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Joint investment of Telecom and Energy Providers Technical, economic and organizational principles Brussels, 26th of June 2014 Purpose for the joint-investment project • Project stage: Beginning • The project is aimed at answering the following questions: – Will there be a decrease in investment cost? – Will the startup phase of the project be shorter? – Will the project be completed earlier than in case of seperate investments? – Will there be a reduction in maintenance cost? The process of joint investment Steps of the process Terms of cooperation Working meetings Joint actions Meetings of the Technical Groups Board Acceptance Bilateral cooperation agreement Developed documents Projects Nondisclosure agreement Tender Document ation Technical Design Location plan Implementation of the installation work projects Clearance Mutual control of conducted work Costy allocation Investment Evaluation Invoicing Final protocol Maintenance agreement The technical aspect of joint investment (based on investigation conducted so far) • Development of technical solution for stacking energy and telecommunications connections in one trench • Joint construction of infrastructures in the selected location • Development, implementation and testing of the adopted policies to maintain shared infrastructure • No technical barriers for joint construction of power and telecommunications cables • No interference of signals between terminals Investment – technical realization (1/2) Investment – technical realization (2/2) Cross-section of the trench 25cm Horizontal distance between energy cables and high voltage warning tape High voltage warning tape Power cables 40 cm Vertical distance between stave and energy cables Optical warning tape 23 cm Optical micro-ducts Horizontal distance between micro-ducts and energy cables Stave 5 cm Horizontal distance between micro-ducts and energy cables 17 cm 29 cm Vertical distance between micro-ducts and stave Horizontal distance between microducts and stave Joint investments – potential strengths and weaknesses STRENGTHS • • • • • • Implementation by large companies - the leading roles in the telecommunications and energy industries Easier process of obtaining consents and agreements - electricity service "necessities" Large experience in the investment process throughout the country Development of the energy-telecom partnerships Exchange of experience Use of formal procedures to gain administration approvals for construction already known to operators WEAKNESSES • • • • • • • Process changes are required for agreeing, implementing and maintaining investment Need to coordinate the implementation of projects in the two industries On-time investment completion dependant on both „sides” of the venture Risk of delayed performance of connection agreement Difficulty in adjusting to the schedule of implementation Increased value of claims relating to the land occupation The investments under various formal and legal conditions The expected potential benefits and possible risks OPPORTUNITIES • • • • • • • • Reduction of investment cost (mainly due to co-financing of the trench) Shorter time of investment startup Faster process of connecting a building to telecommunications infrastructure Simplification of the process of obtaining approvals and technical arrangements Reducing the risks of physical damage of telecommunications infrastructure (infrastructure covered by energetic cables and placed in the ground at greater depth than usual) Reducing investment risk through joint management Exchange of experience on best-practice for investment and network maintenance Exchange of best practices in investment process THREATS • • • • Complexity of the arrangements relating to the current operation of the infrastructures and increased maintenance costs Need for procedural changes within the two oraganizations to allow cooperation Extended time of execution of the contract Lack of administration procedures that encourage partners from both industries to coinvest