May 21, 2013
I-4 Ultimate with Lanes Project
Central Florida
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Executive Summary
• The $2.1B I-4 Ultimate Project is the top priority for the state of
Florida
• The Project is being advanced using a Public-Private Partnership (P3) under Section 334.30, F.S. (P3 Law)
• A system of financing tools guarantee the lowest cost:
•
• Private Activity Bonds (PABs)
TIFIA
FDOT facilitates use of tools since administered by US DOT
• If PABs are used for the project, a conduit issuer is needed to issue bonds
• This can be accomplished through an interlocal agreement between Orange County, Seminole County and City of Orlando
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$2.1B (FY2013$) Strategic Initiative for Florida
• 21+ miles from West of Kirkman Road (Orange) to East of
SR 434 (Seminole)
• Project replaces aging infrastructure and enhances safety
• Relieves congestion in heavily populated areas of Florida
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• 4 Managed Lanes (2 each direction)
• 6 General Use Lanes (GUL) + Auxiliary Lane
Managed
Lanes 4

Draft RFQ and PIM
Industry forum
February 22, 2013
March 4, 2013
Advertisement and RFQ March 8, 2013
Shortlist and draft RFP May 21, 2013
Release draft RFP
Final RFP and ITP
Proposals due
Best value selection
Contract execution
May 2013
September 2013
January 2014
March 2014
June 2014
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P3 Seeks to Achieve 5 Primary Goals
• Provides capacity improvements much sooner than a traditional pay-as-you go approach
• Eliminates project phasing and advances the overall project
• Capitalizes on the private sector’s innovation and access to capital markets
• Transfers of appropriate risk items to private partner
• Enhances long-term, lifecycle cost efficiency and service quality
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Legal Framework Provides Strong Creditworthiness
• P3 Law originally enacted in 1991 - p rovides flexibility to advance projects while implementing safeguards
• Authorizes FDOT to advance projects programmed in the 5year work program or 10-year SIS
• Requires cost effectiveness and public-benefit analysis
• Authorizes performance-based payments to private sector
• Annual payments on multi-year P3s are prioritized ahead of new capacity
• Strong market acceptance of FDOT’s legal framework
• I-595 and Port of Miami Tunnel
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Financial Controls Provide For Strong Creditworthiness
• Statutory requirements promote fiscal responsibility
• Governor and legislative approval of contractor financed projects
• 20% limitation on debt and debt like obligations
• 15% limitation on P3s
• Submittal of 5-year work program to the Legislature annually
• Budget requests are balanced to available resources
• Proven track record of effectively managing the work program as revenue forecasts change
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Appropriation-Based Funds Finance the Project
Milestone Payments
 Payments made during construction period
 Incentivizes accomplishment of construction priorities
 Reduces the amount of financing
 Credit enhancement
Final Acceptance Payments
 Post construction payments
 Incentivizes on time completion of project


Repays short-term financing
Credit enhancement
35-years of Performance-Based Availability
Payments
 Operations and maintenance period payments
 Incentivizes:
 On time completion of project
 Construction quality
 Level of service / Maintenance
 Repays long-term debt, equity, operations and maintenance costs, renewal work costs
 100% of payment must be performance based to ensure incentives are achieved
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Proposer May Use A System of Financing Tools
TIFIA
 A form of debt – like a bank loan
 Federal credit assistance
 May be subordinate to other debt
 Long-term or short-term financing
 Interest rate is tied to US Treasury
 FDOT submitted a letter of interest January
2013
Bank Debt
 A form of debt
 Financing from commercial banks
 Short-term financing - 5 to 7 years
PABs
 A form of debt - like Industrial
Development Bonds
 Long-term financing
 Tax exempt bonds issued by government
 SAFETEA-LU authorized up to $15 billion
Private Equity – “skin in the game”
 Proposer’s contribution toward the project
 Will be required within the capital structure
 Used with debt
 At risk until the end of the project term
 Lost in the event of contractor default
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Only $7.2B of the $15B Allocation is Remaining
• $15B cap on PABs used to deliver highway and freight transfer facilities
• Exempt facility bonds – not subject to state volume caps
• FDOT wishes to submit an application to secure a PABs allocation from US DOT
• Estimated allocation request = $800M to $1.5B
• Conduit issuer is a key player in application process
• PABs are an important financing mechanism for proposers
• Limited financial capacity in current bank debt markets
• PABs provide proposers with access to tax-exempt interest rates
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• Project website: www.Moving-4-Ward.com
• Public involvement and community outreach will be incorporated
• Sign up and be notified when there is a major update or announcement
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