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
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