pre soq workshop
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TRANSCRIPT
Pre-SOQ WorkshopAnchorage, Alaska
August 18, 2011
KABATA Notice
This presentation includes forecasts and assumptions subject to risks and uncertainty, the actual outcome of which may be impacted by a number of factors including, but not limited to, the following:
• availability of State and Federal budget appropriations,• National Environmental Policy Act process and outcome,• results of traffic and toll revenue studies and actual traffic development,• capital market conditions and acceptance of the project,• actual construction costs realized, and• other social, political, environmental and economic factors both known
and unknown to KABATA at this time.
KABATA undertakes no responsibility to update this presentation.
Letter From Governor Parnell
“Alaska is open for business, prepared to partner with private industry, and ready to build out the essential infrastructure that will support a strong economic foundation for the future. If you are interested in investing capital in Alaska, please do not hesitate to contact KABATA representatives…”
Photo credit: Jeff Schultz of Alaskastock.com in Anchorage, Alaska Excerpt from June 13, 2011 letter
Mat-Su Borough Mayor
“This new transportation link will connect urban Anchorage with acres of developable land and the deep draft dock at Port MacKenzie, bringing economic development and job creation. It’s time to build the bridge.”
Mayor Larry DeVilbiss Matanuska-Susitna Borough
About the Knik Arm Bridge and Toll Authority (KABATA)
About the Knik Arm Bridge and Toll Authority (KABATA)
• Established by Legislature in 2003 under Alaska Statute 19.75 to
“…develop, stimulate, and advance the economic welfare of the state and further the development of public transportation systems in the vicinity of the Upper Cook Inlet with construction of a bridge to span Knik Arm and connect the Municipality of Anchorage and the Matanuska-Susitna Borough.”
KABATA Board of Directors
• Managed by seven member board – Michael L. Foster, P.E. – Chairman– Commissioners of Revenue and Transportation– Three public members appointed by the Governor– One Senator and one Representative from the Alaska
Legislature
• Necessary powers vested in the board– Ability to enter into contracts and issue debt– Includes approval of public private agreement
Experienced KABATA Management
• Andrew J. Niemiec, P.E. – Executive Director
• Kevin P. Hemenway– Chief Financial Officer
• Judy Dougherty, P.E.– Deputy Executive Director
• Loran Frazier, P.E.– Chief Engineer
The Knik Arm Crossing –Introduction and Overview
• Essential Greenfield infrastructure with strong political and public support
• Creditworthy project with dedicated revenue stream and funded project reserve fund
• Mature project with advanced engineering, ROW and permitting status
• Reasonable schedule• Procurement ready
Knik Arm Toll BridgePartnering Opportunity
Alaska Land Area in Context
• 1,400 miles North to South, 2,700 miles East to West• 656,425 square miles – 2.4 times the size of Texas• 47,000 miles of coastline – more than rest of the US
222.0(60.7%)
97.9(26.8%)
40.8(11.2%)
3.9(1.1%)
0.9(0.2%)
FederalState of AlaskaAlaska Native CorporationsANCSA ReservesPrivate Conventional
Largest State in U.S. has a Private Land Shortage!
Alaska Land Ownership (Millions of Acres)
88,995 residents *
291,826 residents *
Mat-Su in top 1% of fastest growing “counties” in U.S.
Municipality of Anchorage is the largest city in Alaska
* April 2010 Census - US Census Bureau
Crossing Location
Anchorage Metropolitan Statistical Area: 54% of Alaskans
Aerial Rendering
• 8,200 foot Bridge Crossing of Knik Arm north of Port of Anchorage and Port Mackenzie
• Connector roads on both sides
The Knik Arm Crossing –Other Project Benefits
• Economic stimulus:
– $715 million of new infrastructure
– 5,000 construction-related jobs
• Lowers cost for freight to Interior - $326 million truck freight savings first 10 years
• Lowers cost for Alaskan drivers - $303 million pocketbook savings first 10 years
• Reduces carbon emissions – 90,000 tons first year
Immediate Benefits
• Alternative to Glenn Highway for safety, security, emergency, and accidents – closed average of 2 times per month
• Ties together State’s transportation system across modes
• Connects Port of Anchorage and Port MacKenzie to better serve the State
• Improved access for Goose Creek Correctional Center - $30 million savings first 10 years
Immediate Benefits(continued)
Intermodal Connectivity betweenPort of Anchorage and Port MacKenzie
• 1.5 miles south of Knik Arm Bridge • Serves 85% of Alaskans with 90% of
inbound freight• One of 19 DOD strategic ports• More than $750 million in economic
activity annually• Presently being expanded to double size
• 1.5 miles south of Knik Arm Bridge• Northernmost deep draft port in U.S.• Bulk commodities import/export • 8,940 acres of industrial zoned uplands
for commercial/industrial expansion of Anchorage
• ARRC/Mat-Su Borough planned rail extension to Port from North
Engineering and Construction Concepts
Knik Arm Crossing Phase I Scope
• Approximately 10 miles of 2-lane roadway from Pt. MacKenzie Road to A/C connector
• 8,200 foot 2-lane bridge with 4-lane foundation
• Cut-and-cover tunnel under Government Hill neighborhood
• 4 years to construct
Total Cost Estimate ≈ $715 million
Mount Baker Ridge Tunnel on I-90 coming into Seattle
24
Knik Arm Crossing Phase II Scope
• Expand roadway and bridge to 4-lanes entire length from Pt. McKenzie Road to A/C connector – Concessionaire obligation
• New connection to Ingra-Gambell – KABATA obligation
• Needed about 2030
Total Cost Estimate in 2010 dollars:
≈$375 million
Project Alignment
Geologic Profile
High Tide Clearance 50 feet
Low Tide Clearance 80 Feet
ROW and Permitting StatusRights-of-Way:• FHWA authorization for ROW acquisition – August
2, 2011
Key Permits:• Record of Decision Issued December 15, 2010• Developing 404 permit with Corps• Applied for LOA under MMPA with NMFS
Building the Bridge
Bridge Superstructure Installed
Availability P3 Overview
Availability P3 Indicative Terms• Scope
– DBFOM in exchange for periodic availability payment– Future capacity improvements in segments operated by
developer– May include tolling operations on behalf of Authority
• Term - 35 years after substantial completion• Potential Financial / Credit Support:
– $150 million funded project reserve– Potential milestone payment(s)– $600 million SAFETEA-LU PABs allocation– TIFIA
Toll Revenue Pledged to Project Reserve
20122014
20162018
20202022
20242026
20282030
20322034
20362038
20402042
20442046
20482050
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$4.5 Billion Over 35 Years
Procurement Process
Two Step Process:
RFQ: KABATA will develop shortlist of best qualified proposers based on statements of qualification (SOQs)
RFP: shortlisted proposers will be invited to submit detailed proposals with financial and technical plans
Procurement ProcessSteps following short-listing:
Draft RFP released including Public-Private Agreement (PPA)
Industry review including one-on-one meetings Formal RFP issued One-on-one meetings and Q&A Proposals submitted Evaluation and selection of best value proposer Possible negotiations Award and execution of PPA
Schedule
• Record of Decision Secured 12/10
• Acquire Right-of-Way 2011 / 2012• Secure Remaining Permits 2011 / 2012• Launch Procurement 2011• Complete Procurement 2012• Begin Construction 2013/2014• Substantial Completion 2016/2017
RFQ Milestones
• IssuedJuly 13, 2011
• Pre-SOQ Workshop Aug. 18, 2011
• Questions Deadline Aug. 22, 2011
• Addenda/Answers Sept. 2, 2011
• SOQ DueSept. 15, 2011
• Anticipated Shortlist Oct. 17, 2011
Submittal Requirements
• Due September 15, 2011, 4:00PM AST• Volume 1 not to exceed 60 pages inclusive of
executive summary• Volume 2 and 3 requirements described in Part B of
the RFQ• One original and 20 copies in loose-leaf three ring
binders• Refer to Section 5 of the RFQ for more details• Nothing on this slide or in this presentation waives or
alters the requirements of Part 5
RFQ Questions
• Questions must submitted in writing• No telephone or oral questions• Questions need to be in conformance with section
4.6 of the RFQ (www.knikarmbridge.com)• Questions submitted to:
Knik Arm Bridge and Toll Authority550 West 7th Avenue, Suite 1850Anchorage, Alaska 99501Attn: Michele Casey, Administrative Manager
Email: [email protected]
• Deadline for submitting questions – Aug. 22, 2011
Local Contractors
• Local contractors provide knowledge of– Local environmental considerations– Local labor markets– Local materials markets– Local DBE firms– Alaska DOT requirements
Concept Rendering