honolulu authority for rapid transportation’s p3 owner’s...
TRANSCRIPT
Honolulu Authority for Rapid Transportation’s P3 Owner’s Forum
Regional Transportation District
Eagle P3 ProjectDenver, CO
About RTD• Service area: 2,342 square miles
• Population served: 3.03 million
• RTD staff 2,863 + 1,608 private
contractor staff
• Buses, Call-n-Ride and ADA
vehicles: 1,433
• Light rail vehicles: 172
• Commuter rail Vehicles: 66
• 2017 statistics:
− Total ridership: 99 million
− Assets: $6.8 billion
− Revenue: $990 million
− Operating exp.: $581.9million
− Capital outlay: $451 million
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• University of Colorado A Line
• 22.8 miles of commuter rail between Denver Union Station and DIA
• B Line
• 6 miles of commuter rail between Denver Union Station and Westminster
• G Line
• 11.2 miles of commuter rail between Denver Union Station and Wheat Ridge
Eagle P3 Project
Eagle P3 - History
• In 2003, RTD and CDOT initiated an Environmental Impact Statement (EIS) for the I 70 Corridor
• In 2006, RTD initiated an EIS for the Gold Line Corridor
• In August 2007, approved by FTA to participate in the Penta-P program
• Provided for accelerated review process
• Reduced oversight during project development
• In September 2009, issued final RFP to pre-qualified teams.
• In July 2010, entered into a Concession Agreement with Denver Transit Partners (DTP)
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Eagle P3 Project Scope
• Overall capital cost $2.2 billion
• 36 miles of new electrified (25kV) commuter rail
• 37 major bridge structures
• 14 new stations plus Denver Union Station hub
• Commuter Rail Maintenance Facility
• 66 cars in married pair configuration (including 12 for N Metro)
• 29 at-grade crossings shared with Class 1 Railroads
Eagle P3 - Terms
• Concession Agreement – DBFOM• Design• Build• Finance • Operate• Maintain• 34 Year Agreement (2011-2044)
• Includes 5 year design/ build • 29 year maintain and operate
• RTD sets and retains fares
• RTD owns assets
• RTD pays traction power and security costs
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Eagle P3 - Funding & Financing Sources
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Total Asset Cost - $2.3 billion
• $1.1 billion in federal funds
• $1.03 billion New Starts grant
• $65 million CMAQ funding
• $450 million in private financing
• $396 million in private activity bonds
• $54 million private equity
• $460 million in local funds
• Includes sales tax revenue bonds, sales and use tax revenues, and contributions from local jurisdictions
• $280 million Transportation Infrastructure Finance Innovation Act (TIFIA) loan
Eagle P3 - Repayment
• Construction Phase
• Set amounts tied to earned value
• Maintain and Operate Phase
• Service Payments
• Funds maintenance and operations
• Concessionaire receives 100% of availability payment for meeting 95% of performance standards
• Bonus of up to 0.5% for perfect delivery
• Deduction of up to 25% for inferior delivery
Eagle P3 – Service Payments
Although there are many factors that go into the service payment calculation. There are three factors that influence whether there is a bonus or deduction.
• Rolling Stock Availability
• On Time Performance
• Station Availability
Monthly Payments – Calculation
• TABOR payment (debt & equity)• Indexed Service Availability payment:
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Start with: Base Service Availability Payment
Adjusted by: Availability Factor ¹
Equals: Availability Adjusted Base Service Payment
Less: Performance Deduction
Plus: Special Events
Equals: Amount Due
(3 x Rolling Stock Availability) + (2 x On-Time Availability) + (1 x Station Availability)²Availability Ratio =
¹Availability Factor corresponds to the Availability Ratio². Once the Availability Ratio is calculated, the Availability Factor
is found in the Availability Factor Tables in the Concession Agreement
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Eagle P3 - Risk Sharing
RTD
• ROW Acquisition
• Railroad Force Account Work
• Unidentified Environmental Conditions
• Unidentified Utilities
• Ridership
Concessionaire
• Cost Overruns
• FRA Approvals
• 3rd Party Claims
• Failure to meet Performance Standards
• Operation and Maintenance Costs
• Condition of System at end of Concession Period
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Lessons Learned
• Procurement• Maintain a competitive field
• Provide stipend• Listen to concerns over risk allocation
• Allow for innovations• Performance Specifications• Alternative Technical Concepts
• Ensure confidential communication between bidders and owner
• Follow procurement schedule
• Keep Board of Directors informed
• Public outreach
• Impact of local taxes on pricing
Lesson Learned
• Service• Joint understanding of metrics and calculations
• Data capture and reporting
• P3 Delivery• Jurisdictions do not understand the constraints of a P3
• Lock down scope and involvement early
• Lenders do not like changes
• Even simple design changes are perceived as increasing risk to a Concessionaire
• Complexities of dealing with multiple jurisdictions, railroads, airports, FTA, FRA, regulatory bodies, etc.
Lesson Learned
• P3 Funding and Financing• Make sure you get what is eligible for federal funds in writing
• Make sure owner finance and accounting staff are at the table during negotiations
• Ensure private concessionaire understands documentation needed
• Keep external auditors updated and involved
Eagle P3 – Completion Dates
• University of Colorado A Line
• Opened April 22, 2016
• B Line
• Opened July 25, 2016
• G Line
• Scheduled to be open Fall 2016 – Still TBD
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Questions?
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