September 2015 color

September 2015Volume 307

The Journal of Recordfor public-private partnerships

since 1988

PWFinance.net

AECOM SETTLES REVENUE

FORECASTING LAWSUIT WITH LENDERS

FOR $200M

The deep-pocket engineering firms that providedtraffic and revenue forecasts used to support toll pro-jects during the boom years of the P3 industry shouldbe concerned about a recent settlement over disas-trously wrong traffic forecasts made 10 years ago byAECOM for a toll tunnel in Brisbane, Australia.

So say three U.S. toll industry veterans who havewatched with growing distress over the years asdeveloper-friendly fore-casts were used to attractinvestors into risky pro-jects that later failed,often within a few years.

They point to optimisticforecasts by a few interna-tional traffic advisors. Butthere are 11 U.S. projectswith varying degrees offinancial problems, andforecasts for all of themwere done by U.S. firms.(That counts Maunsell,owned by AECOM, as a U.S. traffic advisor.)

The 11 projects include the Dulles Greenway,Greenville Connector, Pocahontas Parkway andNorthwest Parkway. All were financed with capitalappreciation bonds, and all were sued, unsuccessful-ly, by institutional investors, with no findings by thecourt.

AECOMʼs $200m Settlement

So far, the big guns of the class action bar have cir-cled around five court cases involving three failedAustralian toll roads. After years of litigation, settle-ments have been reached out of court in three of thecases.

Most recently, AECOM’s Australian unit agreed topay US$201 million out of court to settle a US$1.2-billion claim filed in 2012 by two lenders to theCLEM7 tunnel concession in Brisbane. The projectopened in 2010, went bankrupt soon afterwards, andis now performing at 75% below forecast.

Shareholders also sued to recover their lost invest-ment, about US$630 million. Their class-action law-suit seeking US$140 million in damages fromAECOM has not been settled.

An 8-K filing with the SEC by AECOM on July 10asserted that the lenders’settlement and legal costsare not expected to have amaterial impact on itsfinancial results. AECOMreported net income ofUS$230 million in fiscal2014 on $8.36 billion ingross revenue.

Also in Australia, afterfive years in court, ParsonsBrinckerhoff settled a classaction suit last year overthe Lane Cove Tunnel in

Sydney. ARUP is still battling with receivers of theAirport Link Tunnel concession in Brisbane, who areseeking US$700 million from the UK engineeringfirm. The Airport Link and CLEM7 were sold for afraction of their construction costs.

U.S. Trouble

There might be more trouble. Traffic studies doneby AECOM Enterprise’s Brisbane office, formerlyMaunsell Australia Pty Ltd., were used by Macquarieto attract investors for a number of troubled U.S. P3toll roads. These include startup projects such as theFoley Beach Express and SR 125 South Bay Express,and for brownfield leases of the Indiana Tollroad and,to a lesser extent, the Chicago Skyway. (Maunsell’s

2 Public Works Financing | September 2015

original Skyway forecast in 2003 assumed a largecasino would be built in Gary, Indiana.)

A lawsuit filed by Syncora Guarantee in 2012against Macquarie over forecasting errors byMaunsell on the Foley Beach Express is moving slow-ly through the courts in New York (see p. 5).

Class Action Lawyers Circling

With legal details of the settlements permanentlyhidden, U.S. consultants say the door is wide open forlawyers to pursue class action suits elsewhere. Deep-pocket engineering forms that also do traffic fore-casts—Jacobs Engineering, Stantec, and CDMSmith—could find themselves facing off against thesame law firms pursuing AECOM and Arup inAustralia. “We’re all watching,” says one executive.

Proving “false, misleading and deceptive conduct”in the forecasting methodology (part of the chargesagainst AECOM) is difficult. Traffic forecasts are typ-ically done about five years before startup of a tollroad. That means consultants must make dozens ofcritical assumptions required for a traffic and revenueforecast when half of the people who will be living inthe corridor aren’t there yet.

If, however, as one veteran believes, the AECOM

settlement with lenders was based mainly on improp-er or misleading disclosure, that could affect a widerrange of players.

(He cites an instance where Maunsell produced aparticularly optimistic forecast for one client andanother forecast predicting half that traffic for anoth-er client, and then failed to disclose the more pes-simistic report to the first client.)

A longtime critic of advocacy forecasting, ex-fore-caster Robert Bain has been hired as an expert wit-ness by litigants in Australia and elsewhere. Hisobservation in a UK publication this month: “In termsof raising standards, empowering practitioners,improving performance and perhaps taming some ofour more insistent clients—a couple of large lawsuitscould be the best thing that has happened in ourindustry for years.”

DEVELOPERS DRIVE FORECAST

ASSUMPTIONS

Public comments below were made in 2012 byDenis Johnston, formerly head of Maunsell’sBrisbane office, who had run Advisory Servicesfor AECOM Enterprises there:

“The real issue here is that if a developer wantsto take an optimistic view of the future and ask histraffic advisor to prepare forecasts on the basis ofthese optimistic assumptions, it is not the fault ofthe advisor that the forecasts are “high”.

However, if the developer attempts to involveother investors (institutions or the public) he hasa responsibility to clearly identify the assump-tions underpinning the forecasts. Similarly, theinvestors (and lenders) have a responsibility to doadequate due diligence—preferably using a pro-fessional traffic advisor to assist them.

The involvement of an independent auditor ofthe forecasts is usually required by bank lendersin a PPP, but in some recent projects this has beenspecifically excluded by the developers. The logicbeing that it is expensive and that the auditorscan cause delays and uncertainty!! Banks havebeen reluctant to pay for their own auditor, andone cannot be overly sympathetic with them ifthey were not prepared to pay for their own duediligence.“ �

Public Works Financing | September 2015 3

A Shrinking U.S. Industry

Unfortunately, the “industry“ is a relativelysmall number of people in a handful of companies,and it’s shrinking. The growing threat of lawsuitsled URS to exit the forecasting business years ago.AECOM, which owns URS, announced recently inSydney that it would shut its Australian business.

ARUP will continue to advise only sophisticatedinstitutional investors. Others still advising privateclients include Stantec; Steer, Davies, Gleve; C&MAssociates; and possibly Halcrow (CH2M).Transurban performed the investment-grade study onits I-95 HOT lanes project in Virginia.

The U.S. market leader, Wilbur Smith Associates,was acquired by CDM in 2011. CDM Smith hasremained a strong player, although it is now advisingonly government clients. Jacobs has followed suit.HNTB, Parsons Brinckerhoff and CambridgeSystematics also serve only public clients, but don’tperform investment-grade studies.

Virginia DOT hopes to prequalify three teams tobid for its I-66 managed lanes project by Dec. 14 thisyear. In its RFQ this month, VDOT provided bidderswith a preliminary traffic and revenue forecast thatteams will review in deciding whether or not to bidthe $2.1-billion project as a revenue risk P3. There’splenty of congestion in the corridor. How much rev-enue will be generated and when is the question forforecasters. �

U.S. Trouble

SYNCORA VS. MACQUARIE

IN FOLEY BEACH FAILURE

Fact finding and expert discovery are set to be com-pleted by April 19, 2016 in a lawsuit filed three yearsago by Syncora Guarantee claiming Macquarie paid aconsultant to help dupe the bond insurer into backinga $496-million toll road financing agreement.

Macquarie is represented by Gibson Dunn &Crutcher LLP, and Syncora by Quinn EmanuelUrquhart & Sullivan LLP.

U.S. News1 AECOM Pays $200m For Toll Forecasting Errors

2 Developers Drive Forecast Toll Assumptions

3 Syncora vs. Macquarie In Foley Beach Toll Failure

6 Assured Guaranty Holds The Ace In Skyway Auction

6 LBJ Express A P3 Benchmark

7 AECOM To ID 50 Top P3/DB Deals For Treasury

8 Michigan DOT Lighting P3 To Star Infrastructure

11 Where Did P3 Deal Flow Go?

11 Zoe Marwick on TIFIA

12 Analysis of State P3 Markets

13 The Huge Costs Of Permitting Delays

Infrastructure Credit Trends16 Are Availability Payment Obligations Debt?

Jodi Hecht, JEH Advisory

18 A Strong Start For Goethals Bridge P3

20 LaGuardia P3 Concerns

Canadian Infrastructure FinanceBy Dan Westell

21 Big P3 Savings On St. Lawrence Bridge

21 Toronto Island Tunnel Opens With Dispute

22 Saskatchewan P3 Savings Counted

International Newsby Dominick Curcio

22 Brazil Loosens Bidding Rules

23 Cash Rich Abertis on the Move

24 OHL Looks to Sell Stock to Reduce Leverage

25 Spanish-Led Team Wins Egypt Water

36 Public-Private Services Directory

IN THIS ISSUE

U.S. P3 Forecasting Errors (Source: Public Works Financing)

Project Forecaster Developers

Dulles Greenway Vollmer (Stantec) TRIP II landowners

Foley Beach Maunsell (AECOM) Macquarie

Camino Columbia URS (AECOM) Local landowner

Las Vegas Monorail URS (AECOM) Casinos

SR 125 South Bay Express Wilbur Smith (CDM Smith) Macquarie

Chicago Skyway Maunsell (AECOM) Macquarie/Cintra

Indiana Toll Road Maunsell (AECOM) Macquarie/Cintra

Pocahontas Pkwy Wilbur Smith (CDM Smith) 63-20

Northwest Parkway Vollmer (Stantec) Public authority

SH 130, segments 5-6 Maunsell (AECOM) Cintra/Zachry

I-495 Express Lanes Vollmer (Stantec) Transurban !

Specifically, Macquarie has been ordered to answerclaims by Syncora that optimistic forecasts in 2006 byMacquarie’s traffic advisor, Maunsell Australia Pty Ltd.(owned by AECOM), have left Syncora with a bankruptportfolio of over-leveraged toll roads inAlabama and lia-bilities Syncora says are $885.7 million.

Of that, $334 million is a variable-to-fixed-rateaccreting swap involving hundreds of millions of dol-lars in potential claims that will be filed when theswaps default, Syncora claimed in court filings a fewyears ago.

The story begins in 1994 when JimAllen, a political-ly connected developer in Alabama, completed a smalltoll bridge near Montgomery as a privately ownedasset with no toll regulation and no handback to gov-ernment. Over the next six years, Allen built threemore bridges, finishing the last, the Foley BeachExpress, in 2000.

The construction cost of all four bridges was about$90 million. Macquarie bought the four Alabamabridges and a toll tunnel under the Detroit River inMichigan in 2005 for an undisclosed price.

A little over a year later, Macquarie sold those tollfacilities for $306 million to two former Citicorpbankers who had created Alinda Capital Partners andneeded assets for their new infrastructure fund. Abouta half dozen other large infrastructure funds werestarting up at about the same time and all were hun-gry for investments.

Macquarie financed Alinda’s purchaseand later sold $496 million in bonds forAlinda that were wrapped by XL CapitalAssurance Inc., which had been folded intoSyncora Guarantee in 2008.

Alinda’s “American Roads” portfolio wasplaced into bankruptcy in August 2013,with Syncora as its controlling creditor.Syncora settled with Alinda Capital and itspartner John Laxmi early in 2013, but issuing other participants in the transaction.

Buyer Beware

Apparently, Syncora did not hire its owntraffic advisor and relied instead onMaunsell’s forecast. Syncora doesn’t dis-pute that but maintains that Macquariesystematically paid Maunsell a large suc-

cess fee to produce optimistic forecasts.

Its suit against Macquarie Securities (USA) Inc.claims fraud, aiding and abetting fraud, and negligentmisrepresentation.

The claim of optimism bias due to advocacy forecast-ing fits the way some traffic studies were being doneduring the boom years, but is hard to prove, says a


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U.S. traffic advisor. “There’s no law againsthypocrisy,” he says. �

� Assured Guaranty Holds The Ace InSkyway AuctionThe auction has begun for the Chicago Skyway lease,and some big players are lined up. But bidders willhave to pay over $2 billion to take out AssuredGuraranty’s wrap of the project debt, otherwise thedeal is subject the bond insurer’s approval.

Wall Street sources believe Assured Guaranty is awilling owner. “They feel that they’ve over-reservedfor this liability and believes it can get a full recoveryby just holding the asset and collecting the net rev-enue,” says a banker. “If so, they would step into therole of the concessionaire under the existing conces-sion agreement.”

In the heated market for these assets, a big bid totake out Assured Guaranty wouldn’t be a surprise.Witness the $5.75 billion paid for the Indiana TollRoad (ITR) by IFM Investors a few months ago (witha capital structure of 57% equity ($3.3 billion) and43% debt ($2.5 billion.) The 157-mile ITR, a majortruck route, links up with the Skyway at its westernterminus. The team of Cintra and Macquarie original-ly won both concessions, closing on Skyway inJanuary 2005 and ITR in June 2006.

Goldman Sachs, which conducted the originalSkyway auction in 2004 for the City of Chicago, nowis handling the sale of the lease/concession for the pri-vate owners. In the initial deal, Cintra and Macquariepaid $1.83 billion to operate the 7.8-mile-long elevat-ed toll road, which had been in operation for 45 years.

Their offer was $1.1 billion more than the nexthighest bidder, a team led by Borealis InfrastructureManagement, Toronto, and Vinci of France, which bid$700 million. Abertis Infraestructuras, S.A. of Spainbid $505 million.

Under operation by Chicago’s transportationdepartment, tolls weren’t increased from 1993 to2005. Revenues have quadrupled from $21.5 millionin 1993 to $81 million in calendar 2014. EBITDA was$71.4 million last year. Most of the gains since 2005are from toll increases, however.

The lease awarded by Chicago in 2005 allowed animmediate toll increase from $2.00 to $2.50, and then12.5% per year for 12 years, until 2018.Annual increas-es for the remaining 87 years are permitted to be thegreater of 2%, or CPI, or nominal GDP per capita.

How much the new owners will be able raise tolls isthe question. On a toll-rate-per-mile basis, theSkyway already is the most expensive toll road in theU.S., at 38 cents per mile for cars (undiscounted). AndChicago, already one of the most heavily taxed citiesin the U.S., is facing another $600 million increasethis year, mainly property taxes, as proposed byMayor Rahm Emanuel.

� LBJ Express A P3 BenchmarkCintra’s LBJ Express managed lanes toll road wasopened to traffic in north Dallas three months aheadof schedule on September 10, marking another majorP3 milestone in Texas for developer-operator Cintraand its sister company, Ferrovial Agroman.

According to Russell Zapalac, Chief Planning &Project Officer for Texas DOT, neither Texas DOT norFerrovial requested any change orders to the $2-bil-lion design-build contract signed in 2011 to rebuild 16miles of I-635 and I-35E north of Dallas. Among otherthings, 10 miles of cantilevered structures were builtunder traffic that peaked in the corridor at about270,000 vehicles per day.

Likewise, Cintra opened 13.5 miles of its NorthTarrant Express managed lanes project in Dallas onOct. 4, 2014, almost nine months ahead of schedule

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and with contractor change orders of only $5 million,according to Zapalac. Ferrovial started construction inMay 2014 on a second segment of the North TarrantExpress on I-35W north of Fort Worth.

The on-time completion of LBJ is significant inmany ways. It is one of the most technically complextransportation projects ever attempted in the U.S.under a fixed-price contract. The dynamically pricedmanaged lanes will double the capacity of the corridor,and operate in direct competition with eight general-purpose lanes, which are being rebuilt next to and, insome sections, above the managed lanes.

LBJ Express is the largest greenfield toll road pro-ject financing P3 ever closed in the U.S. Cintra assem-bled $2.2 billion in nonrecourse debt and investor equi-ty for a financial close in July 2010. Including a TIFIAloan, those private funds were supported by $490 mil-lion in public grants committed by Texas DOT.

LBJ’s timely completion vindicates a big bet madeby Texas DOT and Ferrovial in 2009 that a large seg-ment of the project could be built in a narrow sectionof the existing right of way without putting it in anexpensive tunnel.

TxDOT conceived of LBJ as a tunneling project.In discussions with TxDOT, Ferrovial proposedinstead to put the managed lanes in a trench andcantilever the general purpose lanes above them.Many U.S. contractors believed that Ferrovial hadmade a $1-billion mistake—the difference betweenDragados’s tunnel price and Ferrovial’s price to stayabove ground and work around the relentless trafficthere. Its on-time completion suggests Ferrovial

was up to the traffic management challenge.

The DBFOM contract price of $2.485 billionincludes 47 years of O&M by Cintra, including dynam-ic toll operations and most back office functions.Billing will be done by the North Texas TollwayAuthority, which operates most of the region’s tollroads along with TxDOT. Total cost of the projectincluding ROW and other owner costs is $2.983 billion.

� AECOM To ID P3 Deal PipelineAs part of the Obama Administration’s policy to sup-port private investment in infrastructure, AECOMwas hired this month by the Treasury Department toselect and analyze the 50 most economically signifi-cant transportation and water projects that are await-ing funding in the U.S. The deal pipeline to bedescribed by AECOM will include both P3s and publicprojects.

Ten percent of the projects must bewater/wastewater-related and the list of 50 must begeographically spread to reflect regional needs. Inaddition to detailed economic and social benefits, theanalysis of each project is to include an assessment ofimpediments to commencement, including fundingand permitting.


Private Capital, Maintenance, Income Tax PaymentsTotal $13.4 Bn For Dallas Toll Concessions

NTE Segments 1-3 and LBJ Financial Highlights

Expenditures on rehabilitation of existing highways, construction of newlanes, and maintenance of both toll and toll-free lanes over time for

three Cintra concessions in the Dallas-Fort Worth region:

* Capital expenditure 2010-2018 $5.34 billion* Subsequent capex 2016-2062 $1.94 billion (npv@5%=$448m)* Maintenance 2010-2062 $2.61 billion (npv@5%=$711m)

Total: $9.897 billion

Funding

* Shareholder equity $1.52 billion* Private Activity Bonds $1.29 billion (issued 12/09, 6/10, 9/13)* USDOT TIFIA debt $2.03 billion* TxDOT subsidy $1.12 billion

Shareholder income tax payments back to the public sectorEst. net present value @5% to 2062: $3.5 billion

Source: Cintra 9/13


� Michigan DOT Lighting P3The first freeway lighting system public-private-part-nership (P3) in the U.S. closed on Aug. 24, 2015, withthe Michigan Department of Transportation (MDOT)and Freeway Lighting Partners, LLC, (FLP) reachingsimultaneous commercial and financial close. In addi-tion to FLP, shortlisted proposers were DTE Energy,Citelum and Energy Systems Group.

MDOT initiated the procurement with a request forletters of interest in July 2013 for replacing 15,000freeway lights in metro Detroit. According to MDOT,capital costs over two years are $39.6 million andO&M costs during the 13-year operating period areset at $51.6 million, excluding electricity costs.

MMIILLLLEENNIIAALLSS AANNDD CCAARRSS

According to Manhattan Institute SeniorFellow Mark Mills: J.D. Power has found thatmillennials are the fastest growing class ofcar buyers. Edmunds reports that millennialslease luxury brands at a higher rate thanaverage. Nielsen reports millennials are 40%more likely than average to buy a vehicle overthe coming year. Overall electric-car sales aredown 20% this year, with SUV sales up 15%.Urban dwellers? Mills says the latest Censusreveals a net migration of millennials from thecity to the car-centric suburbs is alreadyunder way. A survey sponsored by theNational Association of Home Builders finds66% of those born since 1977 say they planto live in a single-family suburban home.

The FLP team consists of StarAmerica Infrastructure and AldridgeElectric, Inc. as equity owners withAldridge Electric, Inc. also acting as thedesign-build contractor, ParsonsBrinckerhoff, Inc. as the designer, andCofely Services, Inc. acting as opera-tions and maintenance provider.

Financing was provided through aprivate placement with Allianz LifeInsurance of North America (a Blackrock Capital entity) with StarAmerica and Aldridge Electric con-tributing equity to the deal.

During the 13-year operating peri-od, MDOT will make service pay-ments to FLP quarterly in exchangefor performance of services with acomponent of such payment subjectto FLP’s actual energy consumptionbeing less than MDOT’s theoreticalenergy consumption. �


HHEENNRRIIKKSSSSOONN TTOO RRUUNN SSKKAANNSSKKAA PP33SS

Johan Henriksson was appointed ExecutiveVice President of Skanska InfrastructureDevelopment in North America, replacing KarlH. Reichelt, effective January 2016. Reicheltheld a number of positions in government beforejoining Skanska in 2006. Henkiksson previouslyserved as CFO for Skanska InfrastructureDevelopment AB where he was responsible forthe accounting and reporting of the firm’sinvestments in concession companies worldwide.He was also CFO for Skanska USA’s Civil divi-sion where he managed over 100 people in theaccounting and financing department. Mostrecently, Henriksson led the firm’s windingdown of operations in Latin America as presi-dent and CEO of Skanska Latin America.

In May 2015, Skanska’s team was selected asthe preferred bidder to work with the PortAuthority of New York and New Jersey to rede-velop LaGuardia Airport's Central TerminalBuilding. The RFQ for that project was issued inOctober 2012. �


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gguusstt 2200

1144

Volume295

TheJournalof Record

forpublic-private partnerships

since 1988

In April

thecons

ervative

magazin

e The W

eekly

Standard

publishe

d a five-p

agecove

r story ca

lled“HO

T

andBoth

ered,” w

hichchar

acterized

the expre

ss toll lan

es

project o

n theCap

ital Beltw

ay (I-495

) as“ano

thernigh

t-

marefrom

the subur

bs-hating

traffic pl

anners.”

Thearti-

cle gross

ly misrep

resented

howthis

Fluor/Tra

nsurban

toll

concessio

n project

came ab

out,and

alsoattac

kedthe p

rin-

cipleof e

xpress to

ll lanes

as horrib

ly elitist

: thecove

r

illustrati

on show

ed an ov

erhead s

ignsepa

rating tra

ffic

into“Exp

ressLane

s” and “R

iff-Raff.”

Youmigh

t think a

conserva

tivemag

azine wo

uld favor

ideas lik

e marke

t pricing

andinfra

structure

privatiza

-

tion—bu

t not

inthis

case. A

uthor Jo

nathan

Lastport

rayed th

e con-

cession a

s anexam

ple of

“crony

capitalis

m,”

complete

lymisu

nder-

standing

howVirg

inia’s

Public

Private

Transpor

tation

Act

works. H

e charac

terized

the deal a

s yielding

“pri-

vatized

profits

and

socialize

d losses,”

ignor-

ing the s

hiftof b

oth con-

struction

costrisk

and

traffic &

revenue

riskto

the conce

ssioncom

pany.

Andhe c

laimed th

at most o

f themon

ey invest

ed inthe

project w

as from

“taxpaye

rs,”not

the privat

e sector,

by

counting

onlythe

equity in

vestmen

t aspriv

ate—even

though F

luor/Tra

nsurban

is fully a

t risk fo

r debt se

rvice

on the pri

vateactiv

ity bonds

andTIFI

A loan.

Where do

these ide

as come f

rom? I’v

e been re

search-

ing this s

ubject fo

r a chapt

er inmy f

orthcom

ing book

on

21stCen

turyHigh

ways. M

y resear

ch has fo

unda gr

ow-

ingnetw

orkof g

rass-root

s, right-

wingpopu

listgrou

ps

opposing

tolling a

nd P3 co

ncession

s. One o

f theorig

ina-

torsof m

anybogu

s argume

nts on the

se subjec

ts isa Sa

n

Antonio

housewif

e, Terri

Hall, fo

under of

thegrou

p

TURF (T

exans Un

itedfor

Reform and

Freedom

). Her

efforts h

elped bri

ng about

a two-ye

ar morato

riumon c

on-

cessions

in Texas

in 2007. T

his year s

he led a s

uccessfu

l

effort to

change th

e platform

of the Te

xas GOP f

rompro-

tollsto a

nti-tolls.

Andher

anti-tolls

, anti-P3

agitation

appears

to have

swayed G

OPgube

rnatorial

candidate

GregAbb

ott (the l

ikelysucc

essor to

pro-tolls

RickPerr

y)

to adopt a

nti-toll p

ositions.

ButTerr

i Hall’s g

rass-root

s activism

has conse

quences

far beyon

d Texas.

Similar

right-wi

ngpopu

list

groups

areactiv

ely

opposing

P3sand

tolling

in Florid

a, Georg

ia, and

North C

arolina.

Eachis

alsoled

by acrus

ading

housewif

e, and the

ir web-

sitesuse

many of t

he

same

terms (toll

-tax,

crony ca

pitalism)

, argu-

ments (abr

idging

state

sovereign

ty, most

of the

funding i

s from ta

xpayers,

etc.)and

materials

(such

as the v

ideo“Tru

th Be

Tolled”)

. When

Georgia

Gov. Na

thanDea

l termina

ted in mi

d-procur

ement th

e P3

concessio

n for At

lanta’s W

est by No

rthwest e

xpress to

ll

lanes pr

oject, it

wasthe

statesove

reignty is

suethat

he

cited. Th

e North C

arolina g

roup(who

se websi

te iscalle

d

P3times

.com) cam

paigned

hardagai

nst the I

-77expr

ess

tolllane

s project,

fortunate

ly withou

t succeed

ing.

Therigh

t-wing p

opulists

in Florid

a have fa

iledto de

nt

thisstate

’s steady

progress

withtolli

ng and c

oncession

s,

but their

current e

ffortis at

tempting

to derail

All Aboar

d

IT’STIME

TO RESPO

ND TO PO

PULIST O

PPOSITIO

N

by Robert W

. Poole, Jr

.

PUBLIC WORKS FINANCING Richard Fierce, Sr. VP, Fluor Corp.“PWF is the #1, must-readpublication in our industry.”


WHERE DID P3 DEAL FLOW

GO?. . .

As the head of one P3 pursuit team put it recently:“It’s a good time for consultants.” A government advi-sor says we’re in the “dark ages.” The head of businessdevelopment for a major P3 developer says we’re backto where we were 10 year ago. What’s wrong?

The Highway Trust Fund

With all-or-nothing conservatives now calling theshots in Washington, there is little chance of anymeaningful increase in transportation funding, at leastuntil after the Presidential election, if then. A gas taxincrease and Interstate tolling are off the table, mak-ing “pay fors” and repatriation proceeds the onlyremotely possible source of new revenue. Claiming anyof those funds to augment gas tax deposits into thehighway trust fund is a long shot.

Talk of a long-term reauthorization of the highwaybill is fading as is the ability of states to program fund-ing for new projects. That’s especially the case with thelong-term commitments needed for mega-project P3sfunded with availability payments. Toll projectsfinanced with nonrecourse debt are a better bet, butare increasingly rare.

TIFIA

TIFIA lending has fallen off sharply in 2015 for bothP3 and traditional projects. 2014 was the best yearever for the federal loan program—12 projects totalling$8.4 billion in subordinated debt. As intended by Sen.

Barbara Boxer, many of those loans were for highlyrated rail projects being built by California countiesusing sales taxes. So far, in 2015 there have been sixdeals totalling $2.2 billion in TIFIA loans. More thanhalf of that is for the East Link rail extension inSeattle.

All Washington can do now is get out of the way, asthe Obama Administration is trying to do by expedit-ing federal permitting (while at the same time addingto the regulatory mandates imposed on the infrastruc-ture industry.)

From a federal funding perspective, the state of P3sis not good.

The Transportation Bond Market

Likewise, transportation bond issuance at the statelevel has fallen off steeply. New municipal debtissuance, including PABs, for all transportation pro-jects is down 44% in the first half of 2015 from the yearbefore—from $12.95 billion to $7.26 billion (SecurityData). Indications are that the second half of 2015 willbe more of the same bad news, caused partly by thesorry state of the federal highway program.

States are addressing the funding problem. Twentyhave increased or indexed gas taxes in the past threeyears (American Petroleum Institute). An additional20 states are publicly considering a variety of ways toincrease transportation funding, including mileage-based user fees (Arizona and Florida).

No Republican legislator in Congress has publiclysupported Tom Carper’s gas tax bill in the Senate.About 20 would be needed for passage. The 18.3cent/gallon federal gas tax is unchanged since 1993,

Zoe Marwick, commercialdirector at SkanskaInfrastructure Development, onTIFIA vs. bank financing:

“It is a fundamental of our worldthat you align risk and reward. I getthat the departments of transportationwant cheap money. Right now, though,the departments of transportation aretaking the benefits of TIFIA in lowercosts, and the bidders take the risks ofhaving to be the borrower with a lender

with whom they cannot interface.

From a borrower’s perspective, Iwould rather bring my relationshipbanks to the table with me than TIFIA.If I will be at the table with TIFIA on a$1-billion loan, especially with the longtime it takes on a project like I-4 [inFlorida], then I want to be able to com-pare my TIFIA financing and my bankfinancing.

If you look at the difference between

what people bid on committed financ-ing, between the TIFIA term sheet andthe package of diligence and documen-tation that is put together on the bankfinancing, the difference between thesetwo is a really clear indicator of the lackof comfort the bidders have with theTIFIA process. We would never in goodconscience go to investment commit-tee and say, “I have this 20-page termsheet, and I can understand approxi-mately half of what it means, but it willbe fine.” �

while roadbuilding costs have increased by 55%.

Twenty Republican governors have supported gastax increases since 2013. That group was led byPennsylvania Gov. Tom Corbett, who pushedthrough a $2.3 billion/year gas tax increase in 2013(and lost his reelection bid to a political novice ayear later.) Seven of nine governors signing gas taxincreases so far in 2015 are Republicans. NJ Gov.Chris Christie may be the eighth once he’s done run-ning for President. (Although he vetoed a P3 bill lastmonth.)

The hitch at the state level is that only a few of thestates that have voted to increase gas taxes also have atransportation bonding program that’s large enough toallow them to assemble the funds needed for large pro-jects, design-build in particular. Eleven states have activedebt programs. Only Pennsylvania and to a lesser extentVirginia have the ability to accelerate large projects.

AAnnaallyyssiiss ooff SSttaattee PP33 MMaarrkkeettss

TTeexxaass

Twenty toll roads have been built in Texas since theDallas North Tollway was opened in 1968. Except forsome toll authority roads in Dallas and Houston, thatmay be it.

Anti-toll sentiment has grown so intense that TexasA&M was paid by the legislature last year to study theconsequences of shutting down all 20 toll roads. That’snot likely, but new toll roads and P3s are almost cer-tainly off the table for the foreseeable future and prob-ably longer—for two reasons.

One: A referendum on Nov. 3 willprobably result in a Constitutionalchange in road funding that eventual-ly will add as much as $5 billion a yearin sales tax proceeds to the HighwayFund. None of that money can be usedto support new toll roads. A legislativereport in March will assess the impactof eliminating toll financing of newprojects.

(Anticipating a positive outcome, theTexas Transportation Commissionrecently approved a non-toll option forfunding Highway 281 in Bexar County.The $530-million project near San

Antonio was proposed as a toll road in 2005. Bankers esti-mate it could support about 70% of its cost from tolls.That’s far more than other potential toll projects in small-er, more rural counties.

Similarly, in Corpus Christi, the $115-million gapfinancing piece of the New Harbor Bridge procurementwas eliminated recently, after TxDOT found all themoney it needed to build the $828.7-million DBM pro-ject, which was awarded to Dragados/Flatiron.)

Two: Even absent the new money, TxDOT is chang-ing in a way that will empower local anti-toll forcesand opponents of P3s.

A major cultural shift is underway. Lt. Gen. JoeWeber, USMC, (Ret), Gov. Abbott’s newly appointedexecutive director of TxDOT, is moving quickly to takeplanning control away from Austin and delegate itback to the agency’s 25 district engineers around thestate. The agency was originally run by military man-agers who favored decentralized control.

An October report on Weber’s reorganization plansis expected to map out a return to those roots.

Most immediately affected could be RussellZapalac’s planning group in Austin, which overseesstatewide planning, environmental, rail, transit andmaritime activities. Zapalac also leads TxDOT’s alter-native delivery and P3 program.

TxDOT’s district engineers are more attuned tolocal politics and needs, and—so the thinking goes—will be able to plan and advance projects more quickly.A big question is whether the 25 districts will be ableto retain enough talent during the transition to spendthe new money efficiently.


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CCaalliiffoorrnniiaa

In California, there are $40 billion worth of potentialP3 projects, but many depend on renewal of theenabling law for transportation P3s which sunsetsDecember 2016. The P3 bill on the table now, AB X112, is attached to a major transportation funding pack-age promoted by Gov. Jerry Brown. Conservativesvoted down Brown’s big new spending bill a few weeksago. If a second try also fails, P3 supporters will haveonly a few weeks in January 2016 to win passage of ahard -won extension of what most see as a flawed law.

Prospects for P3s statewide could darken if BruceBlanning, Executive Director of the ProfessionalEngineers in California Government (PECG) gets hisway, as he usually does. Blanning has agreed to allowrenewal of the existing P3 authorization as long asdesign-build construction inspection responsibilitiesare assigned to his members, Caltrans engineers.

Many of the big design-build transportation projectsin California have experienced large cost overruns,partly due to problems related to delays caused byCaltrans oversight. Ann Mayer, Executive Director ofthe Riverside County Transportation Commission, haspublicly stated more than once that RCTC would haveno interest in using the P3 law if the PECG provisionsare included.

L.A. Metro is pursuing its own P3 enabling law that

would address the PECG issue and fix many of theshortcomings in the existing statewide law. If success-ful, the state’s largest regional transportation agencyhas a large pipeline of big projects it might pursue.


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THE HUGE COSTS OF

PERMITTING DELAYS

Delays in approving infrastruc-ture projects cost the nation morethan twice what it would cost tofix the infrastructure, accordingto a new report released Sept. 2by Common Good, the nonparti-san government reform coalition.Those approvals can take adecade or longer, and the reportshows that a six-year delay instarting construction on publicprojects costs the nation over $3.7trillion, including the costs of pro-longed inefficiencies and unneces-sary pollution. That’s more than

double the $1.7 trillion neededthrough the end of this decade tomodernize America’s decrepitinfrastructure.

Titled “Two Years, Not TenYears: Redesigning InfrastructureApprovals,” the report includes thedirect costs (legal, administrative,and overhead), the opportunitycosts of lost efficiencies during theyears of delay, and the environ-mental costs of antiquated infra-structure during the delay. Thesecosts are estimated for electricitytransmission, power generation,inland waterways, roads andbridges, rail, and water.

“The upside of rebuilding infra-

structure is as rosy as the down-side of delay is dire,” said PhilipK. Howard, Chair of CommonGood. “America can enhance itscompetitiveness, achieve a green-er footprint, and create upwardsof two million jobs. Americansclearly want infrastructureimprovement – not further wasteand inefficiency.

The question is: Will the feder-al government make it happen?”

The full report, which proposesfour ways to speed reviews, isavailable atwww.commongood.org �


VViirrggiinniiaa

In response to an RFQ issued on Sept. 17, fiveteams submitted qualifications Oct. 2 on one or moreof three options for delivering the $2.1-billion, I-66managed lanes project in northern Virginia.Conceptual financial proposals using a preliminarytraffic and revenue study from VDOT are due Nov. 30.On Dec. 14, VDOT says it will shortlist three (but asmany as four teams) for each option. The options andnumber of RFQ responsesreceived are:

• Revenue-risk DBFOMwith a potential publiccontribution of about$500 million (threeteams).

• Publicly financedDBOM (five teams)

• Publicly financed DBwith ATCs, alternativetechnical concepts (fiveteams)

DBFOM teams

• T r a n s u r b a n(70%)/Skanska (30%)

• Cintra (50%)/Meridiam (50%)

• Infrared (42.5%)/Isolux (42.5%)/Fluor

DBOM teams

• Dragados/Flatiron/Shikun & Binui + O&MACS/Hochtief

• Skanska/Archer Western + O&M Transurban

• Ferrovial Agroman/Allan Myers + O&M Cintra

• Fluor/Granite/Lane + O&M Fluor/URS

• Shirley/Facchina/Trumbull/Wagman + O&M VINCI

DB-ATC teams

• Dragados/Flatiron/Shikun & Binui

• Skanska/Archer Western

• Ferrovial Agroman/Allan Myers

• Fluor/Granite/Lane

• Shirley/Facchina/Trumbull/Wagman

Each of the options has significant issues. Forinstance, VDOT has never asked for or evaluatedATCs for a large design-build project or P3.Presumably, it will rely on its consultants to do this onI-66. In any case, big scope reductions may not be pos-sible. The winning bidder on Florida DOT’s I-4Ultimate project (a DBFOM, availability paymentwith comparable scope) had 25 ATCs approved withits bid. With a DB cost of $2.3 billion, the approvedATCs netted $86.9 million in savings and 78 schedule

days saved. Whilethese numbers are nottrivial, that’s only3.8% in cost reductionon I-4 Ultimate.

The aggressiveschedule set by VDOTfor submitting concep-tual financing propos-als, due in November,are intended to givethe legislature theinformation and timeit needs to evaluatepublic finance optionswhen the sessionstarts in January.Among others, VDOT’s

CFO John Lawson is a proponent of public financeand wants that option on the table in the I-66 bidding.By moving quickly, VDOT also prevents competingprojects from getting to Richmond ahead of I-66.

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Massachusetts is slowly advancing two potentialP3 projects but won’t be ready to begin a procurementuntil MassDOT completes environmental studies,which could take years. Republican Gov. CharlieBaker, who might be expected to push the EIS process,could face a challenge from Sen. Elizabeth Warren in2018 when he’s up for reelection. Baker probablywon’t want to be perceived as a P3 promoter in thatcontest.

MMiissssoouurrii

Missouri I-70—The project needs P3 enabling leg-islation and state legislature approval to toll some orall of the 200-mile segment that needs rebuilding. TheMissouri Highways and Transportation Commissionis unanimously in favor of tolling I-70, says StephenR. Miller, its chairman, who is meeting with state


truckers this month. But, he says “We’re looking atseveral years” of development, even if the legislaturesigns on next year, as hoped.

KKeennttuucckkyy

Brent Spence Bridge, Kentucky-Indiana—Anti-tollforces in Kentucky are cutting off the only source of fund-ing for the project. “We’re still light years away from get-ting our side done,” says Rep. Leslie Combs (D-Ky).

MMaarryyllaanndd

Funding for the $2.1-billion Purple Line light railproject is becoming less certain as time passes, andkey members of the project staff have quit in the pastmonth. Most critically they include Henry Kay, theMaryland Transit Administration’s executive directorfor transit development and delivery, Ronald L.Barnes, Senior Deputy Administrator and ChiefOperating Officer, and Jodie Misiak, MTA’s managerof innovative finance. DBFOM bids from four short-listed teams that were competing for the Purple LineP3 are due Nov. 17.

CCoolloorraaddoo

I-70 East—the procurement effort for the I-70 EastDBFOM project in Denver went into high gear this

month with the release of a first draft of an RFP tofour shortlisted teams. Colorado Dept. ofTransportation (CDOT) will fund the $1.17-billionproject with availability payments to the winningdeveloper offering the greatest scope and optimaloperating and life-cycle maintenance cost. �

A common question nowadays is: Why has the USP3 market slowed down? There’s no one answer butinstead a number of factors, including unexpectedelection results, lack of funding, untested govern-ment programs and erratic public support. Let meadd one more reason to the list: Concern over gov-ernment credit ratings.

When governments consider the most efficientdelivery method for large scale infrastructure pro-jects, many factors are evaluated, but the ratingagency treatment of availability payments (AP)—thelong term, contractually obligated payments paid ifthe project was available—was not a crucial factor.Governments considered the AP similar to a lease.

That view has changed. Over the past six months,each rating agency published papers on this topic.Bottom line: All view AP as “debt-like obligations” ofthe government. Each rating agency makes anadjustment to the government’s debt statement tofully capture the government’s retained risk, assum-ing any realized liabilities would be debt financed.The rating agencies approach intends to provide bet-ter comparability and visibility to investors becausethey don’t believe the accounting requirements pro-vide consistency and are subject to interpretation.Under GASB, the projects are not considered a leaseand most projects are out of scope for GASB 60,which is the reporting standard for ServiceConcession Arrangements.

The rating agencies consider several factors. Tobegin, no adjustments are made for demand, or rev-enue risk projects, such as toll roads since the gov-ernment makes no project payments nor has anycontingent liabilities, as was the case with theIndiana Toll Road Concession.

Several key features must be present for AP pro-jects to be considered debt like. Generally, the gov-ernment’s obligation is a long term commitment toan essential public infrastructure it owns and thatis operated under a legislatively approved authori-ty by a private operator through a long-term agree-ment. In contrast to a lease, the government willmake a termination payment if the project is can-

celed early due to a default. The termination pay-ment is a contingent liability of the government.

Each rating agency’s approach varies slightly andhas different implications. Moody’s and Fitch aresimilar in that they cap the liability at the amount ofthe project debt and apply the debt once the projectis operational. In most cases, Fitch adds the totalproject debt to the net debt of the government entitywhile Moody’s includes the greater of the projectaccounting value or the project termination pay-ment, generally 80% of the project debt. No adjust-ments are made for milestone payments.

S&P views the milestone payments as debt. Itadds the annual milestone payments to the govern-ment debt at the project’s financial close and excludesthe amounts in the current budget. For the AP—thestream of committed payments—S&P adds the netpresent value of the capital portion of all future avail-ability payments, discounted by the government’s


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ARE AVAILABILITY PAYMENT OBLIGATIONS DEBT?By Jodi Hecht, JEH Advisory


capital cost, to the debt state-ment when the project opens.

Every rating agency will give“self-support” or eliminate theadditional debt or contingent lia-bility risk if the project establish-es a track record of revenues thatfunds annual availability pay-ments, either partially or fully.For example, if the toll revenuescollected by the Indiana FinanceAuthority (IFA) on the OhioRiver Bridges East End Crossingare equal to the AP owed to WVBEast End Partners under the agreements, the addi-tional debt will be removed during the credit evalua-tion. Self-support is generally established after threeyears of stable performance.

The impact is to raise the government’s net debt fora short period. Two states with a number of AP pro-jects are highly rated with low to moderate debt oblig-ations. These are Florida (AAA, Aa1, AAA*) andIndiana (AAA, Aaa, AAA*) which guarantees IFA’sobligations.

These AP adjustments have no impact now;Florida has three AP projects with two operationaland Indiana has two under construction. The impactwill be felt during the screening for future projects.

An example is the Ohio River Bridges Crossingproject with debt issued through the IFA. S&P citesthe “increased exposure to contingent liquidity risktied to P3” as a downside risk for the IFA as it looksto future projects. Using S&P adjustments, whichare publicly available, based on information fromJune 2014, Indiana incurs $338 million milestonepayments through 2016 and debt obligations of $789million in 2016 once the bridge opens.

The adjustment increases net debt by 24% whenthe bridge opens **. Potentially, three years later, in2019, after collecting the projected toll revenues asexpected, the capitalized AP would be eliminated,reducing total state debt to $1.56 billion. Thisamount is lower than the net debt in 2014 assumingno increases or decreases in state obligations duringthis period because all adjustments for the projectare eliminated.

The implications of these adjustments are two-

fold. Initially, AP projects may not move forwardbecause governments fear these adjustments mayendanger current ratings for a short period. No statewants to lose a ‘AAA’ rating or even tempt an outlookchange while new projects open (add additional debt)and establish a revenue track record (subtract addi-tional debt). Local governments typically have high-er debt obligations and would likely be more con-strained than states.

Second, the adjustments favor revenue generatingprojects, such as toll roads, because those may qual-ify as self-supporting and eliminate the adjustment.Judicial facilities and hospitals generate fees, butnot enough to support annual AP. However, largegovernments typically lack sufficient accounting con-trols to identify user fees generated by each facilityto establish self-support. Social availability projectsalready struggle without access to the tax exemptdebt markets.

Finally, rehabilitation of existing infrastructure,the most needed projects such as the Rapid Bridgesproject in Pennsylvania, will also suffer from theseadjustments.

Does this signal the end of the U.S. AP market?Probably not. Governments didn’t enter this marketsolely for off-balance sheet financing. Tim Wilshetz,a Partner in KMPG’s Infrastructure Advisory prac-tice, believes that “governments value a variety offactors gained from the P3 delivery method” such aslifecycle risk transfer and expedited project construc-tion, and should assign relative value to the mostimportant factors.

In Canada these adjustments did not limit the P3market as the provinces funded sizable P3 projects

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as part of the operating budget. This view is shared byPaul Judson, a Senior Director at Standard & Poor’s,Analytic Manager for the International PublicFinance (IPF) practice in Canada, who feels that debtis not a major factor in the IPF ratings. It is one of therating factors and weighted only 10% in the analyticscoring. Moody’s uses similar weighting for debt (20%which includes unfunded pension liabilities). “It’s notthe countries with the highest debt that default,”Judson says. “Often those countries have deepereconomies and secondary markets. Rather it’s thecountries with weak liquidity and financial manage-ment that ran into trouble.” �

*Ratings by Fitch, Moody’s and S&P respectively.

** Assuming no change in state debt.

After years on the sidelines, the Port Authority ofNew York and New Jersey now is trumpeting its com-mitment to alternative delivery and public-privatepartnerships. Its success so far in procuring a 40-yearDBFM contract and building the $1.436-billionreplacement of the Goethals Bridge is helping to buildthe case for P3s in the northeast, where governmentshave been slow to adopt the alternative delivery modelbased on lowest life-cycle costs.

The Goethals P3 team includes NYNJ LinkDeveloper LLC, comprised of Macquarie (90%) andKiewit Development (10%); the contractor joint ven-ture Kiewit-Weeks-Massman (KWM); engineer ofrecord, Parsons Transportation Group; and lenders’technical advisor, Arup USA.

Goethals is an important bridge. It was the PortAuthority’s first major construction project, opening in1928. It is Kiewit’s first P3 as an equity investor. It’sthe Port Authority’s first long-term DBFOM project.It‘s the first new bridge to be built in New York Citysince 1932. And Goethals ranks fourth in net income(about $100 million/year in toll revenues) among the

Port Authority’s 22 infrastructure assets.

Two Bridges

Technically, Goethals is a relatively straightforwardproject involving linear construction of twin cable-stayed toll bridges to replace a functionally obsoleteand heavily congested crossing of the Arthur Killwaterway between Elizabeth NJ and Staten Island,NJ. The Port Authority’s Bayonne Bridge heighteningproject, being built nearby under a design-bid-buildcontract, is far more challenging and time sensitive,due to Post-Panamax shipping needs. Kiewit is leadingthe construction effort on the Goethals Bridge and is apartner on the Bayonne Bridge.

KWM’s design-build contract with NYNJ Link forGoethals totals $938 million. During the five-year con-struction period, the project will receive five milestonepayments from the Port Authority totaling $150 mil-lion. That money will be used to fund construction anddistributions to equity, which constitutes about 11% ofthe invested capital.

Jodi Hecht is providing strategic and creditadvisory services. She is a former rating analyst,with more than 20 years experience at Standard& Poor's in project finance, infrastructure andpublic finance.

A STRONG START FOR GOETHALS BRIDGE P3

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Once the project reaches substantial completion,annual payments effectively equivalent to traditionalavailability payments will be made by the PortAuthority to NYNJ Link during the 35-year operatingperiod. Macquarie and Kiewit will self-perform bridgemaintenance over thatperiod. The PortAuthority will run tollcollections.

The nonrecourse pro-ject debt to be repaid bythe developer comprises$453.3 million in long-term tax-exempt privateactivity bonds as seniordebt and a $505.3 millionTIFIA loan as subordi-nated debt. AssuredGuaranty insured $101million of the PABs.

On Schedule

Work on the Goethals approaches started inDecember 2013. The project is 38% complete. That’sonly a month off the schedule set two years ago in thewinning bid by NYNJ Link, which calls for substantialcompletion by Dec. 29, 2017.

Costs are close to estimates so far but requestedchange orders are stacking up. That’s partly due to theaddition of a “means restriction fence” to discouragesuicides.

The addition of the fence necessitated additionalwind tunnel testing and re-design to parts of thebridge. The Port Authority’s original design parame-ters told bidders not to preclude installation of such afence, so there is some disagreement on this point.

Industrial waste issues have also affected costs:Extensive remediation needed on the New Jersey sidehas forced the drilling of shafts for the bridge founda-tion to hopscotch around waste sites rather than pro-ceed sequentially in a straight line along the align-ment.

V-Shaped Towers

For aesthetic and height limitation reasons, thePort Authority required that the four, 272-ft-tall mainspan towers not follow the vertical “smokestack”design commonly used on other bridges. The 5% slant

proposed by NYNJ Link for the towers at Goethals isadding considerable cost and time as compared to avertical structure. But the V-shape is expected toimprove the look of the relatively squat bridge whoseheight is restricted to avoid impinging on the flight

path to Newark airport.

The NY StateThruway Authorityselected a version of theV-shaped towers for theTappan Zee Bridgereplacement project,which, like Goethals, willbe a cable-stayed bridge.The slanted towersrequire substantiallymore labor to build. For avariety of other reasons,progress has been slowerthan expected on the$3.2-billion Tappan ZeeBridge project, New York’s

first under a design-build contract. A limited notice toproceed was issued in October 2012. Constructionbegan in October 2013, and is now about a year behindschedule, which calls for completion in April 2018.

“ACTIVE AUDITOR”

SEEKING THE RIGHT

PUBLIC-PRIVATE BALANCE

In a DB contract, the government’s aim is to trans-fer more risk than is typical in a DBB contract. Thedesign-build team crafts its bid based on the assump-tion that it will have enough control of the construc-tion process to manage the additional risk. For a P3 towork well, government must relax its oversight role ofthe DB process and trust that the quality checkingdone for both the P3 lenders and equity investors willprotect the public interest.

Making that leap has been difficult for many publicowners. It took 10 years for the Port Authority’s tech-nical and legal staffs to accept P3 delivery of theGoethals project (after a strong push from then execu-tive director Chris Ward, and expert quarterbackingby his successor, Pat Foye.) It’s not surprising thenthat oversight of the DB team by Port Authority engi-neers is at an extremely high level.

The Port Authority sees its role as an “active audi-


Slanted towers will distinguish Goethals Bridge


tor” of the private design and construction quality onGoethals. The details of the owner’s oversight wereclosely negotiated by the private builders.

KWM’s design partner, Parsons TransportationGroup, is the engineer of record under a $51-millionlump-sum contract. NYNJ Link Developer LLC hiredKS Engineers for construction inspection andInternational Bridge Technologies as bridge checkengineer. All of the private advisory work is done

under fixed-price contracts.

The construction schedule and substantial comple-tion date are all fixed in the project agreement withthe Port Authority. Late completion, though unlikely,would trigger liquidated damages of $178,050 per day,payable to the developer by KWM. That’s a lot of rea-sons to come to terms on the partnership piece of theP3 model. �

Editor/PublisherWilliam Reinhardt/Westfield, NJ(908) [email protected]

PWF International EditorDominic Curcio/Madrid (34) 91 [email protected]

PWF CanadaDan Westell/Toronto (416) [email protected]

General ManagerElizabeth B. Reinhardt/Westfield, N.J.(908) [email protected]

Artist/IlustratorKevin Sacco

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LAGUARDIA P3 CONCERNS

The good news so far on Goethals Bridge may helpP3 advocates make the case for the risk transfer ben-efits of DBFOM contracts (especially if the PortAuthority explains its model to the larger P3 indus-try, which it hasn’t yet.)

Conversely, P3 delivery in the region could be setback by the confusion caused by last-minute politicalinvolvement in the Port Authority’s DBFOM procure-ment for a new central terminal building atLaGuardia Airport.

Among other things, the major changes in the PortAuthority’s LGA design that were announced by Gov.Andrew Cuomo in August under normal circum-

stances would require another look at the environ-mental impact reports for LGA.

The Port Authority believes it can advance theredesigned project relatively soon. It has been in closenegotiations with the selected development team, ledby Skanska, and intends to break ground in March orApril 2016.

Funding for the $4-billion project also is a concern,largely because costs are uncertain and forecastedrevenues from retail concessions are being reliedupon to finance most of the work. For that reason,some call it the “hot dog project.” �


� P3 Savings On St. Lawrence BridgeA federal government report outlining terms of theDBFM contract for the new Bridge for the St.Lawrence in Montreal said the P3 will save Cdn $1.75billion (in current dollars), compared with a design-bid-build procurement. About Cdn $800 million willcome from savings on construction, O&M and rehabil-itation costs, and Cdn $1 billion from risk transfer.The report identified a “fragile” combined sewer mainclose to the project site as one big risk, and a formerwaste-disposal site as another.

Construction willaccount for Cdn $2.2 billionof the total contract; opera-tions, maintenance andrehabilitation over the 30-year period Cdn $754 mil-lion.

The provisions are partof the Cdn $4-billion feder-al government DBFM con-tract awarded in June tothe Signature on the SaintLawrence Group, held 50-50 by SNC-Lavalin andACS Group. Constructionstarted in June, and thereplacement for theChamplain Bridge is sup-posed to open Dec. 1, 2018,while related corridor workhas a deadline of Oct. 31,2019.

The private partnerswho have contracted forthe new bridge could facepenalties for missing substantial completion deadlineson the bridge, beginning at Cdn $100,000 per day forthe first seven days and rising to $400,000 per day, toa maximum of Cdn $150 million.

The short timeline was a notable feature of the pro-ject, and work on the new bridge – across the St.Lawrence River in the heart of Montreal – also has

potential to disrupt traffic.According to a government report, the builders willhave to do any work that requires lane closuresovernight, with penalties for failing to keep threelanes open starting at Cdn $250-$750 per lane/perhour, and rising to Cdn $1,000 to $2,000 per hour forall three lanes.

According to the report, the consortium will get Cdn$500 million when the work is half completed, project-ed to be in the fall of 2017; Cdn $700 million when thebridge opens; and Cdn $500 million when the entirecorridor is open.

Stantec and Ramboll of Denmark will ensure com-pliance with the agreement under a Cdn $22-millioncontract. It was chosen by the private partner from apool of firms qualified by the government. ArupCanada will be owner’s engineer under a seven-year

contract worth about Cdn$20.4 million.

As well as the penaltiesfor missing bridge dead-lines, there are also penal-ties for delays on relatedroad corridor work (to amaximum of Cdn $5.5 mil-lion), violating noise stan-dards in “sensitive” areas,and failing to maintain theroad surfaces.

� Toronto IslandTunnel Opens WithDisputeThe public and private

partners in a Toronto P3project with a build cost ofCdn $82.5 million are seek-ing millions from eachother, including moneyrelated to extra workingdays.

Ports Toronto, a federalagency, contracted with a group led by ForumInfrastructure Partners for an 853-foot DBFOM tun-nel to link the Billy Bishop Toronto City Airport on theislands in Toronto harbor with the mainland.Construction started in March 2012, and the tunnelopened in July this year, four months after the maxi-mum two-to-three year period Ports Toronto hadexpected.

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According to the agency’s financial report, Forum islooking for Cdn $10.7 million from Ports Toronto, andPorts Toronto wants Cdn $3.4 million from Forum.The private claim includes money related to 201 extraworking days.

PCL was the lead contractor on the project, Arupthe lead designer, and Technicore Underground thetunnel contractor. Johnson Controls is the facilitymanager. The consortium will be paid Cdn $8.6 milliona year under a 20-year operating agreement. The pro-ject is being paid for through a Cdn $5-per-passengerbump in airport improvement fee charged to departingtravelers.

Neither Forum nor the agency would comment onthe dispute.

� Saskatchewan P3 Savings Counted The province of Saskatchewan has saved Cdn $570million on three recently closed P3 deals, the govern-ment says. With a population of about 1.1 million,Saskatchewan is smaller than41 U.S. states, but jumped intoP3 infrastructure in 2012 withthe creation of a governmentagency, SaskBuilds.

Since early August, it hasclosed three projects—abypass around the capital,Regina; a package of 18schools (on nine sites, each onewith a Catholic and publicschool); and a mental health hospital with a criminalunit.

The savings over the traditional model, calculatedby Ernst & Young or other advisors, were Cdn $380million on the bypass, Cdn $100 million on the schools,and Cdn $90 million on the hospital. However, the lackof detailed value-for-money reports on how the savingswere calculated – the reports are expected by yearend– led the opposition to claim the numbers were spun.

The Regina bypass is a Cdn $1.88-billion (currentdollars) DBFOM project (including 30 years of mainte-nance) won by a consortium called Regina BypassPartners. Vinci has 37.5%, Parsons 25%, Connor Clark& Lunn GVest 25%, and Gracorp Capital 12.5%. Thepartnership borrowed Cdn $628.6 million. NationalBank is the financial partner.

The approximately 400 lane-kms will be built by a

DB venture with Carmacks (18.75%), Vinci (18.75%),Graham Infrastructure (37.5%), and Parsons (25%). AVinci subsidiary will do the maintenance and opera-tions for 30 years.

The DBFM 30-year schools contract, valued at Cdn$635 million in current dollars, was won by the JointUse Mutual Partnership team headed by ConcertInfrastructure. Bird Capital and Bird Design BuildConstruction, Johnson Controls and Scotiabank arealso in the group.

The 284-bed hospital and secure unit for prisonerswith mental-health issues has a Cdn $407 millionprice, including maintenance over 30 years. TheDBFM contract was won by Access PrairiesPartnership, which includes Graham Design Builders,Carillion and Gracorp, with Carillion and Grahamaffiliates providing maintenance. The group borrowedCdn $178.7 million for the project.

In yet another Saskatchewan deal, the City ofSaskatoon awarded a DBFOMcontract for two new bridges toGraham Commuter Partners:Graham, Buckland & Taylor,Gracorp Capital, National Bank.The estimated capital cost of thetwo bridges over the SouthSaskatchewan River is estimat-ed at Cdn $252.6 million. PPPCanada will contribute up toCdn $66 million and theprovince Cdn $50 million. The

city will pay Graham up to Cdn $120 million on sub-stantial completion. Close is expected in October. �

. . . Latin American News

� Brazil Loosens Infra Bidding Rules Pummeled by the worst recession in years, Brazil’sgovernment is dismantling protectionist business poli-cies that have warded off international developerswhen it most needs fresh capital. The BrazilianTransport and Energy ministries are modifying tenderrules that upend the traditional business practice ofgiving the lead role on infrastructure bid teams only toBrazilian firms. Now international developers will beallowed by law to head consortiums bidding for high-way projects.

The government has plans to privatize 15 federalroads this year and next. Road regulator ANTT is hop-ing to bid out five road projects by the end of this year,


three of them in the states of Minas Gerais and Golásworth Reais 13.8 billion (US$3.3 billion). Privatizationof four airports has also been approved for launch thisyear.

But the size of the task has grown for PresidentDilma Rouseff following Standard & Poor’s downgradeof Brazil’s bonds from BBB minus to BB+ hamperinginvestors’ trust in the ability of Brazil, Latin America’slargest economy, to pull out of recession. Brazil’s cur-rency has lost a third of its value this year.

S&P’s downgrade immediately hit Brazil’s roadplans. Plans for the first project, the 493-km Rodoviado Frango road system, became contentious when theTransport ministry proposed an internal rate of returnon the deal of 9.2%. This drew fire from the nation’sleading toll road operators-developers CCR,EcoRodovias and Arteris, owned by Spain’s Abertis.The proposed IRR looked good before Brazil’s down-grade, but now needs to be above 10% to adjust to thehigher bank interest rates that will soon follow. Thedeal is being reviewed by the Tribunal de Contas, thenation’s top audit court, for approval prior to a tendercall by ANTT.

Rodovia do Frango is a system of four toll corridorsleading to the ports of Paranaguá and Santos inParaná and Santa Catarina states, contiguous to SâoPaulo state.

Together with steeper interest rates, investors alsoface having to borrow more as national developmentbank BNDES’s lending power has been curtailed to10% - 25% of a road deal, down from (up to) 75%. As aresult, the shortfall will need to be filled by privatebanks at market interest rates, increasing road costs.

For more relief, the government also proposes tomodify minimum capitalization requirements for indi-vidual firms bidding on federal highways. Medium-sized developers would be permitted to join together ininvestment vehicles that, as a whole, could deliver theminimum required capital. The proposal is up forapproval by Tribunal de Contas.

The proposal aims to spur bid competition withhighly capitalized parents of contractors that holdalmost exclusive access to federal highway sales,including Odebrecht, Andrade Gutierrez and GalvâoEngenharia. Meantime, the ban that resulted from thePetrobras corruption scandal, barring them from bid-ding on federal deals, has been withdrawn.

In addition to road deals, Brazil is planning to bidout the upgrade and operation of four domestic air-ports strung out along Brazil’s Atlantic shoulder inPorto Alegre, Salvador, Florianopolis and Fortaleza.The proposal is to turn them into international air-ports and allow them to be run by international oper-ators. The Brazilian government has instructed statecivil airport operator Infraero to review lease periodsand withdraw federal equity holdings for the forth-coming tenders. The Sâo Paulo business press reportsthat Brazil is also reviewing the sale of Infraero’s hold-ings in its privatized international airports.

In the energy sector, loosened restrictions permittedChina’s Three Gorges electrical company to buy twohydroplants for Reais 1.74 billion (US$435 million)from local infrastructure developer Triunfo.Meantime, finance minister Joaquim Levy recentlyvisited Madrid to discuss Brazil’s new infrastructureplans.

. . . European News

� Abertis On the Move Spain’s Abertis is poised to enter Italy’s toll road sys-tem after securing exclusive rights for three months tobuy a controlling stake in a 156-km section of the A4toll road combined in a package with a smaller route,

We createfuture value

www.sacyr.com

Throughout its almost 20-year track record, Sacyr Concesiones has more than proven its expertise and technical know-how, as well as its financial capacity with committed global investment amounting to 16 billion dollars. The company specialises in greenfield projects in which it handles the design, financing, construction and management of assets. This global conception of business, combined with its active project management, allows the company to bring added value to its concessions, thereby attracting financial partners. It currently operates over 30 infrastructure concessions in six countries (Spain, Portugal, Chile, Peru, Italy and Ireland) within such sectors as motorways (almost 3,000 kilometres), transport hubs, hospitals (more than 3,000 beds), metro lines, airports and service areas.These assets have an average remaining lifespan of 26 years.


the 81-km A31. Abertis’s piece of the A4 is 156 km fromBrescia to Padua, passing Vicenza. (The entire A4runs 517 km across northern Italy connecting Trieste,on the Adriatic, and Turin in northwest Italy, passingVenice and Milan on the way.) The A31 runs north-south from Piovene, in northeast Italy, and intersectswith the A4 at Vicenza.

Abertis would pay Euro 1.2 billion (US$1.44 billion)and another sum in dollars, US$450 million. A4Holding, made up of Banco Intesa San Paolo, engi-neering firm Astaldi, and a family investor copartner,currently owns 44.5% of the route. Intesa San Paoloowns a separate 6.5% stake.

Abertis faced a trio of tough rivals for A4 and A31.Atlantia, Italy’s dominant road owner-operator,Australia’s Macquarie, and Grupo Gavio, the Milanbased road developer-operator also bid. To win, Abertisoffered more than the Euro 1.1 billion (US$1.12 bil-lion) asking price. Once due diligence is completed inOctober, Abertis intends to close the deal and debut asan Italian road operator by the end of the year.

At the same time, Abertis raised its equity in aChilean vehicle to become full owner-operator of tworoads. Through its local unit, Abertis Autopistas Chile,it took on the 50% equity it did not own of investment

fund Estructura Dos Mil for Chilean pesos 93.5 billion(US$130 million), becoming 100% owner of Autopistadel Sol, a 133-km road linking Santiago with the portcity of San Antonio, and Autopista Los Libertadores, aroad extending 116-km north of Santiago. The conces-sions will end respectively, in 2019 and 2026. Their2014 combined Ebitda was Euro 62 million (US$70million).

In France, Abertis underwrote an agreement thatlengthens by 2 ½ years the life of its 1,760-km SANEFhighway network and a smaller system, SAPN. Tollcharges, which had remained frozen, will be allowedannual hikes from next year to 2023 to compensate forlost revenue. Abertis will contribute Euro 11 million(US$12.3 million) to a French fund to improve stateroads.

In June, Standard & Poor’s upgraded Abertis’s longterm debt rating to BBB positive from BBB stable.Abertis has reduced its net debt by almost 20% fromlast year to Euro 11.2 billion (US$12.5 billion), whichdelivered a ratio of 3.7 times net debt to Ebitda. Thedebt cut was helped by a profit of Euro 1.677 billion(US $1.9 billion), boosted by one-off capital gains fromthe sale of 66% of its communications unit, Cellnex.

Stripping out extraordinary results, recurrent netprofit grew 5% boosted by traffic growth in Chile,Brazil and France, where Abertis generates over 60%of its revenues. Traffic in Spain rose 5.7%. Ebitdatotaled Euro 1.45 billion (US$ 1.6 billion) after strip-ping out one-off impacts.

Abertis says it aims to use its financial muscle tobuy other assets in the U.S, Puerto Rico, Brazil, Chileand Spain. In Spain, Abertis boosted to 50.01% its con-trol over Tuneles de Cadi in Barcelona after purchas-ing an additional 15.1 %.

� OHL Plans $1bn Capital ExpansionSpain’s OHL will sell Euro 1 billion (US$1.1 billion) ofnew shares this fall to help lift the company out of aplague of financial problems and to recover the invest-ment grade rating of its corporate debt. UBS, JPMorgan Chase, Merrill Lynch and Société Genéralehave been selected to handle the placement of newshares.

OHL, S.A. says proceeds it obtains from theplanned capital increase will be used to reduce debt byEuro 650 million (US$728 million) and to inject Euro350 million (US$392 million) of capital into its conces-sions unit, OHL Concesiones.


OHL Executive President Jose Miguel Villar Mir,the company’s controlling shareholder, has pledged toparticipate in the capital expansion by purchasing,together with his family, Euro 500 million (US$560million) to retain control of OHL and keep an equitystake of greater than 50%, currently at 59.9%.

To underwrite the OHL capital increase, Villar Mirhas sold shares in other assets he owns, including a10% stake in a real estate company and a small stakein Abertis.

In a blow to OHL, Moody’s placed on review fordowngrade OHL’s B1 debt rating. What pulled thetrigger was a dive in the stock value of OHL’s Mexicanunit, OHL Mexico, S.A., arising from a corruptionscandal blowing fiercely over its ViaductoBicentenario concession contract. High leverage wasanother factor, as gross recourse debt has remained atseven times Ebitda since the end of 2014, which isabove the five times Ebitda allowed for B1 rated firms.Its ultimate goal is to cut net debt with recourse to ametric of two times EBITDA.

The play of damaging Mexican news on OHL’s highleverage prompted OHL shares in the Madrid “Bolsa”stock exchange to tumble 35% since the beginning of2015. Morgan Stanley and Deutsche Bank were thebiggest sellers of OHL shares. The company’s bondshave begun to rally however at the prospect that OHLwill deleverage.

Though an external audit of its Mexican unit deniedthe existence of any irregular action, OHL Mexico islikely to come under increased scrutiny and face diffi-culties in securing new concessions. It bowed out of anelevated road toll contest. Moody’s report notes thatthe Mexican roads, which form OHL’s single largestasset pool, generate 77% of the firm’s consolidatedEbitda.

� Spanish-Led Team Wins Egypt WaterEgypt has named an international team led by Spain’sFCC Aqualia as preferred bidder for a wastewatertreatment plant with a planned cost of Epounds 5 bil-lion (500 million euros) (US$636.3 million). The AbuRawash plant will serve 5.5 million inhabitants ofCairo. The project has been held up for years by polit-ical upheaval, and is one of the largest PPP deals inEgypt.

Aqualia New Europe, a special purpose firmlaunched by FCC and including the European Bankfor Reconstruction and Development (EBRD), France’s

Veolia, local firm Icat, and Orascom ConstructionIndustries, a leading Egyptian engineering-construc-tor, will expand the existing primary treatment plant,in Gizeh near Cairo, from 1.2 million cu m/day to 1.6million cu m/day. It will then upgrade the level oftreatment to organic-free secondary treated water.Under the contract, the team will design, build,finance, operate and maintain Abu Rawash for 20years and expects revenue of Euro 2.4 billion (US$ 2.7billion) over the life of the contract.

In addition to EBRD, the World Bank and localbanks are set to provide financing. The project will beoperational two years after construction begins. FCCAqualia operates 320 wastewater treatment plantsworldwide and had revenue of Euro 950 million(US$1.1 billion) in 2014.

For Egypt, a reformed PPP mechanism to developinfrastructure P3 projects seems to be bearing fruit,starting with Abu Rawash. Egypt plans to roll out,through the General Authority for Roads, tenders for a6-lane (3x2), 38-km-long toll road from Shoubra, north ofCairo, and an eight-lane (4x2) tolled access to Cairo, ElFarag Access. Other deals will include seawater desali-nation and other wastewater treatment plants. �


Veolia group is the global leader in optimized resource man-agement. With over 179,000 employees* worldwide, the Groupdesigns and provides water, waste and energy managementsolutions that contribute to the sustainable development ofcommunities and industries. Through its three complementarybusiness activities, Veolia helps to develop access toresources, preserve available resources, and to replenish them.In 2014, the Veolia group supplied 96 million people with drink-ing water and 60 million people with wastewater service, pro-duced 52 million megawatt hours of energy and converted 31million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE)

recorded consolidated revenue of $29.6 billion* in 2014.www.veolia.com (*) 2014 pro-forma figures, including DalkiaInternational (100%) and excluding Dalkia France.

Visit the North American web site atwww.veolianorthamerica.com or call (800) 522-4774

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AND ADVERTISERS

Public Works Financing pub-lished its first issue in January1988 and quickly built a strongbase of loyal subscribers by provid-ing accurate, objective and timelyinformation about public-privatepartnerships and innovative deliv-ery of public works infrastructureprojects.

Readership has grown eachyear since then, and PWF nowreaches about 4,000 private prac-tioners, government owners, acad-emics, students and others in mostparts of the world. Twenty of thelargest investors, design firms andconstruction companies pay forthe right to distribute our pdf eachmonth to as many of their employ-

ees as they wish. Some send PWFto over 50 people!

Our advertisers have taken loy-alty to new heights. Of 36 currentadvertisers, 18 have marketedtheir services in PWF for over 10years (eight of them for over 15years and four for 20 years).

Our first advertiser cameaboard in 1990 and was quicklyfollowed by Parsons Brinckerhoff,Nossaman, CDM Smith, Herzogand Hawkins Delafield & Woodand Elias Group, all of whom arestill advertisers.

The U.S., Spanish, French andChinese transportation develop-ers (12), and the country’s largestmunicipal water operators (2),came next. Then, starting in1995, the full complement of tech-

nical, legal and procurementadvisors came aboard, includingmost recently Mayer Brown,Ernst & Young, Raba Kistner,HNTB, HDR, AECOM, O.R.Colan, Jacobs, Lochner MMMand TYPSA-Aztec. More recently,the Association for theImprovement of AmericanInfrastructure, and financiersAssured Guaranty and KeyBancCapital Markets followed.

Together, these firms have suc-cessfully closed well over $300 bil-lion worth of road, rail, water andbuildings projects worldwide since1985. �

For a rate sheet, please visitPWFinance.net

or contact William G. Reinhardt,(908) 654-6572 or

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As part of SUEZ ENVIRONNEMENT, United Water pro-vides water and wastewater services to 5.3 million people in20 states through the dedication of its 2,350 employees.In addition to owning and operating 16 regulated utilities,United Water operates 84 municipal and industrial systemsthrough innovative public-private partnerships and contractagreements. Founded in 1869, the company's core expertisein providing safe, clean drinking water has evolved into provid-ing a full range of services, from technical assistance to totalasset ownership. We assist communities with improving ser-vice, reducing costs, complying with environmental regula-tions, managing labor relations and providing excellent cus-tomer service. For more information, visit unitedwater.com or contact TomBrown at [email protected] or(201) 767-9300.


O. R. Colan Associates (ORC) provides a full range of realestate services related to the appraisal, acquisition and reloca-tion phase of design build highway projects. With more than 29offices in 20 states nationwide, the company is broadly recog-nized as a leader in providing real estate solutions for publicworks projects. ORC provided the right of way acquisition andrelocation assistance for the following successful design-buildhighway projects: Segments 1-6 of SH 130 and the DFWConnector projects in Texas; the Pocahontas Parkway inVirginia; US 158 in North Carolina; Route 3 North inMassachusetts; I-64 in Missouri; I-93 in New Hampshire; andSections 2 & 3 of I-69 in Indiana. ORC is currently providingright of way services on the Zachry-Odebrecht Parkway BuildersTeam for the Grand Parkway in Houston, Texas. These projectscombined involved the acquisition of more than 3,000 parcelsand the relocation of more than 1,000 residences and business-es. Time is money on a design build project. ORC has theproven ability to deliver the right of way on time for constructionon fast paced projects while meeting all state and federalrequirements. Contact Steve Toth, COO, [email protected] or visit us at www.orcolan.com.

Sacyr Concesiones Throughout its almost 20-year trackrecord, Sacyr Concesiones has more than proven its expertiseand technical know-how, as well as its financial capacity withcommitted global investment amounting to 16 billion dollars.The company specialises in greenfield projects in which it han-dles the design, financing, construction and management ofassets. This global conception of business, combined with itsactive project management, allows the company to bring addedvalue to its concessions, thereby attracting financial partners.It currently operates over 30 infrastructure concessions in six

countries (Spain, Portugal, Chile, Peru, Italy and Ireland) withinsuch sectors as motorways (almost 3,000 kilometres), trans-port hubs, hospitals (more than 3,000 beds), metro lines, air-ports and service areas. These assets have an average remain-ing lifespan of 26 years.

Contact: Felix Corral [email protected] +34 91 545 5000

Sacyr Concesiones“We create future value”


With over $10 Billion in P3 projects, Raba KistnerInfrastructure (RKI) has established its reputation as aleader in quality management programs. We are a nationalcompany that provides professional consulting and engineeringservices in the areas of Construction Quality Management,Program Management (PM+)TM, Independent Engineer andOwner’s Verification and Testing, and Construction QualityControl/Quality Acceptance Programs, Right of Way (ROW)Management and Acquisition, and Subsurface UtilityEngineering to government and industry clients. Our expertisein quality programs goes beyond satisfying the fundamentals.We ensure that quality programs address the unforeseen chal-lenges that arise in Design and Construction QC/QA pro-grams. Our award winning data management and documentcontrol program, ELVIS, provides real time management infor-mation to assist in making time-critical decisions.

For more information, contact Gary Raba, D Eng, P.E. [email protected] or by calling 866-722-2547.

WSP | Parsons Brinckerhoff is a global consulting firmassisting public and private sector clients plan, develop, design,construct, operate, and maintain hundreds of critical infrastruc-ture projects around the world. WSP | Parsons Brinckerhoff’sexperience extends to every form of transportation, includingairports, rail systems, buses, roads, and ports. For complexprojects procured through public-private partnerships or usingdesign-build, the company provides project development, designengineering, and operations services to contractors and con-cessionaires. We apply our world-class technical expertise andour deep understanding of local needs to develop innovativesolutions that create value for our clients and for the communitythe project serves. For more information please contact LenRattigan, Alternative Delivery Director, (703) 742-5740;[email protected]; Sallye Perrin, Strategic PursuitsManager, (410) 246-0523, [email protected]; KarenHedlund, Director of Public-Private Partnerships (212) 465-5059, [email protected]; or John Porcari, StrategicConsulting Director, (202) 661-5302, [email protected]..



Nossaman LLP, a U.S. law firm dedicated to repre-senting government agencies, is widely acknowledgedto possess the broadest and deepest practice in theworld focused on U.S. transportation infrastructure,specializing in the effective deployment of P3s andother forms of innovative project delivery, finance,operations and maintenance. Nossaman has helpedclients achieve many significant milestones includingthe following:• Florida DOT $2.3B I-4 Ultimate Project – AvailabilityPayment Contract – Commercial and Financial Close,September 2014• Florida DOT $1B Port of Miami Tunnel Project –Availability Payment Contract – Open to Traffic, August2014• Texas DOT $525M Loop 375 Border Highway WestExtension Project – Design-Build Contract –Commercial Close, August 2014• Indiana Finance Authority $370M I-69 Section 5Highway Project – Availability Payment Contract –Financial Close, July 2014• North Carolina DOT $600M I-77 HOT Lanes – TollConcession – Commercial Close, June 2014Contact: Geoffrey S. [email protected] / (213) 612-784Patrick Harder at [email protected](213) 612-7859,Simon Santiago at [email protected] (202) 887-1472

On the web at www.nossaman.com andwww.InfraInsightBlog.com.

To access PWF’s Major Projectsdatabase and for advertising andsubscription information, visit

www.PWFinance.net

or

call (908) 654-6572

Macquarie Capital provides corporate advisory,capital markets and principal investing solutions toclients globally. We work with PPPs on a range ofsolutions, including partnering to deliver complex infra-structure projects, providing procurement advice togovernments and providing development capital.Macquarie Capital stands out by delivering solutionsacross the entire balance sheet. In addition to advisoryand capital markets solutions, we have the demon-strated capability to act as a principal investment part-ner and facilitate capital solutions to support acquisi-tions, refinancings or other events for our clients.

Contact: Andrew Ancone, Managing Director+1 (212) 231-1660

Plenary Group is North America's leading specializeddeveloper of long-term Public-Private Partnerships (P3)projects, with more than $11 billion in public infrastruc-ture assets currently under management and offices inVancouver, Toronto, Ottawa, Los Angeles, Denver andSeattle, as well as site offices that manage the construc-tion and operation of our concessions. Our businessmodel relies on strong partnerships with clients, localcontractors, sub-contractors and trades to ensure theefficient and timely completion of projects, with a viewtowards the long-term. Contact Marv Hounjet, Vice President, CorporateDevelopment USA, [email protected],(425) 223-5741 or Olivia MacAngus, Vice President,Corporate Development Canada,[email protected], (416) 902-9695.More information can be found atwww.plenarygroup.com.

KeyBanc Capital Markets—A U.S.-based institutionwith a deeply rooted U.S. regional presence, KeyBancCapital Markets excels at understanding the needs andsensitivities of local constituencies and public officials tofacilitate communication and deliver reliable and innova-tive infrastructure solutions. With our comprehensivePublic Private Partnership platform, and our willingnessto deploy bank balance sheet and capital markets prod-ucts providing short and long term funding, our financialexperts have the experience and expertise to respond toall financing needs and address all procurement issuesunique to public infrastructure projects.

Contact Jose Herrera at 917-368-2390 /[email protected], or Jeff Rink at 216-689-0885 /[email protected], or visit key.com/P3.

KeyBanc Capital Markets Inc. is not acting as a municipal advisor or

fiduciary and any opinions, views or information herein is not intended

to be, and should not be construed as, advice within the meaning of

Section 15B of the Securities Exchange Act of 1934. KeyBanc

Capital Markets is a trade name under which corporate and invest-

ment banking products and services of KeyCorp and its subsidiaries,

KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC, and

KeyBank National Association (“KeyBank N.A.”), are marketed.

Securities products and services are offered by KeyBanc Capital

Markets Inc. and its licensed securities representatives, who may

also be employees of KeyBank N.A. Banking products and services

are offered by KeyBank N.A. Key.com is a federally registered ser-

vice mark of KeyCorp. ©2015 KeyCorp.



In 2007, U.S.-based H.W. Lochner, Inc., and Canada-based MMM Group Limited formed an equal partnership,Lochner MMM Group, to integrate internationally-gaineddesign-build and P3 experience with an in-depth under-standing of U.S. transportation infrastructure. Together, wecombine local knowledge with international best practicesto provide owners, contractors, concessionaires, anddesign partners throughout the U.S. solutions that areinnovative, practical and constructible. With coast-to-coastoffices throughout the U.S. and Canada, Lochner MMMGroup offers:• A deep pool of staff resources to deliver large scale pro-jects within fast-track schedules.• Proven capability in advisory, design, and program man-agement roles.• Experienced teams that understand and thrive in thealternative delivery environment.• Ability to leverage a strong local presence with interna-tional expertise.Contact: Phil Russell, President & CEO, LochnerMMM Group | 512.828.0076 |[email protected]

Mayer Brown has one of the leading public-private partner-ship practices in the United States. A perennial Chambers Band1-ranked practice for P3 Projects, what distinguishes us fromother law firms is our experience advising clients on transactionsthat have successfully closed from every side of a project. Wehave represented public agencies, sponsors and lenders alike onP3 transactions around the country and across all asset types,including roads, bridges, ports, parking, mass transit and socialinfrastructure.

Contact: George K. Miller (212) [email protected] Narefsky (312) [email protected] R. Schmidt (312) [email protected] Seliga (312) [email protected]


KPMG’s Global Infrastructure professionals in the US andCanada provide specialist Advisory, Tax, Audit, Accounting andCompliance related assistance throughout the life cycle of infra-structure projects and programs. Our teams have extensive localand global experience advising government organizations, infra-structure contractors, operators and investors. We help clientsask the right questions and find strategies tailored to meet thespecific objectives set for their businesses. KPMG can help seta solid foundation at the outset and combine the various aspectsof infrastructure projects or programs – from strategy, to execu-tion, to end-of-life or hand-back.

Contact Andy Garbutt, Practice leader for KPMG’s US team,at +1 (512) 501-5329 and Brad Watson, Practice leader forKPMG’s Canadian team, at +1 (416) 777-8142, or e-mail: [email protected] or www.kpmg.com/infrastructure.com

Meridiam is a leading developer, equity investor andasset manager of primary Public Private Partnership (P3)infrastructure projects with deep expertise in NorthAmerica and Europe. With US$3.8bn of assets undermanagement across three long-term infrastructure funds,and a focus on transport, social infrastructure and environ-mental P3 assets, Meridiam strives to establish a long-term contractual relationship between the public and pri-vate sectors. Meridiam currently manages 32 projectsworldwide, including 9 projects across North America,among which are the Port of Miami Tunnel in Florida, theLong Beach Courthouse in California, and the WaterlooLight Rail Transit in Ontario.

Contact: Joe Aiello ([email protected])Thilo Tecklenburg ([email protected]).

Meridiam North America – 605 Third Avenue, 28thFloor NY, NY 10158 – Tel (212) 798-8686 or MeridiamCanada – 357 Bay Street Suite 501 Toronto, Ontario,Canada, M5H 2T7 – Tel (647) 345-3529

www.meridiam.com

Established in 1884, Kiewit is one of the largest con-struction organizations in North America leveraging a net-work of more than 50 offices to develop a respectedmultifaceted business presence across North America.With a staff of management, technical, financial, commer-cial and legal experts dedicated to successfully deliveringP3 projects, our success is based on the trust that wehave built with government officials, stakeholders and thefinancial community. As a recognized leader in design-build and P3 project development, Kiewit combinesextraordinary financial credibility and extensive resourceswith a creative, solution-oriented approach to ensure apredictable outcome of success for our clients.

Contact: Joe Wingerter, Director of P3 ProjectDevelopment, Kiewit Corp. (402) 943-1329,[email protected] or John McArthurPresident, Kiewit Canada Development Corp.(416) 620-6237, [email protected]



Jacobs is one of the world’s largest and most diverseproviders of professional technical consulting services. As afull-spectrum lifecycle solutions provider we focus on develop-ing close strategic partnerships with our clients over the lifecycle of their projects. Jacobs provides a distinctive range ofcomprehensive planning, design and management expertise inalmost every industry—public and private. We are often calledupon by government agencies to provide program advisory ser-vices related to public-private partnerships (P3) including finan-cial and economic feasibility, procurement and other relatedservices. As project funding decreases, public-sector clientsare partnering with Jacobs to identify and implement P3 pro-grams tailored to meet their project delivery and financing chal-lenges.

For more information, please contact Pamela Bailey-Campbell at (214) 920-8158.

Herzog Contracting/Herzog Railroad Services Inc. –Design-build/CMGC for highway / heavy construction and railroadmass transit. North America’s largest rail and commuter rail construc-tion and maintenance contractor, provides rail mass transit operationsand dispatching in North America and railroad expertise worldwide,delivering state-of-the-art technology for Hi Speed Rail Flaw Detectionand railcar and railroad equipment leasing, ballast distribution, rail re-laying and railcar unloading, railways systems and signals. Also, devel-opment and operation of municipal and industrial solid waste facilities.

� At (816) 233-9001, fax (816) 233-9881, or 600 S. Riverside Rd.,P.O. Box 1089, St. Joseph, MO 64507-1089, please contact:Joe Kneib, Sr. VP Market [email protected]; Greg Hackbarth, President, Herzog Technologies, Inc. [email protected] Francis, VP Marketing, Herzog Rail [email protected] Scott Norman, V.P. Estimating/Project Development, [email protected] at (816) 233-9001Scott Perry, VP, Special Projects, [email protected]

Ernst & Young, LLP is a leader in assurance, tax, trans-action and advisory services. We believe in the value ofinfrastructure to our communities and are proud to serveclients as they work to:• Rebuild and modernize existing infrastructure• Invest wisely in new infrastructure to address new andchanging needs, enable growth and achieve a higher quali-ty of life for communities• Bring innovation, foresight and sound economic steward-ship to their major projects, programs and investments,and/or• Identify and attract the funding and financing required toinvest in infrastructure.

We provide finance, business planning, policy, procure-ment, modeling, valuation and tax advice for large-scaleinfrastructure projects, programs, investments and public-private partnerships. We serve state and local governmentclients through our affiliate, Ernst & Young InfrastructureAdvisors, LLC, a registered municipal advisor. We helpclients to achieve their goals.

Please contact: Mike Parker, Senior Managing Director,Ernst & Young Infrastructure Advisors, LLC+1 215 448 3391, [email protected]; or Jay Zukerman, US Infrastructure Tax Leader, +1 212773 3270, [email protected].

HNTB Corporation is an employee-owned infra-structure solutions firm serving public and private own-ers and contractors. For more than a century, HNTBhas understood the life cycle of infrastructure andaddresses clients’ most complex technical, financialand operational challenges. Professionals nationwidedeliver a full range of infrastructure-related services,including award-winning planning, design, programmanagement and construction management. For moreinformation, visit www.hntb.com.

Or contact John Friel (517) [email protected] or David Downs (303) [email protected] or visit hntb.com.

Public Works Financing /July-August 2015 31



Hawkins Delafield & Wood provides legal advisory servicesto governmental owners on P3 and alternative delivery infrastruc-ture projects in the United States and Canada. The firm also rep-resents P3 project investment bankers and lenders.

Our infrastructure legal practice is widely recognized for itsquality and depth. Over a 20-year span, Hawkins has negotiatedand closed more than 200 design-build, design-build-operate,design-build-finance-operate, construction-manager-at-risk, con-cession, asset management, operating services and franchiseagreements for public sector clients in 25 states and threeprovinces. We practice in the transportation, water, wastewater,solid waste, renewable energy and social infrastructure sectors.Leading projects on which Hawkins has served as owner’s leadcounsel include:• Carlsbad Seawater Desalination Project (San Diego County

Water Authority), a Project Finance International water infrastruc-ture P3 deal of the year.• New Long Beach Court Building (State of California), a Bond

Buyer social infrastructure P3 deal of the year.• Vista Ridge Regional Water Supply P3 Project (San Antonio

Water System)

Contact: Eric Petersen at (212) 820-9401 ([email protected])\Ron Grosser (212) 820-9423 ([email protected]) Joe Sullivan (212) 820-9513 ([email protected])Rick Sapir at (973) 642-1188 ([email protected])

or through our website at www.hawkins.com

With more than 40 years of experience, IRIDIUM Concesiones (for-merly Dragados Concesiones) is the ACS Group company that pro-motes, develops and operates public private partnership projectsworldwide. With over 100 projects developed in 21 countries, includ-ing 3,953 miles of highways, 1,029 miles of railroads, 16 airports, 18ports and several social infrastructure PPP projects, IRIDIUMConcesiones is the world leader in this field. We are proud to haveglobal presence with local commitment. ACS Group companies applytheir unsurpassed technical skills to the planning, design, construc-tion, operation and maintenance of infrastructures, using the latesttechnologies in any area and providing the highest level of excellencethroughout. A solid financial capability combined with an innovativeapproach allows IRIDIUM Concesiones to structure the necessaryfinancial resources for any project. Contact Salvador Myro ([email protected]) at +(34) 91 70385 48 or visit www.iridiumconcesiones.com or www.grupoacs.com forfurther details.

At HDR, it’s our job as consultants to help you keep pace withtoday’s rapidly changing marketplace. We help you make decisionsbased on rigorous analysis of the economic climate, a thoroughunderstanding of your organizational needs and priorities, and nearly100 years of experience in delivering infrastructure. From strategyand finance to design and delivery, we help you develop innovative,reliable and cost-effective solutions to your infrastructure challenges.

Learn more at hdrinc.com or contact us: Bill Damon, managing director—Power, (734) 332-6400,[email protected] Michael Schneider, managing director—Transportation, (213)313-9402, [email protected] Strickland, managing director—Water, (212) 542-6129,[email protected] FFor information about

how to list your firm in PWF’s Public-Private Services Directory

contact William Reinhardtat (908) 654-6572 orwww.pwfinance.net

or email: [email protected]



Formed in 1922, Granite Construction Incorporated istoday one of the largest heavy civil contractors in the UnitedStates. It is positioned in all the major U.S. markets withoffices located throughout the country serving over privateand public clients. Over the past 88 years, Granite hasearned a nationwide reputation as the preeminent builderof quality projects in a timely manner. Always progressive,Granite has developed into one of the top Design-Buildcontractors in the U.S. and has recently enacted anEnvironmental Affairs Policy to take a leading role in theconstruction industry in protecting the environment andour natural resources. Through our corporate SustainabilityPlan, we actively engage in industry, and direct efforts atthe local, state, and federal levels to advocate for adequateand sustainable public infrastructure funding tomaintain and improve America’s transportation system.Granite is nationally recognized for its expertise in themajority of construction sectors including tunnels, highwaysand roadways, dams, bridges, railroads marine, airports,heavy and light mass transit, and have becomerenowned design-build and mega project constructors.Granite leads the market in the design-build turn-keydelivery of complex fast paced transportation projects.

Contact Kent Marshall (831) 728-7549, or 585 West Beach St.Watsonville, CA 95077-5085 www.graniteconstruction.com

Globalvia was founded in 2007, being its shareholders(50:50) the construction and environmental services compa-ny Fomento de Construcciones y Contratas S.A. andSpanish savings bank Bankia. Globalvia, one of the world’slargest transport infrastructure developers by number of con-cessions, according to PWF, is specialized in DBFOM andDBFM projects. Globalvia has the financial capability toaccelerate delivery of projects, as well as the constructionand operational expertise to meet the highest standards forthe life of a project. We take pride in working with local con-tractors, employing area business and individuals duringoperation and incorporating community feedback to deliverthe best possible public service. Currently, the companymanages 32 transport PPP projects in seven countries,including roads, railways, ports, airports. Over 250m vehiclesand 54m passengers travel annually on our safe, reliablemodern road and railways, which total 1,600km long.

Contact Michael Lapolla +1 (908) [email protected] Rafael Nevado [email protected]

Elias Group LLP provides legal and consulting services togovernment and industry. We are a boutique law firm interna-tionally recognized for our expertise in project finance, pub-lic/private partnerships, industrial outsourcing, joint venturesand strategic alliances, and M&A of regulated and non-regulat-ed entities. The firm’s unique accomplishments include the first20-year concession agreement executed in the U.S. for therehabilitation and operation of a municipal wastewater treat-ment facility. Our skills and practical experience are evident inthe multitude of transactions successfully completed.

Contact Dan Elias or Michael Siegel at 411 TheodoreFremd Avenue, Rye, NY 10580; tel: (914) 925-0000; fax: (914)925-9344; or visit our web site: www.eliasgroup.com

Ferrovial Agroman is a leader in the global constructionmarket. In addition to Spain, the company has significant activ-ity in eight other countries: Poland, USA, Greece, UnitedKingdom, Chile, Puerto Rico, Ireland and Portugal. Whollyowned by the same parent company as CINTRA, the world’slargest transportation developer by invested capital, FerrovialAgroman has 80 years of construction experience in DBB,DB, and P3 projects in all types of infrastructure assets.These decades of experience result in 2,500 miles highwayconcessions; 9,475 miles new roads; 16,995 miles rehab ofroads; 304 miles tunnels; 2,523 miles canals; 3,884 mileswater pipelines; 2,392 miles gas and oil pipelines; 29 hydro-electric power stations; 147 dams; 220 water treatmentplants; 21 miles wharfs and ports; 40 airports; 20 stadiums;and 2,920 miles of railways, including 449 miles of HighSpeed Rail.

Contact Daniel Filer, VP of Business Development forNorth America at +1-512-637-8587.



Abertis is the world leader group in motorway managementand one of the first international infrastructure operators.Through its two business areas (motorways and telecommuni-cations infrastructures), the company has presence in 12countries across Europe and America, as a result of an inter-nationalization process which has intensified over the pastthree financial years. The infrastructure Group employs morethan 16,000 people around the world and 62% of its revenuesare generated outside Spain. The evolution of the company ismarked by the integration in 2012 of more than 3,500 kilome-ters of motorways in Brazil and Chile. This operation leadAbertis to achieve the world leadership in the motorway con-cession sector, both in terms of kilometers managed (morethan 7,300) and for income (exceeds 4,600 MEUR). Abertis islisted on the Spanish Stock Exchange and is a constituent ofthe IBEX 35. It is present also in the main international index-es such as FTS Eurofirst 300 and Standard & Poor’s Europe350.

Contact: Corporate Communications Direction (34)93 230 5039

Egis has an unrivalled experience in most types of infrastructureP3 and concessions: motorways, bridges, tunnels, urban infrastruc-tures and airports. We are experienced with all types of remunera-tion (real toll, shadow toll or availability schemes). Egis Projectsrelies on the specialized skills of its shareholders: Groupe Egis, aleader in infrastructure engineering, and Caisse des Dépôts. EgisProjects acts as promoter, developer and investor in concession/P3projects, as turnkey equipment integrator, as operator and managerof airports and, via its wholly owned subsidiary Egis RoadOperation, as operator of roads and motorways. Egis Projects hasalso extended its activities to electronic toll collection, toll networkinteroperability, and safety enforcement as well as associated ser-vices for road users under the Easytrip brand.Egis Projects has financially closed 23 infrastructure projects for atotal value of 12 bn €. Egis Road Operation is operating 30 motorways totalling 2,400 kmin 16 different countries.

Contact: Alain Poliakoff in Paris, France at +33 1 39 41 45 13,fax (33) 1 39 41 57 37 or [email protected] or visit our website:www.egis-projects.com

Engineering and Environmental Solutions

TYPSA-AZTEC is an international consulting engineering firmwith nearly 50 years of experience successfully executing majorinfrastructure projects. Our 2000 professionals work in multidis-ciplinary teams to improve and sustain enhanced living condi-tions around the world. Our major services include:Transportation / Architecture / Building Technology / Energy /Environmental Services. We are internationally recognized withtop industry rankings and awards. In all we do, we seek bal-anced solutions for our clients, the public and the environment.

For more information, please contact Miguel Bardalet:(602) 625-4028 / [email protected] orRobert L. Lemke, Jr.: (602) 402-8683 /[email protected]

www.typsa.com www.aztec.us

C&M Associates is a U. S. toll and managed lanes traffic& revenue specialist firm independently serving public and pri-vate sector clients since 2004. Our services for state DOTsinclude project screening and feasibility, planning level trafficand revenue forecasts, traffic projections for environmentalstudies, operational analysis, risk analysis and investmentgrade traffic and revenue studies to support bond issuance foravailability payment and 63-20 structures. Private client ser-vices include advisory on behalf of equity: Investment gradetraffic and revenue studies to support traffic risk concessionbids, financing support services before lenders, investors andTIFIA, risk analysis of projected forecasts and operationalanalysis. Advisory on behalf of lenders: Peer review of equitytraffic and revenue forecasts, development of lender caseforecasts and risk analysis.

Contact Carlos M. Contreras at [email protected] or at 972.522.9373.



CDM Smith provides lasting and integrated solutions inwater, environment, transportation, energy and facilities topublic and private clients worldwide. As a full-service consult-ing, engineering, construction, and operations firm, we deliverexceptional client service, quality results and enduring valueacross the entire project life cycle.

CDM Smith is internationally recognized for utility, toll roadand public-private partnership expertise, serving public andprivate sector clients on hundreds of infrastructure projectsworldwide. For more than 60 years, CDM Smith has workedto place $85 billion of revenue-based financings and provideunparalleled credibility in today’s financial markets.

Visit us at cdmsmith.com, or contact Ed Regan (803 251-2072), Kamran Khan (630 874-7902), Grant Holland(404 720-1283) or Joe Ridge (603 222-8320).

Cintra plays a leading role in transport infrastructure developmentthroughout the world, with nearly 1,300 miles of managed highwaysworldwide. This represents a total global investment in traffic con-gestion improvements of more than US$28.7 billion. Cintra has aportfolio of 25 concessions in six countries distributed amongCanada, United States, Spain, Portugal, Ireland, and Greece, andoffices in Colombia and Australia. At the close of 2012, 57% of itsturnover and 60% of its EBITDA came from projects outside Spain.Cintra’s staff is formed by more than 2,000 professionals, of whicharound 80% work outside Spain. The Cintra-Ferrovial merger in2009 created one of the World’s largest private operators of trans-portation infrastructure and a leading services provider with net rev-enues of more than $7.5 billion a year and operations in more than25 countries. Ferrovial’s business model is focused on end-to-endinfrastructure management, design, construction, financing operationand maintenance, as well as services.

Contact: Ricardo Bosch, Director North America BusinessDevelopment, [email protected], or Carlos Ugarte, CorporateDevelopment and Business Direction +34 91 418 5606. More infor-mation: www.cintra.es

Assured Guaranty, the leading provider of bond insurance, hashelped public-private partnerships reduce the cost of financingessential public infrastructure and achieve smooth transaction exe-cution for decades, even during extremely difficult market condi-tions. With financial strength rated AA by S&P and A2 by Moody’s,both with stable outlooks, Assured Guaranty Municipal Corp. helpsbroaden the investor base and improve the cost efficiency of infra-structure financings by unconditionally guaranteeing timely paymentof principal and interest. Investors are attracted to the insuredbonds’ increased market liquidity, as well as Assured Guaranty’scredit selection, underwriting, negotiated terms, construction periodcoverage and ongoing surveillance.

Contact: Lorne Potash at [email protected](212) 261-5579, orMary Francoeur at [email protected](212) 408-6051

For additional information, visit AssuredGuaranty.com.

AIAI is a non-profit organization formed in the District ofColumbia to help shape the direction of the national PublicPrivate Partnership marketplace. AIAI serves as a nationalproponent to facilitate education and legislation through tar-geted advocacy. AIAI’s Board is comprised of leaders of theconstruction and development industry. Their extensivenational and international experience and industry knowledgeprovides AIAI with a clear direction for developing and advo-cating policy and legislative solutions, allowing more equitableand effective partnerships across diverse market sectorsfrom transportation and energy to educational, health andpublic service institutions. Contact Lisa Buglione (516) [email protected]


Advertisers’ Index

Abertis Studies and Corporate CommunicationsDirection (34) 93 230 50 39

Cintra, S.A.Ricardo Bosch [email protected] Ugarte [email protected]+34 91 418 5606

EGIS ProjectsAlain Poliakoff in Paris +33 1 39 41 45 [email protected]

Ferrovial AgromanDaniel Filer (512) 637-8587

GlobalviaRafael Nevado, [email protected] Lapolla, (908) [email protected]

Granite Construction Inc.Kent Marshall (831) 728-7549

Herzog Contracting/Herzog TransitServices Inc.

(816) 233-9001Joe Kneib [email protected] Hackbarth [email protected] Francis [email protected] Scott Norman [email protected] Perry [email protected]

Iridium ConcesionesSalvador Myro (34) 91 703 85 [email protected]

KiewitJoe Wingerter (402) [email protected] McArthur (416) [email protected]

Meridiam InfrastructureJoe Aiello [email protected] Tecklenburg [email protected]

WSP | Parsons Brinckerhoff Len Rattigan (703) [email protected] Perrin (410) [email protected] J. Hedlund (212) [email protected] Porcari (202) [email protected]

Plenary GroupMarv Hounjet in the U.S. (425) 223-5741 [email protected] MacAngus in Canada(416) 902-9695 [email protected]

SacyrFelix Corral [email protected]+34 91 545 50 00

United WaterTom Brown (201) [email protected]

Veolia Water North AmericaScott Edwards (312) 552-4774

Assured GuarantyLorne Potash (212) [email protected] Francoeur (212) [email protected]

KeyBanc Capital MarketsJose Herrera (917) [email protected] Rink (216) [email protected]

Macquarie CapitalAndrew Ancone +1 (212) 231-1660

AECOMSamara Barend (212) [email protected]

CDM Smith Ed Regan (803) 251-2072Kamran Khan (630) 874-7902Grant Holland (404) 720-1283Joe Ridge (603) 222-8320

C&M Associates Carlos Contreras (972) [email protected]

Ernst & YoungMike Parker +1 (215) [email protected] Zukerman +1 (212) [email protected]

HDRBill Damon, Power, (734) [email protected] Schneider, Transportation(213) 313-9402, [email protected] Strickland, Water, (212) [email protected]

HNTBJohn Friel (517) [email protected] Downs (303) 542-2255 [email protected]

JacobsPamela Bailey-Campbell (214) 920-8158.

KPMGAndy Garbutt +1 (512) 501-5329Brad Watson +1 (416) 777-8142

Lochner MMM GroupPhil Russell (512) [email protected]

O.R. Colan AssociatesSteve Toth [email protected]

Raba KistnerGary Raba (866) [email protected]

TYPSA-AZTECMiguel Bardalet (602) [email protected] Robert L. Lemke, Jr., PE (602) [email protected]

Elias GroupDan Elias or Michael Siegel (914) 925-0000fax (914) 925-9344 or www.eliasgroup.com

Hawkins Delafield & WoodEric Petersen in NY (212) 820-9401Ron Grosser in NY (212) 820-9423Rick Sapir in Newark (973) 642-1188Joe Sullivan (212) 820-9513

Mayer BrownGeorge K. Miller (212) [email protected] Narefsky (312) [email protected] R. Schmidt (312) [email protected] Seliga (312) [email protected]

Nossaman LLPGeoffrey S. Yarema (213) [email protected] Harder (213) [email protected] Simon Santiago (202) [email protected]

AIAILisa Buglione (516) [email protected]

ARTBARichard Juliano (202) [email protected]

Legal/Procurement Advisors

Developers/Operators/Design-Builders

Industry Associations

PPP Financial/Procurement/Technical

PPP Financing

September 2015 color

Documents

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