
View as PDF
Homework Assignment:
Value for
Money Analysis for a Toll Concession Project
Webinar recording:
Audio
P3-VALUE Webinar - July 19, 2013
Patrick DeCorla-Souza
P3 Program Manager
Office of Innovative Program Delivery
Co-Instructors:
Aaron Jette, Volpe Center
Qingbin Cui, University of Maryland
Part 1 - Review of assigned homework on Value for Money Analysis for Project with No Tolls
Part 2 - Assignment of Homework 2 on Value for Money Analysis for Project with Tolls
After participating in this "office hours" webinar you should be able to:
| Nominal Discount Rate | Results - Risk Adjusted Payments ($) | ||
|---|---|---|---|
| 5.00% | PV of Payments with P10 Risk Adjustment | PV of Payments with P70 Risk Adjustment | PV of Payments with P90 Risk Adjustment |
| Payment Item | |||
| Design and Construction After Subsidy * | - | - | - |
| Construction Phase Transferrable Risks * | - | - | - |
| Construction Phase Retained Risks * | - | - | - |
| Operations | 101,692,152 | 101,692,152 | 101,692,152 |
| Routine Maintenance | 101,692,152 | 101,692,152 | 101,692,152 |
| Periodic Maintenance | - | - | - |
| Operations Phase Transferrable Risks | 20,338,430 | 40,676,861 | 61,015,291 |
| Operations Phase Retained Risks | - | - | - |
| Other Project Costs (ROW etc) | - | - | - |
| PSC Adjustments | - | - | - |
| Principal Debt Payments | 41,890,908 | 45,768,288 | 49,645,668 |
| Interest & Fee Payments | 76,377,465 | 82,473,436 | 88,569,408 |
| Total Payments | $341,991,107 | $372,302,889 | $402,614,671 |
| Toll and Other Revenue | - | - | - |
| Total Payments After Toll and Other Revenue | $341,991,107 | $372,302,889 | $402,614,671 |
| Value for Money Analysis Results | |||
|---|---|---|---|
| Manual Input | Risk Adjusted Payments ($) | ||
| 5.00% | PV of Payments with P10 Risk Adjustment | PV of Payments with P70 Risk Adjustment | PV of Payments with P90 Risk Adjustment |
| Payment Item | |||
| Availability Payments | $332,769,407 | $355,241,557 | 377,713,707 |
| Construction Phase Retained Risks | $4,434,779 | $8,869,557 | 13,304,336 |
| Operations Phase Retained Risks | $ - | $ - | - |
| Other Project Costs (For Agency) | $ - | $ - | - |
| Total Payments Before Toll Revenue | $337,204,186 | $364,111,114 | 391,018,042 |
| Toll and Other Revenue | $ - | $ - | - |
| Total Payments After Toll Revenue | $337,204,186 | $364,111,114 | 391,018,042 |

(figure text)
Availability Payment - Payment Calculation
Annual Nominal Payment Amount
| PSC Discount Rate: 5% | PV of Payment with P70 Risk Adjustment | |
|---|---|---|
| VfM Discount Rate: 5% | PSC | SB |
| Project Payments | ||
| Design Construction After Subsidy* | $ - | -1 |
| Operations | $101,692,152 | -1 |
| Routine Maintenance | $101,692,152 | -1 |
| Periodic Maintenance | $ - | -1 |
| Risk Adjustments | ||
| Construction Transferrable Risk* | $ - | -1 |
| Construction Retained Risk* | $ - | $8,869,557 |
| Operations & Maintenance Transferable Risk | $40,676,861 | -1 |
| Operations & Maintenance Retained Risk | $ - | $ - |
| Availability Payment | $355,241,557 | |
| Payment Type | ||
| Adjustments | ||
| PSC Adjustments | $ - | N\A |
| Financing | ||
| Principal Debt Payments | $45,768,288 | -1 |
| Interest & Fee Payments | $82,473,436 | -1 |
| Other Project Costs | $ - | $ - |
| Toll + Other Revenues | $ - | $ - |
| Total Payments | $372,302,889 | $364,111,114 |
| Notional Value For Money ($) | $8,191,775 | |
| Notional Value For Money (% of PSC) | 2% | |
(1) Included in the Availability Payment
| PSC Discount Rate: 5% | PV of Payment with P10 Risk Adjustment | PV of Payment with P70 Risk Adjustment | PV of Payment with P90 Risk Adjustment | |||
|---|---|---|---|---|---|---|
| VfM Discount Rate: 5% | PSC | SB | PSC | SB | PSC | SB |
| Project Payments | ||||||
| Design Construction After Subsidy * | $ - | -1 | $ - | -1 | $ - | -1 |
| Operations | $101,692,152 | -1 | $101,692,152 | -1 | $101,692,152 | -1 |
| Routine Maintenance | $101,692,152 | -1 | $101,692,152 | -1 | $101,692,152 | -1 |
| Periodic Maintenance | $ - | -1 | $ - | -1 | $ - | -1 |
| Risk Adjustments | ||||||
| Construction Transferrable Risk# | $ - | -1 | $ - | -1 | $ - | -1 |
| Construction Retained Risk# | $ - | $4,434,779 | $ - | $8,869,557 | $ - | $13,304,336 |
| Operations & Maintenance Transferable Risk | $20,338,430 | -1 | $40,676,861 | -1 | $61,015,291 | -1 |
| Operations & Maintenance Retained Risk | $ - | $ - | $ - | $ - | $ - | $ - |
| Availability Payment | $332,769,407 | $355,241,557 | $377,713,707 | |||
| Payment Type | ||||||
| Adjustments | ||||||
| PSC Adjustments | $ - | N\A | $ - | N\A | $ - | N\A |
| Financing | ||||||
| Principal Debt Payments | $41,890,908 | -1 | $45,768,288 | -1 | $49,645,668 | -1 |
| Interest & Fee Payments | $76,377,465 | -1 | $82,473,436 | -1 | $88,569,408 | -1 |
| Other Project Costs | $ - | $ - | $ - | $ - | $ - | $ - |
| Toll + Other Revenues | $ - | $ - | $ - | $ - | $ - | $ - |
| Total Payments | $341,991,107 | $337,204,186 | $372,302,889 | $364,111,114 | $402,614,671 | $391,018,042 |
| Notional Value For Money ($) | $4,786,921 | $8,191,775 | $11,596,628 | |||
Submit a question using the chat box Or Dial *1 to call in your question by phone
To register, please visit http://www.nhi.fhwa.dot.gov/resources/webconference/eventcalendar.aspx
Patrick DeCorla-Souza
P3 Program Manager
Office of Innovative Program Delivery
Federal Highway Administration
(202) 366-4076
Patrick.DeCorla-Souza@dot.gov
Thay N. Bishop, CPA, CTP
Senior Program Advisor/Capacity Builder
Office of Innovative Program Delivery
Federal Highway Administration
(404) 562-3695
Thay.Bishop@dot.gov
Submit a question using the chat box Or Dial *1 to call in your question by phone
