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P3 Toolkit

Analytical Tools

P3-VALUE: Financial Assessment Tool User Manual

June 16, 2014

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Appendix A: Glossary

Term Description
AC Heavy Maintenance Post Periodic Maintenance costs post construction completion
AC Heavy Maintenance Pre Periodic Maintenance costs before construction completion
AC Light Maintenance Post Routine Maintenance costs post construction completion
AC Light Maintenance Pre Routine Maintenance costs before construction completion
AC Operations Post Operation Costs post construction completion
AC Operations Pre  Operation Costs before construction completion
Base Date The Base Date is commonly referred to as the estimated date of financial/contract close for a project.
Concession Period Concession Period (Total construction and operation periods).
Construction Delay Day Cost Construction delay per day.
Construction End End date of construction period.
Construction Period Number of years in construction period.
Construction Phase The Construction phase involves the actual construction of the physical asset. This phase is often the most sensitive to risks which could result in change orders, schedule delays, and contract disputes. By identifying potential risks before the start of construction phase, it may be possible for the project team to better anticipate and manage construction risks before they occur.
Construction Start Start date of construction period.
Construction Year Index Count for construction periods
DSCR Debt Service Cover Ratio.
Design Cost Total Total cost associated with the design and construction of the project
Design Cost Design and construction cost associated with a design element
Design Cost Calculation Option to include design build cost assumptions
Design Cost Profile Percentage of an element's cost that is recognized per year
Design Type  Asset Type in reference to the 'Assumptions' sheet of the Shadow Bid Tool.
DCF Discounted Cash Flow.
Discount Rate Nominal Discount rate factoring in the inflation rate.
Discount Rate Nominal, Choice Option to manually input specific nominal interest rate or a specified project IRR
Discount Rate Nominal, Manual Input of a discrete nominal interest rate
Discount Rate Real Discount rate that does not account for inflation.
Discount Rate Real, Choice Option to manually input specific real interest rate or specified project IRR
Discount Rate Real, Manual Input a discrete real interest rate
Non Agency Subsidy Percentage of construction costs provided by non-agency government subsidy
Non Agency Subsidy, Dollars Dollar amount of non-agency government subsidy
Heavy Maintenance Cost Cost of Periodic Maintenance as a percentage of total construction costs
Heavy Maintenance Cost, Dollar Dollar cost of Periodic Maintenance
Heavy Maintenance Cost, Period Period between Periodic Maintenance works
Heavy Maintenance Cost Index Flag indicating the cash flow periods where Periodic Maintenance occurs
Inflation Consumer Price Index  Inflation Consumer Price Index used as a base rate for inflation assumptions.
Inflation CPI Index An index of CPI factors
Light Maintenance Cost Cost of Routine Maintenance as a percentage of construction cost
Light Maintenance Cost, Dollar Dollar cost of Routine Maintenance
Light Maintenance Cost, Period Period that Routine Maintenance occurs
Light Maintenance Cost Index Flag indicating the cash flow periods where Routine Maintenance occurs
Maintenance Calculation Option to include maintenance assumptions
NPC Net Present Cost.
NPC Base Net Present Cost of the base project (excluding risk).
NPC P10 Net Present Cost of the project at the 10th risk percentile. 
NPC P70 Net Present Cost of the project at the 70th risk percentile. 
NPC P90 Net Present Cost of the project at the 90th risk percentile. 
Operations Year Year of operations
Operations Calculation Option to include operations assumptions
Operations Cost Index Flag indicating the period of cash flow periods where operations occur
Operations Cost of Delay Cost per day of risks associated with delaying operations
Operations End End of the operation period
Operations Cost Cost of operations as a percent of total construction cost
Operations Dollar Dollar costs of operations
Operations Cost Period Period where operation costs are incurred
Operations Period Project operations period
Operations Start Start date of operations
PC Land/ROW Project costs associated with Land/ROW
PC Land/ROW End End of period where Land/ROW costs occur
PC Land/ROW Index Flag indicating the periods where Land/Row costs are incurred
PC Land/ROW Start Start of period for Land/ROW costs
PC Other Other project Costs
PC Other End End of period where PC other costs occur
PC Other Index Flag indicating the periods where PC Other Costs are incurred
PC Other Start Start of period for which other costs are incurred
PC Other Miscellaneous Misc. Project Costs
PC Other Miscellaneous End End of period where other miscellaneous costs occur
PC Other Miscellaneous Start Start of period for which other miscellaneous costs are incurred
PC Owner Owner Costs
PC Procurement Procurement Costs
PC Procurement End End of period where Procurement costs occur
PC Procurement Index Flag indicating the periods where Procurement costs are incurred
PC Procurement Start Start of period for Procurement costs
PC QA Quality Assurance Costs
PC QA End End of period where QA costs occur
PC QA Index Flag indicating the periods where QA costs are incurred
PC QA Start Start of period for QA costs
PC Related Works Project Related Works Costs
PC Related Works End  End of period where related works costs occur
PC Related Works Index Flag indicating the periods where related works costs are incurred
PC Related Works Start Start of period for related works costs
Period per CF Number of months in each cash flow period
Project IRR P70 Internal Rate of Return of the project at the 50th risk percentile
Revenue Leakage Assumed annual revenue losses for a tolling facility.
Revenue 2/3/4 Axle or Motorcycle Toll revenue collected from 2 axle vehicles, 3 axle vehicles, 4 axles vehicles, or motorcycles
Revenue Non Road Non-road pricing revenues
Revenue Ramp-up Period Months in each revenue ramp-up period
Revenue Ramp-up Tolling periods in which revenues are reduced while demand grows
Revenue Yearly Calculated total yearly revenue from all vehicle tolls
Risk Design Cost Impact P10 Costs associated with construction phase risks at the 10th risk percentile
Risk Design Cost Impact P70 Costs associated with construction phase risks at the 70th risk percentile
Risk Design Cost Impact P90 Costs associated with construction phase risks at the 90th risk percentile
Risk Design Day Cost Percentage Percentage of daily construction costs incurred during a construction delay (indirect costs)
Risk Design Day Finance Percentage Percentage of daily financing costs incurred during a construction delay
Risk Design Day Impact P10 Schedule delay at the 10th risk percentile
Risk Design Day Impact P70 Schedule delay at the 70th risk percentile
Risk Design Day Impact P90 Schedule delay at the 90th risk percentile
Risk Design Day Operation Cost Percentage Percentage of daily operation costs incurred as a result of a construction delay
Risk Design Day Revenue Percentage Percentage of daily revenue loss as a result of a construction delay
Risk Operation Cost Impact P10 Costs associated with operations phase risks at the 10th risk percentile
Risk Operation Cost Impact P70 Costs associated with operations phase risks at the 70th risk percentile
Risk Operation Cost P90 Costs associated with operations phase risks at the 90th risk percentile
Risk Operation Day, Construction Percentage Percentage of daily construction costs incurred as a result of an operations delay
Risk Operation Day, Finance Percentage Percentage of daily financing costs incurred during an operations delay
Risk Operation Day, Impact P10 Number of days associated with operations phase risks at the 10th risk percentile
Risk Operation Day, Impact P70 Number of days associated with operations phase risks at the 50th risk percentile
Risk Operation Day, Impact P90 Number of days associated with operations phase risks at the 90th risk percentile
Risk Operation Day, OM Percentage Percentage of daily operation costs incurred as a result of an operations delay (indirect costs)
Risk Operation Day, Revenue Percentage Percentage of daily revenue loss as a result of an operations delay
Subsidy Profile Disbursement schedule of non-agency funding as a percentage of total funding
Toll Year Flag for toll collection period
Toll Collection Cal Option to include toll revenues
Tolling End End of tolling period
Tolling Period Total time (years) that toll revenues are generated
Tolling Start Tolling start date
Total Cost Total Construction Cost
Total Cost Profile The total allocation of costs over the construction period for an asset type
T&R Traffic and revenue
Traffic Scenario Option to select the traffic scenario
Traffic Scenario 1 Simple Toll Example Scenario
Traffic Scenario 2 Toll Scenario Template
Traffic Scenario 3 Variable Toll Example Scenario
Valid Construction Period A flag that indicates whether the period is a valid construction period
Valid Finance Period A flag that indicates whether the period is a valid finance period
Valid Maintenance Period A flag that indicates whether the period is a valid maintenance period
Valid Operation Period A flag that indicates whether the period is a valid operation period
Valid Period A flag that indicates whether the period is a valid project period
Valid Toll Period A flag that indicates whether the period is a valid tolling period
Volume 2/3/4 Axle or Motorcycle Total yearly volume of 2 axle vehicle, 3 axle vehicle, 4 axle vehicle, or motorcycle traffic
Volume Yearly Total yearly volume of all vehicles
Revenue Other Other revenue source
Find Project IRR A macro that will find the IRR that makes the project cash flows at the 50th risk percentile equal to 0.
Run Sensitivity A macro that illustrates the sensitivity of the project NPV at the selected risk percentile to changes in key assumptions
Non Agency Subsidy Other Government Funding provided as a percentage of project cost
Non Agency Subsidy, Dollar Dollar amount of funding provided by Other Government Funding
Subsidy Profile Disbursement schedule as a percentage of Total Other Government Funding

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