P3 Toolkit

Analytical Tools

P3-VALUE: Shadow Bid Tool User Manual

April 19, 2013

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Chapter 5. Cash Flow Sheets

Inputs in the "Assumptions" sheet generate sample cash flow sheets that are available to the user for educational/informational purposes. The cash flow sheets are not editable, but display nominal or real cash flows relating to the private sector cash flows, which are also reflected in the Private Cash Flow Summary Sheet. The notional example provided in the Shadow Bid Tool generates the following cash flow sheets:

• Project Cash Flow - Includes flags and factors based on the Timing and Inflation assumptions that are needed to generate the project cash flows.
• Construction - Construction phase cash flows.
• Operations and Maintenance - Operations and maintenance cash flows.
• Risk - Calculates the total risk values for cost and schedule days and the allocation between transferrable and retained risks.
• Traffic Scenario - If tolling is included, this sheet reflects the raw traffic and toll rates based on the Traffic Scenario selected on the Assumptions Sheet.
• Revenue CF - Provides the gross annual revenues per vehicle classification.
• Toll and Other Revenue - Applies any revenue leakage and ramp-up assumptions to the gross toll revenues and calculates any non-road revenues. After the outputs of the Shadow Bid Tool are generated, this sheet also reflects the payment amount in nominal terms.
• Project Subsidy - Cash flow for any funding provided to the project.
• Project Financing - Generates the required draw-downs from debt and equity based on the project's cost profile and calculates the cost of private finance based on the financing assumptions provided.
• Transferrable Risk - In a P3 procurement method, design and construction and operations phase risks are transferrable to the private contractor. This sheet allocates the equivalent value of risk to cash flows, with dollar amounts representing the expected cost consequences of a risk event occurring.
• Depreciation - Calculates the fixed asset values and depreciation expense that informs the Financial Statement, which is an output of the Shadow Bid Tool.
• Private Cash Flow Summary - Summarizes the project's cash flows for the private sector in delivering the project.
• Other Project Costs - Nominal cash flows for Other Project Costs, separating out the costs incurred by the agency and those incurred by the private sector.
• Retained Risk - Identifies the value of the risks that the agency will manage under the P3 delivery.

 

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