U.S. Infrastructure Report Card in 2013 An estimated $157 billion a year can protect $3.1 Trillion GDP $1.1 Trillion US trade value 3.5 million Jobs $2.4 Trillion Consumer spending value Source: American Society of Civil Engineers.
US infrastructure grades Water & Environment Transportation Public Facilities Dams D Aviation D Public parks & recreation Drinking water D Bridges C+ Schools D Hazardous Waste D Inland Waterways Levees D- Ports C Solid Waste B- Rail C+ Wastewater D Roads/ Transit D C- D- Energy D+ Source: ASCE 2013 report card.
World infrastructure rankings Rank County Score 1 Switzerland 6.60 2 Hong Kong 6.46 3 United Arab Emirates 6.42 4 Finland 6.39 5 Singapore 6.28 6 Netherlands 6.26 7 Austria 6.20 8 Iceland 6.19 9 Japan 6.15 10 France 6.05 11 Germany 6.02 12 Portugal 6.01 13 Spain 5.93 14 Luxemburg 5.87 15 Denmark 5.78 16 United States 5.75 Source: World Economic Forum, Global Competitiveness 2014-2015.
Top five infrastructure investments gaps in $US billions Infrastructure systems Total needs Estimated funding Funding gap Surface Transportation $1,723 $877 $846 Water/Wastewater Infrastructure $126 $42 $84 Electricity $736 $629 $107 Public Parks & Recreation $238 $134 $104 Schools $391 $120 $271 Yearly Investment Needed $454 $253 $201 Source: 2013 ASCE America s Infrastructure investment needs.
Average annual capital investment levels for roads and bridges Investment scenarios until 2028 Investment levels US$, billions 400 350 300 250 200 Improve current conditions and Preformance Maintain current conditions and preformance Current spending levels 134.9 170.1 150 100 50 0 101 71.8 80.1 43 38.9 24.3 20 42 70.6 91.1 Interstate National Highway system Federal Aid Highways All Roads and Bridges Source: 2013 ASCE infrastructure report card.
Cost to improve U.S. infrastructure is rising faster than actual investment US$ billions 3,000 2,500 2,000 1,500 1,000 500 Public spending on transportation & water Cost to improve Share of GDP Percent 2.7 2.6 2.5 2.4 2.3 0 2001 2005 2009 2013 2.2 Sources: Congressional Budget Office; 2013 ASCE report card.
1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 US Water and transportation investment US$ billions 500 450 400 350 300 250 200 150 100 50 0 Share of GDP (right axis) Investment (left axis) Percent 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Source: Congressional Budget Office.
Public infrastructure investment Average 2001-2006 Average 2006-2011 Source: OECD. Note: Public investment is here defined as the sum of gross fixed capital formation (GFCF) and capital transfers payable to business or households.
Investment in infrastructure, 2008 share of GDP Percent of GDP 9 8 7 6 5 4 3 2 1 0 5.4 4.3 4 3.5 3.3 2.9 2.7 2.3 2.3 2.2 8.3 7.6 3.6 1.7 Source: McKinsey Global Institute; McKinsey Global Economic Growth Database.
Public/Private Partnerships (PPPs) Worldwide, nominal total Costs (in US$ billions), 1985-2011 Asia, Australia, 187.2 Africa, Middle East, 31.5 U.S., 68.4 Canada, 45.2 Mexico, Latin America, Caribbean, 88.5 Europe, 353.3 Source: House Transportation & Infrastructure Committee
More than half (33) of U.S. states have passed P3 enabling legislation Source: Federal Highway Administration.
Approved TIFIA Loans Source: House Transportation & Infrastructure Committee..
US Availability-Payment P3s that have reached financial close Project State Sector Sub-Sector Financial close date Amount USD (m) I-4 Mobility Partners Florida Transport Roads 5 Sept 2014 $2,300 I-69 P3 Indiana Transport Roads 21 July 2014 $370 Goethals bridge P3 Ohio River Bridges- East End Presidio Parkway Doyle Drive Long Beach Courthouse Denver FasTrackEagle P3 Port Authority NY/ NJ Transport Bridge 8 Nov 2013 $1,500 Indiana Transport Bridges, roads, Tunnels 28 Mar 2013 $763 California Transport Roads 14 Jul 2012 $362 California Social Justice 20 Dec 2010 $495 Colorado Transport Light Rail 12 Aug 2010 $1,637 Miami Port Tunnel Florida Transport Tunnel 15 Oct 2009 $860 I-595 Roadway Improvements Florida Transport Roads 4 Mar 2009 $1,760 Source: Moody s.
Case Study - Port of Miami tunnel- Public-private partnership Project facts Size US $ 760 million Date October 15, 2009 Project Structure Equity Location Type Approach Phase Miami, Florida Economic Public Private Partnership New Senior Debt TIFIA Loans Market Developing 0 10 20 30 40 50 Source: World Economic Forum P3 Report.
Pennsylvania Rapid Bridge Replacement Project Total Capital Cost Consortium $1.1 billion Financial Close March 2015 Plenary Walsh Keystone Partners Target Completion December 2017 Status Commercial Close Project Description» The project includes the replacement of 558 bridges across Pennsylvania, making a big commitment to reducing the large backlog of structural deficient bridges in the state.» The Consortium was selected in part for its commitment to delivering the full compliment of bridges eight months earlier than required.» The project is the first multi-asset PPP to be undertaken in the US, allowing Pennsylvania to replace and maintain a significant number of bridges in a more economical way. Source: Pennsylvania DOT
Long Beach Civic Center Consortium Financial Close Target Completion 2018 Status Total Project Cost Plenary Edgemoor Civic Partners December 2015 (est) Preferred Proponent $ 494 million Project Description» Plenary Edgemoor Civic Partners was recently awarded the exclusive right to negotiate the DBFOM of a new civic center with the City of Long Beach. The public portion of the project will include the delivery of a new City Hall, Port of Long Beach Headquarters building, revitalized Lincoln Park, and a new downtown library. In addition, a mixed-use development will take place on the unused portions of the site.» The Plenary Edgemoor team came up with a creative financial solution that builds all of the public scope at the current level of annual expenditures. Source: City of Long Beach
Recent P3 deals in the US have demonstrated a range of equity participation Most active Sponsors for the last 36 months Total (USD M) Transactions Freeport LNG Development L.P. 10,934.00 2 Williams Companies 7,815.00 2 Bank Debt, 24 Private Placements, 4 Chubu Electric Power 7,407.00 2 TIFIA, 37 OSAKA Gas 5,609.00 1 IFM Global Infrastructure Fund 5,325.00 1 Prudential Capital 4,075.00 5 American Tower Corporation 3,300.00 1 PABs and other tax exempt instruments, 35 Williams Partners LP 3,160.00 2 Sources: InfraDeals 2015.
P3 project Debit and Equity Project Type Date Amount (m) Final maturity date Coupon Yield Goethals Bridge Long Beach courthouse refinancing OSU parking refinancing Greenfield 8 Nov 2013 457 25 Oct 2051 5.375 5.58 Refinancing 2 Dec 2013 518.5 31 Dec 2047 6.88 Refinancing 19 Dec 2013 285 1 Dec 2033 5.14 5.14 US 36 P3 Greenfield 28 Feb 2014 20.36 1 Jan 2044 5.75 5.875 I-69 Greenfield 23 Jul 14 243.84 2046 4.95 Sources: InfraDeals 2015.
Most Active Banks for the last 36 months Name Total (USD M) Transactions Mitsubishi UFJ Financial Group 3,948.10 48 Japanese Bank for International Cooperation (JBIC 2,697.36 1 Santander 1,917.42 25 Deutsche Bank AG 1,909.78 15 Transportation Infrastructure Finance and Innovation ACT (TIFIA) 1,795.00 6 ING Group 1,792.77 18 Mizuho Bank 1,713.23 17 Sumitomo Mitsui Banking Corporation (SMBC) 1,652.26 15 Source: InfraDeals 2015