P3 Case Study: Port of Miami Tunnel

Location Miami, Florida

Project Sponsor

Florida Department of Transportation (FDOT), Miami-Dade County, City of Miami

Private Partner/

MAT Concessionaire, LLC (MAT)

• Meridiam Infrastructure Finance, S.a.r.l. (90% equity partner)

• Bouygues Travaux Publics, S.A. (10% equity partner)

Fiscal Year Approved

2010

Project Type Highway / Tunnel

Project Delivery / Contract Method

DBFOM (design, build, finance, operate, and maintain)

Description The project is the building, operation and maintenance of a new Port of Miami Tunnel

to improve access for the Port of Miami, linking the island port with the MacArthur

Causeway and I-395, and serving as an alternative to the Port Bridge. Two 3,900 foot

tubes, both 41 feet in diameter, will descend up to 120 feet below the water.

The state is responsible for about 50 percent of the capital costs (design and

construction) and all funding for operations and maintenance, and local governments

are responsible for the remaining 50 percent of capital costs.

Cost / Payment

Total Project Cost: $1,113 million ($1,072.9 in eligible project costs):

• Design and Construction - $607 million

• SPV Costs/Insurance/O&M during construction - $59.6 million

• Financing and other capital costs - $195.1 million

• Reserves - $41.2 million

• State development cost - $209.8 million

Under the concession agreement, FDOT pays milestone payments to MAT at certain

stages of the project. Payments totaling $100 million will be made during the 55 month

construction phase, with a $350 million final acceptance payment at construction

completion. FDOT also makes annual availability payments to MAT starting at

construction completion and continuing for 30 years. Assuming the road is fully

available, the maximum annual availability payment is $32.5 million (2009 dollars).

SAVE THE DATE

PUBLIC POLICY FORUM

Hanson Bridgett

Public Policy Forum

425 MARKET STREET, 26TH FLOOR | SAN FRANCISCO, CA 94105 | JANUARY 25, 2012

Funding Sources

Total Eligible Project Costs: $1.073 billion

• Senior bank debt - $341.5 million

• TIFIA1 loan - $341.5 million

• Concessionaire equity - $80.3 million

• FDOT construction funding - $100 million

• FDOT other development funds - $209.8 million

TIFIA capitalized interest during construction is not included in total eligible costs in the

amount of $40.1 million

Lenders USDOT (TIFIA)

Senior bank debt from a group of 10 banks

Duration / Status

Commercial close June 2, 2009

Construction began May 2010; expected completion in April 2014

TIFIA Credit Assistance

Direct loan: $341.5 million

The TIFIA loan holds a second priority security interest in project revenues after the

senior obligations of the 10 bank group. Senior debt will be fully repaid by 2015,

providing US DOT with sole claim on post-2015 project revenue for debt service.

Accrued interest on TIFIA loan is repaid out of availability payments from 2016 until

2023, when principal amortization of the TIFIA loan begins.

Financial Status / Financial Performance

Financial close on October 15, 2009

Project still in construction

Innovations • Second U.S. transportation project to use availability payments as finance tool

• FDOT flexibility/creativity in sharing certain project risks kept concessionaire

payments below the expected cost in a traditional procurement with state providing

operations and maintenance

• Technical innovations by concessionaire in tunnel boring

• Special legislation to allow alternatives to 100% surety bonding

1 Transportation Infrastructure Finance and Innovation Act of 1998, which authorizes the federal DOT to provide three forms of credit assistance - secured (direct) loans, loan guarantees and standby lines of credit - to surface transportation projects of national or regional significance.

425 MARKET STREET, 26TH FLOOR | SAN FRANCISCO, CA 94105 | JANUARY 25, 2012

pg 2 P3 Case Study: Port of Miami Tunnel