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Presentation on theme: "INFRASTRUCTURE AND RENEWABLES: TRENDS AND OPPORTUNITIES IN FLORIDA Gary Schumann."— Presentation transcript:


2 2 State of Florida 18.5 million population 3 rd largest US state 80 million visitors/year 19 th largest economy in world Trade, aviation, defense, life sciences, IT, financial services

3 3 Non-US Firms are Welcomed and Successful in Florida Over 2500 non-US firms 350 Spanish companies in Florida = more than anywhere in US Do business across US and Latin America from Florida AREAS (Florida Turnpike)Bancaja ACS Dragados (I-595)Bellota Herramientas OHL and Caja Madrid (US 1 widening) FCC Global ViaDragados IberdrolaEptisa Sistemas IndraGrupo Guascor Grupo AbengoaUnión Fenosa Telefónica Terra Networks

4 4 Infrastructure: Examples of Successful Non-US Firms Acciona Tampa - desalinization plant ACS-Dragados Ft. Lauderdale – Highway I-595 expansion Miami – airport expansion CEMUSA Miami – outdoor advertising FCC Miami - Highway I-95 managed lanes Miami – Highway I-95 – widen lanes $122 m Odebrecht Miami - airport terminal Miami - Metro Mover at airport with OHL Miami - Performing Arts Miami - Florida International University OHL / Caja Madrid Miami – highway Interchange, $560 m Miami – Light-rail train extension to airport - $360 m Miami – People mover at airport, with Odebrecht Florida Keys - Widening of Highway US1 Veolia Ft. Lauderdale – TriRail operations Tampa – Water sanitation Vinci Tampa – airport terminal

5 5 Infrastructures Market and Upgrade Needs in Florida 150,000 miles of highways and roads; 5700 bridges –Need new highways, widening, tolling; repair, replace 20 commercial airports –Need expansions 14 deepwater ports –Need to deepen and expand (Panama Canal, super cargo ships) 2800 miles rail, 25 major rail terminals –High-speed rail, new commuter rail, other rail upgrades Kennedy Space Center –Need new space launch control complex 21 electric utility companies –Electrical upgrades, new nuclear facility, going green

6 6 Legislative Environment Balanced budget requirement – Constitution Tax receipts down: public funding down $7 billion in cuts during past 2 years $2 billion deficit next year Impact on infrastructure, energy projects Florida is progressive, a model for PPPs in US PPP projects - approval by committee, not legislature Creative financial solutions (escrow) Now is an excellent opportunity for Spanish companies, PPPs

7 7 Legislative Environment Successful PPP examples and IN TIME OF ECONOMIC CRISIS: Construction of Tunnel to Port – Miami ( –$1.5 billion project –With Bouygues Travaux Publics Asesores de Infraestructuras – Financial advisors –Federal, State, Local, Private Sector (12-15 banks) 595 Express Corridor Improvement Project – Fort Lauderdale ( –Reconstruct, widen and resurface –10.5 miles, plus and all associated improvements to adjacent cross-roads, frontage roads and ramps –With ACS Infrastructure Development,Banco Santander financing part –$1.8 billion project –35-year concession –the largest infrastructure project ever undertaken by the FDOT

8 8 Procurement Process 1. Federal Government: Sends ARRA, DOE grants to states 2.Florida State Government: Governor, legislature Decide budget PPP laws (legislative committee vs. full legislature approval) Sends Federal and state funds to counties 3.Florida State Agencies: Florida Department of Transportation (7 districts) Ports, Airports, Turnpikes, Roads, Rails Florida Department of Energy 4.Local Governments Miami-Dade County Miami-Dade Expressway Authority, Tri-Rail, Ports, Airports Office of Procurement Management

9 9 Procurement Process Typical procurement process: 1.Register with state AND county for certification and prequalification - 2.Request for Qualifications 3.Statement of Qualifications 4.Request for Proposals 5.Evaluation of Proposals 6.Commercial Close 7.Financial Close 8.Intent to Proceed

10 10 Procurement Process MODEL 1: SOLICITED BID – CONCESSION PORT OF MIAMI TUNNEL (BOUYGUES) Feb. 17, 2006: FDOT publishes a Request for Qualifications (RFQ) from proposers seeking to develop, design, construct, finance, operate and maintain the Port of Miami Tunnel Project through a Concession Agreement as a public/private partnership (PPP) April 12, 2006: FDOT receives Statement of Qualifications (SOQ) from potential proposers April 28, 2006: FDOT announces short-list of qualified proposers. Nov. 1, 2006: FDOT publishes a Request for Proposals (RFP) for short-listed proposers March 5, 2007: FDOT receives proposals from short-listed proposers May 2, 2007: FDOT announces intent to select Best Value Proposer Miami Tunnel team June 2, 2009: FDOT reaches Commercial Close Oct. 15, 2009: FDOT reaches Financial Close/ Notice to Proceed Spring, 2010: Construction begins Spring, 2014: Port of Miami Tunnel is completed

11 11 Procurement Process MODEL 2: UNSOLICITED BID – ESCROW MODEL US 1 (OHL/CAJA MADRID) OHLs US subsidiary approaches Miami-Dade County with idea. Company already doing some work, suggest rest Miami-Dade County had NO PLANS to do this work. Same normal RFQ, RFP process. 120 days to respond. Unique: First non-solicited bid to be approved in Florida More unique: Creative financing - escrow model – 4 parties State came up with model: 1. Statepays at project completion, 2. Contractorrequires payment per stage completed 3. Bankfinances contractor 4. Surety bondsprotect against non-payment Took 1 ½ years to work out Florida Department of Transportation agreed to escrow. New model. More projects expected to follow this model

12 12 REGULATION Federal, State, Local Register with Federal, State Authorities Environmental Impacts Mapping and Surveying Safety Construction Drainage Hazardous Materials Community Affairs Contracting Financing

13 13 Current Opportunities in Infrastructures High-Speed Rail Project, Tampa – Orlando (84 miles) (Phase 1) $1.25 billion in stimulus funds (part of $8 billion for high-speed trains), $1.3 billion more to come. 2011 construction begins, 2015 operational RFP coming out in April Orlando – Tampa (235 miles) (Phase 2) Federal (ARRA Funds)


15 15 Current Opportunities in Infrastructures OTHER RAIL OPPORTUNITIES: SunRail (Orlando): to develop and operate a commuter rail transit project along 61-miles of existing rail freight tracks in Orlando. – Tri-Rail: operates 50 trains daily in South Florida – and Sfrta – seeking 18 locomotive Miami-Dade East-West Corridor City of Miami Streetcar Fort Lauderdale Streetcar Tampa Streetcar extension Tampa Bay Regional Transportation Authority Jacksonville Commuter Rail Picture: Commuter Rail

16 16 Current Opportunities in Infrastructures HIGHWAYS: Jacksonville: First Coast Outer Beltway Four-lane toll road, 46.5-miles, to link I-95 with I-10 13 new interchanges and a bridge across the St. Johns River Miami: 395-836 Interchange Expansion of Lanes Miami Expressway Authority, Concessionaire to do all except maintain

17 17 Current Opportunities in Infrastructures AIRPORTS: ARRA FUNDS Tampa International Airport To construct an elevated taxiway connecting terminals Melbourne International Airport to replace or upgrade runway, taxiways, taxi lanes, and aprons Tallahassee Regional Airport to upgrade security system; conduct analysis of runways, taxiways and other pavements; planning future repairs and enhancements. Charlotte County Airport to improve main ramp Sarasota Bradenton International Airport To upgrade pavement on its crosswind runway St. Petersburg-Clearwater International Airport To upgrade terminal and apron

18 18 Current Opportunities in Infrastructures Hundreds of future and present Florida Department of Transportation infrastructure projects 5-year plan for projects and allocations See handouts …Florida is facing a $31 billion shortfall in funding identified transportation improvements through 2010, and a $47 billion shortfall through 2020.. Opportunities for Spanish firms

19 19 Roadmap – How to Learn about Projects? No single registry - complex 1. Online services Onvia - Government bids & RFPs for federal, local & state government agencies, Dodge Reports - polls all municipalities each week, 2. State agency websites (Transportation, Energy, Water, Environment) List of projects Can sign up for updates State of Florida: Florida procurement and vendor bid system 3. County and Municipal websites Miami-Dade County Government = Miami-Dade Expressway Authority = List of future projects and 25-year plan, http://www.mdx- http://www.mdx-

20 20 Roadmap – How to Learn about Projects? 4. Build Relationships Agencies: Meet with district secretaries, Ask what is happening, coming up, where at with funding, what policies are driving Local companies / potential partners (construction, engineering, financial) often hear of leads first 5. Belong to organizations, attend network events, conferences Infa-Americas summits (, P3 Americas Team Florida Transportation (, State of Floridas Expressway Authorities System and Florida Turnpike Districts International Bridge, Tunnel & Transportation Authority (

21 21 Roadmap - How to Learn About Projects? 6. Have a local presence and / or partner with local companies Decision-makers want demonstrated experience and ability in Florida, US Local reps understand local nuances May be best course to enter market 7. Hire a lobbyist or consultant knows government, whats going on, make contacts, call on secretaries Very important, may be best way to get something done. Consider a legislative affairs person 8. Be pre-positioned Once RFPs are issued, competitors may have passed you and it may be too late for some projects to be primary.

22 22 Water Treatment: Federal, State, District, Local Agencies –Federal (USEPA) Set laws, regulations, quality control Require states to upgrade Florida Department of Environmental Protection ( 5 water management districts, –Some put out bids Regulates all utilities in district and tracks their compliance Projects locally driven (county, municipality), fragmented –Each municipality has its own utility –70 in South Florida alone! 31 in Broward County 29 in Palm Beach County 10 in Miami-Dade County Competitive bid by law, listed online

23 23 Water Treatment Trend: purchasing smaller firms and becoming mega entities. Many bids coming up Driven by USEPA and FDEP requirements to improve processes »Upgrade pipes »Recharge underground aquifer Opportunity: –Miami: massive expansion project because of changes in regulations –To recharge groundwater aquifers, polish waste water, tertiary treatment –Also, reverse osmosis of moats around Metro Zoo –Billions of dollars – to put out RFP, water and sewer

24 24 Roadmap – How to Learn about Water Projects Individual county and city websites –Purchasing link Industry journals and reports –Engineering News Record (weekly) ( - bible of the construction industry, providing news and features about –Dodge Reports – polls all municipalities each week (online) ( –Water World / American Waterworks Association ( –Water Environment Foundation ( Association trade shows: –Drinking Water: American Section of American Waterworks Association (Orlando) –Waste Water: Florida Water Environment Association (Orlando), Sales reps –Manufacturers sell via sales reps, not directly. Unique to Florida


26 26 Floridas Renewable Energy Cluster Receive 85% of the maximum solar resource available in the U.S. One of the nations largest producers of biomass Long tradition of research w/ NASA & Dept. of Energy 1,200 miles of coastline and proximity to the Gulf Stream – the most energy dense ocean current

27 27 What are Florida companies doing? Two of the worlds leading power-generation equipment manufacturers: –Mitsubishi Power Systems –Siemens Energy Fuel cell manufacturer EnerFuel Solar producer Sunovia Energy Technologies Advanced Solar Photonics – manufactures monocrystaline solar panels Florida Crystals & U of Florida – nations largest biomass energy facility (ethanol) Verenium - leading cellulosic ethanol producer

28 28 What are Florida utilities doing? Florida Power & Light: –built the nations largest utility-scale PV solar plant (25 MW in Desoto) Progress Energy: –partnering with Florida universities to expand renewable energy systems; e.g. biomass, hydrogen, solar and wind –to install smart grid devices in 5,000 homes Gulf Power: –promoting solar water heating, geothermal heating, and cooling and energy efficiency Keys Energy Services: –Installed a 27 kWh rooftop PV system –to be inaugurated March 2010

29 29 What are Florida universities doing? Florida Energy Systems Consortium –$50 million for 11 state universities to collaborate on clean energy technologies and R&D Florida Atlantic University - ocean technology University of South Florida - biomass, thin films and hydrogen University of Florida - ethanol and cellulosic ethanol - Dr. Lonnie Ingram (Florida Crystals) University of Central Florida - Florida Solar Energy Center -- States main R&D center for solar energy -- SE USA largest rooftop solar PV system – Orlando Convention Center Florida State University - efficient energy transmission (smart grid)

30 30 Floridas Electric Model 54 UTILITIES 1.Investor Owned Utilities (IOUs) –4: Florida, Power & Light, Tampa Electric Company (TECO), Progress Energy and Gulf Power –Private, for profit –Serves 65% of Florida customers 2.Municipal Utilities –34 -e.g. Jacksonville Electric Authority (JEA), Gainesville Regional Utility (GRU), Orlando Utility Commission (OUC) –Public, not-for-profit –Serves 25% of Florida customers 3.Cooperatives –16 –e.g. Florida Keys Electric Coop. Assn., Lee County Electric Cooperative, Chelco -private, not-for-profit -Serves 10% of Florida customers

31 31 Floridas Electric Model Different Model Than Spain –Each utility owns and operates their transmission lines –Individuals cant sell via solar farms –No statewide feed-in-tariff subsidy Cost: $0.30 kWh solar vs. $0.07 kWh coal/gas Bad business proposition Exception: Gainesville Regional Utility –municipal –first feed-in-tariff in the US instant success (7 years worth of applications in first four months) capacity of 4MW annually 20 year contract ($0.32 rooftop)

32 32 Procurement Process - Utilities RFP, SOQ, and RFQ - IOUs, Municipals and Cooperatives Example: FPLs 25 MW Desoto Plant -Largest solar plant in the US -Project announced at the Governors Climate Summit June 2008 - RFP posted on company website -SunPower Awarded Contract April 2009 -Facility inaugurated October 2009 -President Obama was present

33 33 Regulation for Renewables Federal –US Department of Energy –No national energy policy State of Florida –Florida Public Service Commission Regulates utility rates Recommends state energy policy to the legislature –No statewide Renewable Portfolio Standard today –Currently being debated in Florida legislature –10% ethanol blending of gasoline 2010 –All new government buildings must meet green standards Counties, municipalities, cities –Dont normally regulate –e.g. Miami-Dade, all govt buildings need to be LEED certified –e.g. Broward public transportation, ethanol based

34 34 Support for Renewables State of Florida –Florida Energy & Climate Commission States official organization to drive the renewable energy market Incentives and programs –Florida Energy Systems Consortium –Clean energy is designated industry cluster Qualified for High Impact Performance Incentive

35 35 Current Opportunities for Renewables American Recovery and Reinvestment Act - $126M in State Energy Programs for: -Solar for schools $10M -Solar Energy Loan $10M -Shovel Ready Energy Grants $19.5M -Energy Efficiency & Conservation Block Grant $30.5M -Energy Efficient Appliance Rebate $17.6M -Energy Smart Grid Grant $2M

36 36 Current Opportunities for Renewables Florida Opportunity Fund –$28M VC fund –$36M – Clean tech companies Verenium $2.5million FPL – USs largest generator of Renewable Energy –to install 1 million smart meters in Miami, and later, 4.5 million in state –to build 75 MW solar thermal plant (Martin) –to build 10 MW of PV solar capacity (Brevard) TECO is planning to build a 25MW PV plant in Polk County Progress Energy –to expand their renewable energy systems –to install smart grid devices in 5,000 homes

37 37 Current Opportunities for Renewables FPL and Progress Energy have expressed interest to build nuclear power plants Gulf Power is promoting solar water heating, geothermal heating and cooling and energy efficiency using rebates Babcock Ranch – $2 billion planned city, solely powered by the sun (75MW), with FPL Destiny, FL – to be first eco-sustainable city in US Lee County $25 million discretionary fund to attract clean tech –$8 Million awarded to Algenol, producer of algae-based biofuels Entrepreneurship –Offering creative energy efficient solutions to big energy consumers (hospitals, schools, universities, retail, sports stadiums, etc.)

38 38 Roadmap - How do I Learn About Projects? Company websites Electric Utilities Florida Energy & Climate Commission ( Industry journals and websites - Solar Industry Magazine ( -Energy Central ( -American Public Power Association ( Associations: –Florida Renewable Energy Association ( –Florida Municipal Electric Association (, –Florida Electric Cooperatives Association ( Florida Renewable Energy Association Conference Universities Florida League of cities Florida Association of counties Local School Boards

39 39 ENTERPRISE FLORIDA Gary Schumann Vice President, International Business Development Enterprise Florida 201 Alhambra Circle, Suite 610 Coral Gables, FL 33134 EEUU T 305 808 3668 Gonzalo Arance Deputy Director Enterprise Florida Spain Office C/ Conde de Aranda 13 28001 Madrid T Ph: +34 91 781 34 83


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