SSOM TASK FORCE ON TRANSPORTATION SYSTEMS CENTER OF EXCELLENCE The “Dos and Don’ts” Lessons Learned from the AASHTO Center for Excellence in Project Finance Joung Lee Associate Director for Finance and Business Development, AASHTO Deputy Director, AASHTO Center for Excellence in Project Finance HIGHWAY SYSTEMS OPERATION AND MANAGEMENT ANNUAL MEETING TUESDAY 26 APRIL 2013 / PHOENIX, AZ

2 BACKGROUND One of four Centers of Excellence authorized by SAFETEA-LU o Sister entity to Center for Environmental Excellence by AASHTO $2.7M cooperative effort between AASHTO and USDOT Cooperative Agreement executed in March 2008 and extended through March 2013

3 MISSION “To provide support to State transportation departments in the development of finance plans and project oversight tools and to develop and offer training in state-of-the-art financing methods to advance projects and leverage funds.” SAFETEA-LU Section 5309(c)(4)

4 STRATEGIC GOALS Help state DOTs and other project sponsors to: Develop institutional capacity and management skills for new project financing approaches Communicate with peer agencies, policy makers, and the public to address infrastructure investment needs Understand the benefits/risks of alternate financing approaches and developments in project finance Assess policy implications and benefits/risks of P3 structures from the public-sector perspective

6 CENTER’S WEBSITE Robust resource for funding and finance information Website includes: o Transportation finance and governance information for every state o Detailed information on transportation revenue and finance tools o Information on program activity, presentations, and research o Links to transportation finance, research, and legislative sites

9 THE DOS AND DON’TS Lessons Learned from the AASHTO Center for Excellence in Project Finance

10 STARTING OUT DOSDON’TS Get involved in concept exploration and legislative process Create a potential for conflict of interest Identify the Center’s philosophy and approach Get lost in the “weeds” Line up your team as early as possible What does each member bring to the table? How committed are they? Focus only on what AASHTO would get out of this by neglecting to consider what your funder’s goals Scope out the competition Fail to make a clear distinction with other proposals

11 IMPLEMENTATION DOSDON’TS Conduct a market analysis of what your constituents need Get confined with your team on developing the work plan Develop a robust work program Over-program or set out a pace that may not be sustainable Carefully lay out and follow the budget Assume that things will always get paid or reimbursed on time Develop performance measures and targets Go overboard on the process and keeping track

12 OPERATION DOSDON’TS Develop and maintain a strong communication plan and mailing list Assume that your activities will get noticed without active promotion Continuously make the justification to the funder and keep them involved Try to maintain independence by minimizing funder’s opportunities for input Develop a continuity of operations plan in case of funding lapse Operate with the assumption that funding will continued/get renewed after initial allotment Regularly check on the program partners’ contributions Keep partners around if they don’t “cut it” or if they can no longer contribute

13 Questions and Discussion