1. Andrew Right Executive Director
ARTBA P3 Conference 2016 1

2. Duane Callender, Director
TIFIA Credit Program
ARTBA P3 Conference 2016 2

3. Types of Credit Assistance
Secured (Direct) Loan
Maximum term of 35 years from substantial completion
Repayments must start 5 years after substantial completion
Loan Guarantee
Guarantees a project sponsor’s repayments to non- Federal lender
Loan repayments to lender must commence no later than 5 years after substantial completion of project
Line of Credit
Contingent loan available for draws as needed up to 10 years after substantial completion of project

4. TIFIA Program Objectives
Leverage limited Federal resources and stimulate Capital Market investment
Facilitate projects with significant public benefits
Encourage new revenue streams and private participation
Fill capital market gaps for secondary/subordinate capital
Be a flexible, “patient” investor willing to take on investor concerns about investment horizon, liquidity, predictability and risk
Limit Federal exposure by relying on market discipline

5. Benefits of TIFIA Long term, fixed cost, permanent, up-front financing
Borrower must be minimum investment grade
Non recourse financing—project cash flow supported
Funds drawn as needed
Senior or Subordinate Lien
Flexible amortization
No pre-payment penalty
Low interest rates
Low Interest Rate -
2.30% on 6/30/16

6. TIFIA Changes Under the FAST Act
Expanded Eligibilities
Transit-Oriented Development Projects
Rural Projects Fund within a State Infrastructure Bank
Modified Rural Project Eligibility
Streamlined Application Process
Fee Relief for Small Projects (under $75 million)
Master Credit Agreement Authority Clarifications

7. Eligible Sponsors and Projects
ELIGIBLE PROJECTS
State Governments
State Infrastructure Banks
Private Firms
Special Authorities
Local Governments
Transportation
Improvement Districts
Highways and Bridges
Intelligent Transportation Systems
Intermodal Connectors
Transit Vehicles and Facilities
Intercity Buses and Facilities
Freight Transfer Facilities
Passenger Rail Vehicles and Facilities
Rural Infrastructure Projects
Transit-Oriented Development

8. TIFIA Requirements Minimum anticipated project costs > $50M
33% of reasonably anticipated eligible project costs unless the sponsor provides a compelling justification for up to 49%
Senior debt must receive 2 investment grade ratings (BBB-/Baa3) from nationally recognized credit rating agencies
The project must be included in the relevant State’s transportation planning and programming cycle
The project must have a dedicated revenue source, such as tolls or other user fees, that are pledged to secure debt service payments for both the TIFIA and senior debt financing

9. States with Executed Credit Agreements (TIFIA Instruments in $ millions as of June 2016)

10. Revenue Pledges

11. Recent TIFIA P3 Projects
TIFIA has closed five loans for P3 projects within the last 18 months:
Project
Location
TIFIA Loan Closed
TIFIA Loan Amount
Pledge
Purple Line Light Rail
Maryland (DC area)
June 2016
$874.6 Million
Availability Payments
SH 288 Toll Lanes
Houston area
April 2016
$357 Million
Facility Tolls
I-77 HOT Lanes
Charlotte area
May 2015
$189 Million
East End Crossing
Louisville area (Ohio River Bridge)
April 2015
$162 Million
State Appropriations
Portsmouth Bypass
South Central Ohio
March 2015
$209.3 Million

12. TIFIA LOI Review and P3 Projects
Public sponsor may submit a LOI on behalf of concessionaire and ultimate borrower
TIFIA will:
Work with public sponsor upfront on indicative terms that can be provided to P3 bidders
Engage earlier in the project development cycle
Concessionaire’s plan of finance and application must still be evaluated before loan agreement can be negotiated

13. Requirements of Creditworthiness
Financial Plan
Financial Model
Revenue Pledged to TIFIA
Indicative Rating
$250,000 down payment towards costs

14. Patrick DeCorla-Souza, FHWA P3 Research and Resources
ARTBA P3 Conference 2016 14

15. FHWA Technical Resources: P3 Toolkit
Fact sheets: One page summaries of various P3 concepts
Primers – Introduction to P3 concepts
Guidance documents – More detailed technical guides for practitioners:
Model P3 contracts
Successful P3 practices
Value for money, benefit-cost analysis, risk analysis
Analytical tools – P3-SCREEN and P3-VALUE

16. P3-VALUE Value for Money analysis Benefit-Cost analysis Risk Analysis
Financial Viability analysis

17. Research
P3 Efficiencies – Development of methods to estimate potential cost, schedule, risk and quality impacts of P3 project delivery
Interim report completed.
White papers and roundtables on P3 issues:
Completed:
Revenue risk sharing
Use of design-build performance requirements
Early involvement of private developers in consideration of P3s
Planned:
Consideration of tax issues in developing and evaluating P3s
Information source for major projects delivered conventionally and through P3s

18. Training . Webinars -- on P3 evaluation
Recordings available on FHWA’s website.
Training courses – P3 evaluation using P3-VALUE
Available to public sector transportation agencies at no cost
Peer Exchanges --
Reports available on FHWA’s website .

19. Website
FHWA Office of Innovative Program Delivery (IPD) P3 Website:

20. SIBs Presentation for FM/FSp Workshop
Contact Information
Patrick DeCorla-Souza
P3 Program Manager
Office of Innovative Program Delivery
Federal Highway Administration
(202)
Instructor Notes