Hi all,
California High Speed Rail authority released last week the new business plan for its planned High Speed Rail from San Francisco to Anheim.
Private funding through public private partnerships is stated to be a major funding player for the construction of these sections. This is not new, CAHSRA always thought of private firms to ensure that the High Speed Rail is built.
P3s are being used to build high speed rail lines in countries like Portugal, France and Taiwan. It seems to me that the amount of private participation over the whole investment amount and the correct mitigation of risks are key factors for the success of P3s in high speed rail lines.
I have downloaded the document and I´ve posted down here for you to read it. I hope it is of your interest.
20091214132101_CHSRARPT1209weblinks
Sunday, December 20, 2009
Sunday, October 25, 2009
California. Policy guidance: Public private partnership projects
California is completely ready to assess P3 candidate projects. On October 14th the California Transportation Commission (CTC) approved policy guidance addressing the Commission’s role in selecting proposed Public private partnerships (P3) projects.
The CTC developed the guidelines to assist Caltrans and regional transportation agencies (RTAs) to develop P3 transportation projects under Senate Bill 4 (Second Extraordinary session), enacted in February.
The California Transportation comission describes on the guidance the following:
- CTC will select and approve the projects nominated by Caltrans or an RTA seeking to use the P3 model.
- How the selection processes will be.
- The project report and information required to be submitted to the CTC.
- The CTC’s criteria for evaluating projects.
- The timing and scope of the CTC’s role.
As always you can read every document I write about below here:
PPP Resolution G-09-13 California
Remeber that four major projects were proposed costing a total of US$30.8bn. These were:
- a toll tunnel between Glendale and Palmdale;
- a network of HOT lanes for San Diego;
- a toll truck lanes system linking the ports of Los Angeles and Long Beach with the Inland Empire;
- a toll truck lanes system linking the Port of Oakland and Silicon Valley with I-5.
Other added projects under study are:
- HOT lanes network for the San Francisco Bay Area;
- Tolled truck lanes on I-5 from Santa Clarita to I-80;
- Tolled truck lanes on I-15 from Barstow to Nevada line;
- HOT lanes network for greater Los Angeles (Los Angeles, Orange, San Bernardino, and Riverside Counties);
- I-710 gap closure tunnel beneath South Pasadena;
- Riverside-Orange County tunnel from I-15 to SR 241.
The CTC developed the guidelines to assist Caltrans and regional transportation agencies (RTAs) to develop P3 transportation projects under Senate Bill 4 (Second Extraordinary session), enacted in February.
The California Transportation comission describes on the guidance the following:
- CTC will select and approve the projects nominated by Caltrans or an RTA seeking to use the P3 model.
- How the selection processes will be.
- The project report and information required to be submitted to the CTC.
- The CTC’s criteria for evaluating projects.
- The timing and scope of the CTC’s role.
As always you can read every document I write about below here:
PPP Resolution G-09-13 California
Remeber that four major projects were proposed costing a total of US$30.8bn. These were:
- a toll tunnel between Glendale and Palmdale;
- a network of HOT lanes for San Diego;
- a toll truck lanes system linking the ports of Los Angeles and Long Beach with the Inland Empire;
- a toll truck lanes system linking the Port of Oakland and Silicon Valley with I-5.
Other added projects under study are:
- HOT lanes network for the San Francisco Bay Area;
- Tolled truck lanes on I-5 from Santa Clarita to I-80;
- Tolled truck lanes on I-15 from Barstow to Nevada line;
- HOT lanes network for greater Los Angeles (Los Angeles, Orange, San Bernardino, and Riverside Counties);
- I-710 gap closure tunnel beneath South Pasadena;
- Riverside-Orange County tunnel from I-15 to SR 241.
Thursday, October 22, 2009
Port of Miami tunnel reached financial close.
Ths video shows what public private partnerships can do for infrastructure. The Port of Miami tunnel project is a very good example of what P3s are but also of how a P3 project can become a very long and tedious process if not well implemented. In this case all the delay came from the developer side as Babcock&Brown fell in financial trouble, later on Meridiam Infrastructure substituted Babcock&Brown in the consortium. finally, this poject will be a reality as the selected consortium already reached financial close.
Monday, October 19, 2009
Whar are the best books on PROJECT FINANCE?
I want to share with you two things today:
1. Linkedin is the best place to contact other PPP professionals. Discussions, job offers,news...everything is on there, there is no doubt. Here is my public profile so you can add me as friend. Then I recommend you to join our group.
2. Five months ago there was a very interesting discussion on one of these infrastructure groups recently created on Linkedin.com. Somebody was asking about the best book on Project Finance (PPP/P3/PFI projects). Some other people replied and I want to leave you down here the results, real recommendations:
a) "Project Finance in Theory and Practice - Designing, Structuring, and Financing Private and Public Projects" by Stefano Gatti.
b)"Project Financing", by John Finnerty.
c)"Modern Project Finance" by Ben Esty.
d) For the technical/quantitative side, "Advanced Modelling for Project Finance" by Charles T. Haskell:
e)"Advanced Project Financing: Structuring the Risks" , by Richard Tinsley.
f)"Finance for Engineers: Evaluation and Funding of Capital Projects",by F.K. Crundwell.
g)"Principles of Project Finance", by E. R. Yescombe.
h)"The law and business of International Project Finance",by Scott L.L. Hoffman. Quite good if you like legal stuff.
i)"A Practical Guide to PPP in the UK" by several UK professionals.
1. Linkedin is the best place to contact other PPP professionals. Discussions, job offers,news...everything is on there, there is no doubt. Here is my public profile so you can add me as friend. Then I recommend you to join our group.
2. Five months ago there was a very interesting discussion on one of these infrastructure groups recently created on Linkedin.com. Somebody was asking about the best book on Project Finance (PPP/P3/PFI projects). Some other people replied and I want to leave you down here the results, real recommendations:
a) "Project Finance in Theory and Practice - Designing, Structuring, and Financing Private and Public Projects" by Stefano Gatti.
b)"Project Financing", by John Finnerty.
c)"Modern Project Finance" by Ben Esty.
d) For the technical/quantitative side, "Advanced Modelling for Project Finance" by Charles T. Haskell:
e)"Advanced Project Financing: Structuring the Risks" , by Richard Tinsley.
f)"Finance for Engineers: Evaluation and Funding of Capital Projects",by F.K. Crundwell.
g)"Principles of Project Finance", by E. R. Yescombe.
h)"The law and business of International Project Finance",by Scott L.L. Hoffman. Quite good if you like legal stuff.
i)"A Practical Guide to PPP in the UK" by several UK professionals.
Sunday, October 18, 2009
Next P3 conferences in Arizona. Upcoming P3 projects
This last week, the most active state in the american P3 industry has been Arizona. After Governor Jan Brewer signed into law HB 2396 (allows the Arizona Department of Transportation to use public-private partnerships as a tool to address Arizona’s transportation requirements), Arizona Department of Transportation hired transportation consultancy Wilbur Smith Associates to help kick start the process and it is envisaged that by June 2010 ADOT will have to P3 projects to bring to market.
Nossaman and KPMG seem to be collaborating with ADOT too. Here I letf you some slides from a presentation that took place on September 29th:
CONFERENCE AT ARIZONA STATE UNIVERSITY
Arizona State University’s Del E. Webb School of Construction is holding its third annual Public Private Partnerships Conference on Oct. 22.
Former U.S. Secretary of Transportation Mary Peters will deliver the keynote address. Peters, an Arizona native, was director of the Arizona Department of Transportation before she was tapped by President George W. Bush for the Washington post.
Peters is now a consultant to various transportation-related companies and has been a long-time advocate of public-private partnerships.
Arizona P3 Conference
On November 18-20, industry advocacy group the National Council for Public-Private Partnerships will hold its annual conference in Phoenix too.
POSSIBLE P3 PROJECTS
One of the five listed routes as suitable: Arizona 801, which would parallel I-10 and connect the proposed South Mountain Freeway with Arizona 85 in Buckeye.
There is more information about the project on ADOT´s website.
And remember, all Arizona P3 news are on the Public private partnerships in infrastructure´s website.
Nossaman and KPMG seem to be collaborating with ADOT too. Here I letf you some slides from a presentation that took place on September 29th:
CONFERENCE AT ARIZONA STATE UNIVERSITY
Arizona State University’s Del E. Webb School of Construction is holding its third annual Public Private Partnerships Conference on Oct. 22.
Former U.S. Secretary of Transportation Mary Peters will deliver the keynote address. Peters, an Arizona native, was director of the Arizona Department of Transportation before she was tapped by President George W. Bush for the Washington post.
Peters is now a consultant to various transportation-related companies and has been a long-time advocate of public-private partnerships.
Arizona P3 Conference
On November 18-20, industry advocacy group the National Council for Public-Private Partnerships will hold its annual conference in Phoenix too.
POSSIBLE P3 PROJECTS
One of the five listed routes as suitable: Arizona 801, which would parallel I-10 and connect the proposed South Mountain Freeway with Arizona 85 in Buckeye.
There is more information about the project on ADOT´s website.
And remember, all Arizona P3 news are on the Public private partnerships in infrastructure´s website.
Sunday, October 4, 2009
California united for HSR funding. Video
I came across this interesting video that shows how united California is to get high speed rail stimulus funding in the US. On this video OCTA CEO Will Kempton, CHSRA Board Chairman Curt Pringle, and Governor Arnold Schwarzenegger talk about California´s application for the funding:
California voters approved a $9.95 billion bond for high-speed rail, and the state’s support for high-speed rail is unrivaled in the nation. The amounts requested in this application are detailed below:
$2.18 billion for Los Angeles to Anaheim, including high-speed train facilities at Los Angeles Union Station, Norwalk Station and the Anaheim Regional Transportation Intermodal Center; right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures, tunneling, and track work. Total jobs created: 53,700.
- $980 million for San Francisco to San Jose, including station improvements, grade separations, electrification and safety state-of-the-art "positive train control" in an upgraded, shared alignment with Caltrain. Total jobs created: 34,200.
- $466 million for Merced to Fresno, including right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures and track. Total jobs created: 10,500.
- $819.5 million for Fresno to Bakersfield, including right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures, track relocation and new track. Total jobs created: 16,500.
- $276.5 million for preliminary engineering and environmental work in all system segments including Los Angeles to San Diego via the Inland Empire, Los Angeles to Palmdale and Bakersfield, Sacramento to Merced and the Altamont Rail Corridor. Total jobs created: 12,000.
Remember that 8 billion dollars are at stake. California High-Speed Rail Authority already stated that 20% of the funding will come from private hands. As far as we know no any other state in the US talked about private financing invovlved. California understood very well that for this huge project needs all the financing resources, this is, federal money, state public bonds, private money,...We´ll keep an eye on this massive project.
California voters approved a $9.95 billion bond for high-speed rail, and the state’s support for high-speed rail is unrivaled in the nation. The amounts requested in this application are detailed below:
$2.18 billion for Los Angeles to Anaheim, including high-speed train facilities at Los Angeles Union Station, Norwalk Station and the Anaheim Regional Transportation Intermodal Center; right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures, tunneling, and track work. Total jobs created: 53,700.
- $980 million for San Francisco to San Jose, including station improvements, grade separations, electrification and safety state-of-the-art "positive train control" in an upgraded, shared alignment with Caltrain. Total jobs created: 34,200.
- $466 million for Merced to Fresno, including right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures and track. Total jobs created: 10,500.
- $819.5 million for Fresno to Bakersfield, including right-of-way acquisition, grade-separations, utility relocation, environmental mitigation, earthwork, guideway structures, track relocation and new track. Total jobs created: 16,500.
- $276.5 million for preliminary engineering and environmental work in all system segments including Los Angeles to San Diego via the Inland Empire, Los Angeles to Palmdale and Bakersfield, Sacramento to Merced and the Altamont Rail Corridor. Total jobs created: 12,000.
Remember that 8 billion dollars are at stake. California High-Speed Rail Authority already stated that 20% of the funding will come from private hands. As far as we know no any other state in the US talked about private financing invovlved. California understood very well that for this huge project needs all the financing resources, this is, federal money, state public bonds, private money,...We´ll keep an eye on this massive project.
Monday, September 28, 2009
Puerto Rico is making some noise. P3 legislation
On June 8, legislation was passed that provided a clear public policy and legal framework for P3s in Puerto Rico. The law limits P3s to 50-year leases, with an extension to 75 years with legislative approval, and sets a special tax rate.
The Public-Private Partnership Act signed by Governor Luis Fortuño sets out Puerto Rico's policy for allowing government entities to enter partnerships with the private sector. State entities eligible to participate in P3s include all government agencies, public corporations, and municipalities.
Here I leave you a list with the most interesting transportation projects under study to be carried out under the P3 scheme:
TRANSPORTATION PROJECTS
PR-22-Extension of the PR-22 road from Arecibo to Aguadilla
PR-66-Phase II Extension of the PR-66 highway from Canovanas to Rio Grande
PR-5-Connect PR-5 from Bayamón to Highway PR-22
PR-199-Completion of Las Cumbre Avenue Maunabo Tunnels Maunabo Tunnels /completion and conversion of PR-3 into PR-53
San Juan Bay Bridge Bridge over San Juan Bay to Cataño
BRT-Santurce to Old San Juan Bus Rapid Transit (BRT) from Santurce to Old San Juan
BRT-Cupey to Caguas Cupey to Caguas
BRT-San Juan to Carolina San Juan to Carolina
BRT-Bayamon to Barceloneta Bayamon to Barceloneta
Last week we knew that the Puerto Rico P3 Authority has appointed Macquarie Capital as financial advisor to oversee the development of its P3 program.
The Commonwealth is seeking P3 investment and hopes to have awarded three projects by June 2010. The Authority is seeking to develop a program that incorporates best practice from around the world in procurement.
Macquarie Capital's will role will include assisting the Authority in formulating and developing program guidelines and procedures, developing a methodology adequate for P3 projects and formulating public sector comparator methods.
Fo all interested investors there will be a P3 conference, which is to be held in San Juan, Puerto Rico on October 15-16. This will feature information about specific projects and will outline the role of P3s in Puerto Rico's economic development. It will also set out the process for initiating a P3 project.
The conference will be hosted by the Puerto Rico Public-Private Partnerships Authority (PRPPPA) and is intended to acquaint potential investors and contractors with the Commonwealth's recently established P3 programme.
The program on October 15th will include:
- a presentation on Puerto Rico's Economic Development Plan, fiscal update and the role of the P3 program;
- a presentation by Larry Blain, CEO of Partnerships British Columbia;
- an overview of the Commonwealth's public corporations that are in charge of managing the main components of Puerto Rico's infrastructure;
- a speech by the Governor of Puerto Rico, Luis G. Fortuño;
- presentations of specific projects that have been referred to the PRPPPA as having near-term potential for becoming P3s.
Events the second day will include:
- a presentation on regulations and partnership procedures in Puerto Rico and a practical discussion of public policy guidelines, the legislative framework, and regulations and procedures for establishing a P3;
- organized visits to potential P3 project sites.
So this is all the information you should know if you are considering investing on nfrastructure projects in Puerto Rico. By no means all this means that P3 will be succesful in Puerto Rico, it already had some failures in the past, so let´s see if this second time they know how to overcome them.
The Public-Private Partnership Act signed by Governor Luis Fortuño sets out Puerto Rico's policy for allowing government entities to enter partnerships with the private sector. State entities eligible to participate in P3s include all government agencies, public corporations, and municipalities.
Here I leave you a list with the most interesting transportation projects under study to be carried out under the P3 scheme:
TRANSPORTATION PROJECTS
PR-22-Extension of the PR-22 road from Arecibo to Aguadilla
PR-66-Phase II Extension of the PR-66 highway from Canovanas to Rio Grande
PR-5-Connect PR-5 from Bayamón to Highway PR-22
PR-199-Completion of Las Cumbre Avenue Maunabo Tunnels Maunabo Tunnels /completion and conversion of PR-3 into PR-53
San Juan Bay Bridge Bridge over San Juan Bay to Cataño
BRT-Santurce to Old San Juan Bus Rapid Transit (BRT) from Santurce to Old San Juan
BRT-Cupey to Caguas Cupey to Caguas
BRT-San Juan to Carolina San Juan to Carolina
BRT-Bayamon to Barceloneta Bayamon to Barceloneta
Last week we knew that the Puerto Rico P3 Authority has appointed Macquarie Capital as financial advisor to oversee the development of its P3 program.
The Commonwealth is seeking P3 investment and hopes to have awarded three projects by June 2010. The Authority is seeking to develop a program that incorporates best practice from around the world in procurement.
Macquarie Capital's will role will include assisting the Authority in formulating and developing program guidelines and procedures, developing a methodology adequate for P3 projects and formulating public sector comparator methods.
Fo all interested investors there will be a P3 conference, which is to be held in San Juan, Puerto Rico on October 15-16. This will feature information about specific projects and will outline the role of P3s in Puerto Rico's economic development. It will also set out the process for initiating a P3 project.
The conference will be hosted by the Puerto Rico Public-Private Partnerships Authority (PRPPPA) and is intended to acquaint potential investors and contractors with the Commonwealth's recently established P3 programme.
The program on October 15th will include:
- a presentation on Puerto Rico's Economic Development Plan, fiscal update and the role of the P3 program;
- a presentation by Larry Blain, CEO of Partnerships British Columbia;
- an overview of the Commonwealth's public corporations that are in charge of managing the main components of Puerto Rico's infrastructure;
- a speech by the Governor of Puerto Rico, Luis G. Fortuño;
- presentations of specific projects that have been referred to the PRPPPA as having near-term potential for becoming P3s.
Events the second day will include:
- a presentation on regulations and partnership procedures in Puerto Rico and a practical discussion of public policy guidelines, the legislative framework, and regulations and procedures for establishing a P3;
- organized visits to potential P3 project sites.
So this is all the information you should know if you are considering investing on nfrastructure projects in Puerto Rico. By no means all this means that P3 will be succesful in Puerto Rico, it already had some failures in the past, so let´s see if this second time they know how to overcome them.
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