Alternative Financing and Delivery

Transcription

1 Alternative Financing and Delivery Corps Program and the Grand Prairie Project COL Jeffery Anderson Commander Memphis District June 29, 2016 US Army Corps of Engineers

2 Challenges and Opportunities Corps Civil Works Portfolio: 3,000+ Operational Projects, with Replacement Value of Approx $268B Corps Civil Works Asset Classes are Diverse Flood & Coastal Storm Damage Coastal and Inland Harbors Inland Waterways Hydropower Demands for CW Infrastructure Maintenance, Operations, and Capital Investment are Expanding Civil Works New Construction Backlog $ 60B ASCE: Dams, Levees, IWW s = D $140B CW Infrastructure Systems Aging, Experiencing Negative Performance Trends Across Portfolio (Serviced by ~$4.6B Annual Budget Nationally.) Dam & Levee Safety Programs Water Storage Aquatic Ecosystems Water-Based Recreation 2 2

3 Alternative Financing & Delivery The Corps has been Trying to Think Differently About Its Approach to Project Financing and Delivery Meet Administration Intent While Protecting Tax Payer and Federal Equities Working Portfolio of P3 Demonstration Projects, w/in Existing Authority Two National Problems Corps is Trying to Address Through AF/P3 For Existing Infrastructure, Sustain Performance, Extend Service Life, and/or Buy Down Risk for the Nation Accelerate Delivery of New Infrastructure to Reduce Life Cycle Costs and Achieve Earlier Accrual of Project Benefits to the Nation April 2015 Treasury Report.years of underinvestment in our public infrastructure have imposed massive costs on our economy. 3

4 Alternative Financing & Delivery Looking for innovative ways to achieve goals of: Accelerating Project Delivery Reducing cost to taxpayers Reducing risk to population and infrastructure sooner Reducing scheduling and funding risks Demonstrate a viable strategy to reduce USACE backlog of projects 4

5 Corps Demonstration Program Ongoing Demonstration Program (Existing Auth/Policy) Most Mature: Fargo-Moorhead Metro (FRM Construction) Most Sophisticated: Illinois Waterway (Inland Navigation O&M) Aimed at the operations and maintenance of Federal assets Possible bundling of many sites Questions on revenue source, along with legal policy issues. Most straight forward: Grand Prairie (Water supply) RFI available June 29th Industry day Other considerations hydropower and recreation Corps has a large number of hydro and recreational facilities Work with Power Marketing Administration (PMA) on hydro policy/legal issues Need to identify recreation opportunities.

6 Alternative Financing Challenges Payment Mechanisms, Availability Payments Inability to Make Commitments on Future Appropriations Budget Scoring Scores Full Federal Project Cost Up Front in First Year Revenue Generation and Ring-Fencing Ability to Collect, Retain and Reinvest Fees/Charges Budgetability Prioritization of Projects Within Current Budget Policy (Benefit-Cost Ratio) 6

7 Water Levels of Carlisle, AR Well 7

8 Grand Prairie Project Description Authority: Authorized by Section 204, FCA of 1950; De-authorized by Section 1001(b) of WRDA 1986; Re-authorized by Section 363 of WRDA 1996 Approved Reports: General Reevaluation Report approved 27 Sep 1999 (Includes approved Environmental Impact Statement); Record of Decision approved 26 February 2000; Project Execution Agreement executed 7 August 2000 Project provides agricultural water supply, groundwater protection, and fish and wildlife restoration and enhancement. Key Outputs: Arkansas declared counties in this project as Critical Ground Water Areas Some Alluvial aquifers are currently being depleted Agriculture is switching to Sparta Aquifer, which is for municipal/industrial use Without project, $46M annual farm receipt decrease, 77% irrigated cropland loss Web Site: Demonstration-Project/

9 Grand Prairie Region Overview Project Area Arkansas, Prairie, Lonoke, and Monroe Counties 362,662 Acres (567 Sq Miles) of Land Area 900 farms 247,556 Acres of Irrigated Cropland Current Status Pump Station Inlet Channel is 100% Complete Pump Station Substructure is 100% Complete Pump Station Superstructure Under Construction Scheduled Completion 2018 Discharge Pipes Segment 1 is 100% Complete Discharge Pipes Segment 2 is 100% Complete Discharge Pipes Segment 3 is 100% Complete Widened Canal Regulating Reservoir Under Construction Scheduled Completion 2019 Environmental Mitigation for All Construction Items Ongoing Main Canal 1000 Design 95% Complete 102 Miles of Canals 290 Miles of Pipeline Canal Distances GPPS to Carlisle 16 miles Canals 1000, 2000 (Seg1&2), and 3000 (Seg1) Carlisle to Stuttgart 35 miles Canals 3000 (Seg2), 4000 (Seg1), 4500, 5000 (Seg2), and 5500 Remaining Canals 51 miles Canals 1500, , , , , and (2) 3000 (1) 2000 (2) (1) Items of Work: Infrastructure and Distribution Sys - $433.5M On-Farm Work - $106.0M Sunk PED Costs - $11.5M Total Project Cost - $551.0M cfs Pump Station 243 Complete On-Farm Reservoirs 330 Planned On-Farm Reservoirs

10 Grand Prairie Project Schedule N Not to Scale County Bridges BR Downs Rd (CR-24) BR Old Hwy 70 (CR-25) BR Halls Crossing Rd (CR-726) Outlet Transition Transition Structure Widened Canal Reservoir Contract - FY15 Complete - FY19 Contract Award: $19.4 M Discharge Pipes Segment 3 Completed - FY16 Contract Award: $5.2M Surge Tanks Pumps Complete and Installed Pump Station Substructure Completed - FY15 Contract Complete: $30.6M Pump Station Superstructure (incls Header Pipes) Contract - FY14* Complete - FY18 Contract Award: $20.2M Motors Complete and in Storage Inlet Channel Completed - FY11 Contract Complete: $1.9M White River Check Structure BR Hwy 70 Bridge US Hwy 70 Bridge Downs Rd Bridge 1000 Firetower Rd Main Canal 1000 Contract Estimate: $12.2M Webb Lake Rd Discharge Pipes Segment 1 Completed - FY12 Contract Complete: $10.7M Electrical Infrastructure Contract Estimate: $10.8M BR Hwy 63 Bridge Old Hwy 70 Bridge Canal 2000 Discharge Pipes Segment 2 Completed - FY15 Contract Complete: $9.4M Canal 2000 Main Canal 2000 Segment 2 Contract Estimate: $17M Bridge US Hwy 63 Canal 2000 Admin Bldg Bridge Halls Crossing Rd Realignment CR-208 Main Canal 2000 Segment 1 to Hwy 63 Contract Estimate: $17M Items of Work: Infrastructure and Distribution System On-Farm Work Sunk PED (Planning, Engineering, and Design) Costs Total Project Cost $433.5M $106.0M $11.5M $551.0M US Hwy Bridge County Bridge Fully Funded

11 Grand Prairie Region Current Items Widened Canal Reservoir Main Canal 1000 Discharge Pipes Alignment Pump Station DeValls Bluff, AR