Investment opportunity creating a new environment of subsidized /decentralized projects for global investors

1. DELTA P3
ACCELERATING PUBLIC PRIVATE PARTNERSHIPS

2. BRIGHT RAVENS CAPITAL | 2
BRIGHT RAVENS CAPITAL | 2
What is a
Public-Private
Partnership (P3)?
Public-private partnerships involve
collaboration between a government
agency and a private-sector company
that can be used to finance, build, and
operate projects.
P3’scanallowaprojecttobecompletedmoreefficiently
with broader opportunities than conventional
investments. Thesedeals ofteninvolveconcessions
of tax or other operating revenue, protection from
liability, or partial ownership rights over nominally
public services and property to private sector, for-
profit entities.

3. The Market
Place Demand
Themarketforpublic-privatepartnershipsisgaining
ground. Investors are interested, capital is plentiful,
andthefederalgovernmentisincreasinglyinvolved.
Recentadministrations–RepublicanandDemocratic
– continue to advocate legislation and programs in
support of P3s.This is forecasted to continue within
theyearsaheadgivenongoingfiscalconstraintsand
the increasing demand to expand infrastructure.
P3’s are complex to structure and implement but
provideanumberofopportunitiesforprivatesector
companies to participate:
Figure 1: Typical PPP Structure
Public Sector
Authority
Direct Agreement
Debt Equity
Banking Institutions
Construction
Company
Operating/
Maintenance Company
Investors
Special Purpose
Companies (SPC)

4. The Multiple
Benefits of P3’s
We examined what led to productive P3 projects,
anddiscoveredtheyhadthreeprimarycomponents
in common:
• a commitment to a strong partnership beyond
the terms of the contract;
• built-inmechanismstoshareperspectivesabout
the project (especially problems and concerns);
• effectivewaystoreboundfromfailurestodeliver
Once analysis confirms that a P3 is a viable option,
the possible benefits are significant:
COST
A Public-private partnerships can cost a government as much as
20% less than a traditional design-bid-build model.
SPEED
Once P3 contracts close, they frequently deliver projects faster than
traditional government procurement, in part because private parties
pay stiff penalties if they fall behind schedule.
RISK-SHARING
When the public sector builds and operates infrastructure, taxpayers
bear responsibility when costs are higher or revenue is lower than
expected.WithaP3,dependingonthecontract,theprivatecontractor
may take on some or all of those risks.
MAINTENANCE
While government budgets don’t always account for infrastructure
maintenance,well-structuredP3contractscanrequireprivatepartners
to maintain and upgrade to meet the performance standards set in
the contract, and to pay penalties if these standards are not met.

5. Investors in particular need to consider:
How to Choose
a P3 Project
It follows that careful project selection is key to
success.The needs of public sector entities are also
different from those of the private sector and the
process for each can vary greatly.
Understanding these disparities is vital to tailoring
an approach to meet the needs of the public or
private entities.
PursuingPPPprojectsrequiresasignificant
investment of time and money.
The extent of the
public sector’s
commitment
Legal and regulatory
frameworks status
supporting PPPs
and concessions
Subsequent
supervision, pricing,
and the opportunity
for partnerships with
credible players
Capacity of the
government
authorities
responsible
for project
implementation
Sustainability
management
which may become
a requirement or
bidding differentiator
Effectiveness and
transparency of the
tender processes

6. 10 Principles for
Successful P3’s
PREPARATION VISION PARTNERSHIP TRANSPARENCY PROCESS DILIGENCE LEADERSHIP COMMUNICATION STRUCTURE TRUST
Prepare properly
for public/private
partnerships
Make sure all
parties do their
homework
Collaboration
to create a
shared vision
Secure consistent
and coordinated
leadership
Understand your
partners and key
players
Communicate
early and often
Be clear on the
risks and rewards
for all parties
Negotiate a fair
deal structure
Establish a clear
and rational
decision-making
process
Build trust as a
core value
01 02 03 04 05 06 07 08 09 10
P3’s require a collaborative effort by the public and private sectors to
effectively use resources and skills of each other to shape and carry
out developments that respond to challenges.

7. “You don’t do a P3 because you don’t have the money. You do it
becauseyou’velookedatthelife-cycleoftheasset,andyou’velooked
at benefits and costs that go beyond the financial side.”
—David Spector, Director of Colorado Department of Transportation Enterprise

8. For many years, a public-private partnership in the US
mostly meant surface transportation. But other kinds of
P3s are becoming more and more common including:
ENERGY
TELECOMMUNICATIONS
TRANSPORT: AIRPORT
TRANSPORT: PORTS
TRANSPORT: RAIL
TRANSPORT: ROAD
WATER
P3 Diversification
2007 2012 2017 2022 2027 2032 2037
$0
$500 bn
$1.0 tn
$1.5 tn
$2.0 tn
$2.5 tn
$3.0 tn
$3.5 tn
$4.0 tn
E
T
T
T
T
T
W
$1.0 tn
$1.5 tn
$2.0 tn
$2.5 tn
$3.0 tn
$3.5 tn
$4.0 tn
Energy
Telecommunication
Transport: Airport
Transport: Ports
Transport: Rail
Transport: Road
Water
$500 bn
$1.0 tn
$1.5 tn
$2.0 tn
$2.5 tn
$3.0 tn
$3.5 tn
$4.0 tn
Energy
Telecommunication
Transport: Airport
Transport: Ports
Transport: Rail
Transport: Road
Water
$500 bn
$1.0 tn
$1.5 tn
$2.0 tn
$2.5 tn
$3.0 tn
$3.5 tn
$4.0 tn
Energy
Telecommunication
Transport: Airport
Transport: Ports
Transport: Rail
Transport: Road
Water
Energy
Telecommunication
Transport: Airport
Transport: Ports
Transport: Rail
Transport: Road
Water
INFRASTRUCTURE INVESTMENT AT CURRENT TRENDS BY SECTOR
2007 - 2040

9. Fig. 3. Sectoral share of global infr astructure investment, 2007-2040
Electricity Road Telecoms Rail Water
0%
5%
10%
15%
20%
25%
30%
35%
40%
2007-2015 2016-2040 (Current trends) 2016-2040 (Investment need)
Port Airport
Fig. 23. Global infrastructure spending by region, percent of GDP
Asia Oceania Africa Europe Americas World
0%
1%
2%
3%
4%
5%
6%
7%
2007-2015 2016-2040 (Current trends) 2016-2040 (Investment need)
Global
Infrastructure
Outlook
Analysis suggests that if current trends continue,
global infrastructure investments will reach $3.8
trillion by 2040.
The world will need to continue dedicating to
infrastructure spending that amounts to a total of
3.0 percent for the seven sectors combined.
Todelivertheinfrastructurerequirementsidentified,
more ambitious infrastructure investments will be
needed.
Sectoral share of global infrastructure investment, 2007-2040
2007-2015
2007-2015
2016-2040
(Current trends)
2016-2040
(Current trends)
2016-2040
(Investment need)
2016-2040
(Investment need)
Global infrastructure spending by region, percent of GDP

10. OUR VISION
Expand P3’s to include the average investor
Empower governments to take on projects of greater scale
Engage private organizations in community development

11. Delta P3
Investment Model
Theopportunityliesincreatinganewenvironment
wheresubsidizedinvestmentswithinfrastructure,
realestate,andtransportationbecomeaprofitable
pursuit available to a new,decentralized class of
global investors
Weexpectthepositivetrendstocontinueandto
advance the P3 market, especially if proponents
further embrace these emerging practices to
address these challenges:
Whenconsideringprojects,viewP3sasprocurementmechanisms,notjustasfinancing
tools. Analyze lifecycle costs and non-financial benefits and challenges.This approach
may articulate benefits that outweigh the potentially higher upfront costs.
Develop more offices or teams dedicated to P3s in states and cities. By centralizing
responsibilities and experience, specialized teams can improve projects’ speed,
efficiency, and cost.
Design standardized procedures both to decide when P3s are appropriate and to
make those P3s a reality. Standardization also improves speed, efficiency, and cost,
and it increases transparency, which is important for political and popular support.
Execute communications strategies to build and sustain that political and popular
support. Contracts can also be structured to reduce the risks of political shifts.

12. Next Steps:
The Future of P3’s
By utilizing the Avalanche blockchain and
Securitizeweempowerinvestors,governments,
and decentralized finance (defi) to participate
in investments around theglobe.•
Crowd-investing and blockchain technology
radically improves the efficiency and scale of
P3sinvestment
Removing cumbersome legal and accounting
overhead improves transparency and security
while keeping costs down
This cost savings means delta.P3 can punch
above its weight without going below the belt.