PWF March 2015 color

March 2015
Volume 302
The Journal of Record
for public-private partnerships
since 1988
PWFinance.net
The financial close of the $899-million
Pennsylvania Rapid Bridge Replacement Project on
March 18 is a game changer for the P3 market.
1. It’s the first big U.S. P3 deal to close since
Florida’s I-4 Ultimate six months ago.
2. Rapid Bridges is the largest road project in
Pennsylvania history. Yet the concession agreement
survived untouched in the transition from conserv-
ative Republican Gov. Tom Corbett to liberal
Democrat Gov. Tom Wolf.
3. Developer Plenary Walsh Keystone Partners
and its financial advisor, Plenary Group, arranged
the largest Private Activity Bond financing of a P3
deal in U.S. history: $721.5 million in appropriation-
risk debt, rated BBB, which drew 40 different
investors. No TIFIA loan was sought by PennDOT.
$59 million of equity was contributed by Plenary
Group (80%) and Walsh Investors (20%).
4. It’s the first bundling of publicly owned
assets under a single, fixed-price construction pro-
gram management contract. The agreement also
shares permitting risk on 558 discrete projects
between PennDOT and the Plenary-Walsh project
company.
(This is the project’s greatest risk, and greatest
potential benefit. PennDOT negotiated a SEP-15
waiver from the Federal Highway Administration
that allows it to delegate the NEPA documentation
to the private program managers. If it works well,
other states may pursue the same categorical exclu-
sion from FHWA rules and this approach could
become standard procedure. Key to its success is
the extensive technical due diligence done by the
joint venture to prepare its bid.)
“I think that one of the things that will make our
project hugely successful or frankly cause a lot of
consternation for the Plenary-Walsh team is how
smoothly the permitting process goes,” says Bryan
Kendro, Director for the PennDOT Public-Private
Partnership (P3) Office (until recently a one-man
shop but now also run by Deputy Director Dale
Witmer and supporting staff.)
5. Rapid Bridges involved the first use of a UK-
style performance bond, adapted for this project by
Walsh Group, its surety, Travelers, and Standard &
Poors (see p. 2).
6. The secret sauce: To gain the support of local
labor and small contractors, all of the bridge reha-
bilitation work will be subcontracted, and long-
term maintenance will be staffed locally—"to make
the workforce in each community look like the peo-
ple who live in that community,” says Matthew
Walsh, chairman of The Walsh Group of Chicago,
Illinois.
Also, money to fund the Rapid Bridges project
came from a large increase in annual highway
funding to $2.5-billion, which was enacted just as
the RFQ for the P3 project was being issued in
December 2013.
That new money allowed PennDOT to increase
design-bid-build lettings in 2014 from $1.5 billion
to $2 billion.
“We passed a massive funding increase, so basi-
cally there was a lot of design-bid-build work going
out at the same time, so if you didn’t like the P3
program, there was plenty of other work to bid on,”
says Kendro. (continued on p.3)
RAPID BRIDGES FINANCIAL CLOSE A GAME CHANGER
by William G Reinhardt, editor

2 PWFinancing/March 2015
What Travelers’ construction
services calls an “Expedited
Dispute Resolution Performance
Bond“ is described by S&P “as a
new form of performance bond,
which we view as providing liq-
uidity equaling as much as 10%
credit to the performance bond
for contractor replacement.
“Although typically perfor-
mance bonds have the potential
for protracted arbitration, under
the terms of this policy, the max-
imum number of days before res-
olution/payment is 82, and we
thus provide credit for some pro-
ject downside costs. In addition,
the bond provider has document-
ed its obligation under the per-
formance bond as a financial
obligation, such that its failure
to pay could result in ratings
consequences for the insurer.”
In fact, the Rapid Bridges
financing is the first time in the
U.S. that a rating agency has
recognized the value of a perfor-
mance bond, according to Stan
Halliday, chief underwriting offi-
cer for Travelers construction
services group. Zurich American
and Federal (Chubb) worked as
co-sureties with Travelers.
Walsh has also proposed
using the new performance bond
to help secure its $408-million
contract with WMB Heartland
Partners (Meridiam/Walsh
Investors/Balfour Beatty
Capital) to build the Marion
County Consolidated Justice
project in Indianapolis. The fate
of that social infrastructure P3
project will be determined in
April.
As use of the new bond
spreads, the hope is that letters
of credit will no longer be
required from contractors on P3
deals. If so, says Halliday, that
would eliminate a competitive
advantage now held by non-U.S.
contractors who have broader
access to LOCs. “This sets the
stage for U.S. contractors to
have a greater role in P3s,” he
says. “It’s a solution that works
in North America.”
(The total security package
provided by Walsh-Granite
includes a $22.5 million letter of
credit (2.5% of the construction
value), and retainage of $22.5
million. The contractors also will
provide a performance bond
equal to about 100% of the con-
tract price, in addition to parent
guarantees with a liability cap of
40% under the design-build
agreement.) I
AN AMERICAN PERFORMANCE BOND
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PWFinancing/March 2015 3
The Big Picture
The leadership at PennDOT took a risk on Rapid
Bridges in hopes that it would help energize local
contractors to be more efficient. “I think we’re envi-
sioning that this is going to be kind of a shock to our
local contracting community, just how fast they can
actually build a bridge if they are incentivized to do
so and when given the opportunity to be more inno-
vative,” says Kendro. “We think that [Rapid Bridges]
is going to be proof that there are certain things that
can be done differently with our bridge program, and
we’re going to do them differently.”
Where Credit Is Due
Plenary Walsh Keystone Partners has contracted
with joint venture Walsh Construction Company
(60%) and Granite Construction Company (40%),
with HDR, to permit and manage the design and
replacement of 558 mostly small bridges by
December 2017.
Major maintenance over 25 years will be per-
formed by Walsh Infrastructure Management, LLC
(an affiliate of The Walsh Group.)
Advising Plenary Walsh Keystone Partners are
Fasken Martineau, of Toronto (legal); BTY Group
(technical); InTech (insurance); and Plenary Group
(financial).
Advising PennDOT are KPMG (financial and
overall strategic advisor); URS (program manage-
ment); CDM Smith/ Lochner (technical); Allen &
Overy (transactional counsel); Ballard Spahr (bond
counsel).
Bond underwriters are J.P. Morgan and Wells
Fargo, advised by Ashurst LLP (legal). I
U.S. News
1. PennDOT’s Rapid Bridges a game changer
2. An American performance bond from Travelers
4. ITR: Australian fund plunges into US infra
7. Lessons learned on Texas SH 121 flip-flop
9. US P3 deal flow slows
Transportation Policy Review
12. “Where is Tolling Most Urgently Needed?”
by Robert W. Poole, Jr., Reason Foundation
14. The elephant in the room: toll the Interstates
PWF Town-Gown Roundtable
15. “What Happens After the Financial Close:
Uncharted Waters”
Canadian Infrastructure Finance
17. Quebec to delegate infra to the Caisse
Latin American News
18. Niteroi Bridge to Ecorodovias
19. Mexican aqueduct under attack
20. Chile ramps up for P3s
22. PWF Public-Private Services Directory
32. PWF Advertiser Index
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The sale of the Indiana Toll Road (ITR) lease for
$5.725 billion to a large Australian infrastructure
fund on March 11 has sent shivers of anticipation
through the global privatization community. Here
finally is a large, long-term, GDP-linked investment
opportunity in the largest economy in the world—and
in a state whose economy is surging. The targeted
return on equity, $3.2 billion (57%), is said to be
about 10%, apparently enough to keep the fund’s non-
profit investors happy.
Further, the auction winner, Australia’s IFM
Global Infrastructure Fund, managed by IFM
Advisors, is over-flowing with public pension fund
money to invest, and ITR solves some of that prob-
lem.
The private auction is done and the sale is com-
plete. The winner now needs only final approvals
from government, including the business-like
Indiana Finance Authority (IFA), ITR’s owner. An
IFA spokeswoman says it will make its decision
before the financial close, now set for late summer or
fall.
IFA’s primary concern is operations, and IFM has
made an agreement with the existing operator to con-
tinue in that role. Retention bonuses have been
offered to key employees of the Indiana Toll Road
Concession Co. (ITRCC), which has been managing
the highway and $460 million in capital projects
since 2006.
IFM’s bid was signed by its executive director,
Michael Kulper, an Australian banker who formerly
was President of Transurban North America, where
he led the development of 495 Express Lanes and 95
Express Lanes.
Those long-term toll concessions together are
worth about $3 billion, Transurban says. They are
the initial links of a planned managed lanes network
serving northern Virginia commuters in the Capital
Region of Washington, D.C.
Macquarie Capital is advising IFM Investors. In
addition to sharing, and losing, a $760-million equity
investment in ITR, Macquarie funds own half of the
Dulles Greenway toll road in Virginia and 22.5% of
the Chicago Skyway, which connects to the ITR.
A One-Off Deal?
For all the excitement, the ITR sale isn’t likely to
re-energize the toll road privatization market in the
U.S., says a banker working on a competing bid. The
big equity investment made the ITR deal bankable,
but probably won’t be repeated on other potential toll
road privatizations, he says. Finally, while the ITR is
designated as an Interstate, the 60-year-old road has
no federal funds invested, which would not be the
case on most other transactions.
The large equity investment means IFM’s nonprof-
it funds are taking all of the revenue of risk. Its pur-
chase price for ITR assumes a 31x return on EBIT-
DA, which works out to about $320 million a year.
That seems ambitious. EBITDA last year was $182
million. The ITR never covered its costs under state
control, and it never made a profit under private
management.
IFM’s bank debt is rated investment grade only
because of the large equity commitment, says a rat-
ing agency analyst.
AUSTRALIAN FUND PLUNGES INTO U.S. INFRASTRUCTURE

The Bidders
There were three private bids for the 66 years
remaining in the ITR concession (whose original
terms, signed in 2006 with former owners Cintra and
Australian bank Macquarie, will govern the new
owners).
The second-low offer was about $5 billion from
Cintra, which, as the current operator, was widely
viewed as the likely winner of the auction. Cintra
was teamed with Hastings Fund and the Canadian
Pension Plan Investment Board. The board is
Cintra’s partner on Highway 407, a lucrative toll con-
cession in Toronto.
The third bid, from Abertis and Borealis
Infrastructure, was well below Cintra’s. As IFM is
now, Abertis was flush with cash in 2008 when it
offered $12.8 billion to lease the Pennsylvania
Turnpike. Lucky for the Spanish toll road operator,
the procurement expired for lack of legislative sup-
port just before the financial crash hit Pennsylvania.
A public bid was made by two Democratic counties
at the west end of the toll road that believe they can
make a bundle by forming a new public toll authori-
ty that they would control. Over 60% of toll revenue
from ITR comes from trucks; truck traffic is growing,
and most of the trucks are from out of state.
Bankers working with Lake and LaPorte counties
and operator Globalvia put together an all-debt offer
of $5.2 billion, to be raised by forming a toll authority
and issuing $5.6 billion in public revenue bonds
(including $400 million in reserves). The bankers esti-
mate the cost of funds would be below 5%, tax-exempt.
Capital Spending
The 157-mile-long Indiana Toll Road opened in
1956. Pavement and bridge conditions currently are
better than required in the concession contract.
That’s mainly because ITRCC spent $460 million on
upgrades, including widening the road and upgrad-
ing toll collections.
The timing and amount of future capital spending
needed to keep the road in good condition will sub-
stantially affect IFM’s returns. Rather than detailed
specifications, the lease requires IFM to meet level-of-
service guarantees, which provides some latitude on
the scope and pace of capex. (continued on p. 7)
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The performance specification was included in the
original lease partly to increase the up-front conces-
sion payment.
The Risk of Politics
Infrastructure privatizations and P3s in the U.S.
are vulnerable to changing political winds.
Former Gov. Mitch Daniel nearly lost a fight with
his legislature over the original ITR lease, even
though it guaranteed $3.85 billion in new money up
front, most of which was used on highway construc-
tion during the recession. Conversely, the sale to IFM
Investors delivers a windfall to hedge funds, who
hold about $6 billion in debt and swap termination
fees on ITR.
Indiana’s Governor, Mike Pence, a conservative
Republican, who is held out to be a Presidential
candidate, is under pressure to return the ITR rev-
enues to public control.
Under private operation, the IFA lease has
allowed tolls to more than double since 2006. Future
increases are indexed to national GDP or 2% infla-
tion, whichever is higher.
The two counties hope they can gain traction by
protesting foreign ownership of the lease. A lawyer
supporting the county’s bid claimed that IFA “stuck a
knife in backs of all Hoosiers when it supported prof-
its going offshore rather than being reinvested in
northwestern Indiana.”
Macquarie’s equity analyst Ian Myles called the
original transaction: “Acquiring America.” The ITR
corridor contains 15.5% of the U.S. population. It
used to be called “the Mainstreet of the Midwest.”
Anything can happen in politics. I
A toll road industry veteran warns that the ITR
sale could still be reversed. A precedent was set in
2006, he points out. Texas DOT had selected
Spanish developer Cintra as the apparent winner of
a large revenue-risk toll concession near Dallas.
Subsequently, a more aggressive bid was submitted
by a politically powerful public toll road authority
and accepted by the state, with disastrous results
for users.
The North Texas Toll Road
Authority (NTTA) trumped
Cintra’s offer for the SH 121
toll road concession near the
airport in Dallas. NTTA’s
last-minute bid of a $3-billion
up-front payment was $1 bil-
lion higher than Texas DOT’s
valuation.
To make the public deal
feasible, NTTA pledged
revenues from its entire
network to support its all-
debt financing. Then the
economic and financial
crisis hit Dallas, and revenues fell. To pay
bondholders, NTTA raised tolls 32% system-
wide in July 2009 and committed to index
them to inflation annually from then on.
Had Cintra financed the project with equity and
Private Activity Bonds, as planned, users of the
customers would not have been charged for NTTA’s
forecasting mistake.
(The irony of it all: the Texas Transportation
Commission voted Feb. 24, 2005 to request compet-
itive proposals on SH 121, before NTTA was in the
picture. At that meeting,
Commission Chairman Ric
Williamson asked Texas DOT,
“Are you convinced that final-
ly the private sector world we
wish to deal with understands
that we’re very serious about
don’t bring us this stuff unless
you’re putting your money on
the line?”
Phil Russell, Director of the
Texas Turnpike Authority
Division at the time, replied:
“I think they get it,
Chairman, I think they get
it.”) I
LESSONS LEARNED ON
THE SH 121 FLIP FLOP

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Annual ARTBA Public-Private
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The nation’s premier and longest-standing event for P3s in transportation
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400 New Jersey Ave. N.W.
Washington, D.C. 20001
Early Bird Registration is now open
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SAVE THE DATE | JULY 15-17, 2015
Tentative Schedule at-a-glance
To sponsor or exhibit at the ARTBA P3 Conference,
contact ARTBA’s Ed Tarrant at 202.289.4434 or
etarrant@artba.org.

Depressed Treasury yields have created favorable
conditions for financing P3s yet few deals are in the
market right now. Next up after Rapid Bridges are
the financial close of Portsmouth Bypass in Ohio
(ACS Infrastructure/availability), SH 288 managed
lanes in Texas (ACS Infrastructure/toll revenue risk),
and I-77 managed lanes in North Carolina
(Cintra/toll revenue risk). Developers of all three pro-
jects are seeking TIFIA loans.
I-77, originally set to close a few months ago, is
well behind schedule. USDOT’s Credit Council only
just received a Letter of Interest from Cintra’s I-77
Mobility Partners for a $189-million TIFIA loan. At
the same March 2 meeting, the Council also received
a request from North Carolina DOT to extend its
$350-million PAB allocation for I-77. The Credit
Council was asked to increase its TIFIA loan from
$208 million to $211 million at the same meeting.
Further out, an RFQ for I-70 East managed lanes
in Denver was issued on March 25. And Virginia DOT
is now expected to release its RFQ for I-66 managed
lanes in mid-April.
Design-Build
In Texas, the Harbor Bridge replacement, a gap-
financed project in Corpus Christi, will bid early next
month and close soon afterward.
Arizona DOT was awarded a Record of Decision
this month by FHWA for its Loop 202 South
Mountain freeway. ADOT plans to shortlist soon
and award a 30-year DBM contract by November. For
the uniquely long O&M tail, ADOT intends to require
maintenance bonds and/or letters of credit at recur-
ring intervals, together with potential guarantees,
throughout the maintenance period.
Another gap deal, I-395 in Florida, will be Florida
DOT’s next “alternative delivery” project, to be bid
next year.
(A key question for bidders on 395 is whether
FDOT’s contract will follow TxDOT’s lead on SH 183
and allow for a “contractor-friendly” gap financing.
The hybrid gap-finance/DBOM approach developed
by TexDOT was a “true sale” transaction where all of
the borrowed gap funds are escrowed and paid out
during construction, much like factoring receivables.
Three strong teams bid for SH 183. It was awarded
at $850 million to Kiewit, which ended up providing
balance sheet financing for the $250-million gap com-
ponent and a 25-year warranty for the O&M period.)
Wish List
The list of uncertain projects grows:
The Illiana toll road P3, already faltering, took
what will probably be a fatal hit this month. Crain’s
Chicago, through an FOIA request, found that former
Illinois governor Pat Quinn buried a Fitch rating last
year that would disqualify the $1.5-billion project
from getting a TIFIA loan.
Demands for transparency are already high on the
megaproject agenda as a result of P3 eruptions in
Virginia, Colorado and elsewhere. Quinn’s failed
Correction: Purple Line P3
In our story last month “Purple Line
Developers Like Re-Look,” we wrote that the
developers bidding on the project welcomed the
extension of the bid deadline to Aug. 21 because it
allowed them to defer spending on financial advi-
sors, bond ratings and lawyers while scope and
other issues were being sorted out.
Among other things, we were wrong on cost
growth, according to the Maryland Transit
Administration (MTA). “The article's claim that
the cost of the Purple has "more than doubled
from a 2007 estimate" is incorrect. In 2007, the
project cost was $1.634 billion in 2007 dollars. The
current cost of $2.325 billion is presented in year
of expenditure dollars. If escalation is applied to
the 2007 cost it is within 3% of the current cost,
meaning the cost is virtually unchanged.”
Changes made since the final RFP was issued
have not made the project more prescriptive, MTA
says. If anything, MTA says it has assumed utility
delay, signaling and other risks as the documents
have evolved. MTA cautions that transit regulato-
ry agencies and partners do affect the way it can
apply performance-based specifications but “faux
P3” is a mischaracterization. I
U.S. DEAL FLOW SUFFERS FROM DELAYS, ATTRITION

attempt to keep Illiana alive in hopes that it would
help him get re-elected is likely to turn up the heat.
Maryland’s’ new governor, a highway advocate,
appointed another highway advocate, Pete Rahn, as
DOT secretary to review the Maryland Transit
Administration’s Purple Line P3 procurement.
Revised proposals are due Aug. 21.
The Monterey County transportation planning
agency in California will consider a P3 option for a
proposed toll road paralleling Highway 156, which
is being promoted by tourist interests. Federal “high
priority project” funds are available for a prelimi-
nary traffic study, which could begin in a few
months.
The social infrastructure P3
pipeline has nearly collapsed. This
increases the importance of the $400-
million Marion County
Consolidated Justice Center in
downtown Indianapolis. Meridiam
Infrastructure, Balfour Beatty and
Walsh Investors were selected in
December 2014 to negotiate a 35-
year DBFOM contract, which is
being challenged over the difference
in cost-of-funds between project-
financed debt and public financing.
The financial close by Meridiam
had been set for March 31. The final
vote of the City/County Council now
is on the docket for April 20. “We’re cautiously opti-
mistic,” says Gregory A. Ciambrone, VP of Strategic
Investments for The Walsh Group, which holds the
design–build contract.
A negative vote by the council would deflate the
market.
(PWF’s article last December started: “The U.S.
P3 market reached a milestone recently when the
winning bidder for a large social infrastructure pro-
ject submitted a financial proposal that featured a
committed-price private placement financing drawn
down at the start of construction. This is the first
time large insurers and pension funds have been
willing to fund construction of a large U.S. DBFOM
project with a fixed credit spread that was competi-
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Fitch On
Performance-
Based
Infrastructure
A March 19 report from from
Fitch Ratings supports a propos-
al from the American Road &
Transportation Builders
Association (ARTBA) to increase
highway trust fund (HTF) spend-
ing by $27 billion per year over
six years. The plan would raise
the federal gas tax by $0.15 and
offset that increase with a rebate
for middle-class taxpayers. The
tax credit would be funded by a
one-time repatriation tax on U.S.
corporate foreign earnings.
“In our view,” writes Fitch,
“longer term solutions for the
HTF could include a combination
of different funding forms. These
include taxes and fees and tolling
of existing interstates that could
be phased in over time.”
Fitch believes, however, that
there is some risk that a gas tax
extension and increase “could
intensify the inherent inefficien-
cies in the current system of pol-
icymaking and procurement.”
“New legislation needs to
wean the system off the ways of
the past and begin building a
more disciplined, outcome-dri-
ven, performance-based account-
able framework that better links
the beneficiaries of transporta-
tion assets to those that pay for
it,” Fitch writes. I

Editor/Publisher
William Reinhardt/Westfield, NJ
(908) 654-6572
pwfinance@aol.com
PWF International Editor
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dcpwf@magisnet.com
PWF Canada
Dan Westell/Toronto (416) 538-2382
nowes@sympatico.ca
General Manager
Elizabeth B. Reinhardt/Westfield, N.J.
(908) 654-6572
libbybr@hotmail.com
Deputy Assistant Copy Editor
Elinor Harriman Reinhardt
ereinhardt@middlebury.edu
Artist/Ilustrator
Kevin Sacco
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tive with other sources of funds and, in this case, that
allowed the winning team to meet the city’s strict
affordability limit.”
In California, Plenary Group has announced that
it expects to reach financial close on its Long Beach
Civic Center P3 by year end.
Finally, the LaGuardia Airport Central
Terminal P3 procurement by the Port Authority,
effectively a social infrastructure project, still awaits
a decision by Gov. Andrew Cuomo on his long-term
plans for New York City’s airports. The RFI was
issued in December 2011.
In the water market, investors in two recent pro-
jects, in Rialto, Calif., and Bayonne, NJ, set out on
national tours to convince municipalities to buy into
their P3 value proposition, which includes private
finance. KKR’s group got about a dozen hits but, so
far, no bites.
Columbia, S.C., started and quickly stopped a
procurement after anti-privatization nonprofits
showed up. Scranton, Pa., added a P3 option to
its O&M procurement after it had already begun.
Three private investor groups are awaiting results
of an April 7 vote on a nonbinding resolution on
whether or not to lease the water and sewer sys-
tems in O’Fallon, Ill. (pop. 28,280), a suburb of St.
Louis. I
To access PWF’s International
Major Projects database and for
advertising and subscription
information, visit
www.PWFinance.net

On March 30th I addressed the International
Bridge, Tunnel & Turnpike Association’s annual
Washington Briefing. The topic they asked me to
address was where tolling should fit in as part of
America’s future transportation policy.
While I am on record favoring the long-term
replacement of per-gallon fuel taxes with per-mile
road-use charges, IBTTA’s question forced me to do
something politicians and planners don’t do enough
of: prioritization. So I reframed the question as:
Where will tolling give America’s highway users the
greatest bang for the buck?
In my view, the two greatest problems in surface
transportation are (1) the aging and increasingly
inadequate Interstate highway system and (2) chron-
ic urban freeway congestion, with direct costs to high-
way users that exceed $120 billion per year (and indi-
rect economic costs to metro areas at least double
that). And tolling excels at both generating revenue to
finance the creation of new highway capacity and,
when implemented on a variable basis, providing the
best available means of reducing freeway congestion
on a long-term, sustainable basis.
Since the federal MAP-21 surface transportation
legislation expired last September 30th, Congress is
under serious pressure this year to reauthorize the
program. What Congress does about tolling can either
encourage or stymie efforts by state DOTs and local
MPOs to pursue toll-based policies for Interstate
reconstruction/modernization and building out metro-
area managed lane networks.
In MAP-21 Congress revised federal tolling policy
in some helpful ways, including the mainstreaming of
toll finance and managed lanes in general. But when
it comes to Interstates, the liberalized tolling policy
only permits toll financing for the addition of new
lanes and for the replacement of existing bridges and
tunnels. The reality is that tolling only newly added
lanes will not generate the revenue needed to recon-
struct existing lanes.
Therefore, I think the entire highway community
needs to rethink the terminology used to discuss what
we seek for the Interstates. When an Interstate’s
existing lanes are so old and worn-out that they need
to be reconstructed—as will increasingly be the case
for most corridors over the next two decades—what
we are really talking about is replacing those aging
lanes. Federal policy should not forbid a state DOT
from using toll financing to replace its worn-out
Interstate lanes, which in many cases would make
sense to do at the same time as adding additional
lanes, if warranted by long-term traffic projections.
In addition to changing the terminology, as a practi-
cal matter it is also up to us to take very seriously the
concerns of highway user groups, such as AAA and the
Transportation Policy
Review
by Robert W. Poole, Jr.
WHERE IS TOLLING MOST URGENTLY NEEDED?
www.hntb.comomc.tb.hnwww

American Trucking Associations. Despite those groups’
official positions against Interstate tolling, both groups’
leadership know that their preferred solution of federal
fuel tax increases is highly uncertain in the current
political environment. They know the inadequacies of
today’s Interstates, and they also know that without
major investment in replacement and additions, their
members are going to suffer. The user-friendly tolling
policies that Reason Foundation has developed (called
Value-Added Tolling) have already made a positive
impression on highway user groups.
What we should urge Congress to do in the current
reauthorization is to provide states with the option to use
toll financing to replace and widen their current
Interstates, by mainstreaming the existing three-state
Interstate System Reconstruction and Rehabilitation Pilot
Program with more explicit highway-user protections.
On managed lane networks, there is good progress
nationwide, with networks of this kind in the long-
range plans of at least nine major metro areas and
being discussed in a number of others, including
Chicago, Denver, Jacksonville, Orlando, Tampa, and
Washington, DC. But Congress could help DOTs and
MPOs overcome opposition by making some modest
tweaks to existing highway and transit policies.
First, when it comes to enforcing FHWA perfor-
mance requirements for HOV lanes, the remedy for
those operating as HOV-2 that fail to maintain 45 mph
or more, 90% of the time, should be to increase the
occupancy level to at least HOV-3. It is very difficult for
local agencies to take this sensible and much-needed
step, so it would be a big help if they could tell their
elected officials and carpoolers that “Washington made
us do it.” That change would open up those HOV lanes
to conversion into viable HOT lanes, in many cases fill-
ing in key parts of a planned network and likely gener-
ating revenues in excess of operating costs to help pay
for the portions of the network requiring new construc-
tion.
A second set of changes would aim at making the
network more transit-friendly. Currently the Federal
Transit Administration supports both bus rapid tran-
sit (BRT) and conversion of HOV lanes to HOT lanes.
But it only counts as “fixed guideway miles” those
HOT lanes that are created by converting HOV lanes.
Any HOT lanes that are created by new construction
do not count toward that total. This matters, because
FTA formula funds for transit agencies are based in
part on its total of fixed guideway miles. A HOT lane
is just as much an uncongested BRT corridor, no mat-
ter how it was created. This change would provide a
stronger incentive for transit agencies to support the
creation of managed lane networks.
A more radical change would be to open up FTA’s
New Starts and Small Starts grants programs to the
construction of HOT lanes that would be part of a net-
work used by BRT vehicles in addition to cars. Any
variably priced lane can provide an uncongested
guideway for express bus service that is the virtual
equivalent of a bus-only lane. The idea researched sev-
eral years ago in Tampa for “Bus Toll Lanes” envi-
sioned FTA capital grants being used by a transit
agency to help pay for new HOT lanes, alongside
either a state DOT or a local toll agency. To the extent
that such a lane generated net revenue after annual
debt service and O&M costs, the sponsoring agencies
would share proportionally in that net revenue.
Neither increased Interstate tolling flexibility nor
tweaks to FTA’s HOT/BRT policies would involve any
new federal spending. But both would foster increased
toll financing of much-needed surface transportation
infrastructure, creating additional opportunities for
long-term P3 concession projects as well. I
ENGINEERING & ENVIRONMENTAL SOLUTIONS
Transportation Architecture Building Technology
Energy Environmental Services
www.typsa.com www.aztec.us
Robert W. Poole, Jr. is the director of
transportation studies at the
Reason Foundation.

Traffic counts on about of half of the 47,000 miles of
Interstate highways in the U.S. are 40,000 daily trips or
more. At a toll of 10 cents per mile for cars (the NJ
Turnpike charges 11.4 cents), and 30 cents for trucks,
those high-traffic segments could be self-supporting on a
life-cycle basis, according to Jordi Graells, CEO of
Abertis USA.
At those toll rates, 100 toll revenue-risk concessions
could be awarded in a first round of leasing. Each con-
cession would generate as much as $300 million a year
in income, enough to bond the replacement of 10,000
miles of high-performance roads over time. To make this
work, toll collection systems on all of the roads would
have to be interoperable, says Graells. I
From PWF November, 2002:
“The U.S. Congress and the Bush
Administration face a "perfect
storm" of transportation funding
legislation next fall with the reau-
thorization of Amtrak and the avia-
tion and highway and transit pro-
grams. The political and economic
risk of delay is great, especially for
the new Republican majority.
Without a substantial increase in
highway funding—the grease that
made TEA-21 possible—there is lit-
tle chance of a smooth transition to
the next generation of federal sur-
face transportation programs before
the 2004 presidential election.
To preserve the hard-won peace
achieved since 1999 among compet-
ing transportation modes and inter-
est groups, all will have to agree rel-
atively soon on ways to add new
money to the pot.” I
THE ELEPHANT IN
THE ROOM

On January 13, 2015 Public Works Financing
sponsored its second annual Town-Gown roundtable
discussion of critical concerns in the U.S. P3 indus-
try. Two dozen representatives of state DOTs,
bankers, P3 developers, advisors and professors
were hosted at ARTBA headquarters for a three-hour
give-and-take moderated by PWF editor Bill
Reinhardt.
DOT representatives asked the questions; first
responders picked by PWF framed the discussion,
and the floor was opened to lively debate. What fol-
lows is the edited transcript of one of thos debates.
What Happens After The Financial Close?
Uncharted Waters
Question
A state DOT executive running a major P3 pro-
curement asked the Town-Gown participants what
happens after the financial close? “How do we struc-
ture this; how do we manage this asset or this con-
tractual relationship going forward?”
“We are at the very early stage for most of these
DBFOM projects. Some of them have progressed into
the operations period, but most are still very much in
the early stages. Government spends a lot
of resources internally and on consultants
to get the contracts in place, but then
those resources quickly fall away. We
want to maintain oversight, but we’re
government and our resources are limit-
ed.
“What do you want as the contract
moves into the implementation period in
terms of the public sector side, and what
are some good examples and bad exam-
ples of things that have appeared in con-
tracts that have already been finalized?”
Answers
First speaker: “I think we’ve seen in the
early days that the government owners
often were surprised when the private
sector development team fell away and a whole new
cast of characters showed up post-financial close to
put into place a contract that they may or may not be
intimately familiar with.
“I think the poster child for not doing it particular-
ly well is the Chicago Meters, where you had a whole
bunch of issues just in a relatively brief transition
period that occurred. To be fair to the concessionaire,
it was brief, they solved them right away, and moved
on, but there was a disconnect not only between the
transition to operations, but also just understanding
the value of a public asset and what happens when
media perception gets away from you on a project.
Literally to this day, we are all still hearing about
Chicago Meters as something to be avoided.
Second speaker: “DOTs, or any public owner, need
to have their eyes wide open. Right now, there isn’t
an administration process in this industry. Yes, trust
the lenders and their technical advisers. But you’re
going to have to administer these contracts and
you’re going to need to know what that’s going to cost
you.
“One topic that’s come up is the non-compliance
point system database that tracks compliance during
the design and construction period. Somebody on the
PWF’s Town-Gown Roundtable On P3s
WHAT HAPPENS AFTER THE FINANCIAL CLOSE?
UNCHARTED WATERS

owner side has to have a very clear understanding
of the non-compliance points process. What is a
point, the notice, the cure, when may it trigger the
dispute process threshold, and making sure that
their database is set up to track these things.
“I hate to say it but I think this is a dirty little
secret in the P3 world, and I think we all need to
start opening our eyes to this because the non-com-
pliance point system, and the financial deductions
associated with them, are key to the incentive
aspect of the P3.
“I think there’s a lot that needs to be done better
to make sure these systems are set up properly.
There is a lot of reliance on the technical side in cre-
ating these things and administering them. Both
the commercial and the technical people need to be
in sync with the owner to make sure that these sys-
tems work properly.
Third speaker: “Even in a place like Canada,
where we’ve done an extensive amount of work, the
provinces, some of which have 40-50 projects under
their belt, it’s creaky at best especially when some-
thing starts to go sideways. If it’s just normal-course
stuff that’s one thing. But the minute you try to
begin to use your documents and figure out what we
know and what we don’t know (and God help you if
you have to refinance one of these things), that’s
another aspect of it.
“It’s truly a landscape that is unknown territory,
and for some projects, the law firm that wrote the
contract is in another country.
“We literally are living it and watching it happen.
A few of the provinces have dedicated offices like
Infrastructure Ontario and Partnerships BC and
they do have a lot of experience and dedicated tal-
ent. But it’s not pretty to watch what happens when
you actually have to start to weigh in on some of
these issues.
“Project models are not operating models. And
oftentimes that simple point, the notion that the
model that was built, that is baked into the docu-
mentation, when folks go to actually do something
with it later, they discover that it just simply wasn’t
built to do that. Frankly, oftentimes, if you do go to
refinance a project then the documentation requires
the model to be rejuvenated and referenced back.
“So there needs to be a living version available,
and that might work and it might not, frankly.
There are some real issues associated with it. You
could end up being very hamstrung and have a com-
pletely new staff that has no idea what happened in
the original transaction.
“Now, they have to figure out how to make deci-
sions based on numbers that were generated seven
years ago by people that aren’t around, by a model
that may or may not work, that wasn’t really
designed to be in the operating phase or accurately
track seven years worth of construction, and three
years worth of operation, or whatever. That’s a real
problem.”
Fourth speaker: “Because these are all mega-pro-
jects, the lenders would like to know what happens.
It starts with something as simple as whom do you
call first? Some of this is really not the owner’s
issue, it’s really the project’s issue. But whom do you
call first, and what level of disclosure are you
requiring?
“For the availability projects, there are issues of
compliance and non-compliance, and non-availabili-
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ty. Some of these, whether you disclose them to
lenders or not, is really key to whether or not you get
paid, from the lenders’ perspective.
“I’ve not seen any standard reporting requirement
from either the owner’s side or the project side as to
whether or not straight-up you’re in compliance. The
owner requires daily, monthly, quarterly, annual
reporting but, as a matter of course, are you in com-
pliance with the concession? It’s such a basic thing,
but it doesn’t come out anywhere. That question gets
lost in all these other smaller things.
“TIFIA requires detailed reporting. For the
Elizabeth River Crossing project in Virginia, the con-
cessionaire had a lot of reasons to go back and
amend their TIFIA program because of the changes
in the state funding sources. Every time that hap-
pened they had to go back and amend their model.
As result, they converted their model from what was
a financing model to a real working model.
“That made so much sense, because they actually
set up tabs in the model that referenced different
sections of the concession agreement. For every
requirement under the concession agreement, you
can go to this tab and find it. And as a lender, as a
rating agency, that’s beautiful!
“In general, in terms of confidentiality between
the owner and the private sector, maybe they don’t
want to share all that. But the types of things done
by Elizabeth River Crossings are really good exam-
ples of lessons learned.” I
I Quebec To Delegate P3 Deals to CdP
The Quebec government is hoping that it can out-
source major infrastructure projects to a provincial
pension fund through an arrangement that leaves
the public sector with decisions about what will be
built, but gives all other aspects of the project to the
fund.
The government and La Caisse de Depot et
Placement du Quebec (CdP) have reached an agree-
ment that will have the Caisse plan, finance, own,
execute and operate projects. The Caissee has about
Cdn $225 billion in net assets used to provide pen-
sions for mostly public employees.
Under the proposal, the government will identify
projects that might interest the Caisse, the Caisse
will consider them and, if it deems them suitable,
suggest financing and economic models. If the gov-
ernment agrees, the Caisse will run the procure-
ment, encouraging competition to cut costs, possibly
selling equity and using debt. It will bear all the
risks.
The government likes the plan because it will keep
infrastructure costs off its books. If it has any finan-
cial involvement with a project, it will be in the form
of non-voting equity. The Caisse thinks the projects
will deliver steady income, low capital risk and infla-
tion-resistant assets. The Caisse will have the right to
set fares on the transit projects. With a well-designed,
well-operated quality transit service, “it is possible to
make reasonable returns,” said Macky Tall, Senior
Vice-President, Infrastructure, Private Equity.
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The Caisse’s return will be at market rates and
reviewed by an independent auditor. The fund made
a 13.8% annualized return on its infrastructure port-
folio over the past four years. The government can
buy the asset from the Caisse at market rates.
However, the concept requires the Quebec legisla-
ture first to amend several acts that affect the
Caisse. One act governs allowing the Caisse to set up
an infrastructure subsidiary. The government has
already proposed amendments to several bills to
allow the government to expropriate land needed for
the projects and to exempt the projects from acts that
govern municipal transport and municipal taxes.
The fund is not doing any detailed planning work
until those are passed, said Tall.“The Caisse has said
there is a 2020 target date for completion of the pro-
jects. Based on its experience, 2020 is doable,” he
said.
Two possible projects, expected to need Cdn $5 bil-
lion in financing, have already been identified: an
LRT to be built over the planned P3 Champlain
bridge across the St. Lawrence River in Montreal,
and a transit system linking downtown Montreal to
the airport. The revenue sources may include maxi-
mizing ridership, accessing funding from the federal
government (which has supported a number of P3
transit projects), and exploiting rising land values
that follow new transit lines and the Caisse’s very
long time horizons.
Opinions are mixed on the prospects for capturing
the value of real estate increases. Some academics
think “land value capture” (LVC) is not realistic. But
several recent reports suggest LVC can produce real
benefits, including one that estimates it can cover
35% of the capital cost of the Montreal lines. Other
reports suggest much lower values for LVC.
The Caisse has an advantage in this area: it has a
lot of real estate experience. Its Ivanhoe Cambridge
real-estate arm has become one of the largest devel-
opers in the world by moving from finance to plan-
ning, developing, overseeing the construction and
then managing the asset. In fact, it hopes to replicate
the Ivanhoe Cambridge model in infrastructure, and
export the model to other jurisdictions, Tall said.
The Caisse is also a big investor in transit, recent-
ly announcing a Cdn $830-billion purchase of 30% of
the Eurostar train service between London, Brussels
and Paris. It was a lead investor in the Canada Line
transit P3 in Vancouver, is a shareholder in the two
fast train companies that link central London with
its two main airports, and is one of two shareholders
in Keolis, a large international transit operator.
. . . Latin American News
I Niteroi Bridge Goes To Ecorodovias
Brazil’s federal transportation regulator ANTT
awarded the re-concession of Rio de Janeiro’s Ponte
Niteroi bridge to toll road operator EcoRodovias,
which soundly beat CCR, the current operator, for
the new 30-year lease. EcoRodovia’s bid was 18%
lower than CCR’s. Absent from the contest were
Brazil’s major contractors, barred from bidding as
they grapple with the federal prosecution investigat-
ing their involvement in the corruption charges that
plague Brazil’s oil giant Petrobras.
EcoRodovias won with an offer to charge a basic
toll to cross the 13-km Ponte Niteroi of Reais 3.28
(US$1.02), 36% below the capped maximum of Reais
5.18 (US$1.61) set for the tender. CCR’s current
basic toll for crossing the bridge is Reais 5.20
(US$1.65).
EcoRodovias was founded as a civil works contrac-
tor and has since expanded to a conglomerate. It is
64% owned by CR Almeida and runs six toll roads in
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It currently operates over 30 infrastructure
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Sâo Paulo, Espirito Santo and Parana states,
totalling 1,770 km in length, and a container port in
Santos, Brazil’s largest, that connects with its toll
roads in Espirito Santo.
EcoRodovias will take over the Ponte Niteroi con-
cession from CCR in May 2015.
I Mexico Aqueduct Deal Under Attack
The Employers Confederation of the Mexican
Republic (COPARMEX), a business organization, is
slamming a P3 project obtained six months ago by
engineering-construction firm ICA (Mexico) to build a
Mex peso 18.2-billion (US$1.2-billion) aqueduct that
will supply water to the city of Monterrey.
Aligned with a citizens’ group, Coparmex presi-
dent Alberto Fernandez is urging the government of
the state of Nuevo León to delay construction of the
aqueduct by 10 months to permit a review of corrup-
tion charges and irregularities swirling around the
project.
Coparmex submitted a report to the water author-
ity, Servicios de Aguas y Drenaje de Monterrey, citing
fifteen irregularities in the 30-year Monterrey VI
contract that could triple the cost. The report includ-
ed a study by The Nature Conservancy, a U.S.-based
environmental organization, that questioned
whether the Panuco River’s water flow could sustain
the aqueduct transport project.
Acueducto Monterrey VI calls for a 372-km-long,
84-inch-diameter aqueduct to transport 5 cu m per
second of water from the Panuco River in Veracruz.
The aqueduct will link with an existing 130-km aque-
duct and reservoir, Cierro Prieto, which serves
Monterrey. Nuevo León will support the project with
a Mex.peso 3-billion (US$195 million) grant.
I Brazil Water Sector Takes Hits
Drought and the Petrobras corruption probe are hit-
ting Brazil’s water sector. As the drought lingers,
water taps run dry in Sao Paulo city and the city’s
water utility Sabesp grapples with a 46% slump in
revenues. According to projections by UBS and
Goldman Sachs this will translate to a 19% reduction
in earnings from providing potable water to house-
hold consumers.
The drought began to affect Sabesp in 2014 and
forecasts say it will extend through 2015. As a result,
Sabesp, which is 50.3% state controlled, is planning
to lay off 9.2% of its 15,015 workers this year. Its pay-
roll peaked at Reais 1.58 billion (US$490 million) in
the middle of last year.
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Sabesp officials have promised ambitious solutions
to the drought, including new reservoirs. But the
reservoirs are a long way off and Sâo Paulo’s reservoir
system could run dry in 2015. Experts say the origins
of the crisis include run-off from deforestation, pollu-
tion, a surging population and a chronically leaky sys-
tem. More than 30% of the city’s treated water is esti-
mated to be lost to leaks, including pilfering.
With that outlook, Sâo Paulo state governor
Geraldo Ackmin is looking to a P3 to reduce water
losses. Ackman wants the government to partner
with a financially strong contractor to replace obso-
lete pipes and water meters, to combat illegal connec-
tions, and to detect leaks with new technology. The
contractor would provide the initial capital and the
government would pay based on targets met.
But the contractors are tied up in Lavo Jato
(Operation Carwash), the Petrobras corruption
investigation. Mid-March Brazil’s federal comptroller
general lodged corruption charges against some big
contractors, many of whom have water subsidiaries.
These include OAS, Camargo Corrêa, Galvao
Engenharia, Andrade Gutierrez, and Odebrecht,
including Odebrecht Ambiental. The companies are
not allowed to sign new contracts or raise money,
leaving several water projects in limbo.
Galvâo Engenharia has filed for bankruptcy pro-
tection for itself and some of its affiliates after it ran
out of operating cash in a failed struggle to obtain
bank funding amid the fallout from Lava Jato.
Gâlvao Engenharia’s water and sanitation unit, Cab
Ambiental, however, is not included in
its parent’s bankruptcy filing as Gâlvao
is reported to be negotiating a leniency
agreement for its water unit with the
federal prosecutor. Gâlvao is alleging
that Cab Ambiental, unlike its other
business units, never did business with
Petrobras.
Also as a result of Lavo Jato, construc-
tion conglomerate OAS is selling, among
other assets, its water subsidiary
Soluçoes Ambientais (SA). SA is a
Brazilian municipal potable water sup-
plier and wastewater services company
that, under the name of Empresa
Peruana de Aguas, also has a 30-year
concession in Lima, Peru to supply water
to 8 million people.
The sole bidder for SA was Planeamento
Ambiental Aguas do Brasil, S.A. (Saab), which has
13 municipal contracts in the states of Rio de
Janeiro, Sao Paulo and Amazonas. Saab lodged its
buy offer to buy SA in mid-February and began
talks this month.
I Chile Ramps Up For Concessions
Chile is planning to fast track US$1.8 billion worth
of P3 toll highways and create a new government
Concessions Directorate to rev up its sluggish econo-
my. The toll roads will be rolled out to bid over the
next year. President Michelle Bachelet, who
announced the plan in the middle of March, empha-
sized that the new roads will be in addition to a six-
year US$9.9-billion infrastructure program that was
started last year. The fresh capital investments are
to improve the bruised Chilean economy, which is
suffering from a smaller volume of lower priced min-
eral exports.
There are three tollroad projects in the deal:
• 247-km, US$1.2-billion highway that will run from
metropolitan Santiago, connectng Alhué to Olmué
• US$284-million four-laning of 384 km of road on a
section of Ruta 5, known as the Pan American
Highway, between Iquique and Calama
• US$300-million upgrade of a 76-km section of Ruta
5 linking Rancagua and Las Cabras in the
O’Higgins region, south of Santiago. I
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Volume 295
The Journal of Record
for public-private partnerships
since 1988
In April the conservative magazine The Weekly
Standard published a five-page cover story called “HOT
and Bothered,” which characterized the express toll lanes
project on the Capital Beltway (I-495) as “another night-
mare from the suburbs-hating traffic planners.” The arti-
cle grossly misrepresented how this Fluor/Transurban toll
concession project came about, and also attacked the prin-
ciple of express toll lanes as horribly elitist: the cover
illustration showed an overhead sign separating traffic
into “Express Lanes” and “Riff-Raff.”
You might think a conservative magazine would favor
ideas like market pricing and infrastructure privatiza-
tion—but not in
this
case. Author Jonathan
Last portrayed the con-
cession as an example of
“crony
capitalism,”
completely
misunder-
standing how Virginia’s
Public
Private
Transportation
Act
works. He characterized
the deal as yielding “pri-
vatized
profits
and
socialized losses,” ignor-
ing the shift of both con-
struction cost risk and
traffic & revenue risk to
the concession company.
And he claimed that most of the money invested in the
project was from “taxpayers,” not the private sector, by
counting only the equity investment as private—even
though Fluor/Transurban is fully at risk for debt service
on the private activity bonds and TIFIA loan.
Where do these ideas come from? I’ve been research-
ing this subject for a chapter in my forthcoming book on
21st Century Highways. My research has found a grow-
ing network of grass-roots, right-wing populist groups
opposing tolling and P3 concessions. One of the origina-
tors of many bogus arguments on these subjects is a San
Antonio housewife, Terri Hall, founder of the group
TURF (Texans United for Reform
and Freedom). Her
efforts helped bring about a two-year moratorium on con-
cessions in Texas in 2007. This year she led a successful
effort to change the platform of the Texas GOP from pro-
tolls to anti-tolls. And her anti-tolls, anti-P3 agitation
appears to have swayed GOP gubernatorial candidate
Greg Abbott (the likely successor to pro-tolls Rick Perry)
to adopt anti-toll positions.
But Terri Hall’s grass-roots activism has consequences
far beyond Texas. Similar
right-wing
populist
groups
are
actively
opposing P3s and tolling
in Florida, Georgia, and
North Carolina. Each is
also led by a crusading
housewife, and their web-
sites use many of the
same
terms
(toll-tax,
crony capitalism), argu-
ments
(abridging
state
sovereignty, most of the
funding is from taxpayers,
etc.) and materials (such
as the video “Truth Be
Tolled”). When Georgia
Gov. Nathan Deal terminated in mid-procurement the P3
concession for Atlanta’s West by Northwest express toll
lanes project, it was the state sovereignty issue that he
cited. The North Carolina group (whose website is called
P3times.com) campaigned hard against the I-77 express
toll lanes project, fortunately without succeeding.
The right-wing populists in Florida have failed to dent
this state’s steady progress with tolling and concessions,
but their current effort is attempting to derail All Aboard
IT’S TIME TO RESPOND TO POPULIST OPPOSITION
by Robert W. Poole, Jr.
PUBLIC WORKS FINANCING Richard Fierce, Sr. VP, Fluor Corp.
“PWF is the #1, must-read
publication in our industry.”

Veolia offers the most complete range of environmental solu-
tions to meet the challenges of cities, governments, campuses,
businesses and industries. We are the global leader in opti-
mized resource management, helping our customers address
their environmental and sustainability challenges in energy,
water and waste. That means helping develop access to
resources, protecting and conserving available resources, and
replenishing them. We improve our clients’ energy efficiency,
better manage their water and wastewater, and recover
resources from their wastes. We do this in a safe, cost-effec-
tive and innovative manner for more than 550 communities and
more than 30,000 businesses, campuses and organizations
throughout North America.
Veolia (NYSE: VE and Paris Euronext: VIE) recorded revenue of
$31 billion* in 2013. www.veolianorthamerica.com • 800-522-
4774
Twitter @Veolia_NA
*Excludes Transdev employees and revenues currently under divest-
ment.
PUBLIC-PRIVATE SERVICES DIRECTORY
As part of SUEZ ENVIRONNEMENT, United Water pro-
vides water and wastewater services to 5.3 million people in
20 states through the dedication of its 2,350 employees.
In addition to owning and operating 16 regulated utilities,
United Water operates 84 municipal and industrial systems
through innovative public-private partnerships and contract
agreements. Founded in 1869, the company's core expertise
in providing safe, clean drinking water has evolved into provid-
ing a full range of services, from technical assistance to total
asset ownership. We assist communities with improving ser-
vice, reducing costs, complying with environmental regula-
tions, managing labor relations and providing excellent cus-
tomer service.
For more information, visit unitedwater.com or contact Tom
Brown at Tom.Brown@unitedwater.com or
(201) 767-9300.
OUR LOYAL READERS
AND ADVERTISERS
Public Works Financing pub-
lished its first issue in January
1988 and quickly built a strong
base of loyal subscribers by provid-
ing accurate, objective and timely
information about public-private
partnerships and innovative deliv-
ery of public works infrastructure
projects
Readership has grown each
year since then, and PWF now
reaches about 4,000 private prac-
tioners, government owners, aca-
demics, students and others in
most parts of the world. Twenty
of the largest investors, design
firms and construction companies
pay for the right to distribute our
pdf each month to as many of
their employees as they wish.
Some send PWF to over 50 peo-
ple!
Our advertisers have taken
loyalty to new heights. Of 36 cur-
rent advertisers, 18 have market-
ed their services in PWF for over
10 years (eight of them for over
15 years and four for 20 years).
Our first advertiser came
aboard in 1990 and was quickly
followed by Parsons Brinckerhoff,
Nossaman, CDM Smith, Herzog,
Hawkins Delafield & Wood, and
Elias Group, all of whichare still
advertisers.
The U.S., Spanish, and
French transportation develop-
ers (12), and the country’s
largest municipal water opera-
tors (2), came next. Then, start-
ing in 1995, the full complement
of technical, legal and procure-
ment advisors came aboard,
including most recently Mayer
Brown, Ernst & Young, Raba
Kistner, HNTB, HDR, AECOM,
O.R. Colan, Jacobs, Lochner
MMM and TYPSA-Aztec engi-
neering. More recently, the
Association for the Improvement
of American Infrastructure, and
financiers Assured Guaranty
and KeyBanc Capital Markets
followed.
Together, these firms have suc-
cessfully closed well over $300
billion worth of road, rail, water
and buildings projects worldwide
since 1985. I
For a rate sheet, please visit
PWFinance.net
or contact William G. Reinhardt,

O. R. Colan Associates (ORC) provides a full range of real
estate services related to the appraisal, acquisition and reloca-
tion phase of design build highway projects. With more than 29
offices in 20 states nationwide, the company is broadly recog-
nized as a leader in providing real estate solutions for public
works projects. ORC provided the right of way acquisition and
relocation assistance for the following successful design-build
highway projects: Segments 1-6 of SH 130 and the DFW
Connector projects in Texas; the Pocahontas Parkway in
Virginia; US 158 in North Carolina; Route 3 North in
Massachusetts; I-64 in Missouri; I-93 in New Hampshire; and
Sections 2 & 3 of I-69 in Indiana. ORC is currently providing
right of way services on the Zachry-Odebrecht Parkway Builders
Team for the Grand Parkway in Houston, Texas. These projects
combined involved the acquisition of more than 3,000 parcels
and the relocation of more than 1,000 residences and business-
es. Time is money on a design build project. ORC has the
proven ability to deliver the right of way on time for construction
on fast paced projects while meeting all state and federal
requirements. Contact Steve Toth, COO, at
stoth@orcolan.com or visit us at www.orcolan.com.
Sacyr Concesiones Throughout its almost 20-year track
record, Sacyr Concesiones has more than proven its expertise
and technical know-how, as well as its financial capacity with
committed global investment amounting to 16 billion dollars.
The company specialises in greenfield projects in which it han-
dles the design, financing, construction and management of
assets. This global conception of business, combined with its
active project management, allows the company to bring added
value to its concessions, thereby attracting financial partners.
It currently operates over 30 infrastructure concessions in six
countries (Spain, Portugal, Chile, Peru, Italy and Ireland) within
such sectors as motorways (almost 3,000 kilometres), trans-
port hubs, hospitals (more than 3,000 beds), metro lines, air-
ports and service areas. These assets have an average remain-
ing lifespan of 26 years.
Contact: Mr. Carlos Mijangos cmijangos@sacyr.com +34
91 545 5000
Sacyr Concesiones
“We create future value”
With over $8 Billion in P3 projects, Raba Kistner
Infrastructure (RKI) has established its reputation as a
leader in quality management programs. We are a national com-
pany that provides professional consulting and engineering ser-
vices in the areas of Construction Quality Management,
Program Management (PM+)TM, Independent Engineer and
Owner’s Verification and Testing, and Construction Quality
Control/Quality Acceptance Programs, Right of Way (ROW)
Management and Acquisition, and Subsurface Utility
Engineering to government and industry clients. Our expertise
in quality programs goes beyond satisfying the fundamentals.
We ensure that quality programs address the unforeseen chal-
lenges that arise in Design and Construction QC/QA programs.
Our award winning data management and document control
program, ELVIS, provides real time management information to
assist in making time-critical decisions.
For more information, contact Gary Raba, D Eng, P.E. at
graba@rkci.com or by calling 866-722-2547.
Parsons Brinckerhoff is a global consulting firm assisting public
and private sector clients plan, develop, design, construct, oper-
ate, and maintain hundreds of critical infrastructure projects
around the world. Parsons Brinckerhoff’s experience extends to
every form of transportation, including airports, rail systems,
buses, roads, and ports. For complex projects procured through
public-private partnerships or using design-build, the company
provides contractors and concessionaires project development,
design engineering, and operations services. We apply our
world-class technical expertise and our deep understanding of
local needs to develop innovative solutions that create value for
our clients and for the community the project serves.
Contact: Karen J. Hedlund, Director, Public-Private
Partnerships, 212-465-5059, hedlundkj@pbworld.com; Len
Rattigan, Alternative Delivery Director, (703) 742-5740,
Rattigan@pbworld.com; Sallye Perrin, Public Private
Partnerships manager, (410) 246-0523, PerrinSE@pbworld.com;
or John Porcari, Strategic Consulting Director, (202) 661-
5302, PorcariJ@pbworld.com.

Osler, Hoskin & Harcourt LLP has one of the leading
public-private partnership (P3) legal practices in Canada.
Osler has extensive experience in all types of P3 arrange-
ments including concessions, outsourcing of services, and
privatizations of various government agencies, crown corpo-
rations and service providers. We have advised on a broad
spectrum of P3 projects including major transportation (high-
ways and airports), public transit, hospitals, schools, prisons,
police stations, casinos, waste, water treatment, power gen-
eration and transmission facilities and other infrastructure
projects. We represent public and private sector participants
including developers, contractors, consortiums, service
providers, governmental agencies, consultants and financial
institutions.
Please contact Bob Beaumont at (416) 862-5861 (e-mail:
rbeaumont@osler.com), Lorne Carson at (403) 260-7083
(e-mail: lcarson@osler.com), Tobor Emakpor at (416) 862-
4268 (e-mail: temakpor@osler.com) or Rocco Sebastiano
at (416) 862-5859 (e-mail: rsebastiano@osler.com).
Nossaman LLP, a U.S. law firm dedicated to repre-
senting government agencies, is widely acknowledged
to possess the broadest and deepest practice in the
world focused on U.S. transportation infrastructure,
specializing in the effective deployment of P3s and
other forms of innovative project delivery, finance,
operations and maintenance. Nossaman is honored to
have advised clients on a number of award winning
infrastructure projects, including:
• Florida DOT’s $2.3B I-4 Ultimate Project, an
IJGlobal Transportation Deal of the Year
• Indiana Finance Authority’s $1.18B East End
Crossing, a Bond Buyer Deal of the Year
• Caltrans’s $1.1B Presidio Parkway, a Project
Finance International Americas P3 Deal of the Year
• Texas DOT’s $1.1B DFW Connector, an ARTBA
Project of the Year
• Virginia DOT’s $2.1B Midtown Tunnel, a Project
Finance magazine North American Toll Road Deal of
the Year
Contact Corey Boock at cboock@nossaman.com /
213.612.7881, Patrick Harder at pdhard-
er@nossaman.com / 213.612.7859, Simon
Santiago at ssantiago@nossaman.com /
202.887.1472 or Geoffrey Yarema at gyare-
ma@nossaman.com / 213.612.7842. On the web at
www.nossaman.com and www.InfraInsightBlog.com
To access PWF’s International
Major Projects database and for
advertising and subscription
information, visit
www.PWFinance.net
Macquarie Capital provides corporate advisory,
capital markets and principal investing solutions to
clients globally. We work with PPPs on a range of
solutions, including partnering to deliver complex infra-
structure projects, providing procurement advice to
governments and providing development capital.
Macquarie Capital stands out by delivering solutions
across the entire balance sheet. In addition to advisory
and capital markets solutions, we have the demon-
strated capability to act as a principal investment part-
ner and facilitate capital solutions to support acquisi-
tions, refinancings or other events for our clients.
Contacts: Christopher Voyce, Sr. Managing
Director, +1 212 231-1702 |
chris.voyce@macquarie.com
D.J. Gribbin, Managing Director, +1 212 231-6515 |
dj.gribbin@macquarie.com

In 2007, U.S.-based H.W. Lochner, Inc., and Canada-
based MMM Group Limited formed an equal partnership,
Lochner MMM Group, to integrate internationally-gained
design-build and P3 experience with an in-depth understand-
ing of U.S. transportation infrastructure. Together, we com-
bine local knowledge with international best practices to pro-
vide owners, contractors, concessionaires, and design part-
ners throughout the U.S. solutions that are innovative, practi-
cal and constructible. With coast-to-coast offices throughout
the U.S. and Canada, Lochner MMM Group offers:
• A deep pool of staff resources to deliver large scale pro-
jects within fast-track schedules.
• Proven capability in advisory, design, and program manage-
ment roles.
• Experienced teams that understand and thrive in the alterna-
tive delivery environment.
• Ability to leverage a strong local presence with international
expertise.
Contact: Phil Russell, President & CEO, Lochner MMM
Group | 512.828.0076 | phil.russell@lochnermmmgroup.com
Mayer Brown has one of the leading public-private partnership
practices in the United States. A perennial Chambers Band 1-
ranked practice for P3 Projects, what distinguishes us from other
law firms is our experience advising clients on transactions that
have successfully closed from every side of a project. We have
represented public agencies, sponsors and lenders alike on P3
transactions around the country and across all asset types,
including roads, bridges, ports, parking, mass transit and social
infrastructure.
Contact:
George K. Miller (212) 506-2590
gmiller@mayerbrown.com
David Narefsky (312) 701-7303
dnarefsky@mayerbrown.com
John R. Schmidt (312) 701-8597
jschmidt@mayerbrown.com
Joseph Seliga (312) 701-8818
jseliga@mayerbrown.com
A U.S.-based institution with a deeply rooted U.S. regional
presence, KeyBanc Capital Markets excels at under-
standing the needs and sensitivities of local constituencies
and public officials to facilitate communication and deliver
reliable and innovative infrastructure solutions. With our com-
prehensive Public Private Partnership platform, and our will-
ingness to deploy bank balance sheet and capital markets
products providing short and long term funding, our financial
experts have the experience and expertise to respond to all
financing needs and address all procurement issues unique
to public infrastructure projects.
Contact Jose Herrera at 917-368-2390 /
jose.herrera@key.com, or Jake Wozniak at 614-460-3463
/ jake.wozniak@key.com, or visit key.com/government.
KeyBanc Capital Markets is a trade name under which
corporate and investment banking products and services of
KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc.,
Member NYSE/FINRA/SIPC, and KeyBank National
Association (“KeyBank N.A.”), are marketed.
at (908) 654-6572 or
www.pwfinance.net

KPMG’s Global Infrastructure professionals in the US and
Canada provide specialist Advisory, Tax, Audit, Accounting and
Compliance related assistance throughout the life cycle of infra-
structure projects and programs. Our teams have extensive local
and global experience advising government organizations, infra-
structure contractors, operators and investors. We help clients
ask the right questions and find strategies tailored to meet the
specific objectives set for their businesses. KPMG can help set
a solid foundation at the outset and combine the various aspects
of infrastructure projects or programs – from strategy, to execu-
tion, to end-of-life or hand-back.
Contact Andy Garbutt, Practice leader for KPMG’s US team,
at +1-5(12) 501- 5329 and Brad Watson, Practice leader for
KPMG’s Canadian team, at +1- 4(16) 777-8142, or e-mail: infra-
structure@kpmg.com or www.kpmg.com/infrastructure.com
Successful project finance requires the development and integra-
tion of marketing, engineering and environmental strategies into the
overall financial framework. The Louis Berger Group, Inc.
has a proven track record and an established practice in all
three areas and has developed innovative tools creating a
seamless web between the techni-
cal and the financial design of pro-
jects. This has resulted in the
successful financing and execu-
tion of projects in the United
States, Europe and the World.
With offices in over 90 countries,
the Group brings in-depth local
understanding and an unequaled
ability to respond rapidly to clients’ needs.
Contact: Nicholas Masucci (973) 407-1000, nmasuc-
ci@louisberger.com
Meridiam is a leading developer, equity investor and
asset manager of primary Public Private Partnership (P3)
infrastructure projects with deep expertise in North
America and Europe. With US$3.8bn of assets under
management across three long-term infrastructure funds,
and a focus on transport, social infrastructure and environ-
mental P3 assets, Meridiam strives to establish a long-
term contractual relationship between the public and pri-
vate sectors. Meridiam currently manages 32 projects
worldwide, including 9 projects across North America,
among which are the Port of Miami Tunnel in Florida, the
Long Beach Courthouse in California, and the Waterloo
Light Rail Transit in Ontario.
For further information, please contact Joe Aiello
(j.aiello@meridiam.com) or Thilo Tecklenburg
(t.tecklenburg@meridiam.com).
Meridiam North America – 605 Third Avenue, 28th
Floor NY, NY 10158 – Tel (212) 798-8686 or Meridiam
Canada – 357 Bay Street Suite 501 Toronto, Ontario,
Canada, M5H 2T7 – Tel (647) 345-3529
www.meridiam.com
Established in 1884, Kiewit is one of the largest con-
struction organizations in North America leveraging a net-
work of more than 50 offices to develop a respected
multifaceted business presence across North America.
With a staff of management, technical, financial, commer-
cial and legal experts dedicated to successfully delivering
P3 projects, our success is based on the trust that we
have built with government officials, stakeholders and the
financial community. As a recognized leader in design-
build and P3 project development, Kiewit combines
extraordinary financial credibility and extensive resources
with a creative, solution-oriented approach to ensure a
predictable outcome of success for our clients.
Contact: Joe Wingerter, Director of P3 Project
Development, Kiewit Corp. (402) 943-1329,
Joe.Wingerter@Kiewit.com or James Bennett,
Director Project Development, Kiewit Canada
Development Co., (647) 453-5719,
james.bennett@kiewit.com

Jacobs is one of the world’s largest and most diverse
providers of professional technical consulting services. As a
full-spectrum lifecycle solutions provider we focus on develop-
ing close strategic partnerships with our clients over the life
cycle of their projects. Jacobs provides a distinctive range of
comprehensive planning, design and management expertise in
almost every industry—public and private. We are often called
upon by government agencies to provide program advisory ser-
vices related to public-private partnerships (P3) including finan-
cial and economic feasibility, procurement and other related
services. As project funding decreases, public-sector clients
are partnering with Jacobs to identify and implement P3 pro-
grams tailored to meet their project delivery and financing chal-
lenges.
For more information, please contact Pamela Bailey-
Campbell at (214) 920-8158.
Herzog Contracting/Herzog Railroad Services Inc. –
Design-build/CMGC for highway / heavy construction and railroad
mass transit. North America’s largest rail and commuter rail construc-
tion and maintenance contractor, provides rail mass transit operations
and dispatching in North America and railroad expertise worldwide,
delivering state-of-the-art technology for Hi Speed Rail Flaw Detection
and railcar and railroad equipment leasing, ballast distribution, rail re-
laying and railcar unloading, railways systems and signals. Also, devel-
opment and operation of municipal and industrial solid waste facilities.
At (816) 233-9001, fax (816) 233-9881, or 600 S. Riverside Rd.,
P.O. Box 1089, St. Joseph, MO 64507-1089, please contact:
Joe Kneib, Sr. VP Market Development
joekneib@herzog.com;
Greg Hackbarth, President, Herzog Technologies, Inc. ghack-
barth@herzog.com
Tim Francis, VP Marketing, Herzog Rail Services
tfrancis@hrsi.com
Scott Norman, V.P. Estimating/Project Development, snor-
man@herzog.com at (816) 233-9001
Scott Perry, ViP, Special Projects, csperry@herzog.com
Ernst & Young, LLP is a leader in assurance, tax, trans-
action and advisory services. We believe in the value of
infrastructure to our communities and are proud to serve
clients as they work to:
• Rebuild and modernize existing infrastructure
• Invest wisely in new infrastructure to address new and
changing needs, enable growth and achieve a higher quali-
ty of life for communities
• Bring innovation, foresight and sound economic steward-
ship to their major projects, programs and investments,
and/or
• Identify and attract the funding and financing required to
invest in infrastructure.
We provide finance, business planning, policy, procure-
ment, modeling, valuation and tax advice for large-scale
infrastructure projects, programs, investments and public-
private partnerships. We serve state and local government
clients through our affiliate, Ernst & Young Infrastructure
Advisors, LLC, a registered municipal advisor. We help
clients to achieve their goals.
Please contact: Mike Parker, Senior Managing Director,
Ernst & Young Infrastructure Advisors, LLC
+1 215 448 3391, mike.parker@ey.com; or
Jay Zukerman, US Infrastructure Tax Leader, +1 212
773 3270, jay.zukerman@ey.com.
HNTB Corporation is an employee-owned infra-
structure solutions firm serving public and private own-
ers and contractors. For more than a century, HNTB
has understood the life cycle of infrastructure and
addresses clients’ most complex technical, financial
and operational challenges. Professionals nationwide
deliver a full range of infrastructure-related services,
including award-winning planning, design, program
management and construction management. For more
information, visit www.hntb.com.
Or contact Tim Faerber (312) 798-0223
tfaerber@hntb.com or David Downs (303) 542-2255
ddowns@hntb.com or visit hntb.com.

Hawkins Delafield & Wood provides legal advisory services to
governmental owners on P3 and alternative delivery infrastruc-
ture projects in the United States and Canada. The firm also rep-
resents P3 project investment bankers and lenders.
Our infrastructure legal practice is widely recognized for its
quality and depth. Over a 20 year span, Hawkins has negotiated
and closed more than 200 design-build, design-build-operate,
design-build-finance-operate, construction-manager-at-risk, con-
cession, asset management, operating services and franchise
agreements for public sector clients in 25 states and 3
provinces. Award-winning projects on which Hawkins has served
as owner’s lead counsel include:
• Carlsbad Seawater Desalination Project (San Diego County
Water Authority), a Project Finance International water infrastruc-
ture P3 deal of the year.
• New Long Beach Court Building (State of California), a Bond
Buyer social infrastructure P3 deal of the year.
• Spokane Regional Water Reclamation Facility (Spokane
County), a Design-Build Institute of America wastewater infra-
structure DBO deal of the year
• Buckman Direct Division Project (City of Santa Fe), a Design-
Build Institute of America water infrastructure DB deal of the
year.
We practice in the transportation, water, wastewater, solid
waste, renewable energy and social infrastructure sectors, and
our experience encompasses all forms of competitive procure-
ment and public works project delivery.
Contact: Eric Petersen at (212) 820-9401
(espetersen@hawkins.com) or Ron Grosser (212) 820-9423
(rgrosser@hawkins.com) or Joe Sullivan (212) 820-9513 (jsulli-
van@hawkins.com) or Rick Sapir at (973) 642-1188
(esapir@hawkins.com, or through our website at
www.hawkins.com
With more than 40 years of experience, IRIDIUM Concesiones
(formerly Dragados Concesiones) is the ACS Group company that
promotes, develops and operates public private partnership projects
worldwide. With over 100 projects developed in 21 countries, includ-
ing 3,967 miles of highways, 1,017 miles of railroads, 16 airports, 18
ports and several social infrastructure PPP projects, IRIDIUM
Concesiones is the world leader in this field. We are proud to have
global presence with local commitment. ACS Group companies apply
their unsurpassed technical skills to the planning, design, construc-
tion, operation and maintenance of infrastructures, using the latest
technologies in any area and providing the highest level of excellence
throughout. A solid financial capability combined with an innovative
approach allows IRIDIUM Concesiones to structure the necessary
financial resources for any project.
Contact Salvador Myro (smyroc@iridium-acs.com) at +(34) 91 703
85 48 or visit www.iridiumconcesiones.com or www.grupoacs.com for
further details.
At HDR, it’s our job as consultants to help you keep pace with
today’s rapidly changing marketplace. We help you make decisions
based on rigorous analysis of the economic climate, a thorough
understanding of your organizational needs and priorities, and nearly
100 years of experience in delivering infrastructure. From strategy
and finance to design and delivery, we help you develop innovative,
reliable and cost-effective solutions to your infrastructure challenges.
Learn more at hdrinc.com or contact us: Bill Damon, managing
director—Power, 734-332-6400, bill.damon@hdrinc.com; Michael
Schneider, managing director—Transportation, 213-313-9402,
mike.schneider@HDRInc.com; Carter Strickland, managing direc-
tor—Water, 212-542-6129, carter.strickland@hdrinc.com.
at (908) 654-6572 or
www.pwfinance.net

Formed in 1922, Granite Construction Incorporated is
today one of the largest heavy civil contractors in the United
States. It is positioned in all the major U.S. markets with
offices located throughout the country serving over private
and public clients. Over the past 88 years, Granite has
earned a nationwide reputation as the preeminent builder
of quality projects in a timely manner. Always progressive,
Granite has developed into one of the top Design-Build
contractors in the U.S. and has recently enacted an
Environmental Affairs Policy to take a leading role in the
construction industry in protecting the environment and
our natural resources. Through our corporate Sustainability
Plan, we actively engage in industry, and direct efforts at
the local, state, and federal levels to advocate for adequate
and sustainable public infrastructure funding to
maintain and improve America’s transportation system.
Granite is nationally recognized for its expertise in the
majority of construction sectors including tunnels, highways
and roadways, dams, bridges, railroads marine, airports,
heavy and light mass transit, and have become
renowned design-build and mega project constructors.
Granite leads the market in the design-build turn-key
delivery of complex fast paced transportation projects.
Contact Robert Leonetti, 831-728-7580, or 585 West Beach
St. Watsonville, CA 95077-5085
www.graniteconstruction.com
Globalvia was founded in 2007, being its shareholders
(50:50) the construction and environmental services compa-
ny Fomento de Construcciones y Contratas S.A. and
Spanish savings bank Bankia. Globalvia, one of the world’s
largest transport infrastructure developers by number of con-
cessions, according to PWF, is specialized in DBFOM and
DBFM projects. Globalvia has the financial capability to
accelerate delivery of projects, as well as the construction
and operational expertise to meet the highest standards for
the life of a project. We take pride in working with local con-
tractors, employing area business and individuals during
operation and incorporating community feedback to deliver
the best possible public service. Currently, the company
manages 32 transport PPP projects in seven countries,
including roads, railways, ports, airports. Over 250m vehicles
and 54m passengers travel annually on our safe, reliable
modern road and railways, which total 1,600km long.
Michael Lapolla +1 (908) 208-2100
mlapolla@globalvia.com
Rafael Nevado Rnevado@globalvia.com
Elias Group LLP provides legal and consulting services to
government and industry. We are a boutique law firm interna-
tionally recognized for our expertise in project finance, pub-
lic/private partnerships, industrial outsourcing, joint ventures
and strategic alliances, and M&A of regulated and non-regulat-
ed entities. The firm’s unique accomplishments include the first
20-year concession agreement executed in the U.S. for the
rehabilitation and operation of a municipal wastewater treat-
ment facility. Our skills and practical experience are evident in
the multitude of transactions successfully completed.
Contact: Dan Elias or Michael Siegel at 411 Theodore
Fremd Avenue, Rye, NY 10580; tel: (914) 925-0000; fax: (914)
925-9344; or visit our web site: www.eliasgroup.com
Ferrovial Agroman is a leader in the global construction
market. In addition to Spain, the company has significant activ-
ity in eight other countries: Poland, USA, Greece, United
Kingdom, Chile, Puerto Rico, Ireland and Portugal. Wholly
owned by the same parent company as CINTRA, the world’s
largest transportation developer by invested capital, Ferrovial
Agroman has 80 years of construction experience in DBB,
DB, and P3 projects in all types of infrastructure assets.
These decades of experience result in 2,500 miles highway
concessions; 9,475 miles new roads; 16,995 miles rehab of
roads; 304 miles tunnels; 2,523 miles canals; 3,884 miles
water pipelines; 2,392 miles gas and oil pipelines; 29 hydro-
electric power stations; 147 dams; 220 water treatment
plants; 21 miles wharfs and ports; 40 airports; 20 stadiums;
and 2,920 milkes railways including 449 miles of High Speed
Rail.
Contact Daniel Filer, VP of Business Development for
North America at +1-512-637-8587.

Abertis is the world leader group in motorway management
and one of the first international infrastructure operators.
Through its two business areas (motorways and telecommuni-
cations infrastructures), the company has presence in 12
countries across Europe and America, as a result of an inter-
nationalization process which has intensified over the past
three financial years. The infrastructure Group employs more
than 16,000 people around the world and 62% of its revenues
are generated outside Spain. The evolution of the company is
marked by the integration in 2012 of more than 3,500 kilome-
ters of motorways in Brazil and Chile. This operation lead
Abertis to achieve the world leadership in the motorway con-
cession sector, both in terms of kilometers managed (more
than 7,300) and for income (exceeds 4,600 MEUR). Abertis is
listed on the Spanish Stock Exchange and is a constituent of
the IBEX 35. It is present also in the main international index-
es such as FTS Eurofirst 300 and Standard & Poor’s Europe
350.
Contact: Corporate Communications Direction (34)
93 230 5039
Egis Projects has unrivaled experience in most types of infra-
structure P3 and concessions: motorways, bridges, tunnels, urban
infrastructures, and, more recently, airports. We are experienced
with all types of remuneration (real toll, shadow toll or availability
schemes). Egis Projects relies on the specialized skills of its share-
holders: Groupe Egis, a leader in infrastructure engineering, and
Caisse des Dépôts, a AAA financial institution. Egis Projects acts
as promoter, developer and investor in concession/P3 projects, as
turnkey equipment integrator, as operator and manager of airports,
and, via its wholly owned subsidiary Egis Road Operation, as opera-
tor of roads and motorways. Egis Projects has also extended its
activities to electronic toll collection, toll network interoperability,
and safety enforcement, as well as associated services for road
users under the Easytrip brand.
Egis Projects has financially closed 22 infrastructure projects for a
total value of Euro 12 bn. Egis Road Operation is operating 27
motorways totalling 1,840 km in 15 countries.
Contact: Alain Poliakoff in Paris, France at (33) 1 30 48 48 09,
fax (33) 1 30 48 48 91 or alain.poliakoff@egis.fr or visit
http://www.egis-projects.com
Engineering and Environmental Solutions
TYPSA-AZTEC is an international consulting engineering firm
with nearly 50 years of experience successfully executing major
infrastructure projects. Our 2000 professionals work in multidis-
ciplinary teams to improve and sustain enhanced living condi-
tions around the world. Our major services include:
Transportation / Architecture / Building Technology / Energy /
Environmental Services. We are internationally recognized with
top industry rankings and awards. In all we do, we seek bal-
anced solutions for our clients, the public and the environment.
For more information, please contact Miguel Bardalet:
(602) 625-4028 / mbardalet@typsa.com or
Robert L. Lemke, Jr.: (602) 402-8683 /
rlemke@aztec.us
www.typsa.com www.aztec.us
C&M Associates is a U. S. toll and managed lanes traffic
& revenue specialist firm independently serving public and pri-
vate sector clients since 2004. Our services for state DOTs
include project screening and feasibility, planning level traffic
and revenue forecasts, traffic projections for environmental
studies, operational analysis, risk analysis and investment
grade traffic and revenue studies to support bond issuance for
availability payment and 63-20 structures. Private client ser-
vices include advisory on behalf of equity: Investment grade
traffic and revenue studies to support traffic risk concession
bids, financing support services before lenders, investors and
TIFIA, risk analysis of projected forecasts and operational
analysis. Advisory on behalf of lenders: Peer review of equity
traffic and revenue forecasts, development of lender case
forecasts and risk analysis.
Contact Carlos M. Contreras at cmcontreras@candm-
associates.com or at 972.522.9373.

CDM Smith provides lasting and integrated solutions in
water, environment, transportation, energy and facilities to
public and private clients worldwide. As a full-service consult-
ing, engineering, construction, and operations firm, we deliver
exceptional client service, quality results and enduring value
across the entire project life cycle.
CDM Smith is internationally recognized for utility, toll road
and public-private partnership expertise, serving public and
private sector clients on hundreds of infrastructure projects
worldwide. For more than 60 years, CDM Smith has worked
to place $85 billion of revenue-based financings and provide
unparalleled credibility in today’s financial markets.
Visit us at cdmsmith.com, or contact Ed Regan (803 251-
2072), Kamran Khan (630 874-7902), Grant Holland
(404 720-1283) or Joe Ridge (603 222-8320).
Cintra plays a leading role in transport infrastructure development
throughout the world, with nearly 1,300 miles of managed highways
worldwide. This represents a total global investment in traffic con-
gestion improvements of more than US$28.7 billion. Cintra has a
portfolio of 25 concessions in six countries distributed among
Canada, United States, Spain, Portugal, Ireland, and Greece, and
offices in Colombia and Australia. At the close of 2012, 57% of its
turnover and 60% of its EBITDA came from projects outside Spain.
Cintra’s staff is formed by more than 2,000 professionals, of which
around 80% work outside Spain. The Cintra-Ferrovial merger in
2009 created one of the World’s largest private operators of trans-
portation infrastructure and a leading services provider with net rev-
enues of more than $7.5 billion a year and operations in more than
25 countries. Ferrovial’s business model is focused on end-to-end
infrastructure management, design, construction, financing operation
and maintenance, as well as services.
Contact: Ricardo Bosch, Director North America Business
Development, rbosch@cintra.us, or Carlos Ugarte, Corporate
Development and Business Direction +34 91 418 5606. More infor-
mation: www.cintra.es
AIAI is a non-profit organization formed in the District of
Columbia to help shape the direction of the national Public
Private Partnership marketplace. AIAI serves as a national
proponent to facilitate education and legislation through tar-
geted advocacy. AIAI’s Board is comprised of leaders of the
construction and development industry. Their extensive
national and international experience and industry knowledge
provides AIAI with a clear direction for developing and advo-
cating policy and legislative solutions, allowing more equitable
and effective partnerships across diverse market sectors
from transportation and energy to educational, health and
public service institutions.
Contact Lisa Buglione (516) 277-2950
lbuglione@aiai-infra.org
Assured Guaranty, the leading provider of bond insurance, has
helped public-private partnerships reduce the cost of financing
essential public infrastructure and achieve smooth transaction exe-
cution for decades, even during extremely difficult market condi-
tions. With financial strength rated AA by S&P and A2 by Moody’s,
both with stable outlooks, Assured Guaranty Municipal Corp. helps
broaden the investor base and improve the cost efficiency of infra-
structure financings by unconditionally guaranteeing timely payment
of principal and interest. Investors are attracted to the insured
bonds’ increased market liquidity, as well as Assured Guaranty’s
credit selection, underwriting, negotiated terms, construction period
coverage and ongoing surveillance.
Contact: Lorne Potash at lpotash@assuredguaranty.com
(212) 261-5579, or
Mary Francoeur at mfrancoeur@assuredguaranty.com
(212) 408.6051 • For additional information, visit
AssuredGuaranty.com.

32 Public Works Financing / February 2015
Advertiser Index
ARTBA
Richard Juliano (202)-289-4434
rjuliano@artba.org)
Abertis
Studies and Corporate Communications
Direction (34) 93 230 50 39
AIAI
Lisa Buglione (516) 277-2950
lbuglione@aiai-infra.org
Cintra, S.A.
Ricardo Bosch rbosch@cintra.us
Carlos Ugarte cugarte@cintra.es
+34 91 418 5606
EGIS Projects
Alain Poliakoff in Paris (33) 1 30 48 48 09
alain.poliakoff@egis.fr
Ferrovial Agroman
Daniel Filer (512) 637-8587
Globalvia
Rafael Nevado, Rnevado@globalvia.com
Michael Lapolla, (908) 208-2100
mlapolla@globalvia.com
Granite Construction Inc.
Bob Leonetti (831) 728-7580
Herzog Contracting/Herzog Transit
Services Inc.
(816) 233-9001
Joe Kneib joekneib@herzog.com;
Greg Hackbarth ghackbarth@herzog.com
Tim Francis tfrancis@hrsi.com
Scott Norman snorman@herzog.com
Iridium Concesiones
Salvador Myro (34) 91 703 85 48
smyroc@iridium-acs.com
Kiewit
Joe Wingerter (402) 943-1329
Joe.Wingerter@Kiewit.com
James Bennett (647) 453-5719
James.Bennett@Kiewit.com
Meridiam Infrastructure
Jane Garvey j.garvey@meridiam.com
Joe Aiello j.aiello@meridiam.com
Thilo Tecklenburg t.tecklenburg@meridiam.com
Parsons Brinckerhoff
Karen J. Hedlund (21)2 465-5059
Hedlundkj@pbworld.com
Len Rattigan (703) 742-5740
rattigan@pbworld.com
Sallye Perrin (410) 246-0523
perrinse@pbworld.com
John Porcari (202) 661-5302
porcarij@pbworld.com
Sacyr
Carlos Mijangos cmijangos@sacyr.com
+34 91 545 50 00
United Water
Tom Brown (201) 767-9300
Tom.Brown@UnitedWater.com
Veolia Water North America
Scott Edwards (800) 522-477
Assured Guaranty
Lorne Potash (212) 261-5579
lpotash@assuredguaranty.com
Mary Francoeur (212) 408-6051
mfrancoeur@assuredguaranty.com
KeyBanc Capital Markets
Jose Herrera (917) 368-2390
jose.herrera@key.com
Jake Wozniak (614) 460-3463
jake.wozniak@key.com
Macquarie Capital
Christopher Voyce (212) 231-1702
chris.voyce@macquarie.com
D.J. Gribbin (212) 231-6515
dj.gribbin@macquarie.com
AECOM
Samara Barend (212) 973-3089
samara.barend@aecom.com
CDM Smith
Ed Regan (803) 251-2072
Kamran Khan (630) 874-7902
Grant Holland (404) 720-1283
Joe Ridge (603) 222-8320
C&M Associates
Carlos Contreras (972) 522-9373
cmcontreras@candm-associates.com
Ernst & Young
Mike Parker +1 (215) 448-3391
mike.parker@ey.com
Jay Zukerman +1 (212) 773-3270
jay.zukerman@ey.com
HDR
Bill Damon, Power, (734) 332-6400
bill.damon@hdrinc.com
Michael Schneider, Transportation
(213) 313-9402, mike.schneider@HDRInc.com
Carter Strickland, Water, (212) 542-6129
carter.strickland@hdrinc.com
HNTB
Tim Faerber (312) 798-0223
tfaerber@hntb.com
David Downs (303) 542-2255
ddowns@hntb.com ddowns@hntb.com
Jacobs
Pamela Bailey-Campbell (214) 920-8158.
KPMG
Andy Garbutt +1 (512) 501-5329
Brad Watson +1 (416) 777-8142
Lochner MMM Group
Phil Russell (512).828.0076
phil.russell@lochnermmmgroup.com
O.R. Colan Associates
Steve Toth stoth@orcolan.com
Raba Kistner
Gary Raba (866) 722-2547
graba@rkci.com
TYPSA-AZTEC
Miguel Bardalet (602) 625-4028
mbardalet@typsa.com
Robert L. Lemke, Jr., PE (602) 402-8683
rlemke@aztec.us
Elias Group
Dan Elias or Michael Siegel (914) 925-0000
fax (914) 925-9344 or
www.eliasgroup.com
Hawkins Delafield & Wood
Eric Petersen in NY (212) 820-9401
Ron Grosser in NY (212) 820-9423
Rick Sapir in Newark (973) 642-1188
Joe Sullivan (212) 820-9513
Mayer Brown
George K. Miller (212) 506-2590
gmiller@mayerbrown.com
David Narefsky (312) 701-7303
dnarefsky@mayerbrown.com
John R. Schmidt (312) 7∅101-8597
jschmidt@mayerbrown.com
Joseph Seliga (312) 701-8818
jseliga@mayerbrown.com
Nossaman LLP
Geoffrey S. Yarema (213) 612-7842
gyarema@nossaman.com
Patrick Harder (213) 612-7859
pdharder@nossaman.com
Simon Santiago (202) 887-1472
ssantiago@nossaman.com
Osler, Hoskin & Harcourt LLP
Bob Beaumont (416) 862-5861
Lorne Carson (403) 260-7083
Tobor Emakpor (416) 862-4268
Rocco Sebastiano (416) 862-5859
Legal/Procurement Advisors
Developers/Operators/
Design-Builders
PPP Financial/
Procurement/Technical
PPP Financing

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