I-4 Ultimate with Lanes Project Central Florida

1. I-4 Ultimate with Lanes Project Central Florida May 21, 2013

2. Executive Summary • Executive Summary • The $2.1B I-4 Ultimate Project is the top priority for the state of Florida • The Project is being advanced using a Public-Private Partnership (P3) under Section 334.30, F.S. (P3 Law) • A system of financing tools guarantee the lowest cost: • Private Activity Bonds (PABs) • TIFIA • If PABs are used for the project, a conduit issuer is needed to issue bonds • This can be accomplished through an interlocal agreement between Orange County, Seminole County and City of Orlando FDOT facilitates use of tools since administered by US DOT

3. Project Overview • $2.1B (FY2013$) Strategic Initiative for Florida • 21+ miles from West of Kirkman Road (Orange) to East of SR 434 (Seminole) • Project replaces aging infrastructure and enhances safety • Relieves congestion in heavily populated areas of Florida

4. I-4 Ultimate Interstate 4 Typical Section • 4 Managed Lanes (2 each direction) • 6 General Use Lanes (GUL) + Auxiliary Lane Managed Lanes

5. Procurement Schedule Draft RFQ and PIM February 22, 2013 Industry forum March 4, 2013 Advertisement and RFQ March 8, 2013 Shortlist and draft RFP May 21, 2013 Release draft RFP May 2013 Final RFP and ITP September 2013 Proposals due January 2014 Best value selection March 2014 Contract execution June 2014

6. Why Public-Private Partnerships? • P3 Seeks to Achieve 5 Primary Goals • Provides capacity improvements much sooner than a traditional pay-as-you go approach • Eliminates project phasing and advances the overall project • Capitalizes on the private sector’s innovation and access to capital markets • Transfers of appropriate risk items to private partner • Enhances long-term, lifecycle cost efficiency and service quality

7. FDOT’s P3 Legal Framework • Legal Framework Provides Strong Creditworthiness • P3 Law originally enacted in 1991 - provides flexibility to advance projects while implementing safeguards • Authorizes FDOT to advance projects programmed in the 5-year work program or 10-year SIS • Requires cost effectiveness and public-benefit analysis • Authorizes performance-based payments to private sector • Annual payments on multi-year P3s are prioritized ahead of new capacity • Strong market acceptance of FDOT’s legal framework • I-595 and Port of Miami Tunnel

8. P3 Financial Controls • Financial Controls Provide For Strong Creditworthiness • Statutory requirements promote fiscal responsibility • Governor and legislative approval of contractor financed projects • 20% limitation on debt and debt like obligations • 15% limitation on P3s • Submittal of 5-year work program to the Legislature annually • Budget requests are balanced to available resources • Proven track record of effectively managing the work program as revenue forecasts change

9. Public-Private Partnership (P3) • Appropriation-Based Funds Finance the Project • Milestone Payments • Payments made during construction period • Incentivizes accomplishment of construction priorities • Reduces the amount of financing • Credit enhancement • 35-years of Performance-Based Availability Payments • Operations and maintenance period payments • Incentivizes: • On time completion of project • Construction quality • Level of service / Maintenance • Repays long-term debt, equity, operations and maintenance costs, renewal work costs • 100% of payment must be performance based to ensure incentives are achieved • Final Acceptance Payments • Post construction payments • Incentivizes on time completion of project • Repays short-term financing • Credit enhancement

10. Public-Private Partnership (P3) • Proposer May Use A System of Financing Tools • TIFIA • A form of debt – like a bank loan • Federal credit assistance • May be subordinate to other debt • Long-term or short-term financing • Interest rate is tied to US Treasury • FDOT submitted a letter of interest January 2013 • Bank Debt • A form of debt • Financing from commercial banks • Short-term financing - 5 to 7 years • Private Equity – “skin in the game” • Proposer’s contribution toward the project • Will be required within the capital structure • Used with debt • At risk until the end of the project term • Lost in the event of contractor default • PABs • A form of debt - like Industrial Development Bonds • Long-term financing • Tax exempt bonds issued by government • SAFETEA-LU authorized up to $15 billion

11. Private Activity Bonds (PABs) • Only $7.2B of the $15B Allocation is Remaining • $15B cap on PABs used to deliver highway and freight transfer facilities • Exempt facility bonds – not subject to state volume caps • FDOT wishes to submit an application to secure a PABs allocation from US DOT • Estimated allocation request = $800M to $1.5B • Conduit issuer is a key player in application process • PABs are an important financing mechanism for proposers • Limited financial capacity in current bank debt markets • PABs provide proposers with access to tax-exempt interest rates

12. Public Involvement and Community Outreach • Project website: www.Moving-4-Ward.com • Public involvement and community outreach will be incorporated • Sign up and be notified when there is a major update or announcement