1. P3 CONSIDERATIONS IN THE EARLY STAGES The P3 Conference - Dallas, TX February 26-28, 2018
Lee A. Weintraub, Esq. Becker & Poliakoff, P.A. 1 East Broward Blvd., Ste Fort Lauderdale, FL (954)
Peter Isaac Brailsford & Dunlavey, Inc Connecticut Ave. NW, Ste Washington, DC (202)
Phillip Ray Texas A&M Tamus College Station, TX (979)
Bob Shepko Balfour Beatty Campus Solutions One Country View Road
Malvern, PA 19355
(240)
Scott Zuchorski Fitch Ratings, Ltd. 33 Whitehall Street New York, NY (212)

2. I. What Should Public Entities Address When Considering P3s
What is the need the public entity seeks to address?
Clearly define how success will be measured
Who will be the political champion?
Determine availability of internal resources
Key Stakeholder Alignment / Support

3. I. What Should Public Entities Address When Considering P3s (continued)
Clear Definition of Project
Market Study – Essential Need
Market Study – Project Feasibility
Financial Analysis – Identification and Definition of Funding Gap
Financial Analysis – Credit Impact
Financial Analysis – Balance Sheet Utilization
Value for Money – Institutional Risk Profile

4. I. What Should Public Entities Address When Considering P3s (continued)
Organized, Fair, Transparent Procurement Process
What would attract the private sector to respond to a P3 bid?
Stable public entity committed to P3 process
Project with defensible need, identifiable cash flow & political support

5. II. Options for Funding a P3 Project
Availability payments
Project based finance
New market tax credits
Tax increment financing
EB 5

6. II. Options for Funding a P3 Project (continued)
Lease payments
Grants
Loans
Bonds
Cost savings (maintenance, energy usage, taxes, etc.)

7. III. Projects Best Suited to P3 Delivery
Any public building if availability payment model is used
Otherwise, need to find revenue stream
Higher education
Transportation
Utilities

8. III. Projects Best Suited to P3 Delivery (continued)
Hospitality
Sports facilities
Energy-based projects
Parking garages
Neighborhood revitalization
Not as well suited for smaller projects

9. IV. Advantages of P3 Project to Public Sector
Project cost savings over life cycle
Design/construction with improved operations/maintenance in mind
Leveraging private expertise/innovation
Quicker design/construction schedule
Access to new sources of private capital

10. IV. Advantages of P3 Project to Public Sector (continued)
Transfer of project risk to private sector
Risks in delivery of facility
Cost overruns
Delays
Risks in operations
Low usage/revenue
Capital replacement/maintenance costs
Managed by key performance indicators

11. V. Disadvantages of P3 Project to Public Sector
Educating decision makers & department heads about P3s
Political risk
Need for constant, transparent communications with stakeholders
Takes long time to get project going