US-460 CONCEPTUAL PROPOSAL

Transcription

1 US-460 Presentation Conceptual to VDOT Independent Review Proposal Panel Presentation to VDOT Independent Review Panel December 6, 2010

2 Long-Term Partnership Over 150 years, the map has changed but the region s needs remain strikingly similar Cintra understands the historical significance of the region and will work diligently to preserve it Cintra proposes a long-term partnership to revitalize this essential transportation resource Cintra has been engaged in the process of developing this corridor since 2006 and looks forward to working closely with VDOT over multiple generations & becoming part of the communities along the corridor Upgrading US-460 is critical to the region to: Improve Travel Safety Along the Corridor Create a new Westbound Emergency Evacuation Route for Hampton Roads Accommodate Increased Freight Movement Along the Corridor Improve Military Connectivity

3 Team Overview Ferrovial Family of Companies Cintra Concessionaire & Operator 25 Concessions in Seven Countries Including 5 in the United States $24+ Billion Invested Worldwide Over 1,800 Miles of Tollroads Ferrovial Agroman General Contractor Over 70 Years Experience Completed Projects in More Than 30 Countries Constructed over 1,100 miles of Tollroads Partnered with Cintra on Five US Projects American Infrastructure Lead Subcontractor Family-owned since 1939 Over 1,700 employees

4 Cintra s Global Experience Canada 407 ETR USA Chicago Skyway Indiana Toll Road SH130, Seg 5&6 NTE LBJ Express Chile Collipulli Temuco Santiago Talca Temuco Rio Bueno Talca Chillan Autopista del Bosque Greece Ionian Roads Central Greece Ireland Eurolink Motorway M-3 Spain Ausol I M-203 R-4 Ocaña-La Roda Autema Ausol II Portugal E. Algarve Norte Litora Scut Açores

5 US-460 Ferrovial Agroman Over the last four years, Ferrovial Agroman has partnered with Cintra on three greenfield toll projects in the United States. Here is how they compare to US-460: SH 130, Seg 5&6 North Tarrant Express LBJ Express Type Rural Rural Urban Urban D&C Value $1.4 B $1.0 B $1.5 B $2.1 B Length 55 mi 42 mi 13.5 mi 13.5 mi DB Phase 5.5 years 5 years 5.5 years 5 years Over the last 20 years, Ferrovial Agroman has constructed 14 greenfield projects for Cintra similar to US-460 in 5 countries outside the US These projects total 1,191 miles of new toll highways with a total design and construction value of more than $7.5 billion

6 Long-Term Solution Commitment Cintra strongly believes US-460 will benefit Virginians in terms of reliability, safety and economic development The only original proposer to return, Cintra has been actively pursuing this project since 2006 Consistency Cintra and Ferrovial Agroman have partnered on over 20 design-build projects and have never been over budget or behind schedule In fact, many projects have been delivered early Accountability/Long-Term Partnership Being family-owned, and having a combined ownership structure between the operator and the general contractor, allows the companies goals to be aligned and reduce costs a benefit that is passed on to the Commonwealth and its residents Local Economic Development Cintra believes in the long-term growth prospects of the region Much of the work will be done by local contractors For its SH 130 project, Cintra s consortium has hired over 100 local firms

7 Critical Elements Risk Assumption As a result of investing equity into the project, Cintra bears all construction, operating and maintenance risks Cintra has experience managing this type of risk through its 25 concessions worldwide, including five in the United States Lowest Project Costs As a result of the long-term relationship between Cintra and Ferrovial Agroman, the proposal put forth by Cintra has the lowest project costs Financial Strength Cintra is the only concessionaire to successfully finance a revenue-risk project in the United States since the beginning of the recession Track Record A world leader with 40+ years experience, Cintra has the expertise to develop a project of this magnitude in the most efficient manner possible Cintra was named 2009 Global Infrastructure Developer of the Year by Infrastructure Investor Cintra is one of the few developers in the world that has successfully managed a road for the entirety of the concession and handed it back to the public sector Cintra is a member of the Dow Jones World Sustainability Index

8 Cintra s Financial Strength As one of the premier infrastructure developers in the world, Cintra has a unique combination of experience and ability to finance large-scale transportation infrastructure Cintra has financed the only two toll-risk infrastructure projects in North America since the market dislocation of late 2008 Total Investment of approximately $4.7 billion in the last 18 months The following chart shows Cintra s financing track record in the United States: Project Chicago Skyway Indiana Toll Road Financial Close Date Total Investment Cintra Equity Investment Total Equity Bank Debt Financing Public TIFIA PABs Jan-05 $2,072 M $485 M $882 M $1,190 M Jun-06 $4,040 M $380 M $760 M $3,280 M SH 130 Mar-08 $1,312 M $128 M $197 M $685 M -- $430 M -- North Tarrant Express Nov-09 $2,050 M $242 M $427 M -- $573 M $650 M $400 M LBJ Express Jul-10 $2,620 M $339 M $665 M -- $490 M $850 M $615 M TOTAL - $12,094 M $1,517 M $2,931M $5,155 M $1,063 M $1,930 M $1,015 M

9 Proposed Financial Structure $1,800 $1,600 Base Case Uses & Timing Funding Sources $782 M Subsidy $491 M TIFIA Loan $217 M Equity $1,400 $1,200 Total Project Cost $1,491 M ITS/TCS $24.7 M Proposal Highlights Cost Estimate (in $ M) $1,000 $800 $600 $400 $200 Utility Relocation & Construction $1,174 M 99-Year Concession Term Two Flyovers Seven Diamond Interchanges Fully NEPA Compliant Full Risk to the Developer Over $700 M in Private Funds $0.10/mile Toll for Cars 0 Agreement Prep. ROW acquisition $95.5 M Design, Escalation & Contingencies $175.7 M Development & Financing $20.7 M First Dividend in Months

10 Conclusion Cintra believes that its consortium and proposal ideally fit the project objectives and priorities set forth by VDOT in its Request for Conceptual Proposals Cintra thanks the Independent Review Panel and the citizens of the Commonwealth for their time and looks forward to building a better tomorrow for Virginia Consortium Strengths Financial Strength Financial Commitment Lowest Project Costs Long Term Commitment Track Record This Conceptual Financial Plan ( CFP ) does not constitute a binding offer, an offer or otherwise. It has been prepared by Cintra Infraestructuras S.A ( Cintra ) for the sole purpose of providing the Virginia Department of Transportation, an agency of the Commonwealth of Virginia, and its Advisors with a set of risks and commercial issues that affect the value of the potential transaction so that they can better evaluate and decide the content and structure of the Concession Agreement(s) and related Agreements.