived from the non-compliance with the environmental legislation.



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7. TUNNELS OPERATION MANUAL 7.1 Introduction

For the preparation of the Operation Manual, MC-30 is working in conjunction with SICE/Dragados and is also aided by their consultants, TEKIA.

MC-30 is coordinating with the necessary emergency services and the maintenance providers, traffic controllers, stakeholders and all other interested parties.

This document (Operational Manual) is compiled of five volumes.

7.2 Volume I – General Operational Framework V 4.0 – Feb 07

Next issues are being included into the OM in detailed at the same time that different sections of the M-30 tunnels are finished and put in services to the traffic:

- Description of the current scenario with a detailed summary of the building work.

- Detailed information of auxiliary infrastructures and system installations: plans, locations and coding.

- Measures, organization and location of the first intervention base.

- Emergency exits: description and location.

- Evacuation areas.

Besides, MC-30 is preparing the final version of the document “Libro de Competencias”, Competence Book, where different entities, such as Fire Brigade, Local Police, Samur, Mobility Office, etc. are working together.

7.3 Volume II – Traffic Management Plan V 3.0 - Feb 07

The Traffic Management Plan (TMP) sets out the strategies and procedures to manage traffic appropriately in the MC30 infrastructure of tunnels. Traffic management addresses the operations performed during peak hours and when adjusting demand to capacity reductions due to accidents or any other reason.

The MC30 TMP is broken-down into six chapters:

- Introduction

- Traffic Management Problems Analysis

- Physical Means and Human Resources

- Procedures

- Implementation

- Traffic Regulations for the M-30 Tunnels



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Important sections which were not possible to assess in previous versions of this Plan, like the Plans’ Implementation, have been assessed in updated version.

7.4 Volume III – Surveillance Plan V 5.0 - Feb 07

MC-30 has defined the operation incidences, some of them are considered as previous stages to the emergencies, and has also established action protocols which describe the different actions made by Madrid Calle-30 tunnel Control Centre workers when there are not emergencies.

However, the Surveillance Plan includes a list with the forecast incidents sorted according to the severity of the consequences and detected emergency stages.

7.5 Volume IV – Emergency Plan V 5.0 - Feb 07

This plan includes a legal framework with Spanish and European regulations about the applications of emergency plans in road infrastructures.

This plan incorporates a risk inventory to classify different incidents according to the incident source and the emergency level required.

The document defines accurately the hierarchy necessary to solve an emergency situation, including all special groups who are involved for each incident.

Different procedures for emergency management are described workers to act correctly and to do properly the Detection and Validation Process, Answer Performance and Record of the Emergencies.

These procedures are detailed by protocols below:

- Detection and Validation Protocols

- Generic Operation Protocols

- Emergency Communication Protocols

- Record Protocols

Tunnel evacuation plan establishes operative protocols by definition of resources, available emergency teams, road sings, emergency exits and access areas to evacuation aided vehicles can go in.

The following image, which has been taken from the OM, gives details of the Tunnel Evacuation Procedure.



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Source Madrid Calle 30

Figure 9: Tunnel Evacuation Procedure

There are provisional security plans whilst project sections are opened in the transitory period. These plans show security actions, active emergency exits and specific protocols for the particularly situations.

However, MC-30 is drawing up Action and Operation Protocols with the collaboration of a big number of entities and installation manufacturers.



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7.6 Volume V – Maintenance Plan V 1.0 Dec 06

The Maintenance Plan will include the approved operation and maintenance manuals and as built drawings of the individual suppliers made available for review and inclusion in the Maintenance Plan towards the end of the project.

EME30, S.A. is writing the Maintenance Plan. This plan includes the preventive and corrective maintenance. They are making an inventory of tunnel systems and installations for traffic control and management.

EME30, S.A. is preparing preventive and corrective maintenance reports. Maintenance team reports all of the interventions in these documents with the main aim to make a control of the generated documentation.

They will use the software PRISMA II for loading the preventive maintenance actions to obtain the high level of achievements and to reduce the situations that need a corrective maintenance. This application allows creating a maintenance planning and assigning people to it.

7.7 Volume VI – Implementation Plan V 1.0 Nov 06

TRN, Ingeniería y Planificación de Infraestructuras, S.A. and Bureau Veritas Español, S.A. are debugging the reception and validation tests, according the specifications defined by the manufacturer of the equipments and systems installed in the tunnels.

Centro de Modelado de Ingeniería Mecánica (CEMIM) is executing the reception and validation tests for the air equipments and systems.

EME30, S.A is following the Implementation Plan and they are training new workers who are beginning in the new opened sections.

The Control Centre is following the incidents happened inside the tunnels; and the equipments installed are loading and keeping traffic data.

7.8 LTA Opinion

- This analysis has been done as a result of the panel of experts meeting that took place in February 2007 and the follow up conversations between Tekia, EME30, S.A. and the LTA. The LTA believes that the Operation Manual of the new infrastructure is on track although is not finished yet. However the MC30 consultants are working on some issues which will be completed in the final version. These issues are:

• Detailed information of auxiliary infrastructures and system installations: plans, locations and coding

• Definitive Emergency exits: grade of completion, description and location • Evacuation areas • Hierarchy of actors involved in the management of the tunnel system giving

specific details of names and the way of contacting them • Generic and specific operational protocols • Definition of the tunnel sections on which the ‘emergency identification point’

strategy is based



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- It should be noted that many of these issues are already produced to a great extent.

- However, MC30 consultants are working on other documents which are not yet in the Operation Manual. The documents have been requested by the LTA to review in the next monitoring process and MC30 consultants will deliver then:

• Measures, organization and location of the first intervention base. • “Libro de Competencias”, Competence Book.

- MC30 is opening some sections of the tunnel system as they are finished. In order to open these sections to traffic, MC30 is implementing ad hoc strategies which are not reported on the Operation Manual but they are carefully taking into consideration, like:

• Traffic management strategies which are planned in conjunction with the Council’s Mobility Directorate

• Specific operational protocols • Tunnel evacuation plans through the emergency exits that are currently in

operation - With regard to the Traffic Management Plan, the LTA believes that Madrid Calle 30 is

making great progress towards the aims and objectives required to manage the infrastructure’s traffic. This impression has been reinforced with the progress in the development of the plan observed in the period up until February 2007.

- Numerous examples of good practice have been found, especially for preventing congestion in the tunnels and how to proceed when such problems occur.

- The Maintenance Plan is currently being developed by EME30 S.A., both for preventive and corrective procedures. The current version V 0.1 is dated back to December 2006. The new version of the Maintenance Plan and the Implementation Plan has been requested by the LTA.

The LTA hopes to find on them the specific issues believes they should contain such as methodology, procedures and tasks to ensure a properly maintenance and a good level of service.



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8. OTHER ISSUES

8.1 Safety Compliance and Design Liability

The LTA has raised the issue of safety legislation and design liability with MC-30 in previous meetings and reports.

Undoubtedly, MC-30 will have some responsibility for the designs produced by its own staff, or its consultant. In addition, it appears that in most cases the legislation in Spain does not totally free clients from design liability, even in the case of the standard contracts as used for M-30 Phase 1. Any approval by the client of the design done by others means that the client automatically takes on some share of the design responsibility. The level of liability will vary according to the contractual arrangements applying to both the tender and the construction designs.

In view of the liability issues described above, the LTA was concerned about the storage of the design and construction information. Madrid Calle 30 confirmed that full sets of all the contractual documents, the design documents, the construction records, including QC documents and as-built drawings, photographs, suppliers information, testing and commissioning data, as well as operational and maintenance data should be archived by MC-30 during the life of the project. Should there be any need for remedial works or repair works in the future this archive should make it easier to apportion the blame for such defects.

If appropriate, the archive could be subject to independent audits at the end of the construction period and during operation. The audit would assess:

- The completeness of the documents

- The storage facilities

- The indexing and retrieval systems used for the documents

- The status, validity and applicability of the archived documents

It is noted that a specification for archiving the technical documents has been developed. The more sensitive contractual documents will be retained by the appropriate officials in MC-30 and the City Council.

The LTA received a copy of the design criteria and design verification for the fire protection in the cut and cover tunnels. A copy of the confirmatory fire testing of the platforms of the By Pass tunnels is awaited by the LTA.

8.2 Tunnels Traffic Management Plan

Since the Integrated Traffic Management Plan (which is part of the Tunnels Operational Plan) will have an enormous impact in the operation of the new infrastructure, the LTA has decided to include a deeper analysis in this report.

A Traffic Management Plan (TMP) should contain traffic management strategies and procedures. Traffic management accounts for a sizable number of the operations performed



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during peak hours and when adjusting demand to capacity loss due to accidents or any other reason.

The project’s TMP which has been revised is organized into six chapters:

- Introduction

- Traffic Management Problems Analysis

- Physical Means and Human Resources

- Procedures

- Implementation

- Traffic Regulations for the M-30 Tunnels

The revision given herein focuses on the analysis given in Chapters 3 to 6, as key parts of the TMP. The revision assessed the content of the mentioned chapters, according to two basic criteria:

To check that the chapter meets the appropriate criteria to arrive at a plan that will allow such a volume of traffic to be managed.

If the said criteria are not met, to follow the instructions that the Assessment Team deem necessary to meet them.

Furthermore, the revision was made by preserving the presented TMP reference project’s structure, so the analysis of the above-mentioned chapters is developed in this document.

8.2.1 Physical Means and Human Resources

The means required for proper operation of the future Calle 30 tunnels are defined and listed, including any signs or controlling of outside roads in the area that affects the tunnels. This is done in a way that ensures safe usage and traffic management. Traffic management has been integrated with the urban network.

An inventory of the streets planned as diversions has been prepared, detecting the needs for camera vision, centralized traffic signals and signposting.

Technical means

The available technical means are described in the technical specifications for the Calle 30 tunnel facilities. In any case, a detailed list of the elements and systems required to manage the new tunnels and their functions has been found in the document called “ANEXO II.1: Estudio detallado de la gestión del tráfico en los distintos escenarios” (Traffic Management detail Study. The different Alternatives).This is an ongoing document which is currently under revision by one of the MC30 consultant.

Regarding Surveillance, control and operation systems the TMP considers the following relevant systems:



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Variable message panels

These are variable information panels, with pictograms and alphanumeric messages, which give information to users at various points along the facility, sufficiently in advance, so they can drive safely and choose their route, when possible.

The actions covered by these variable signs include:

- Clear and concise information so users won’t get confused by it with the urban landscape.

- It includes times, congestion, lane control signs, reduce speed signs, recommendations for speed distance, etc.

- Integration and coordination with the rest of the urban network is specified, as well as the roads that are the competence of the central government DGT (Spanish traffic authority) management or of the autonomous regions. This is important when recommending the more distant diversions and alternative routes that are given in the management procedures.

Traffic signals

This refers to the traffic signals inside of the tunnel, to warn of special conditions.

It also refers to the centralized traffic signals on all of the roads that are part of the detours, thus ensuring comprehensive management. This strategy is the correct one for integrating the tunnel in the surrounding mesh.

Markers

These are the markers for drivers who are inside the tunnels. They confirm the signs for lane closures and traffic lights.

CCTV

This includes the fixed and mobile cameras that cover the entire tunnel system, placed at a distance that prevents shady areas, and that control tunnel entries and exits. They are properly used.

Data Collection Equipment

Detectors are going to be used to determine average traffic volumes and speeds at strategic locations. The data obtained will be stored and analysed to improve management procedures and to know how the facility evolves. This information will also be used to give users real time information.

Speed detection systems, for monitoring and controlling speed

This point refers to the introduction of radars (or equivalents) to ensure compliance with fixed speeds, with the maximum speed and the speed given in the management plans to reduce speed.



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Communications and alarm transmission

The communications are designed to cover the entire length of the tunnels (SOS posts, loudspeakers, radio coverage and messages).

Organization of human resources for traffic management

This issue has been treated and discussed recently in order to identify and determine responsibilities and the actions to implement by the different actors involved. MC30 has defined all this and a flow chart showing the positions and responsibilities of the different actors involved will be shown on the final version of the TMP. This flow chart will supersede previous versions or drafts

There are some traffic management operations, apart from emergencies, in which the tunnel control centre staff require the support of Mobility Officers, Local Police, operation and maintenance staff, etc.

Control Centres

Calle 30 supervision, control and operation is carried out at two control centres that shall have the same infrastructure, facilities and data communication systems in both of them, as one backs the other. These two centres are:

Calle 30 Tunnel Control Centre (TCC)

The Main Monitoring Centre carries out the functions of Safety, Surveillance and Conservation, hereinafter called the Calle 30 Tunnel Control Centre (TCC) located in the new facilities at Méndez Álvaro.

The main functions of this centre are tunnel safety, surveillance and conservation. The TCC is where the first information on incidents is received, their scope is analysed and the Internal Emergency Plan is activated. Alternatively if the incident is beyond the TCC’s responsibilities, the situation is reported to the competent authority so they will launch the External Emergency Plan.

Therefore, the TCC management functions are:

Control and operate systems and facilities

Report on the nature and scope of incidents that have caused emergencies, and on the measures taken.

Provide technical advice on the available emergency means (facilities, rescue equipment, fire extinguishers, evacuation routes, etc.).

Serve as an interface between the institutions and the exploitation resources, and the CISEM (Security and Emergency Integrated Centre of Madrid)

Tunnel Traffic Management Centre (TMC)

The Secondary Control Centre performs the function of Traffic Management. It is located in the Mobility Management Centre, hereinafter referred to as the Calle 30 Tunnel Traffic



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Management Centre, or simply the Traffic Management Centre (TMC) located at Madrid City Council premises.

Ordinary traffic management operations are executed by Calle 30 TMC operators, in close coordination with Mobility Management Centre (MMC) staff, under the requirements and supervision of the TMC’s manager.

Their management functions (in traffic with or without incidents/emergencies) are:

• To execute Calle 30 tunnel traffic management operations, in coordination with the Mobility Management Centre operators and according to the Mobility Headquarters’ Traffic Management Plans (plans for detours, etc.).

• To serve as a redundant centre in emergency situations, to ensure operativity if a TCC breaks down.

This centre has traditionally managed Madrid’s traffic and now will also manage Madrid Calle 30 tunnel’s traffic.

8.2.2 Procedures

Chapter 4 on Traffic Management Plan (TMP) procedures gives the following basic points, which are:

- Traffic Management under normal circumstances

- Traffic congestion: prevention and management

- Coordination between institutions

The Emergency Plan covers many different types of incidents which could cause congestion. Such incidents are not reported again in the Traffic Management Plan. However, the TMP sets the management of the congestion caused by an incident.

Traffic Management under normal circumstances

Section 4.1 on traffic management under normal circumstances describes those procedures which are necessary for manage traffic in a day to day basis.

Section 4.1.1 deals with Travel times and levels of service:

Traffic conditions in the MC30 tunnels are based on travel times and levels of service.

The level of service in key sections is going to be one of main traffic indicators in the management of the MC30 tunnels. As expressed on the last quarter report, previous versions of the TMP were lacking a definition of the level of service. However, after the ‘panel of experts’ meeting held on 13th February2007, a definition of the levels of service and how to obtain them have been found in the document “Algoritmos de cálculo de nivel de servicio e información de estado de tráfico de forma automática”(Automatic traffic detection and level of service algorithms). The levels of service are defined as in the Highway Capacity Manual.

The level of service will be determined in key sections of the tunnel system, gathering real time traffic data. This will be done by means of the numerous traffic counters which are



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described in the document “ANEXO II.1: Estudio detallado de la gestión del tráfico en los distintos scenarios”. However, according to TEKIA (MC30 Traffic Consultants) the TMP’s final version will find this section updated with the relevant bits of the mentioned Annex II.1.

Item 4.1.2 deals with the different traffic conditions, this section considers lane usage and speed limit signals in free flow conditions.

Item 4.1.3 deals with automatic signalization for lane usage:

This section replaces “Precautions on nearby traffic jams” in previous versions of the TMP. Traffic management in this section is based on “traffic counter-signalization point pairs” which in essence is the relation between the data collection and the signalization points in the traffic lanes of the tunnel. These “pairs” are described in the document “ANEXO II.1: Estudio detallado de la gestión del tráfico en los distintos scenarios” and,according to TEKIA, the final version of the TMP will include specific references to this document.

Traffic congestion: prevention and management

The TMP addresses in Section 4.2 congestion in the tunnels with a breakdown of possible traffic management operations in the event of jams in a tunnel section, as well as the procedures to follow in such cases.

Section 4.2.1 presents an Inventory of possible traffic management operations:

4.2.1.1 Demand regulation measures

The TMP plans to act on the demand that intends to use the tunnel system in the event of traffic jams.

4.2.1.2 Entry flow prioritization

In the event of congestion or traffic jams, the TMP gives priority to the tunnels’ exists in order to reduce or eliminate conflicts inside the tunnels.

Traffic signal management will be automated, and the intervention of Local Police and Mobility Officers is described in section 4.3 of the Traffic Management Plan.

4.2.1.3 Diversion Management

This section of the TMP deals with the management of diversions in the case that one or some of the tunnels have to be closed. There are diversion plans which are detailed on Annex C of the TMP.

Section 4.2.2 develops the operation procedures for congestion management:

This section develops a plan for the operators who control the infrastructure in order to release the most appropriate actions to tackle congestion in the tunnels.

A series of decision charts are given. Each decision tree gives information on:

- Operation type

- Description and classification by code



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- The need to warn the City Police or not

- Diversions and alternative routes

It also considers exceptional operations (which in normal conditions would not be necessary to resolve the cause of traffic jams), a fact that confirms that the exercise was well done.

Coordination between institutions

This section describes the institutions involved in the management of the tunnel infrastructure (Mobility Management Centre, Tunnel’s Traffic Control Centre, Traffic Authorities, Local Police, Fire Brigade, etc). It includes a chart of all of the institutions concerned, with a description of the relationships between them and the infrastructure control centre.

The following image has been taken from the Infrastructure Plan and it gives an idea of the communication channels between the CCT, the CGT and CISEM:

Figure 10: Communication Channel- Source Madrid Calle 30

This section also defines the different protocols of actions between those actors, describing the coordination procedures and mechanisms between the institutions concerned. Details of the communication channels, the origin and type of situation in which they would need to be notified, etc. are given, which is though to be adequate.

The following image, which has been taken from the TMP, gives details of the action’s protocol between the CGT and the CCT:



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Figure 11: The action’s protocol between the CGT and the CCT – Source MC30

8.2.3 Implementation

This section TMP’s section 5 describes the tests to be undertaken for the successful opening of the tunnels. Such tests are being done by several independent consultants on behalf of MC30 and it has not been decided yet whether or no it is convenient to include the test certificates in the TMP.

There are also details of the training given to the Tunnel Traffic Control Centre staffs which is judged to be appropriate. The final version of the TMP will include more information on training.

8.2.4 Tunnel Traffic Regulations

The aspects covered in this section 6 are:

- Traffic conditions. Speed, safety distances.

- Vehicle types, including special licences.

- Traffic control.

Revision due to orders from above and/or changes of circumstances that make it advisable.

Some of the LTA precisions are given below:

Speed and safety distance

This includes very important aspects for traffic in tunnels, such as speed and safety distances.

The maximum speed that vehicles travelling in the tunnels should not exceed is 80 Km per hour. When service conditions justify the measure, the traffic management and safety authorities may set lower speed limits in one or more sections, with signs, or they may even stop the traffic at the entry to the tunnel.



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The maximum speed for special services will be limited to 60 Km/h.

The recommended safety distances between vehicles recommended to users in tunnels shall be the distance that is appropriate for their speed. If traffic stops inside a tunnel, the explicitly indicated distance from the vehicle in front will be 5 metres.

Special transport and hazardous goods

Timetables for special and hazardous good transport are given. Likewise, the treatment for buses and coaches is also considered.

User information

There will be user information campaigns for safe driving in tunnels, particularly in the event of breakdown, accident, congestion, fire, etc. Such campaigns are particularly relevant in city tunnels with high traffic densities.

Public transport

There are specific operations and priorities for public transport in Madrid Calle 30 tunnels. These aspects are covered in different sections of the TMP.

8.3 LTA Opinion

With regard to the Safety legislation and Design Liability

- Whilst not receiving any written statement on these issues, the LTA has no reason to doubt that the Phase 1 project is being developed in full compliance with safety legislation and regulations. As reported previously:

• MC-30 has appointed competent contractors and consultants to develop the designs and OM Manual.

• Madrid City Council Planning and Traffic Management officials have been consulted on matters relating to safety.

• Third parties, such as the fire brigade, police etc and the emergency services, as well as infrastructure operators like the Madrid Metro, have participated in working groups that advise the project.

• An independent analysis on the fire risk has been undertaken. • The designs are backed-up by a programme of testing and trials, including

specialist tests at the tunnel fire testing facility at Pedro de Anes. - Regarding the design verification for the fire protection in the By Pass Tunnels A

copy of the confirmatory fire testing of the platforms of the By Pass tunnels is awaited by the LTA.

- Next visits this LTA will be interested in the after opening process of the works to finalise all the testing, commissioning and snagging.

With regard to the Physical Means required for proper operation of the future MC30 tunnels:

- The LTA believes that, in general terms, the section Surveillance, Control and Operation Systems is properly covered in the Traffic Management Plan



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- The dual system of two control rooms to manage traffic, one backing the other, is considered to be adequate. The details of how it functions are given in the TMP’s chapter on human resources.

- The infrastructure markers are properly used. They are used, for instance, to confirm the existence of signs for lane closure and traffic lights for drivers who are inside the tunnels

- The technology for traffic collection equipment is thought to be necessary and is properly applied in the TMP

- The speed detection systems, for monitoring and controlling speed is considered to be applied correctly

- The integrated system of communications and alarm transmission is properly used

With regard to the section of Procedures to manage the set of tunnels, the LTA believes that:

- Providing travel time estimations is something extremely useful when users must choose their own journey. The treatment that the TMP gives to this subject is considered to be a very good selection of the landmarks for indicating travel times to.

- The choice of levels of service as an indicator of traffic conditions is also adequate. It is very useful to inform users of how fluid the traffic is at points where they may choose different routes to arrive at the same destination.

- The lane usage and speed limit signalisation in free flow conditions is very complete and adequate for the infrastructure.

- The way in which the actions in the event of traffic jams is addressed (section 4.2.1 of the TMP), with a breakdown of the possible traffic factors in which operations can be undertaken is considered appropriate.

- The inventory of operations described for Demand Regulation Measures is very complete and detailed, and is graphic as well as descriptive

- The exercise undertaken on the measures for prioritizing exiting traffic flows is complete and detailed

- A great deal of work has been done to consider all possible cases for Diversion Management. Every possible combination of traffic flows at tunnel entries and exits and the link which connect them have been taken into consideration

- With regard to the section of Implementation, the LTA believes the essential issue is that the tests are in progress an on track for the opening of each tunnel section.

- The progress of the traffic management document is correct and further reports will update this matter

Documents

MC30 March 2007 Quarterly Report Final€¦ · submitted the Phase 1 Due Diligence report, where the MLAs were advised on all the technical aspects involved in the project. During