Federal Perspectives on Public-Private Partnerships (P3) in the United States

Transcription

1 Federal Perspectives on Public-Private Partnerships (P3) in the United States Prepared for: ACI-World Bank Symposium London, United Kingdom Presented by: Elliott Black Director Office of Airport Planning and Programming Date: April 9,

2 Agenda System-level context and notable trends Federal role in capital financing Key stakeholders and considerations 2

3 Disclosure of biases! Private-sector business experience! Municipal (airport) experience! Federal experience BOS BDL MDW MDW SJU ORD T BOS 2002 ORD 2004 FAA 3

4 The United States system of airports as of April 2, ,536 airports overall 14,400 airports designated as private-use 5,136 airports open to the public 3,323 existing airports in the National Plan of Integrated Airport Systems ( NPIAS ) 531 airports certificated under Part 139 (commercial service by aircraft with 9 or more seats) 380 primary airports (scheduled commercial service with at least 10,000 annual enplanements) 4

5 Nonprimary Primary National Plan of Integrated Airport Systems (NPIAS) Airport Type Number of Airports % of U.S. Enplanements Examples Large Hub (>1.0% of all enplanements) 30 72% Atlanta, Boston, Chicago O Hare, Chicago Midway Medium Hub ( % of all enplanements) 31 16% Austin, Burbank, Kansas City, San Juan, St. Louis Small Hub ( % of all enplanements) 72 8% Springfield-Branson, White Plains Westchester County Non-Hub (>10,000 enplanements, but less than 0.05% of all enplanements) Subtotal Primary airports % Aguadilla, Allentown, Stewart, Niagara Falls, etc. General Aviation National 93 Brown Field, Paine Field General Aviation Regional 527 Hawthorne, Mojave, etc. General Aviation Local 1,262 Bult Field, Hendry County General Aviation Basic 815 Middle Bass Island, etc. General Aviation Unclassified 246 Subtotal Nonprimary airports 2, % Total existing NPIAS airports 3, % As of October 1,

6 Federal role in capital financing Ensure safety standards are met. Ensure capacity and efficiency issues are addressed. Consider long-term economic sustainability. Identify and evaluate national-level trends. Address environmental issues that could otherwise affect system growth. Ensure that public resources are used for the public benefit. Ensure that public airports stay available for public use. Ensure that user rates and charges are reasonable and nondiscriminatory. 6

7 Stakeholders to be considered Office of Mgmt and Budget Govt. Account. Office (GAO) U.S. Congress DOT Inspector General U.S. Dept of Transportation Environmental agencies Metropolitan Planning Org. s FAA DHS / TSA Other Federal agencies Financial consultants State DOT s Individual airports Traveling public Businesses that rely on air cargo Bond rating agencies Municipal governments Airlines Aircraft manufacturers Maint., Repair and Overhaul Bond insurers Neighboring communities G.A. and other users FBO s Flight schools Bond underwriters Planning consultants Military Engineering consultants Construction contractors Institutional investors Environmental consultants Law firms Constr. mgmt consultants Constr. material suppliers 7

8 Today versus 10 years ago (enplanements) 23 of the 30 largest airports had more enplanements in CY-2016 than in CY % 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% SFO SEA LAX CLT BOS FLL MIA DCA JFK MDW BWI LGA DEN ATL MCO SAN DFW EWR MSP SLC ORD LAS PHX TPA IAH DTW HNL PHL IAD MEM 8

9 Today versus 10 years ago (operations) Only 8 of the 30 largest airports had more operations in CY-2016 than in CY % 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% SFO SEA LAX CLT BOS FLL MIA DCA JFK MDW BWI LGA DEN ATL MCO SAN DFW EWR MSP SLC ORD LAS PHX TPA IAH DTW HNL PHL IAD MEM 9

10 ! Enplanements! Operations CY-2016 compared to CY % 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% SFO SEA LAX CLT BOS FLL MIA DCA JFK MDW BWI LGA DEN ATL MCO SAN DFW EWR MSP SLC ORD LAS PHX TPA IAH DTW HNL PHL IAD MEM 10

11 AIP-eligible capital needs FY From the FY NPIAS dated September 30, 2016 $32.5 billion needed over the next five years ( ) 1% reduction from the previous estimate ( ) $6.5 billion average annual AIP-eligible capital needs 2.0x need versus the amount of AIP available in recent years These figures exclude: Projects that aren t eligible for AIP grants Projects that are already funded Projects we don t know about 11

12 Funding needs versus Federal resources In $ millions. FY-2017 through FY-2021 $7,500.0 $7,000.0 $6,500.0 $6,000.0 $5,500.0 $5,000.0 $4,500.0 $4,000.0 $3,500.0 $3,000.0 $2,500.0 $2,000.0 $1,500.0 $1,000.0 $500.0 $0.0 FY-2017 FY-2018 FY-2019 FY-2020 FY

13 Funding needs versus Federal resources In $ millions. FY-2017 through FY-2021 $7,500.0 $7, $1 billion $6,500.0 $6,000.0 $5,500.0 $5,000.0 $4,500.0 $4,000.0 $3,500.0 $3,000.0 $2,500.0 $2,000.0 $1,500.0 $1,000.0 $500.0 $0.0 FY-2017 FY-2018 FY-2019 FY-2020 FY

14 Other capital financing methods Federal government has never been the sole solution: For the Large- and Medium-hub airports, AIP grants represent only about 24 percent of capital funding on average. For the remaining 320 smaller primary airports (and roughly 2,900 nonprimary airports), AIP represents about 69 percent of capital funding on average. Passenger Facility Charge (PFC) revenue has limitations Federal cap Previous commitments Bond proceeds Airport revenue (including nonaeronautical revenue) Private equity (third-party development and public-private partnerships) 14

15 Environmental issues Noise Air quality Water quality Surface congestion Historical resources Streamlining the environmental review process Focus on overall process ( single Federal decision and a predictable timeframe). Critical first step is that the planning has to be complete and the justification has to be clear. 15

16 Investor perspectives we typically hear about Return on Investment Risk management Ability to recycle equity (swiftly) 16

17 Summary of key points Federal government s roles are limited Public benefit is critical Planning is critical Transparency is critical More private equity appears to be available today than in years past We are open to innovative solutions 17

18 Thank you! Elliott Black Director Office of Airport Planning and Programming (202)