The United States P3 market has been inconsistent to date, but future growth points to it being one of the

largest markets in the world

Total Capital Value of US P3 Projects per Year

Source:Aon Infrastructure Solutions analysis is based on 2004 to 2015 InfraAmericas project data and 2004 to 2015 IHS Global Insights projections for US infrastructure spend.Includes Highways and Streets, Bridges, Sewer Construction, Water Supply, Transportation, Parking Garages, Public Health Care Buildings and Government Buildings

1 1 3 2 5 9 6 1 11 7 8 16

3.0% 1.2% 3.5% 1.2% 1.0% 3.5% 2.6% 0.6% 2.6% 2.5% 3.1% 5.1%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 852

1,800

5,766

2,393 2,058

7,424 5,606

1,200

5,474 5,284 3,325

11936

Projected Capital Value (Based on identified projects)Actual Capital Value

Sum of Capital Value (USDm)

of all P3 projects

Total # of projects

% of All Infrastructure

Projects in Related Industries*

In a P3 project, risk is transferred to the party best able to manage it

Traditional Design-Bid-Build Procurement Public Private Partnership (P3)

Owner’s Risks Bidder’s Risks Owner’s Risks Bidder’s Risks

Design

Financing

Facility Management

Lifecycle

Facility Availability, Performance, and

Asset Value

Design

Financing

Facility Management

Lifecycle

Facility Availability, Performance, and

Asset Value

Construction Performance Specifications

Case Study: Rapid Bridge Replacement Project in Pennsylvania

• Capital Value: USD $900 million

• Payment Mechanism: Availability-Based

• Delivery Model: DBFOM

• Project: 558 geographically dispersed, structurally

deficient bridges across Pennsylvania

• Target completion: August 30, 2018

• Status: Financial Close reached in 2015

• Aon’s Role: Risk and Insurance Advisor to the

DBJV

Case Study: Rapid Bridge Replacement Project in Pennsylvania

Location of Bridges

Successfully transferring risk in a project goes beyond insurance and drives the value that project owners

achieve with the model

Deliver a project that provides the best value for money

Continue to refine the proposed risk allocation and foster dialogue between the project owner and the bidding teams

Recognize that commercial negotiations are driven by a fundamental understanding of risk and the degree to which that risk can be transferred

Provide education on P3 risk to all consortium members