P3 Toolkit

Analytical Tools

P3-VALUE: Financial Assessment Tool User Manual

April 19, 2013

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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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