TransportationP3sinMaryland

GreaterBaltimoreCommitteeTransportationSummit

May9,2014

Overview

BackgroundofMarylandsP3FrameworkandProcess

ExistingP3s:Seagirt MarineTerminalandI95TravelPlazas

PurpleLineP3

DevelopingMDsP3LegalandRegulatoryFramework
2010P3Law
(Chapters640and641of2010)

JointLegislativeandExecutiveCommissiononOversightofP3s(2011)

2013P3Law(Chapter5of2013)
(signedonApril9th;effectiveJuly1st )
ExecutiveOrderestablishingP3SubCabinet
(Summer2013)
MDOTRegulations:COMAR11.01.17
(Summer/Fall2013)
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MarylandsP3Law:Definition

Methodfordeliveringpublicinfrastructureassetsusingalongterm,performance
basedagreementbetweenaReportingAgencyandaPrivateEntity.

Appropriaterisksandbenefitscanbeallocatedinacosteffectivemanner
betweenthecontractualpartners.

PrivateEntityperformsfunctionsnormallyundertakenbythegovernment,but
ReportingAgencyremainsultimatelyaccountableforthepublicinfrastructure
assetanditspublicfunction.

Statemayretainownershipinthepublicinfrastructureassetandtheprivate
entitymaybegivenadditionaldecisionmakingrightsindetermininghowthe
assetisfinanced,developed,constructed,operatedandmaintainedoverits
lifecycle.

Doesnotincludeanassetsaleorashorttermoperatingspacelease.

MarylandsP3Law:Details

Createspredictable,transparent,andstreamlinedapproach,incorporatingbest
practicesandlessonslearnedfromotherstates,whileaddressingtheneedsof
Marylanders

Allowsagenciestoconsiderunsolicitedproposalsforpotentialcompetitive
solicitations

Outlineskeyrequirementsforcompetitivesolicitationprocesses

ExemptsP3sfromstateprocurement(DivisionIIofStateProcurementArticle)

Requiresthatreportingagenciespromulgateregulationsforthedevelopment,
solicitation,evaluation,award,anddeliveryoffutureP3projects

RequiresthatBPWdesignateanypotentialP3,ensuringthatfutureP3projects
receivethehighestlevelofscrutinyBEFOREtheStateseeksproposalsfrompotential
partners

OutlineskeytermsandprovisionsthatshouldbepartofaP3Agreement
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RegulatoryProcesstoAdvanceTransportationP3Concepts
Receiveinternallygenerated
P3concept

Receiveunsolicitedproposal
P3concept

Highlevelscreening
Initialscreeningofappropriateness,viability,andeffectivenessasaP3
Detailedlevelscreening
Morecomprehensivescreening,includingrelevantanalysesandduediligence
Presolicitationdevelopment
Completerelevanttasksrequiredforthedevelopmentofapresolicitationreport

Secretarysrecommendationtosubmitapresolicitationreport
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ExistingP3s:SeagirtTerminal
KeyTerms

In2010,MPAenteredintoa50yearDBFOMwithPortsAmerica
ChesapeakeforredevelopmentofSeagirt.
$105millionprojecttoconstructdeepberthandcranescompletedin
2012,twoyearsaheadofschedule.
$140millionupfrontpayment,reinvestedinshovelready
transportationprojectsalongI95andtheChesapeakeBayBridge.
Annualpaymentof$3.2million,grownatinflationstartinginYr 5.

OngoingAchievements

2010

2013

Seagirt set4thconsecutivecargorecordin2013,withtonnage growth

3.1%betterthan2012.
MPArecentlyreceivedaUSDOTTIGERGranttobringrailtoFairfield,
redevelopFairfieldShipBasin,andtostraightenandwidenSeagirt
accesschannel.
Theworldsthreelargestcontainerlineshaveformedanalliancecalled
theP3;thisalliancewillbringadditionalcarrieroptions(Maerskand
CMAvessels)tothePort.
Amazonannouncedthatitisbuildingalargedistributioncenter
adjacenttoSeagirt.
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ExistingP3s:I95TravelPlazas

In2012,MDTAenteredintoa35yearDBFOMwithAreasUSAfor
redevelopmentofthetwotravelplazasonI95.

AreasUSAiscurrentlyinvesting$56millionforreconstructionof
theMarylandHouseandChesapeakeHousetravelplazas.

AreasUSAwilloperateandmaintainthetravelplazasthrough
2047,whiletheMDTAretainsownershipandoversightofthe
plazas.

Statewillreceiveapproximately$400millioninestimatedrevenue
paymentsfromAreasUSAovera35yearperiod.

January2014MDHouseRibbonCutting

ChesapeakeHouseUnderConstruction

OperationsofbothtravelplazastransferredtoAreasUSAin
September2012.

P3projectwillsupport400constructionand575operationaljobs.

MarylandHousereopenedtothepublicinJanuary2014,
ChesapeakeHouseisscheduledtoreopeninSummer2014.

PurpleLineP3
Proposed16+milelightraillineextendingfromBethesdainMontgomeryCountytoNewCarrolltonin
PrinceGeorge'sCounty,enhancingconnectionsintheWashingtonDCmetroarea.

DeterminingP3PotentialforthePurpleLine
Preliminaryanalysesandindustryoutreachduring2011 2013,includingvalueformoneyanalysisin
2012.Conductseriesofinternalprojectdeliveryworkshopsinwinter2012/2013.

ReleaseofRequestforInformation(RFI)totheP3marketinApril2013;responsesreceivedMay8,2013

IndustryForumonMay15,2013

CompleteP3screeningprocessandanalysesinJuly2013

IssuepresolicitationreportforaDBFOMP3approachonAugust5,2013

SolicitationapproachapprovedbyBPWonNovember6,2013
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KeyReasonsforUsingaDBFOMP3

Operationalfactors
ThePurpleLineisanaturalstandaloneassetandtheP3approachwillalsoincreasethe
likelihoodofconsistentlyexcellent,highlyresponsiveservice.
Risktransferefficiencies
P3willintegratevariousprojectelementsintoasingleagreementthatclearlyoutlines
theoptimalallocationofprojectriskbetweenthepublicandprivatepartners.
Wholelifecycleplanningandcostoptimization
P3willprovidegreaterincentivetomakeinvestmentdecisionsthatareoptimizedover
thelifeoftheasset.
Schedulediscipline
P3agreementstructurefocusedonassetavailabilitywillprovidestrongincentivesfor
theconcessionairetomaintainscheduledisciplineduringassetdelivery.
Enhancedopportunitiesforinnovation
P3willprovidetheprivatesectorwithopportunitiesandincentivestopropose
enhancementstotheassetdesignanddeliveryapproachthatcouldbenefitlongterm
operatingandmaintenanceperformance.
Potentialfinancialvalue
Duetotheoperationalbenefits,risktransferefficiencies,lifecycleplanning,scheduling
discipline,andinnovationopportunitiesoftheP3approach,thereispotentialforlong
termfinancialsavingsrelativetoatraditionalprojectdeliveryapproach.
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KeyPurpleLineSolicitationMilestones
BoardofPublicWorksApprovesMDOT/MTA PurpleLineP3Proposal

November 6,2013

RequestforQualificationsIssued

November8,2013

StatementsofQualificationsSubmittedbyProposers

December11,2013

ShortlistofQualifiedProposersDetermined

January8,2014

DraftRequestforProposalsIssuedtoShortlistedProposers

January2014

Recommendationfor$900MillionFFGAforPurpleLine

March5, 2014

RecordofDecision

March19,2014

FinalRequest forProposals IssuedtoShortlistedProposers

Summer2014

FinalProposalsDue

Fall2014

SelectedProposerAnnouncedandP3AgreementFinalized

Winter2015

FinalP3AgreementSubmittedtoComptroller,Treasurer,Budget
Committees,Dept.Legislative ServicesforReviewandComment

Winter2015

FinalP3AgreementRecommendedtoBPW

Winter2015

FinancialClose

Spring2015
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ContactInformation
Foradditionalinformation:
JodieMisiak
AssistantDirector,InnovativeFinance
MarylandDepartmentofTransportation
(410)8651050
jmisiak@mdot.state.md.us

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