A report found that over the next 15 years, the cost of fixing and updating basic infrastructure in the Metropolitan Washington region will exceed available funding by $58 billion. Skanska is an international construction company that builds infrastructure like roads, hospitals, schools, and transportation through public-private partnerships (P3s). P3s allow private investment and management to stretch public dollars and take on risks to deliver complex, large-scale projects. For a P3 to be successful, the right project needs to be selected, risks properly allocated, and there must be transparency, collaborative partnership, and public client buy-in to the financing model.

1. Observations of a Builder on P3 -
Public Private Partnerships
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July 27, 2015

2. During the next 15 years, the
cost of fixing and updating
basic infrastructure is
expected to exceed available
funding by $58 billion,
according to a report by the
Metropolitan Washington
Council of Governments.
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3. Skanska in brief
Founded 1887 in Sweden
One of 10 largest construction
companies in the world
Listed on the Stockholm
Stock Exchange
2014 revenues: $21 Billion
12,000 ongoing projects
60,000 employees
A Fortune 500 company
Four business units in the US
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4. Skanska is a
City Builder
Skanska builds cities as
a constructor, developer
and P3 investor and
operator
Workplaces, multi-family
residential, schools,
universities, hospitals,
life sciences,
transportation, water
and energy
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5. Skanska ID –
Infrastructure
Development
Global unit
120+ employees
33 projects in 9 countries
(historic)
Current portfolio of 12
projects – 4 Roads, 3
Hospitals, 2 Wind Farms,
2 School Programs,
I Aviation
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6. Leaders in Green
Skanska is determined to be
the leading Green Project
Developer and Contractor
Minimize energy consumption
and waste throughout
construction and operation of a
building
Benefits: lower lifecycle costs
and better environment for
learning
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7. Government Procurement Options
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Design-Build-Finance-Operate-Maintain
Design-Build-Finance
Design-Build
CM / GMP
Design-Bid-Build
Low Risk Transfer to
Private Sector
High

8. PPP Allocation of Risks
The party best able to manage the risk should own it
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9. What makes a P3?
P3 = A procurement
method to stretch public
money, with private
investment, to create or
rebuild infrastructure.
Much needed, technically
complex, large projects
Viable revenue stream
Opportunity to invest equity
(10% or more)
Transparent and fair
procurement
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10. Sectors Utilizing P3s

11. Value of P3
Leverage private sector
financing
Budget certainty
Allocate risks to party best
able to manage
Leverage private-sector
management and operations
experience
Faster schedules
Higher sustainability; Lower
whole life-cycle costs

12. P3 Team “Partners”
Folks with Insight on
the Agency and Public
Need
Financial partners
Legal advocates
Design partners
Client-side
Champions driven to
effect change
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13. What makes P3
a Win-Win?
Right Project
Transparency
Collaborative Partnership
Risk Transfer
Public Client Buy In
Financing / Payment
These are the paths to a
successful P3
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14. Observations of a Builder on P3 -
Public Private Partnerships
Martin.Sharpless@Skanska.com
301-452-0656
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Martin.Sharpless@Gmail.com