Funding Public Infrastructure

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Funding Public Infrastructure
2007 NAST Treasury Management Conference
Exposition

• The Utah Experience

Richard Ellis, Deputy State Treasurer December 4,
2007
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Transportation Needs in Utah

• 24 billion of transit needs
• Natural bottlenecks
• Legacy Highway

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Transportation Needs in Utah

• 24 billion of transit needs
• Natural bottlenecks
• Legacy Highway
• Mountain View Corridor
• 39.5 miles
• 1.7 billion

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Utahs P3 History

• Chicago Skyway
• UDOT Conference Attendance
• Rio Tinto exploration
• Discussions with legislators
• Expanded EIS to comprehensive tolling analysis
• Passed legislation

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Expectations

• Private sector to provide financing
• No tax increase
• Found the Goose that lays the golden eggs

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Reality

• Funding gap

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Funding Gap Summary
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P3 Scenario
Equity Dividend
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P3 Scenario
Equity Dividend
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Funding Gap Summary
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Base Toll Scenario
Contingent Cash Flow
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Base Toll Scenario
Contingent Cash Flow
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Reality (or lessons learned)

• Funding gap
• Greenfield projects are different
• Development risk
• No early tax shields
• P3 saved 139 million now to give up billions
  per year later
• Better to develop and operate, and consider
  concession contract later

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Political Considerations

• Tolling is a foreign concept
• Eastside vs Westside
• Loss of control
• Toll rates
• No competition clause
• Asset management