1 School of Construction Management and Engineering MSc Construction Management December 2011 Case Study of road project in Estonia You are required to submit your answer by 09.00 on Tuesday 17th January 2012. There is no word limit; your answers should be as comprehensive as possible. Make any assumptions you feel appropriate. Location and scope of the project The Estonian Road Administration have proposed to build a new road from Tallinn to Saue, a distance of 20km, using a build operate transfer (BOT) arrangement for a period of 25 years. BOT is the term used in Estonia for a public private partnership project. The concession company will be responsible for designing, building, financing, operating and maintaining the road for 25 years. The Estonian Road Administration will pay the concession company an annual amount for the use of the road based upon traffic usage. If the traffic is above the forecast level agreed between the parties, the concession company will be paid higher usage fees for the year. This project is one of the largest road construction projects in Estonia. This is the second BOT project constructed in Estonia; hence there is little experience of this type of procurement and project delivery arrangement. The project has one twin tunnel with an aggregate length of 1 km (one in each direction, a total of 2 km), four interchanges and 6 bridge sites. The contract period is 25 years, from 2012 to 2040, hence all design and construction must be completed by 2015. The award of the project is scheduled 2 for March 2012. The concession period will last 25 years starting from completion of construction. The country Estonia is located on the Baltic Sea. It is south of Finland, north of Latvia and west of Russia. The population is 1.36 million, with 400,000 living in Tallinn, the capital city. There is heavy snowfall in winter months. The average temperature is -7° C in January and +22° C in July. It is dark by 15.00 in the wintertime, but the summertime...