I-4 Ultimate with Lanes Project Central Florida 1 May 21, 2013

Executive Summary The $2.1B I-4 Ultimate Project is the top priority for the state of Florida The Project is being advanced using a Public-Private Partnership (P3) under Section , F.S. (P3 Law) A system of financing tools guarantee the lowest cost: Private Activity Bonds (PABs) TIFIA If PABs are used for the project, a conduit issuer is needed to issue bonds This can be accomplished through an interlocal agreement between Orange County, Seminole County and City of Orlando 2 FDOT facilitates use of tools since administered by US DOT

Project Overview $2.1B (FY2013$) Strategic Initiative for Florida 21+ miles from West of Kirkman Road (Orange) to East of SR 434 (Seminole) Project replaces aging infrastructure and enhances safety Relieves congestion in heavily populated areas of Florida 3

I-4 Ultimate Interstate 4 Typical Section 4 Managed Lanes (2 each direction) 6 General Use Lanes (GUL) + Auxiliary Lane Managed Lanes 4

Procurement Schedule 5 Draft RFQ and PIM February 22, 2013 Industry forumMarch 4, 2013 Advertisement and RFQMarch 8, 2013 Shortlist and draft RFP May 21, 2013 Release draft RFP May 2013 Final RFP and ITPSeptember 2013 Proposals dueJanuary 2014 Best value selectionMarch 2014 Contract executionJune 2014

Why Public-Private Partnerships? P3 Seeks to Achieve 5 Primary Goals Provides capacity improvements much sooner than a traditional pay-as-you go approach Eliminates project phasing and advances the overall project Capitalizes on the private sector’s innovation and access to capital markets Transfers of appropriate risk items to private partner Enhances long-term, lifecycle cost efficiency and service quality 6

FDOT’s P3 Legal Framework Legal Framework Provides Strong Creditworthiness P3 Law originally enacted in p rovides flexibility to advance projects while implementing safeguards Authorizes FDOT to advance projects programmed in the 5- year work program or 10-year SIS Requires cost effectiveness and public-benefit analysis Authorizes performance-based payments to private sector Annual payments on multi-year P3s are prioritized ahead of new capacity Strong market acceptance of FDOT’s legal framework I-595 and Port of Miami Tunnel 7

P3 Financial Controls Financial Controls Provide For Strong Creditworthiness Statutory requirements promote fiscal responsibility Governor and legislative approval of contractor financed projects 20% limitation on debt and debt like obligations 15% limitation on P3s Submittal of 5-year work program to the Legislature annually Budget requests are balanced to available resources Proven track record of effectively managing the work program as revenue forecasts change 8

Public-Private Partnership (P3) Appropriation-Based Funds Finance the Project 9 Milestone Payments Payments made during construction period Incentivizes accomplishment of construction priorities Reduces the amount of financing Credit enhancement 35-years of Performance-Based Availability Payments Operations and maintenance period payments Incentivizes: On time completion of project Construction quality Level of service / Maintenance Repays long-term debt, equity, operations and maintenance costs, renewal work costs 100% of payment must be performance based to ensure incentives are achieved Final Acceptance Payments Post construction payments Incentivizes on time completion of project Repays short-term financing Credit enhancement

Public-Private Partnership (P3) Proposer May Use A System of Financing Tools 10 TIFIA A form of debt – like a bank loan Federal credit assistance May be subordinate to other debt Long-term or short-term financing Interest rate is tied to US Treasury FDOT submitted a letter of interest January 2013 PABs A form of debt - like Industrial Development Bonds Long-term financing Tax exempt bonds issued by government SAFETEA-LU authorized up to $15 billion Private Equity – “skin in the game” Proposer’s contribution toward the project Will be required within the capital structure Used with debt At risk until the end of the project term Lost in the event of contractor default Bank Debt A form of debt Financing from commercial banks Short-term financing - 5 to 7 years

Private Activity Bonds (PABs) Only $7.2B of the $15B Allocation is Remaining $15B cap on PABs used to deliver highway and freight transfer facilities Exempt facility bonds – not subject to state volume caps FDOT wishes to submit an application to secure a PABs allocation from US DOT Estimated allocation request = $800M to $1.5B Conduit issuer is a key player in application process PABs are an important financing mechanism for proposers Limited financial capacity in current bank debt markets PABs provide proposers with access to tax-exempt interest rates 11

Public Involvement and Community Outreach Project website: Public involvement and community outreach will be incorporated Sign up and be notified when there is a major update or announcement 12