Honolulu Authority for Rapid Transportations P3 Owners Forum - - PowerPoint PPT Presentation

Honolulu Authority for Rapid Transportation’s P3 Owner’s Forum

Regional Transportation District Eagle P3 Project

Denver, CO

About RTD

• Service area: 2,342 square miles
• Population served: 3.03 million
• RTD staff 2,863 + 1,608 private

contractor staff

• Buses, Call-n-Ride and ADA

vehicles: 1,433

• Light rail vehicles: 172
• Commuter rail Vehicles: 66
• 2017 statistics:

− Total ridership: 99 million − Assets: $6.8 billion − Revenue: $990 million − Operating exp.: $581.9million − Capital outlay: $451 million

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• University of Colorado A Line
• 22.8 miles of commuter rail between Denver Union Station and DIA
• B Line
• 6 miles of commuter rail between Denver Union Station and

Westminster

• G Line
• 11.2 miles of commuter rail between Denver Union Station and Wheat

Ridge

Eagle P3 Project

Eagle P3 - History

• In 2003, RTD and CDOT initiated an Environmental Impact Statement (EIS)

for the I 70 Corridor

• In 2006, RTD initiated an EIS for the Gold Line Corridor
• In August 2007, approved by FTA to participate in the Penta-P program
• Provided for accelerated review process
• Reduced oversight during project development
• In September 2009, issued final RFP to pre-qualified teams.
• In July 2010, entered into a Concession Agreement with Denver Transit

Partners (DTP)

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Eagle P3 Project Scope

• Overall capital cost $2.2 billion
• 36 miles of new electrified (25kV) commuter rail
• 37 major bridge structures
• 14 new stations plus Denver Union Station hub
• Commuter Rail Maintenance Facility
• 66 cars in married pair configuration (including 12 for N Metro)
• 29 at-grade crossings shared with Class 1 Railroads

Eagle P3 - Terms

• Concession Agreement – DBFOM
• Design
• Build
• Finance
• Operate
• Maintain
• 34 Year Agreement (2011-2044)
• Includes 5 year design/ build
• 29 year maintain and operate
• RTD sets and retains fares
• RTD owns assets
• RTD pays traction power and security costs

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Eagle P3 - Funding & Financing Sources

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Total Asset Cost - $2.3 billion

• $1.1 billion in federal funds
• $1.03 billion New Starts grant
• $65 million CMAQ funding
• $450 million in private financing
• $396 million in private activity bonds
• $54 million private equity
• $460 million in local funds
• Includes sales tax revenue bonds, sales and use tax revenues, and

contributions from local jurisdictions

• $280 million Transportation Infrastructure Finance Innovation Act

(TIFIA) loan

Eagle P3 - Repayment

• Construction Phase
• Set amounts tied to earned value
• Maintain and Operate Phase
• Service Payments
• Funds maintenance and operations
• Concessionaire receives 100% of availability payment for

meeting 95% of performance standards

• Bonus of up to 0.5% for perfect delivery
• Deduction of up to 25% for inferior delivery

Eagle P3 – Service Payments

Although there are many factors that go into the service payment calculation. There are three factors that influence whether there is a bonus or deduction.

• Rolling Stock Availability
• On Time Performance
• Station Availability

Monthly Payments – Calculation

• TABOR payment (debt & equity)
• Indexed Service Availability payment:

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Start with: Base Service Availability Payment Adjusted by: Availability Factor ¹ Equals: Availability Adjusted Base Service Payment Less: Performance Deduction Plus: Special Events Equals: Amount Due

(3 x Rolling Stock Availability) + (2 x On-Time Availability) + (1 x Station Availability) ²Availability Ratio = ¹Availability Factor corresponds to the Availability Ratio². Once the Availability Ratio is calculated, the Availability Factor is found in the Availability Factor Tables in the Concession Agreement

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Eagle P3 - Risk Sharing

RTD

• ROW Acquisition
• Railroad Force Account Work
• Unidentified Environmental

Conditions

• Unidentified Utilities
• Ridership

Concessionaire

• Cost Overruns
• FRA Approvals
• 3rd Party Claims
• Failure to meet Performance

Standards

• Operation and Maintenance Costs
• Condition of System at end of

Concession Period

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Lessons Learned

• Procurement
• Maintain a competitive field
• Provide stipend
• Listen to concerns over risk allocation
• Allow for innovations
• Performance Specifications
• Alternative Technical Concepts
• Ensure confidential communication between

bidders and owner

• Follow procurement schedule
• Keep Board of Directors informed
• Public outreach
• Impact of local taxes on pricing

Lesson Learned

• Service
• Joint understanding of metrics and calculations
• Data capture and reporting
• P3 Delivery
• Jurisdictions do not understand the constraints of a P3
• Lock down scope and involvement early
• Lenders do not like changes
• Even simple design changes are perceived as increasing risk to a Concessionaire
• Complexities of dealing with multiple jurisdictions, railroads, airports, FTA, FRA,

regulatory bodies, etc.

Lesson Learned

• P3 Funding and Financing
• Make sure you get what is eligible for federal funds in writing
• Make sure owner finance and accounting staff are at the table during negotiations
• Ensure private concessionaire understands documentation needed
• Keep external auditors updated and involved

Eagle P3 – Completion Dates

• University of Colorado A Line
• Opened April 22, 2016
• B Line
• Opened July 25, 2016
• G Line
• Scheduled to be open Fall 2016 – Still TBD

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Questions?

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