1. Exporting Canadian Know- How: Opportunities for Application of Canadian Best Practices Abroad Heidi Visser, Partner, Aird & Berlis LLP Simon Finlayson, Associate, Aird & Berlis LLP Paul Martin, Vice President, Plenary Group

2. The Canadian P3 Experience Canada seen internationally as a leader in P3s Political commitment: Ontario, B.C., Alberta and Quebec have a lengthy history of successful P3 delivery Federal mandate to deliver major infrastructure by way of P3 Other provinces (Saskatchewan and Manitoba) emerging as P3 destinations Procedural certainty: P3 agencies established to specifically procure and deliver P3 infrastructure projects 2

3. The Canadian P3 Experience (cont’d) appropriate selection of P3 projects managed pipeline of P3 projects standardization of RFQ, RFP process standardization of project documentation, risk allocation Industry expertise P3 agencies “centers of P3 excellence” strong advisory expertise (legal, financial, technical) Stability limited political risk managed pipeline into the future 3

4. Canadianization of the International P3 Market? Canadian P3 projects are attracting top- tier international participants and global attention Canadian-based participants are building upon their domestic P3 experience and playing a significant role on P3 projects in other jurisdictions both as bidders and advisors 4

5. Canadianization of the International P3 Market? Provincial Governments and Agencies are increasingly fostering the development of P3 projects internationally: trade missions promoting the wider use of P3s considerable influence on U.S. agencies establishing P3 authorities marketing of AFP Project documentation, best practices and advisory services 5

6. Canadianization of the International P3 Market? Canadian firms are increasingly looking abroad for P3 opportunities: perception of a slowing pipeline (particularly within the social accommodation field) over-crowded marketplace in Canada relative advantage over domestic participants on projects in jurisdictions new to P3? 6

7. Canadian PPP Successes and Best Practices What Canada has to offer to assist in the development of P3s in other jurisdictions: Experience Best practices Experience: More than 170 projects over a ten-year span Significant depth in particular sectors Development of legal, financial, technical expertise A database of solutions Development of Best Practices 7

8. Canadian PPP Successes and Best Practices Best Practices Political commitment: recognize infrastructure gap endorse new infrastructure procurement model, using private sector finance to complement public sector infrastructure expenditure reliability Favourable legislative environment for PPPs Westminster-style parliamentary democracy No separation of powers between executive and legislature; executive controls legislative branch Simpler approval processes and limited appropriations risk Establishment of specialist PPP agencies repositories of expertise employees drawn from private sector (to take advantage of private sector perspective/expertise) review infrastructure proposals and make recommendations consistency among provinces and federal government 8

9. Canadian PPP Successes and Best Practices (con’t) Development of an optimal procurement process that is reliable, transparent, efficient and accepted/trusted by the market core principles value for money/business case standardization of bidding process and documents efficient process, abbreviated timelines transparency and fairness managed pipeline Development of project documents that are reliable and financeable standardization of project agreement and documents financeable risk allocation 9

10. Challenges for Canadian Firms working on International Projects Political Risks: Single biggest obstacle to the expansion of P3 models (particularly in the U.S.) a number of U.S. states have cancelled large Projects at a late stage in the procurement process political interference significant organized and entrenched opposition to P3 projects 10

11. Challenges for Canadian Firms working on International Projects Legal Risks: Many US states and other jurisdictions do not currently have legislation enabling the use of P3s Where legislation does exist, key P3 project issues may not have been considered or there may be inconsistency with other legislation Experienced local counsel and other advisors are essential but may be in short supply 11

12. Challenges for Canadian Firms working on International Projects Other Considerations: Lack of developers, debt and equity financing providers and key advisors Lack of relationships/partnerships at the local level Process and project development delays caused by lack of experience with P3 models and lack of a center of expertise 12

13. Going Beyond Template: Factors for Success Selecting prospective jurisdictions or projects that are committed Selecting projects in which you have unique experience Partnering with local advisors Education Appreciation of political and legal context Flexibility 13621284.3 13

14. Projects in Procurement Greenfield Concessions with Private Financing Power Environment Social Infrastructure Transportation I-95 Highway Rest Stops -Areas USA selected as preferred -$56m -35 yr. DBFO -Demand risk Carlsbad Desalination Plant -Poseidon working with public authority to secure financing -$800m -30 yr. DBFO -PPA Yonkers Public Schools -Advisory team selected -$1.7bn (3 phases over 15 yrs.) -DBFM -Availability risk LaGuardia Airport Terminal -15 respond to RFI -$3.6bn -DBFOM Knik Arm Bridge -3 teams shortlisted -$1bn -35 yr. DBFOM -Availability risk Gateway Station Multimodal Transit Center -Hines selected as preferred bidder -$200m DBFOM Mid-Currituck Bridge -ACS selected as preferred -$549m -50 yr. DBFOM -Demand risk East End Bridge & Jefferson County Tunnel -Bilfinger / Vinci selected as preliminary preferred bidder -$763m -35 yr. DBFOM -Availability risk North Tarrant Expressway Segment 3A -Cintra / Meridiam selected as preferred -$894m -52 yr. DBFOM -Demand risk Jefferson Parkway -Isolux Corsan in negotiations with JPPHA -$204m -DBFOM -Demand risk US 36 Managed Lanes -3 teams shortlisted -$390m -50 yr. DBFOM -Demand risk Goethals Bridge -RFP released to 3 teams -$833m -35 yr. DBFOM -Availability risk Nuevo Comienzo -5 shortlisted -$549m -DBFOM Satour Light Rail -RFQ released -$472m -50 yr. DBFOM -Demand risk Port of Wilmington -BMO reviewing RFP responses SH 183 Managed Lanes -1 RFQ response (Cintra) -$1.8bn (3 phases) -52 yr. DBFOM -Demand risk Wyco Regional Watershed Supply -Preferred bidder pulled out -$3.0bn -30 yr. DBFOM -Demand risk I-77 HOT Lanes -4 shortlisted -$600m -53 yr. DBFOM -Demand risk