ITE MICHIGAN TECHNICAL SESSION LIVING THE P3 DESIGN DREAM DESIGN BUILD ON STEROIDS PRESENTER: TOM WESTON, PE

Transcription

1 ITE MICHIGAN TECHNICAL SESSION LIVING THE P3 DESIGN DREAM DESIGN BUILD ON STEROIDS PRESENTER: TOM WESTON, PE DECEMBER 3,

2 OVERVIEW MDOT DESIGN BUILD EXPERIENCE P3 OVERVIEW P3 ADVANTAGES P3 PROJECT CASE STUDIES I-495 CAPITAL BELTWAY PROJECT 2

3 MDOT DESIGN/BUILD EXPERIENCE MDOT HAS PROGRESSIVELY UTILIZED NEW DELIVERY APPROACHES TO DESIGN/BID/BUILD 1990 S DESIGN BUILD 30+ BRIDGE REHABILITATION PROJECTS SEVERAL HIGHWAY RECONSTRUCTION PROJECTS 2008 DESIGN BUILD M-115 HIGHWAYS FOR LIFE PROJECT 3

4 MDOT DESIGN/BUILD EXPERIENCE DESIGN/BUILD/FINANCE PROJECTS M-21BRIDGE REPLACEMENT I-69 FREEWAY RECONSTRUCTION UNIQUE FUNDING APPROACH 2009 DESIGN/BUILD PROJECTS ARRA FUNDED FREEWAY RECONSTRUCTION PROJECTS ITS PROJECTS BIKE PATH PROJECT EMERGENCY BRIDGE REPLACEMENT 4

5 P3 OVERVIEW WHY P3 S NOW? P3 ADVANTAGES LEVERAGE ADDITIVE FUNDING TEAM STRUCTURE ACCELERATE PROJECT DELIVERY RISK ALLOCATION TO PRIVATE SECTOR PUBLIC PERCEPTION CHANGING P3 ENABLING LEGISLATION IN PLACE AROUND THE UNITED STATES 5

6 WHY P3 S NOW? TRANSPORTATION FUNDING GAP 6

7 WHY P3 S NOW? RESULTS IN A TRANSPORTATION CRISIS 7

8 P3 ADVANTAGES LEVERAGE ADDITIVE FUNDING 8

9 P3 ADVANTAGES TEAM STRUCTURE DESIGN BUILD FINANCE OPERATE MAINTAIN (DBFOM) Public Owner Private Concessionaire State or Local Government Equity or Debt Public Sector Private Sector Constructor (Engineer & Contractor) Operator (Operations & Maintenance) PRIVATE FINANCING 9

10 P3 ADVANTAGES ACCELERATE PROJECT DELIVERY Design-Bid-Build Preliminary Design Final Design Bid CONSTRUCTION Design-Build Phase overlap Prel. Design Bid Final Design & Procurement CONSTRUCTION Schedule Acceleration Project Timeline 10

11 P3 ADVANTAGES RISK ALLOCATION TO PRIVATE SECTOR P3 11

12 P3 ADVANTAGES PUBLIC PERCEPTION CHANGING CREDIBILITY FOR THE ARGUMENT THAT FUNDING IS NOT AVAILABLE FROM OTHER SOURCES PERCEPTION THAT USER FEES WILL ACCELERATE THE CONSTRUCTION OF PROJECT MUCH SOONER THAN WAITING FOR FUNDING FROM OTHER SOURCES OTHER STATES ARE TAKING ADVANTAGE OF P3 PROJECT DELIVERY 12

13 P3 ADVANTAGES STATES WITH P3 ENABLING LEGISLATION Statest with PPP legislation* l PPP legislation pending** * Plus Alaska and Puerto Rico. ** Plus Hawaii 13

14 P3 PROJECT CASE STUDIES EARLY P3 S IN THE UNITED STATES PRIVATE SECTOR FINANCED BRIDGES; 1920 S AND 1930 S USERS FEE TOLL ROADS; 1940 S AND 1950 S 14

15 P3 PROJECT CASE STUDIES 1990: 1990 SR --91 SR (CALIFORNIA 91 (California) Orange County ) ONE OF FIRST HOT LANE P3 PROJECTS IN UNITED STATES 10-MILE CONFIGURATION: $130M INITIAL CONSTRUCTION COST HOV3+ FREE EXCEPT PEAK HOURS, HOV2 DISCOUNT 15

16 VDOT S FIRST MAJOR HOT LANES P3 PROJECT CONNECTS I-66, I-95 AND DULLES TOLL ROAD CONSTRUCTION FROM YEAR OPERATION AGREEMENT WITH PRIVATE CONCESSIONAIRE 16

17 VDOT S FIRST MAJOR HOT LANES P3 PROJECT O S G O, C ONE OF LARGEST HOT LANE P3 PROJECTS NOW UNDER CONSTRUCTION PROJECT LOCATED WEST OF WASHINGTON, DC $1.4B INITIAL CONSTRUCTION COST 14-MILE CORRIDOR REPLACEMENT OF 50+ BRIDGES RECONSTRUCTION OF 12 INTERCHANGES 70, LFT OF SOUND WALLS 17

18 FUNDING OF TOTAL PROJECT COST WITH FINANCING OF $1.9B ($1.4B CONSTRUCTION) $409M COMMONWEALTH OF VIRGINIA $349M PRIVATE EQUITY $586M PRIVATE ACTIVITY BONDS $585M FHWA TIFIA LOAN CONCESSIONAIRE LIABLE FOR RISK IF USER FEES DO NOT SUPPORT BONDS/LOANS 18

19 PROJECT TIMELINE 1994: MAJOR INVESTMENT STUDY COMPLETE 1998: ENVIRONMENTAL ASSESSMENT INITIATED 2002: FLUOR SUBMITS PROJECT PROPOSAL 2005: VDOT ENTERS INTO COMPREHENSIVE AGREEMENT WITH FLUOR-TRANSURBAN 2008: FINANCIAL CLOSE DESIGN/CONSTRUCTION BEGIN 2013: SCHEDULED PROJECT COMPLETION 19

20 PROJECT TIMELINE / DESIGNERS PERSPECTIVE 2002: FLOUR SUBMITS PROJECT PROPOSAL : PROJECT PROGRESSES TO 30% +/- DESIGN STAGE. CONSULTANT TEAM WORKING FOR CONCESSIONAIRE. 2005: VDOT ENTERS INTO COMPREHENSIVE AGREEMENT WITH FLUOR-TRANSURBAN 2008: FINANCIAL CLOSE / DESIGN/CONSTRUCTION BEGIN FEBRUARY 2008: FINAL DESIGN BEGINS JUNE 2008: CONSTRUCTION BEGINS FALL 2009: FINAL DESIGN COMPLETE 20

21 ROADWAY SR CONFIGURATION 91 (California) & POLICIES ROADWAY CROSS-SECTION: SECTION BUSES & HOV3+ TRAVEL TOLL FREE, HOV2 DISCOUNT ELECTRONIC OPEN ROAD TOLLING W/O TOLL BOOTHS (E-Z PASS) 21

22 HOT LANE FEATURES HOT LANE VEHICLES TRAVEL AT HIGHER AVERAGE SPEED THAN GENERAL PURPOSE LANE VEHICLES TOLLS FOR HOT LANES VARY BASED ON CONGESTION/DEMAND LEVELS (RANGE FROM 10 CENTS/MILE UP TO $1/MILE TO KEEP HOT LANE TRAFFIC MOVING) 22

23 CONTRACT STRUCTURE THE PROJECT IS A CONTRACTUAL AGREEMENTS FORMED BETWEEN A PUBLIC AGENCY (VDOT) AND A PRIVATE SECTOR ENTITY (FLUOR- TRANSURBAN) THAT ALLOWS FOR GREATER PRIVATE SECTOR PARTICIPATION IN THE DELIVERY AND FINANCING OF TRANSPORTATION PROJECTS FLUOR-TRANSURBAN WILL CONSTRUCT, OPERATE AND MAINTAIN THE FINAL PROJECT. VDOT RETAINS UNDERLYING OWNERSHIP. 23

24 FLUOR-LANE MANAGEMENT STRUCTURE 24

25 DESIGN SCHEDULE (16-MONTHS) 25

26 DESIGN SCHEDULE PAGE 1 OF THE 6 PAGE PLAN DELIVERABLE LOG 26

27 2008: NOW THE FUN BEGINS! 16 MONTHS FOR FINAL DESIGN OF $1.4 BILLION OF FREEWAY/BRIDGE RECONSTRUCTION AND A NEW TOLL/ITS SYSTEM FULL CONSTRUCTION UNDERWAY 3 MONTHS AFTER FINAL DESIGN BEGINS PROJECTED PLAN PACKAGES TOTAL OVER 200 PLAN SUBMITTALS PROJECT AVERAGES OVER $25M IN MONTHLY CONSTRUCTION ACTIVITY 27

28 STAFFING WATERFALLS 400,000 PERSON HOURS 36,000 HOURS/MONTH AT PEAK (225 FULL TIME EMPLOYEES) 28

29 EXTENSIVE PLAN REVIEW PROCESS 200+ PLAN SUBMITTALS 29

30 PROJECT-WIDE AND SPECIFIC QA/QC MANUAL EACH SUBMITTAL IS SIGNED OFF SEPARATELY 30

31 PAGE 1 OF THE 6 PAGE QC CHECKLIST FOR EACH SUBMITTAL QUALITY IS MANDATORY IN FAST-TRACK DESIGN/BUILD 31

32 EXTENSIVE PLAN REVIEW PROCESS 200+ PLAN SUBMITTALS OVER 8,000 PLAN SHEETS 3-4 REVIEWS PER PLAN SET REVIEWS OVERALL PRODUCTION TEAM SUBMITTED 20+ PLAN SETS PER WEEK FOR REVIEW FINAL PLAN SUBMITTALS AVERAGED 5 PLAN SETS PER WEEK IN PEAK PERIODS FINAL DESIGN COMPLETE IN FALL

33 PROJECT IS ON SCHEDULE! 33

34 LESSONS LEARNED WRAP UP AGENCY HAS A MAJOR DUE DILIGENCE PROCESS PRIOR TO FINANCIAL CLOSE LEAD TIME FOR FINANCIAL CLOSE IS LENGTHY DESIGN PERIOD UPON FINANCIAL CLOSE IS SHORT CONCESSIONAIRE WANTS THE ROAD OPEN NOW! OPEN = $ 34