Patrick DeCorla-Souza
P3 Program Manager
Center for Innovative Finance Support
Marcel Ham
Vice President
IMG/Rebel
This is a follow-up to the second of five topical webinars to introduce P3-VALUE
A study was done previously by a state DOT to estimate Value for Money of P3 delivery for a highway project. The various inputs required for the analysis are included in the P3-VALUE 2.0 spreadsheet model.
Submit a question using the chat box or hit *6 to ask your question by telephone
Key project information for the PSC in the input sheets of the model:
Key P3 Option inputs are:
PSC vs. P3 Comparison:
Key input for the comparison is the discount rate to be applied to future cash flows:
Please stand by as we open the Excel file
Costs and Revenue under Conventional Delivery Units>> |
NPV @ 4.00% USD m | Nominal total USD m |
---|---|---|
Toll revenues | 756 | 2198 |
Toll revenues uncertainty adjustment | (130) | (377) |
Pre-construction & construction costs | (397) | (454) |
O&M costs | (129) | (363) |
No Build O&M cost savings | 250 | 680 |
Base variability | (79) | (112) |
Pure risks | (69) | (121) |
Lifecycle performance risk | (228) | (574) |
Financing fees | (3) | (3) |
Competitive neutrality adjustment | - | - |
Total net revenues / (costs) under Conventional Delivery | (29) | 873 |
Costs and Revenues to Developer under P3 Units>> |
NPV USD m | Nominal total USD m |
---|---|---|
Toll revenues for private side | 298 | 2224 |
Pre-construction & construction costs (transferred) | (304) | (390) |
O&M costs (transferred) | (43) | (296) |
Base variability (transferred) | (54) | (94) |
Pure risks (transferred) | (40) | (98) |
Net subsidy from Agency to Developer | 146 | 205 |
Financing fees | (2) | (3) |
Taxes | - | - |
Total net revenues / (costs) to Developer under P3 | 0 | 1548 |
From the procuring Agency's perspective, the cost of P3 includes the bid as well as any retained costs or risks
Costs & revenues to Agency under P3 | NPV @ 4.00% | Nominal total |
---|---|---|
Units >> | USD m | USD m |
Toll revenues (for public side) | - | - |
Toll revenues uncertainty adjustment (for public side) | - | - |
Pre-construction & construction costs (retained) | (39) | (43) |
O&M costs (retained) | (12) | (33) |
No Build O&M cost savings | 259 | 691 |
Base variability (retained) | (7) | (10) |
Pure risks (retained) | (6) | (11) |
Net subsidy from Agency to Developer | (175) | (205) |
Total net revenues / (costs) to Agency under P3 | 19 | 389 |
Submit a question using the chat box
Key project information for the PSC in the input sheets of the model are the same as for the Toll Concession option:
AP P3 Option inputs that are the same as the Toll Concession are:
AP P3 Option inputs that are different from the Toll Concession are:
Part C: Base case PSC vs. P3 Comparison:
Key input for the comparison is the discount rate to be applied to future cash flows:
Part D: For evaluation of impact of P3 efficiencies on the PSC vs. P3 Comparison:
Please stand by as we open the Excel file
Costs and Revenue under Conventional Delivery Units>> |
NPV @ 4.00% USD m | Nominal total USD m |
---|---|---|
Toll revenues | 756 | 2198 |
Toll revenues uncertainty adjustment | (130) | (377) |
Pre-construction & construction costs | (397) | (454) |
O&M costs | (129) | (363) |
No Build O&M cost savings | 250 | 680 |
Base variability | (79) | (112) |
Pure risks | (69) | (121) |
Lifecycle performance risk | (228) | (576) |
Financing fees | (3) | (3) |
Competitive neutrality adjustment | - | - |
Total net revenues / (costs) under Conventional Delivery | (29) | 872 |
Costs and Revenues to Developer under P3 Units>> |
NPV @ 7.24% USD m | Nominal total USD m |
---|---|---|
Toll revenues for private side | - | - |
Pre-construction & construction costs (transferred) | (318) | (390) |
O&M costs (transferred) | (57) | (296) |
Base variability (transferred) | (58) | (94) |
Pure risks (transferred) | (44) | (98) |
Availability Payment & milestone payment to Developer | 479 | 1,837 |
Financing fees | (3) | (4) |
Taxes | - | - |
Total net revenues / (costs) to Developer under P3 | 0 | 955 |
From the procuring Agency's perspective, the cost of P3 includes the bid as well as any retained costs or risks
Costs and Revenues to Agency under P3 Units>> |
NPV @ 4.00% USD m | Nominal total USD m |
---|---|---|
Toll revenues (for public side) | 777 | 2,224 |
Toll revenues uncertainty adjustment (for public side) | (133) | (381) |
Pre-construction & construction costs (retained) | (39) | (43) |
O&M costs (retained) | (12) | (33) |
No Build O&M cost savings | 259 | 691 |
Base variability (retained) | (7) | (10) |
Pure risks (retained) | (6) | (11) |
Availability Payment & milestone payment to Developer | (794) | (1,837) |
Total net revenues / (costs) to Agency under P3 | 45 | 600 |
Part C (AP concession):
Part D (AP concession with no early completion):
Part D (AP concession with no early completion and no P3 build phase cost efficiencies):
Part D (AP concession with no early completion and no P3 build and operations phase cost efficiencies):
Submit a question using the chat box
Intro Project Background
Parts A & B Toll Concession
Part C & D Availability Payment Concession
Recap Summary of Webinar
FHWA's Center for Innovative Finance Support Website:
https://www.fhwa.dot.gov/ipd/
P3 Website:
https://www.fhwa.dot.gov/ipd/p3/
Submit a question using the chat box
Patrick DeCorla-Souza
P3 Program Manager
Center for Innovative Finance Support
Federal Highway Administration
(202) 366-4076
Patrick.DeCorla-Souza@dot.gov