DELIVERING
O N TH E P R O MI S E .
US 36 Managed Lanes Project
Case Study
July 2014
Project Corridor
• US 36 Corridor (the “Corridor”) is comprised of 23
miles of highway connecting Denver to Boulder,
Colorado (dual direction heavy commuter route)
• The Corridor diagonally bisects the northwest
Denver metropolitan area, carrying an average of
between 80,000 and 100,000 trips per day
• The Corridor is economically diverse
– ~17% of Denver metro region's business
(>26,000 businesses) and employment
(>200,000 jobs) located along Corridor
• By 2035, population and employment within 3
miles of the Corridor are anticipated to grow by
28% and 53%, respectively
• Long-term employment along the Corridor is
expected to grow by 129,580 workers with annual
wages totaling $520 billion by 2035
• Existing commuter corridor with established traffic
patterns - allows for more precise traffic
forecasting than greenfield toll projects
2
Project Scope
• Financing, design and construction of the Phase 2 Corridor General Purpose Lanes
• Operations on the Phase 1 Corridor, Phase 2 Corridor and I-25 Express lanes
– Project Co collects to its account toll revenue generated on above Managed
Lanes
• Maintenance and Lifecycle as follows:
Project
US 36 Managed Lanes
US 36 General Purpose Lanes
(GPL)
I-25 At-Grade MLs
Maintenance
I-25 Structures GPLs
Snow and Ice
Removal



 (priced
option)
1


2

1
I-25 At-Grade GPLs
I-25 Structures MLs
Lifecycle

3

1
*1 - Concessionaire will lifecycle Non-Separable Tasks (tasks that that relate to lifecycle of a maintainable elements that are not easily
delineated between the managed and general lanes (eg. a shared overpass)). HPTE to reimbursed Project for appropriate % for GPL
lifecycle.
*2 - Substructure not a Concessionaire responsibility
*3 - Concessionaire responsible for Deck and Superstructure only. Substructure (piers, etc.) remains HPTE responsibility.
3
Concession Agreement
• Concession Term is 50 years from Planned Full Commencement Date
• Concession Agreement based on an industry accepted precedent
• Equitable Compensation, Relief and Force Majeure Provisions
• Standard Default and Termination Provisions
• Compensation for any expansion of the US36 and I-25
• Revenue Share between HPTE and PRD based on PRD meeting certain return
thresholds
4
Tolling and Revenue
• Toll revenue will be collected from 7 toll gantries on US36 and 1(existing) gantry on
the I-25 . Free vehicles include BRT, HOV3+, emergency vehicles
• Each gantry will charge a separate toll
• Initially tolls will be based on “time-of-day” pricing
• In later years when congestion has increased tolling will be “fully dynamic” with
pricing based on real-time expected time savings and guaranteeing 45 mph travel
• I-25 revenue will account for a significant percentage of total Project revenue
– I-25 is currently a tolled route with a history of revenue collection since 2006
and as such this revenue does not carry typical greenfield revenue risk
5
Procurement
Jan 15, 2012
HPTE DBFOM
Feb 21, 2012
RFQ Issued
Apr 23, 2012
Four SOQs Received
•
Plenary Roads Denver (Plenary, Ames Construction, Granite
Construction, HDR, Transfield Services and Goldman Sachs)
•
Denver Access Partners (Cintra, Ferrovial Agroman, Lawrence
Construction and Aztec Engineering)
•
Accelerate 36 Consortium (Balfour Beatty Capital, Edgemoor
Infrastructure, Brisa, Atkinson Construction, Parsons Brinckerhoff and
Scotiabank)
•
US 36 Development Partners (Isolux Corsán, Terracare Associates,
Atkins, Bank of Tokyo-Mitsubishi UFJ and THB Advisory)
May 31, 2012
HPTE Announces Shortlisting of Three Teams
•
Plenary Roads Denver (Plenary, Ames Construction, Granite
Construction, HDR, Transfield Services and Goldman Sachs)
•
Denver Access Partners (Cintra, Ferrovial Agroman, Lawrence
Construction and Aztec Engineering)
•
US 36 Development Partners (Isolux Corsán, Terracare Associates,
Atkins, Bank of Tokyo-Mitsubishi UFJ and THB Advisory)
6
Procurement (cont.)
Oct 16, 2012
Final RFP Issued
Mar 1, 2013
Two Teams Respond to RFP
•
Plenary Roads Denver (Plenary / Ames Construction / Granite Construction
/ HDR / Transfield Services / Goldman Sachs)
•
US 36 Development Partners (Isolux Corsan / Terracare / Atkins / BTMU /
THB Advisory)
Apr 5, 2013
Plenary Roads Denver Selected as Preferred Bidder
Jun 28, 2013
Commercial Close
Feb 28, 2014
Financial Close
7
Team Overview
Equity
Construction
JV
Concessionaire
Operations
and
Maintenance
Financial
Advisory
Back Office
Services
Patrol/
Enforcement
Design and
Engineering
8
Financing Info
• The project, CDOT’s first P3 to close, has been financed with:
– USD 20.36m of series 2014 tax-exempt private activity bonds (PABs)
– A USD 60m TIFIA loan
– A USD 20.6m junior subordinate loan from Northleaf Capital
– Equity committed by Plenary of USD 20.8m
• The PABs, which pay a coupon of 5.75%, priced at 98.241 to yield 5.875%
• The PABs have a maturity of January 2044 and were underwritten by Goldman
Sachs.
• The TIFIA loan carries an interest rate of 3.68%
• Fitch Ratings assigned a BBB- to the TIFIA loan and PABs
9
Design & Construction Schedule
•
Financial Close
February 2014
•
Phase 1 Construction
July 2012 – May 2015
•
Phase 2 Construction
March 2014 – December 2015
•
Phase 1 Project Open for Toll Collection
May 2015
•
Phase 2 Project Open for Toll Collection
January 2016
•
Concession Period
February 2014 – December 2065
10