p3 benefits and private sector january 2017 · the p3 industry standard and will resolve the...
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Enhances Affordability
uThe P3 delivery method utilizes both public funding and private financing, which will be paid back using sales tax revenues over a period exceeding 30-years.
uThe Fargo-Moorhead region will enjoy the benefits of a completed project while paying for it over time.
Appropriately Allocates Risk, Increases Cost-Effectiveness
uDesign, construction, O&M and other project risks are quantified early in the process and allocated to the partner best suited to manage each risk, reducing contingency requirements for the entire project. The P3 Partner manages their risks on a life cycle basis. Utilizing performance-based outcomes and optimizing capital and operations costs over the term of the Agreement, P3 delivery can greatly improve the value received for dollars spent over traditionally-delivered projects with multiple parties and interfaces. This method also provides incentive to complete the Project as quickly as possible, providing flood protection sooner.
Provides Long-Term Certainty
uUnlike traditional bid-build projects, the public entity has certainty as to the costs of O&M. It will lock-in the annual payments to pay back the P3 Partner for the DBFOM of the Diversion Channel for 30 years. Payments will begin when the project is completed, available and becomes operational.
FM AREA DIVERSION PROJECTP3 BENEFITS AND PRIVATE SECTOR
Non-Federal Sponsors are constructing the diversion channel using a P3 to design, build, finance, operate and maintain (DBFOM). USACE is designing and constructing the Southern Embankment/dam with funding provided by Congress/USACE (map on back):
BENEFITS OF USING P3 TO IMPLEMENT PROJECTS
P3 CONTRACTING SCHEDULE: Significant progress has been made in securing a P3 partner for construction of the FM diversion channel:
SHORTLISTED TEAMS: All teams listed below are comprised of guarantors and equity members (providing financing and equity), lead contractors, engineers and subcontractors. All teams have impressive experience in design and construction of large infrastructure projects and in P3s:
January 2017
Why is Private Industry Interested in FMM P3?
uWill provide predictable, market-tested returns and a 30-year revenue stream, based on performance
uIndustry anticipates increasing emphasis on infrastructure development and use of private equity, including in large flood projects
uUSACE is an expert in flood projects; industry gains valuable experience as the developer
uProvides the opportunity to be part of a world-class, first-of-its kind project that is anticipated to set the P3 industry standard and will resolve the region’s critical flooding risk
WH
Y
Lake Agassiz Partners | Meridiam Agassiz, AECOM, Walsh, Archer Western Constr.
Red River Valley Partners | Graham, Parsons, Alberici, BBGI SICAV
River Valley Alliance | Acciona, Shikun & Binui, North American Energy Partners, InfraRed Capital Partners
Red River Partners | Plenary, Fluor, Barnard, Ames Constr.
WHAT IS A P3 AGREEMENT?A legally binding contract between a public sector partner (Diversion Authority) and a private sector partner (P3 Partner). The parties agree to share some portions of the risks and rewards involved in an infrastructure project.
Issued Notice of Intent 2 September 2015 to issue P3 Contract (NOI)
Held an Industry Day 6-8 June 2016
Issued Request for Qualifications (RFQ) 14 July 2016
Responses to RFQ 7 September 2016
Shortlisted to 4 Teams 13 October 2016
Issued Request for Proposals (RFP) 16 December 2016
Technical Proposal Due Date August 2017
Selection of Successful Proposer October 2017
In excess of 200 attendees from all over the world
(received proposals from 6 teams)
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County Boundary
Proposed Levees
Staging Area 0 1 2 30.5Mile sAs Of: 9/24/2014
Document Path: C:\GIS\Projects\FM Diversion\FM Area Diversion\Projects\Miscellaneous (one offs, specific requests)\Phased Implementation Map\SplitDeliveryPlan_2014_0924.mxd CLM AE2SCoordinate System: NAD 1983 StatePlane ND S FIPS 3302 Ft Projection: Lambert Conformal Conic Datum: North American 1983 - Maps are for graphical purposes only. They do not represent a legal survey. While every effort has been made to ensure that these data are accurate and reliable, The Diversion Authority does not guarantee the
accuracy of the information, and waives any warranty or guarantee of any kind, express or implied. The data involved in the project is continuously refined and revised; you should not rely on this information for technical purposes or accuracy.
ALTERNATIVE FINANCING PLANSplit Delivery Plan
SEPTEMBER 2014
FARGO-MOORHEAD METROFLOOD RISK MANAGMEMENT PROJECT
SOUTHERN EMBANKMENTUSACE
DIVERSION CHANNELNON-FEDERAL
SPONSOR
Diversion Outlet
Rush River Inlet
Lower Rush River Inlet
Maple RiverSpillway & Aqueduct
Drain 14 Inlet
Sheyenne RiverSpillway & Aqueduct
Diversion GatedInlet Structure
Staging Area
Red RiverControl Structure
Wild Rice RiverControl Structure
Tieback Embankment
ACCELERATEDproject delivery
ALTERNATIVE FINANCING is the most COST-EFFECTIVE
risk management
PROTECT the local economy, which generates$5.48 billion in
wages and over $3.51 billion in annual taxable sales
REDUCE RISK, EXPOSURE & FUTURE COSTS
agencies includingFEMA, DOE,USDA, NRCSand SBA
Provide $1.9 BILLION in
SAFEGUARD
230,000 persons & $19 billion in property value
REDUCE COSTto tax payers
QUICKER and CHEAPER:
ALTERNATIVE FINANCINGBENEFITS
336
294
81
46
94
94
52
52
29
81
11
32
11
34
26
20
66
15
63
63
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75
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