Florida Department of TRANSPORTATIONDBF – Design Build Finance DBFOM – Design Build Finance...
Transcript of Florida Department of TRANSPORTATIONDBF – Design Build Finance DBFOM – Design Build Finance...
Finance Tools for Project Advancement
Florida Department of
TRANSPORTATION
Leon Corbett
Project Finance Manager
NCSL Southern States Fiscal LeadersSeptember 23, 2016
Discussion Topics
• Public-Private Partnerships (P3s)
• New Transportation Finance Corporation
Florida Department of Transportation2
FDOT’s P3 Program - $6.8B in Projects
Florida Department of Transportation3
COMPLETE
I-95 at Pineda - $199M (DBF)
COMPLETE
US 1/SR 5 - $114M (DBF)
COMPLETE
I-75 (IROX) - $458M (DBF)
COMPLETE
I-95 Express Lanes - $139M (DBF)
COMPLETE
Palmetto Section 2 - $191M (DBF)
UNDER CONSTRUCTION
US 19 - $125M (BF)
UNDER CONSTRUCTION
SR 79 - $98M (DBF)
UNDER CONSTRUCTION
Palmetto Section 5 - $567M (DBF)
IN OPERATIONS
PortMiami Tunnel - $667M* (DBFOM)
IN OPERATIONS
I-595 - $1.2B* (DBFOM)
UNDER CONSTRUCTION
I-4 Ultimate - $2.3B* (DBFOM)
COMPLETE
I-4 Connector - $438M (BF)
*construction portion
BF – Build FinanceDBF – Design Build FinanceDBFOM – Design Build Finance Operate Maintain
COMPLETE
I-75 N of SR 80 to S of SR78 - $72M (DBF)
IN PROCUREMENT - FEB. 2016
I-395 - $626M (DBF)
COMPLETE
9B - $95M (DBF)
COMPLETE
I-95 - $130M (DBF)
Two Methods for P3 Delivery
Procured under s.334.30, F.S., two categories:
Florida Department of Transportation4
Design-Build Finance (DBF) or Build Finance (BF)
• Traditional agreement• Construction only • Cash Availability Schedule • Terms around 7 years • Short-term financing • $100 M - $600 M• Project typically advanced 2-
3 years
Design-Build-Finance-Operate-Maintain (DBFOM)
• Concession Agreement• Add Operations and Maintenance • Construction period and
Availability Payments• Terms of 35 to 40 years• Long-term financing • More than $500 M• Project advanced 15 years or
more
Legal Framework Ensures Creditworthiness
Florida Department of Transportation5
• Authority for availability payment deals introduced in 2007 statutes
• 15% of federal and state funding cap, cost effectiveness analysis
• Availability payments prioritized ahead of new capacity projects
• Further controls introduced in 2012
• Approval by Governor following Legislature review
• Inclusion in State Transportation Trust Fund debt assessment
• Additionally, portions of P3 payments are included in the Division of Bond Finance Debt Affordability Report
Why has FDOT pursued P3s?
• Both DBF and DBFOM:
– Advance priority projects that add capacity,
enhance safety and reduce congestion
– Additional sources of capital via private sector
• DBFOM procurement method further
incentivizes private sector innovation
• DBFOM contract transfers appropriate risks
through construction and operations
• Toll revenue risk has not been transferred
with FDOT’s P3s
Florida Department of Transportation6
PortMiami Tunnel DBFOM
Financing:
• $341M federal TIFIA loan, $341.5M bank loans, and $80.3M in private equity
• Milestone, final acceptance and availability payments
Benefits:
• Direct access from I-395 to PortMiami
• Concessionaire has 30-year O&M period following construction
• Construction complete in 2014
Key Decisions:
• No tolls
• Shared geotechnical risk
Construction Cost: $667M
PortofMiamiTunnel.com
Florida Department of Transportation7
I-595 DBFOM
Financing:
• $603.4M federal TIFIA loan, $781.1M bank loans, and $207.7M in private equity
• Final acceptance and availability payments
Benefits:
• Adds 3 at-grade reversible tolled express lanes and full corridor improvements
• Concessionaire has 30-year O&M period following construction
• Estimated 15 year advancement
Key Decisions:
• Tolls set and retained by FDOT
• Provisions for sharing refinancing gain
Construction Cost: $1.2B
595express.info
Florida Department of Transportation8
I-4 Ultimate DBFOM
Financing:
• $949M TIFIA loans, $486M bank loans, and $104M private equity
• Construction period, final acceptance, and availability payments
Benefits:
• Major interchanges and bridge reconstruction
• Addition of express lanes provides congestion relief and improves safety
• Estimated 20-year advancement
Key Decisions:
• 21 miles at one time, size and complexity of project
• 40-year concession agreement
9
Construction Cost: $2.3B
I4Ultimate.com
Florida Department of Transportation
Transportation Financing Corporation
Created under s. 339.0809, Florida Statutes
Nonprofit corporation that can finance
projects for FDOT
Adds another tool to our toolbox
Florida Department of Transportation10
Who oversees the TFC?
Florida Department of Transportation
Director of the Office of Policy and Budget within the Executive Office of the Governor
Director of the Division of Bond Finance
Secretary of the Florida Department of Transportation
BOARD OF DIRECTORS
11
How does the TFC work?
Florida Department of Transportation
Transportation Financing
Corporation
Florida Department of Transportation
Contractor
Contractual Relationship #1
Contractual Relationship #2
Debt Proceeds
Service Payments
Contractor Payments
12
How does the TFC benefit Floridians?
Florida Department of Transportation
ADDITIONAL
FINANCING TOOL
LOWER INTEREST
RATES
PROJECT
ADVANCEMENT
13
Questions and Contact Information
Leon Corbett
Project Finance Manager
Office of Comptroller
850-414-4421
www.dot.state.fl.us/officeofcomptroller/pfo.shtm
Florida Department of Transportation14