1. FTI Consulting Infrastructure Public/Private Partnerships
April 2017
ASCE/COPRI Workshop

2. The “Big Three” of Getting It Done
FEASIBILITY
Is there a Viable Deal?
Screening Tools
Project Attributes
BUSINESS CLEARANCE
Who are the Stakeholders?
Legislative Authorities
Funding Requirements and Approvals
TRANSACTION
AGREEMENTS
Lease
Contract
License
Concession Agreement
Or Combination Thereof?

3. Feasibility – Is there a Viable Deal?
Screen Before you Study– initial screening will save time and money
Project Attributes (The Initial Screen)
Project Creates or Increases Reliable, Vendible, Durable Revenue Stream
Economic or Resource Benefit to Other Stakeholders
Aligns with, or Satisfies, Other Agencies' Goals
Non-Federal Sponsor Level of Engagement/Political Willingness
Level of Community Opposition/Controversy
Local Support/Sentiment Toward Project
Planning, Design, Costing, Approval and Regulatory Process Status
Policy and/or Statutory Roadblocks
Project Funds or Creates Unfunded Corps O&M Funding Obligation
Benefit-Cost Ratio (Value for Money)
Physical Condition, e.g., New, Renovate Existing or Deferred Maintenance
Environmental, Habitat, Historical, Cultural or Archeological Issues

4. Feasibility – Revenues Drive Capital Access
Projects that pass the initial screen warrant a deeper dive into the revenue potential and opportunities for “alternative financing”
Annual Project Gross Revenue to Project Cost %
Potential Gross Annual Ancillary Revenue, e.g. Recreation Fees, User Fees
Frees-Up or Creates Land or Facilities for Lease, License or Purchase
Capital Stack & Blended Cost
Federal Financing Leverage
Investment Debt/Sponsor Equity Mix
MAXIMIZE Term, MINIMIZE Rate
RISK drives DSCR and Blended Cost

5. Business Clearance Sponsor Agency – Who takes the lead?
Legislative Authorities – WRDA, WIFIA, Special Legislation, other?
Funding Availability/Sources
Creditworthiness of Non-Federal Sponsor (Rating of Recent Bond Issuances)?
Project & Sponsor Generated Debt Capacity?
Access to State or Regional Funds, e.g. State Infrastructure Bank?
Large Private/Corporate End-User/Payer will Participate in Funding?
Other Stakeholders will Participate in Funding?
Federal Funding, Loans or Guarantees Available
Approval and Reporting Protocol
Value for Money Analysis
OMB and Congressional Engagement/Notification
Life-Cycle Oversight

6. Business Clearance
Federal Credit Scoring Rules – a blessing or a curse? It depends on structure…
Appropriately structured federal direct loans and loan guarantees can be a powerful tool to bridge funding gaps

7. Transaction Phase License Contract Lease Concession Agreement
Match the tool to the task – different agreements have different uses but all should be considered
License
Contract
Lease
Concession Agreement
Or Combination Thereof?
AUTHORITY governs Roles/Responsibilities/Participation
TRANSACTION aligns Rights/Risks/Protocols
INSTRUMENTS establish Performance/Protections/Remedies