Presentation
Presenters
Benjamin Perez
Principal Consultant
WSP |
Parsons Brinckerhoff
Mark Sullivan
Director
Center for Innovative
Finance Support
Federal Highway Administration
Patrick DeCorla -Souza
P3 Program Manager,
Build America Bureau & Federal Highway Administration
Presentation Overview
- Introduction and Definitions (Chapters 1 & 2)
- Federal Role (Chapter 3)
- Evolution of the U.S. P3 Market (Chapter 4)
- P3 Stories (Appendix)
This presentation will introduce Chapters 1- 4.
Introduction and Definitions (Chapters 1 and 2)
Purpose
- Provide U.S. highway experience with highway public-private
partnership (P3) concessions since 1992, including:
- Evolution of the federal role
- Trends and market developments
- Case studies of all 28 U.S. P3 highway concession projects
that have achieved financial close
U.S. P3 Concessions by Status
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Spectrum of Project Delivery Options
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DBFOM Concession Types
New Build Projects
- Real Toll Concessions
- Greenfield Toll Roads
- Fixed Crossings
- Priced Managed Lanes
- Availability Payment Concessions
Existing Toll Roads
- Long-term Lease Concessions
Typical Toll Concession P3 Structure
View larger version of Typical Toll Concessions P3 Structure flow chart
Real Toll Concessions
- Used to develop three types of projects:
- Greenfield toll roads
- Fixed crossings
- Priced managed lanes
Typical Availability P3 Structure
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Typical Long-term Lease Concession P3 Structure
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flow chart
Federal Role (Chapter 3)
TE-045
- 1994: TE-045 - initiative to test and evaluate ideas from states
on new financial strategies
- Matching
- Toll Credits
- Advance Construction
GARVEE Bonds
- 1995: Grant Anticipation Revenue Vehicle (GARVEE bond)
- Allows states to leverage future Federal Aid Highway Program
receipts in the municipal credit market
TIFIA
- 1998: Transportation Infrastructure Finance and Innovation Act
(TIFIA)
- Provides loans, guarantees and lines of credit for qualified
revenue-generating projects
- Covers up to one third of eligible costs
- Attractive low interest rates tied to U.S. Treasury bonds
Private Activity Bonds
- 2005: Private Activity Bonds (PABs)
- Allows private developers of highways and freight transfer
facilities to borrow funds in the tax-exempt municipal credit
market
- Total volume of PABs limited to $15 billion
SEP-15
- Special Experimental Program 15 (SEP-15)
- An experimental process for FHWA to identify and test new
P3 approaches
- Provides states with the opportunity to gain exceptions
from or changes to federal policies or procedures
Other USDOT Support
- Build America Bureau and FHWA Center for Innovative Finance
Support
- Analytical Tools
- Educational Materials
- Research
- Peer Exchanges
- Capacity Building
- Technical Assistance
- Environmental Streamlining
Evolution of the P3 Market (Chapter 4)
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P3 Concessions in the U.S. by Type
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Questions?
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U.S. P3 Highway Concessions
- 14 Real Toll Concessions
- 3 Greenfield Toll Roads
- 2 Fixed Crossings
- 9 Priced Managed Lanes
- 9 Availability Payment Concessions
- 5 Long-term Lease Concessions
Real Toll Concessions in the U.S.
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Greenfield Toll Road Concessions
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Fixed Crossing Real Toll Concessions
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Managed Lane Toll Concessions
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Availability Payment Concessions
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Long-term Lease Concessions
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Financing P3 Concessions (Chapter 4 contd.)
Financing P3 Concessions
- Debt
- Commercial bank debt
- TIFIA credit program introduced in 1998
- PABs introduced in 2005
- Equity
- Public sector grants
Financing Real Toll Concessions
South Bay Expressway, 2003
$658 million
- Commercial Debt - 52%
- TIFIA - 21%
- Donated Right-of-Way - 7%
- Private Equity - 20%
First TIFIA loan to a P3 project
Financing Real Toll Concessions
I-495 Capital Beltway HOT Lanes, 2007
$2.069 billion
- Public Sector Payment - 24%
- PAB - 29%
- TIFIA - 28%
- Interest - 2%
- Private Equity - 17%
- Public Sector Payment - 24%
First P3 project to use PABs
Financing Availability Payment Concessions
Port of Miami Tunnel, 2009
$1.113 billion
- Public Sector Payment - 19%
- Commercial Debt - 31%
- TIFIA - 31%
- Milestone Construction Payments - 9%
- Interest - 3%
- Private Equity - 7%
Project was "Federalized" in order to use TIFIA financing
Financing Availability Payment Concessions
Goethals Bridge Replacement, 2013
$1.526 billion
- Public Sector Payment - 20%
- PAB - 30%
- TIFIA - 31%
- Bond Premium - 0%
- Milestone Construction Payments - 10%
- Interest - 2%
- Private Equity - 7%
First availability payment financing to use TIFIA and PABs
Financing Availability Payment Concessions
PA Rapid Bridge Replacement Program, 2015
$1.117 billion
- PAB - 71%
- Milestone Construction Payments - 23%
- Interest - 1%
- Private Equity - 5%
$721 million PAB - the largest PAB issue to date in the U.S.
Financing Long-Term Lease Concessions
Northwest Parkway, 2008
$726 million
Private Equity - 37%
Commercial Debt - 63%
Typical long-term lease financing package
Questions?
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Closing
Highway P3 Project Pipeline
- Transform 66 - Outside the Beltway, VA - $2.5 to 4.0 billion
real toll
- I-55 Managed Lanes, IL - $424 million real toll
- I-70 East Viaduct, CO - $1 billion availability payment
- Hampton Roads Bridge Tunnel Crossing, VA - $6 billion possible
P3
Related P3 Project Information
FHWA P3 Toolkit: https://www.fhwa.dot.gov/ipd/p3/toolkit/
| Fact Sheets |
- Ten concise single-sheet discussions of key P3 concepts
for a non-technical audience
|
| Primers |
- P3 Concessions for Highway Projects
- Risk Assessment
- Value for Money
- Financial Structuring and Assessment
- Establishing a P3 Program
|
| Guides |
- How FHWA Reviews P3s
- Model Toll Concession Contracts
- Model Availability Payment Contracts
- P3 Project Financing
- Risk Assessment
- Value for Money
- Benefit-Cost Analysis
|
| Discussion Papers |
- Revenue Risk Sharing
- Performance Requirements for Design and Construction
in P3s
|
| Analytical Tools |
|
| Informational Reports |
- Successful Practices for P3s
- Highway P3 Projects in the U.S
|
FHWA P3 Training
Introductory
- Introduction to P3s
- Overview
- Project Development
- Procurement
- Risk Assessment
- Value for Money
- Project Financing
- Successful P3 Practices and Model Contracts
- Successful Practices Over Project Life Cycle
- Model Toll Concession Contracts
- Model Availability Payment Contracts
Advanced Analysis
- P3 Project Financing
- P3 Structuring
- Finance Viability
- Financial Models
- Risk Assessments
- Risk Identification
- Risk Analysis and Valuation
- Risk Allocation
- Value for Money
- Public Sector Comparator (PSC)
- P3 Option
- Evaluation
- P3 Benefit-Cost Evaluation
- Estimating P3 Efficiency Impacts
- Estimating Public Benefits
Contact Information
Benjamin Perez
Principal Consultant
WSP |
Parsons Brinckerhoff
(212) 613-8804
perez@pbworld.com
Mark Sullivan
Director
FHWA Center for Innovative
Finance Support
(202) 366-5785
Mark.Sullivan@dot.gov
Website: https://www.fhwa.dot.gov/ipd/p3/
Patrick DeCorla-Souza
P3 Program Manager
USDOT Build America Bureau
& FHWA Center for Innovative
Finance Support
(202) 366-4076
Patrick.DeCorla-Souza@dot.gov
Website: https://www.fhwa.dot.gov/ipd/p3/
