1. Rail Baltica - Project of the Century
ĢIRTS RŪDA
General Counsel
RB RAIL AS

3. What is Rail Baltica?

4. RAIL BALTICA – PART OF THE NORTH SEA-BALTIC CORE NETWORK CORRIDOR
Rail Baltica is a new fast, conventional double-track electrified and ERTMS-equipped railway line with maximum design speed of 240 km/h on the route from Tallinn through Pärnu – Rīga – Panevėžys – Kaunas to the Lithuanian-Polish border, with a connection from Kaunas to Vilnius. The new railway line will be designed with 1435 mm gauge thus confirming to all requirements of the Technical Specifications for Interoperability (TSIs).
870 km

5. SOCIAL ECONOMIC BENEFITS UNMEASURABLE CATALYTIC EFFECTS
BENEFITS VERSUS COST
Bln EUR
SOCIAL ECONOMIC BENEFITS
16.2
COST
5.8
GDP MULTIPLIER 2
UNMEASURABLE CATALYTIC EFFECTS +
TOTAL BENEFITS:
18.2+ BILLION EUROS
Ability to perform services on regional level
Increased export
Better tourism opportunities
Better access to resource/labour market.
Higher accessibility leads to a more efficient allocation of resources which triggers productivity gains and stimulates growth
Increased transport capacity
Better access to study/work place
Induced impact of intermodal terminal infrastructure
Increased reliability of passenger and freight transport
Better access to healthcare institutions
Increased opportunities for culture, entertainment, shopping on pan-Baltic level
Indirect productivity effects on other business sectors
Catalytic effect on businesses located nearby rail stations

6. Planning phase Construction phase Design phase
+ planning phase, design phase and construction phase uz kalniņiem

7. RAIL BALTICA PROCUREMENT PLAN
Procurement phase
Implementation phase
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Studies
TESTING
Design
Railway line construction & supplies
Stations / Terminals / Maintenance Facilities Construction
ERTMS
Electrification

8. PROJECT LEGAL TIMELINE
2014
2015/2016
2016
2016
2017
Shareholders Agreement (SHA)
Articles of Association (AoA)
2 Grant Agreements (CEF)
Inter-Beneficiary
Agreement (IBA)
Contracting Scheme (CS)
Inter-Governmental Agrement (IGA)

9. Who is who?
Project implementers

10. PROJECT GOVERNING STRUCTURE
BENEFICIARIES: THREE MINISTRIES
Estonia – Ministry of Economics and Communication
Latvia – Ministry of Transportation
Lithuania – Ministry of Transportation and Communication
Lietuvos Geležinkeliai
Rail Baltic Estonia OU
RB RAIL SHAREHOLDERS
Eiropas Dzelzceļa līnijas
Rail Baltica Statyba
RB Rail
(Branches in LT, EST)
CENTRAL PROJECT COORDINATOR
Estonia
Latvia
Lithuania
NATIONAL IMPLEMENTING BODIES
Rail Baltic Estonia OU
Eiropas Dzelzceļa līnijas
Lietuvos Geležinkeliai
Estonian Technical Regulatory Authority
Rail Baltica Statyba
Shareholders = also Implementing Bodies
Supervise RBR who should supervise them
For the Business community it is important to understnad the roles the project’s many actors are playing in project implementation.
First, the owners of the infrastructure to be built are the three Baltic countries – Estonia, Latvia and Lithuania.
Thus we talk about beneficiaries – the three respective ministries of Estonia, Latvia and Lithuania. At the same time, for the Ministries to be indirect shareholders of the joint venture RB Rail, special purpose vehicles were created in each country to act as the direct Shareholders in RB Rail.
The Joint Venture, RB Rail, is the main coordinator of the project, responsible for the railway’s planning, design, construction and marketing (including branding). As I mentioned, it is a commercial company registered in Latvia.
In order to ensure VAT remains in Lithuania and Estonia for work that will be done there, as well as to address the needs of Estonian and Lithuanian employees, RB Rail will establish branches in both capitals.
Rail Baltic Estonia, the Estonian Technical Regulatory Authority, Eiropas Dzelzceļa līnijas, Lietuvas Geležinkeliai, Rail Baltica Statyba – are National implementing bodies that are responsible for implementing the project in their respective countries.
At the same time as you can see, all but the Estonian Technical Regulatory Authority are also the Joint Venture’s direct shareholders

11. CENTRAL PROJECT MANAGEMENT The role of the joint venture RB Rail AS
Guarantees successful project implementation, unrestricted functioning of the single market and equal access to infrastructure;
Develops a Centre of Competence
Represents the project and ensures interoperability overall;
Represents all the shareholders’ interests
Ensures cost saving generated by the economies of scale
RB Rail AS

12. RB Rail organizational structure
Supervisory Board
Internal Auditor
Board Project
Manager/HR
Country manager EE
Management board
Communications
and government
affairs
CEO
Project management
unit
Country Manager LV
Legal &
Compliance
Country Manager LT
CFO
COO
CTO
Pool of experts*
Admin and IT
Procurement
Project Plan
Statutory
accounting
Supplier Contract
Management
Design &
Construction
Reporting and Control
Finance
Business
Development
Operations, Asset
Management
Safety & Security
Business analysis
* To be drawn upon for COO and CTO.

13. Sub-systems (CCS & ENE) Raw Materials and Key Components
PROCUREMENT SPLIT
RB Rail
Consolidated
Supervised national
Studies
Design
Common Standards
Business Development
Marketing & Branding
Sub-systems (CCS & ENE)
Raw Materials and Key Components
Cross-border Track Sections
Track Construction
Major Engineering Structures
Local Facilities (incl terminals)
Land acquisition
Global Project studies (including):
Supplier Market and Resources Study (raw materials and key components),
Technical studies (the European rail traffic management system (ERTMS), construction logistics, maintenance facilities and rolling stock depots, power supply, capacity constraint & buffer capacity development),
Global Project development studies (e.g. commercialization, infrastructure management)

14. Project development

15. 05 04 03 02 01 MAIN OBJECTIVES OF 2017 Project’s Maturity =
Point of No Return
Project proves good
governance 04 03 02
Route approval 01
Intergovernmental
agreements signed
Transparent financial flow
Clear procurement procedures
Project activities going in accordance to the plan
Most significant researches and analysis carried out
Runājot par šo gadu, ir būtiska uzdevuma izpilde, ko no mums sagaida Baltijas valstu iedzīvotāji, Eiropas Komisija, un projekta partneri Polija un Somija.
Mums ir jāspēj demonstrēt projekta Rail Baltica tā dēvēto briedumu; angliski teiktu «project maturity».
Tas nozīmē, ka 2017.gada laikā mums ar saviem darbiem ir jāpierāda, ka projekts ir sasniedzis tādu brieduma pakāpi, ka to nav iespējams pārtraukt kā arī, ka ir pamats pieprasīt turpmāko finansējumu arī pēc gada.
Briedums ir pieradīts, ja
Visas 3 valstis ir apstiprinājušas savus maršrutus (ko Latvija jau izdarījusi)
ir parakstīti visi izpaliekošie starpvalstu līgumi, jo vēl kavējais pēdējā vienošanās starp 3 Baltijas valstīm, kur ir apņemšanās atbildēt par projektu līdz tās pabeigšanai
Ja būtiskākās izpētes/analīzes, projekta aktivitātes tiek veiktas saskaņā ar plānu,
Ja tiek īstenotas skaidras iepirkumu procedūras, lai varētu sākt būvniecības posmu
Un vēl vairāk – ja projekts ir labi pārvaldīts, finanšu aprite ir caurspīdīga, kā arī ir nostiprināta labas pārvaldības prakse.

16. Procurement Principles and Standards

17. SCOPE OF PROCUREMENT STANDARDS AND GUIDELINES
Inform of the framework and
main principles of procurement
Applies to all procurements and each contracting party
Follow the best international market practice
Sets out common standards
Published & freely available
* Actual requirements for a particular procurement are laid down in the procurement documents of the relevant procurement

18. CONTRACTING AUTHORITY CODE OF CONDUCT
We are FAIR We are TRANSPARENT
Free competition
Use of experts
Absence of conflicts of interest
Legality
Transparency
Socially and environmentally sustainable procurement
Best value for money

19. SUPPLIERS’ CODE OF CONDUCT
LABOUR
Equality
Wages
Health & safety
ETHICS
Corruption
Conflict of interest
Gifts, hospitality
Post employment restrictions
Selection of business partners
ENVIRONMENT
Environmentally friendly technologies
Lifecycle considerations
Waste management

20. SUPPLIERS’ DECLARATION
Signed by supplier & subsupplier together with tender agreement
Avoiding corruption, conflict of interest
Compliance with laws & regulations
INCREASED AWARENESS OF KEY PRINCIPLES & REQUIREMENTS
Acting in an ethical, sustainable & social responsible manner
Following good practice in respect of labour, health & safety, environmental protection
Purpose – to increase awareness of the pronciples and requierements of the RB project
Reconfirming aspects outlined in «bubbles»

21. 28 3 4 2 RAIL BALTICA TENDERS - 2017 RB RAIL
ESTONIA – RAIL BALTIC ESTONIA
LATVIA – EIROPAS DZELZCEĻA LĪNIJAS 4
LITHUANIA – MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, LIETUVAS GELEŽINKELIAI 2

23. Legal tender

24. 2016 - 2017 tender 5 firms Length & KPI re-considered Used both
– mini-competitions
& special tasks
EUR 130k
Communication
is key
Communication – need 1 contact person

25. 2017 – 2019 tender 4 + 1 practice areas Up to 4 firms
Effectiveness of legal services
Case study
Blended rate
2 years – commitment from both parties
Team & experience – present how do you differ from your competitors
Effectiveness = innovation (how to improve co-operation/RB Rail)
Keep at reasonable length – 1 A4 page for eaxch of 3. & 4.

26. 4+1 practice areas Procurement Company Secretary
Construction, Real Estate and Environment
Commercial & Corporate Services
Competition Law and State Aid
VAR IESNIEGT PAR KATRU LOTI ATSEVIŠĶU PIEDĀVĀVĀJUMU

27. Main services 01 02 Company Secretary Services Legal Services
Assisting in preparing agenda of SB meeting and supporting documents
Convening, attending and drafting of minutes of SB, and AGM/EGM
Maintaining an appropriate registry of SB decisions
Registering or filing of relevant SB decisions with appropriate state or private institutions, submission of such decisions for execution to addressees of decisions
Annual compliance and maintenance of statutory records
Advising on issues included in the agenda of SB and AGM/EGM, support for SB members
Company Secretary Services 02
Legal Services
Procurement
Commercial and Corporate Services
Competition Law and State Aid
Construction, Real Estate and Environment
Iespējams, ka CSS nevajag tik smalki aprakstīt, vai tieši otrādi – arī otru loti ir smalki jāapraksta

28. Minimal qualification criteria for Law firms03
Pan-Baltic coverage
At least 1 expert in each Baltic country in each PA (Lot1)
or 1 expert in Latvia (Lot2) 02 01
Liquidity
In the last audited year liquidity ratio (current assets divided by short-term liabilities)
is equal or exceed 1
Turnover
1. not less than EUR 360k (Lot1)
or 40k (Lot2)
2. for each of last 3 years
Pieņemot, ka līgumcena 2.lotei (sekretārs), būs EUR un pārējām EUR

29. QR for Lot1 experts (1 expert per 3 countries)
Project experience
3 large-scale projects within last 5y in PA 03 04
Position in a project
Senior lawyer or higher
Education
Master’s degree or equivalent 01 02
Professional experience
5 years in PA
as senior lawyer or higher
Experience – jānorāda darba / uzņēmuma līguma laiks no – līdz + amata apraksts, kas raksturo attiecīgo PA.
Large scale – size (100k), cross-border (3 countries), legislative initiatives

30. 03 04 01 02 QR for Lot2 expert Project experience
Providing daily corporate law advice for 3 companies
or CS services for 1 company (3y) 03 04
Position in a project
Senior lawyer or higher
Education
Master’s degree or equivalent 01 02
Professional experience
5 years in PA
as senior lawyer or higher
Large scale – size (100k), cross-border (3 countries), legislative initiatives

31. 04 03 02 01 Evaluation Lot1 40% 30% 20% 10% Financial proposal
Blended hourly rate
40%
Financial proposal
3 points for each
max +2 for each expert
max 30 point
30%
Extra Project Experience of Experts
20 – very good ideas & description
10 – good ideas and description
5 – few ideas, no clear suggestion 04 03 02 01
20%
Effectiveness of legal provisions
10 – excellent solution
5 – good solution
2 – poor solution
10%
Case study
Case study – procurement pan Baltic case, legal base
Juridiskā nodrošinājuma efektivizācija – kā veicināt RBR juridiskā nodrošinājuma efektivitāte – apmācība, paraugi, inovatīvi piedāvājumi problēmu risinājumiem, jānorāda pieredze piedāvāto risinājumu realizēšanā, inovācijas cost controle, co-operation with other firms in panel.
Par 3./4. – viena A4 lapa.

32. Evaluation Lot2
100%
Meet criteria + lowest price

33. Special Task Agreement
Mini Competition
Direct Task
Choice of approach - at sole discretion of RB Rail AS

34. KPI 01 02 03 04 DEADLINES INFOGRAPHIC COOPERATION QUALITY
After waiting period – a firm may take part again 03
If a firm received twice 2 or less, will not be invited for next 3 mini competitions and/or direct task 02
Results of KPI’s will be combined 01
The KPIs are evaluated after each task 02
DEADLINES
1 (missed) – 3 (on time) 04 01
COOPERATION
1 (bad) – 3 (good) 03
QUALITY
1 (bad) – 3 (good)
INFOGRAPHIC
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amet consequitor
oragami is
radical
Skala 1-3
Co-operation – response time, clarity of communication, clarity of costs/invoices, understanding of project/business/task
Ability to meet deadlines/clarity of timescale
Quality of advice & documents
Plan regular review (1 per year?)

35. Rules apply to Pan-Baltic & individual level
Conflict of Interests
Rules apply to Pan-Baltic & individual level
Representation of another client that will be directly adverse to RB Rail interests
After panel – prevented in the same matter or due to received confidential info
Representation of another client that harm possibility to act solely on RB Rail interests
Notification to RB Rail
Prevented unless RB Rail consents
«Chinese wall» solution
Do not see problem – in acting for other implementing bodies/beneficiaries. See problem, if acting against RB Rail (litigation/ conflict situation).

36. PROCUREMENT TIMELINE Results announced, agreements concluded
01.09
PROCUREMENT TIMELINE
08.08
Results announced, agreements concluded
04.07
Submission of offers
30.06
Tender rules published
27.06
Announcement
Feedback

37. Together we can!