Embed Size (px)
Citation preview
Observations of a Builder on P3 -Public Private Partnerships
1
July 27, 2015
� During the next 15ௗyears, the cost of fixing and updating basic infrastructure is expected to exceed available funding by $58 billion, according to a report by the Metropolitan Washington Council of Governments.
2
Skanska in brief
� Founded 1887 in Sweden
� One of 10 largest construction companies in the world
� Listed on the Stockholm Stock Exchange
� 2014 revenues: $21 Billion
� 12,000 ongoing projects
� 60,000 employees
� A Fortune 500 company
� Four business units in the US
3
Skanska is a City Builder� Skanska builds cities as
a constructor, developer and P3 investor and operator
� Workplaces, multi-family residential, schools, universities, hospitals, life sciences, transportation, water and energy
4
Skanska ID –InfrastructureDevelopment� Global unit
� 120+ employees
� 33 projects in 9 countries (historic)
� Current portfolio of 12 projects – 4 Roads, 3 Hospitals, 2 Wind Farms, 2 School Programs, I Aviation
5
Leaders in Green
� Skanska is determined to be the leading Green Project Developer and Contractor
� Minimize energy consumption and waste throughout construction and operation of a building
� Benefits: lower lifecycle costs and better environment for learning
6
Government Procurement Options
7
Design-Build-Finance-Operate-Maintain
Design-Build-Finance
Design-Build
CM / GMP
Design-Bid-Build
Low Risk Transfer to Private Sector
High
PPP Allocation of RisksThe party best able to manage the risk should own it
8
What makes a P3?
P3 = A procurement method to stretch public money, with private investment, to create or rebuild infrastructure.� Much needed, technically
complex, large projects
� Viable revenue stream
� Opportunity to invest equity (10% or more)
� Transparent and fair procurement
9
Sectors Utilizing P3s
Value of P3
� Leverage private sector financing
� Budget certainty
� Allocate risks to party best able to manage
� Leverage private-sector management and operations experience
� Faster schedules
� Higher sustainability; Lower whole life-cycle costs
P3 Team “Partners”
� Folks with Insight on the Agency and Public Need
� Financial partners
� Legal advocates
� Design partners
� Client-side Champions driven to effect change
12
What makes P3 a Win-Win?� Right Project
� Transparency
� Collaborative Partnership
� Risk Transfer
� Public Client Buy In
� Financing / Payment
These are the paths to a successful P3
13
Observations of a Builder on P3 -Public Private Partnerships
14
