I-4 Ultimate with
Lanes Project
Central Florida
May 21, 2013
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Executive Summary
Executive Summary
• The $2.1B I-4 Ultimate Project is the top priority for the state of
Florida
• The Project is being advanced using a Public-Private Partnership (P3)
under Section 334.30, F.S. (P3 Law)
• A system of financing tools guarantee the lowest cost:
• Private Activity Bonds (PABs)
FDOT facilitates use of tools since
administered by US DOT
• TIFIA
• If PABs are used for the project, a conduit issuer is needed to issue
bonds
• This can be accomplished through an interlocal agreement
between Orange County, Seminole County and City of Orlando
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Project Overview
$2.1B (FY2013$) Strategic Initiative for Florida
• 21+ miles from West of Kirkman Road (Orange) to East of
SR 434 (Seminole)
• Project replaces aging infrastructure and enhances safety
• Relieves congestion in heavily populated areas of Florida
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I-4 Ultimate
Interstate 4 Typical Section
• 4 Managed Lanes (2 each direction)
• 6 General Use Lanes (GUL) + Auxiliary Lane
Managed
Lanes
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Procurement Schedule
Draft RFQ and PIM
Industry forum
Advertisement and RFQ
Shortlist and draft RFP
Release draft RFP
Final RFP and ITP
Proposals due
Best value selection
Contract execution
February 22, 2013
March 4, 2013
March 8, 2013
May 21, 2013
May 2013
September 2013
January 2014
March 2014
June 2014
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Why Public-Private Partnerships?
P3 Seeks to Achieve 5 Primary Goals
• Provides capacity improvements much sooner than
a traditional pay-as-you go approach
• Eliminates project phasing and advances the overall
project
• Capitalizes on the private sector’s innovation and
access to capital markets
• Transfers of appropriate risk items to private
partner
• Enhances long-term, lifecycle cost efficiency and
service quality
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FDOT’s P3 Legal Framework
Legal Framework Provides Strong Creditworthiness
• P3 Law originally enacted in 1991 - provides flexibility to advance
projects while implementing safeguards
• Authorizes FDOT to advance projects programmed in the 5year work program or 10-year SIS
• Requires cost effectiveness and public-benefit analysis
• Authorizes performance-based payments to private sector
• Annual payments on multi-year P3s are prioritized ahead of
new capacity
• Strong market acceptance of FDOT’s legal framework
• I-595 and Port of Miami Tunnel
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P3 Financial Controls
Financial Controls Provide For Strong Creditworthiness
• Statutory requirements promote fiscal responsibility
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Governor and legislative approval of contractor financed projects
20% limitation on debt and debt like obligations
15% limitation on P3s
Submittal of 5-year work program to the Legislature annually
Budget requests are balanced to available resources
• Proven track record of effectively managing the work program
as revenue forecasts change
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Public-Private Partnership (P3)
Appropriation-Based Funds Finance the Project
Milestone Payments
 Payments made during construction period
 Incentivizes accomplishment of
construction priorities
 Reduces the amount of financing
 Credit enhancement
Final Acceptance Payments
 Post construction payments
 Incentivizes on time completion of project
 Repays short-term financing
 Credit enhancement
35-years of Performance-Based Availability
Payments
 Operations and maintenance period
payments
 Incentivizes:
 On time completion of project
 Construction quality
 Level of service / Maintenance
 Repays long-term debt, equity, operations
and maintenance costs, renewal work
costs
 100% of payment must be performance
based to ensure incentives are achieved
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Public-Private Partnership (P3)
Proposer May Use A System of Financing Tools
TIFIA
 A form of debt – like a bank loan
 Federal credit assistance
 May be subordinate to other debt
 Long-term or short-term financing
 Interest rate is tied to US Treasury
 FDOT submitted a letter of interest January
2013
Bank Debt
 A form of debt
 Financing from commercial banks
 Short-term financing - 5 to 7 years
PABs
 A form of debt - like Industrial
Development Bonds
 Long-term financing
 Tax exempt bonds issued by government
 SAFETEA-LU authorized up to $15 billion
Private Equity – “skin in the game”
 Proposer’s contribution toward the project
 Will be required within the capital
structure
 Used with debt
 At risk until the end of the project term
 Lost in the event of contractor default
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Private Activity Bonds (PABs)
Only $7.2B of the $15B Allocation is Remaining
• $15B cap on PABs used to deliver highway and freight transfer
facilities
• Exempt facility bonds – not subject to state volume caps
• FDOT wishes to submit an application to secure a PABs allocation
from US DOT
• Estimated allocation request = $800M to $1.5B
• Conduit issuer is a key player in application process
• PABs are an important financing mechanism for proposers
• Limited financial capacity in current bank debt markets
• PABs provide proposers with access to tax-exempt interest rates
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Public Involvement and
Community Outreach
• Project website:
www.Moving-4-Ward.com
• Public involvement and
community outreach will
be incorporated
• Sign up and be notified
when there is a major
update or announcement
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