5th Global Infrastructure Leadership Forum February 23, 2012

Sean T. Connaughton

Secretary of Transportation

Commonwealth of Opportunity:

Virginia’s Road and Transit Megaprojects

Virginia’s P3 Program

Ø  Virginia enacted PPTA in 1995

Ø  Successful P3 track record

Ø  Receptive political environment towards P3 projects

Ø  Strong institutional knowledge of P3 project delivery

Ø  Delivery of tangible benefits

Virginia’s P3 Program

Governor McDonnell establishes Office of Transportation Public-Private Partnerships in December 2010 with a dedicated multi-disciplinary team:

Ø  Focused on P3 across all modes of transportation:

»  Road

»  Rail

»  Transit

»  Transportation Administration/Operations

»  Marine / Port

»  Aviation

Virginia’s P3 Project Portfolio

Virginia’s P3 Project Portfolio

Dulles Metrorail Extension Project

Virginia: Dulles Metrorail Extension Project

Ø  Seamless integration with current 106-mile Metro system Ø  23-mile extension providing direct connections to DC without transfers Ø  11 new stations

5 in Phase 1 6 in Phase 2 Ø Phase 1: East Falls Church to Wiehle Avenue in Reston; opens in 2013 Ø Phase 2: Wiehle Avenue through Dulles Airport to Ashburn; complete in 2017

Virginia: Dulles Metrorail Extension Project - Route Map

Dulles Metrorail Extension Project - Phase I Schedule

Utility Work Complete: 2012 Final Design Complete: 2012 Construction: 2009 – 2013 Railcars Delivered: 2013 – 2015 Service Start: End of 2013

Virginia: Dulles Metrorail Extension Project - Phase 2

Ø 11.6 – mile extension from Reston to Ashburn

Ø 6 stations: Reston Parkway Herndon-Monroe Route 28 Dulles Airport Route 606 Route 772/Ashburn

Ø Rail Yard & Maintenance Facility

Virginia: Dulles Metrorail Extension Project - Phase 2 Schedule

Virginia’s P3 Project Portfolio

Downtown Tunnel/Midtown Tunnel/Martin Luther King Extension

Virginia: DT / MT / MLK Project Location

Project Funding ($000’s) Ø  PAB’s $620.0 Ø  TIFIA $422.0 Ø  TIFIA Interest $ 37.6 Ø  Equity $322.4 Ø Contingent Equity $ 60.0 Ø Virginia’s Contribution $362.0 Ø Operating Revenue $351.2

Total = $2.175 Billion

Virginia: DT / MT / MLK – Financial Picture

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Virginia: Qualified and Capable Team Members

DEVELOP, FINANCE, OPERATE

DESIGN, BUILD

U.S. Department Of Transportation Federal Highway Administration

July 2009 Positive CTB Recommendation

September 2008 Conceptual proposal submittal

March to June 2009 Public Hearings – Independent Review Panel

May 2008 Call for conceptual proposals

October 2009 Key business points presented to CTB

July 2011 Key Business Terms Agreed

January 2011 Comprehensive Agreement Negotiations Begin

December 2011 Execute Comprehensive Agreement

January 2010 Signature of Interim Agreement

April 2012

Construction Starts

Tolling Commences

Financial Close

2012

Q3/Q4 2012 Construction Complete 2017

Virginia: DT / MT / MLK – Timeline for Development

Virginia’s P3 Project Portfolio

Four new High Occupancy Toll Lanes with dynamic tolling

3rd most congested roadway in U.S., link to

Virginia’s largest employment center First-time reliable carpool

and transit Replacement of all major bridges &

overpasses Construction underway

Funding Source

Private Equity

$350 Million

Transportation Finance Infrastructure and Innovation Act (TIFIA)

$589 Million

Private Activity Bonds (PABs)

$589 Million

Commonwealth of Virginia grant $409 Million TOTAL $1.9 Billion

Capital  Beltway  Express  LLC  

Design-­‐Build  Contractor   Opera:ons  &  Maintenance  

Experienced Partnership

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Scoping & Environmental

PPTA Proposal & Procurement

Construction

Commercial Close

Financial Close Scheduled to be

complete on time, on budget Dec. 2012

Virginia’s P3 Project Portfolio

Upgrade and expansion of existing HOV system

Conversion to HOT

with dynamic tolling New option for region with longest commutes in

U.S. Improved HOV & transit service Enhanced safety, enforcement Home to major Virginia employment and military

sites

Preliminary Funding Sources Commonwealth contribution

$97 Million

Private equity and debt

-  Equity - PABs -  TIFIA

$835 Million

TOTAL $932 Million

95  Express  LLC  

Design-­‐Build  Contractor   Opera:ons  &  Maintenance  

Experienced Partnership

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Environmental

PPTA Proposal & Procurement

Construction

Anticipated Commercial Close

Anticipated Financial Close

Gov. McDonnell announces in-principle agreement Dec. 2012

Virginia’s P3 Project Portfolio

Route 460 – I-85 Connector Project

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Virginia: U.S. 460 Corridor Improvement Project

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Ø  Accommodate increases in freight movements along corridor

Ø  Short term job creation during construction ~4,000+ jobs/yr

Ø  Long term job creation ~13,000+ jobs/yr

Ø  Three teams have submitted P3 bids Ø  Project cost estimate of $1.5 to $2.0 billion for

design and construction

Virginia: U.S. 460 Corridor Improvements Project

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Procurement Phase Date Issue Request for Detailed Proposals Addendum March 15, 2012 Detailed Proposal Submission Deadline September 2012 Evaluation/Selection of Best-Value Proposal October 2012 Presentation of Major Business Points to CTB November 2012 Execute Comprehensive Agreement November 2012 Begin Construction 2013 Construction Complete 2018

Virginia’s P3 Pipeline

Projects Under Development

Virginia’s P3 Pipeline: Tolling Interstate 95

Ø Opened to Traffic in the 1950’s Ø 178 Miles from NC to DC Ø Crosses 17 Jurisdictions Ø 40% of the Interstate Traffic in Virginia Ø Some of the Worst Congestion in the US Ø Serves 45% of Population Ø Links 1.7 Million Jobs Ø Connects Virginians to the World’s Largest Regional Economy Ø Links 8 Million Square Feet of Warehouse/Distribution Facilities Ø Access to 3 International Airports Ø Serves Ports of Richmond and Norfolk

Virginia’s P3 Pipeline: Tolling Interstate 95

Ø FHWA’s Interstate System Reconstruction and Rehabilitation Pilot Program (ISRRPP) permits a State to toll an interstate facility

Limited to three facilities in three different states

Ø April 2010: VDOT submitted a proposal to toll I-95 Ø January 2011: VDOT submitted an expression of interest Ø September 2011: FHWA granted conditional provisional approval

Ø With a single collection facility and at $2 per axle per vehicle, tolling I-95 could generate a minimum of $50 million annually

Ø The tolling revenue will be used to make pavement, structural, operational, and safety improvements throughout the corridor

Virginia’s P3 Pipeline: Traffic Operation Centers

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Ø  Statewide services for 5 regional Traffic Operation Centers

Ø  Financing, developing, implementing, operating, and maintaining new statewide Automatic Traffic Management System

Ø  Maintaining ITS/IT field devices and communication systems

Ø  Operating TOC system, dispatch services, incident management project, and emergency operations

Ø  RFI issued in January 2012

Ø  RFP anticipated in Summer 2012

Virginia’s P3 Pipeline: Hampton Roads Crossing Improvement Project

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Ø  Improvements include elements of Third Crossing project, Patriot’s Crossing, as well as Hampton Roads Bridge Tunnel project. Provides best overall improvement to total mobility, moving goods and people efficiently within the Hampton Roads region.

Ø  Detailed-level screening of candidate PPTA project will consider elements of a business case including traffic & revenue analysis, risks, cost benefit analysis, and preliminary cost analyses.

Ø  PPTA Steering Committee will determine whether project is a good candidate PPTA project and priority for Commonwealth to advance into procurement phase.

Virginia’s P3 Pipeline: I-66 Corridor Multimodal Improvement Project

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Ø  Identifying potential multimodal improvements between I-495 and Route 15. Study considering possible improvements to I-66, Metrorail, Virginia Railway Express, and express bus service.

Ø  Initial environmental studies to be complete in late 2012.

Ø  Detailed-level screening of candidate PPTA project will consider elements of a business case including traffic & revenue analysis, risks, cost benefit analysis, and preliminary cost analyses.

Virginia’s P3 Pipeline: I-64 Peninsula Improvement Project

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Ø  75-mile long I-64 corridor from I-95 Richmond to I-664 Hampton is a designated corridor of statewide significance.

Ø  Project targets for capacity, roadway deficiencies, safety, freight traffic, economic development, emergency preparedness, and military connectivity.

Ø  Detailed-level screening of candidate PPTA project will consider elements of business case including traffic & revenue analysis, risks, cost benefit analysis, and preliminary cost analyses.

Virginia: Commonwealth of Opportunity

Questions?

www.vappta.org