2019 Agenda

  • 06:30

    WELCOME DRINKS RECEPTION SPONSORED BY SMBC

  • 08:00

    DELEGATE REGISTRATION & NETWORKING BREAKFAST SPONSORED BY ASSURED GUARANTY

  • 09:00

    INFRAMATION NEWS WELCOME

    Jon Berke
    Jon Berke
    Editor, US, Inframation News
  • 09:05

    OPENING KEYNOTE PRESENTATION: US DEPARTMENT OF TRANSPORTATION INFRASTRUCTURE FUNDING PROGRAMS AND P3S

    The US Department of Transportation (“DOT”) has more than $50 Billion available capital through its Build America Bureau Credit Programs, including the Transportation Infrastructure Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation and Improvement Financing (RRIF).   
     
    The DOT also awards over $8 Billion annually in discretionary grants.  
     
    With no new federal infrastructure legislation in sight, the US DOT remains open for business, but must rely on applicants to request access to these funds.  

    DeBono joined the US DOT in the newly appointed role of Chief Infrastructure Funding Officer in March after spending the better part of 20 years working for various hedge funds and as an investment banker. 

     As part of today’s opening keynote address, DeBono will discuss the following points 

    • What can States, municipalities and their private partners do to proactively seek Build America funds? 

    • How can grants be used to fund infrastructure projects? 

    • What can be done to educate states better on P3s and the need for them? 

  • 09:25

    PANEL DISCUSSION: AN OVERVIEW OF CURRENT NORTH AMERICAN P3 MARKET AND FUTURE PLANS

    In 2018, eight PPP deals for the US closed at USD 4.49bn as opposed to five deals in 2017. But the overall value of those deals was off by USD 300m. And given how active and successful universities have been with smaller housing and energy projects, that trend could continue. Elsewhere, social projects such as LA Civic Center and Miami-Dade Courthouse are advancing. Moreover, a new bipartisan push for a federal infrastructure bill has renewed hopes for bigger projects. 

    Panellists will discuss these trends:  

    • Will the university and social projects serve as a fulcrum for the next generation of infrastructure investments?  

    • Will the success stories of LAX in 2018 with its ancillary airport and JFK modernization program encourage further investment in airports or will it prove to be a “one-off” event driven by ambitious state and municipal authorities?  

    • Is a bipartisan bill in the works at the federal level. Will congress advance an infra bill this legislative cycle?  

    • Assess future managed toll lanes projects such as the USD 7.6bn I-495/I-95 Capital Beltway and I-270 Congestion Relief Improvements P3 Project.  

       
    DJ Gribbin
    DJ Gribbin
    Senior Operating Partner, Stonepeak Partners
  • 10:10

    PANEL DISCUSSION: DELIVERING SUCCESSFUL SURFACE TRANSPORTATION PROJECTS THROUGH P3S

    America’s highways are garnering a lot of attention from developers and investors, especially in light of ongoing projects such as Maryland’s prospective I-495/I-270 Managed Lanes P3. Other projects in Alabama, Louisiana and Colorado are making headlines as they are designed as demand-risk schemes. Regardless of the fate of revived infrastructure related legislation in Congress, plenty of innovative and much needed transportation infrastructure is being proposed around the country.    

    Panellists will discuss the latest in surface transportation.   

    • How are managed lane projects progressing? Where else will this structure be used? 

    • Will the RAPID Act incentivize the buildout of more road projects?   

    • Outlook on latest structuring and financing of various P3 transportation projects. 

  • 10:55

    MORNING REFRESHMENTS & NETWORKING BREAK

  • 11:20

    KEYNOTE ADDRESS: AN ECONOMIC FORECAST FOR US INFRASTRUCTURE POLICY DEVELOPMENT

    That fact that US infrastructure is in a parlous state is perhaps one of the few things Congress has been able to agree on in recent years. With the American Society of Civil Engineers giving the nation a depressing D+ for its “mostly below standard” roads, dams, bridges, electricity grids and water systems, the need for a comprehensive plan has been evident for some time.  The Trump administration’s “Contract with the American voter” and a rebalancing of federal versus state subsidies was one answer and with Congress now closer to a bipartisan agreement on the measures required, are the logjams to crucial project procurement finally about to be removed. 

    Professor Arthur Guarino spent much of his professional career with the financial service industry, working for the likes of TIAA-CREF, Met Life and The Bank of New York Mellon. Now teaching full time at Rutgers University in Newark, professor Guarino has analysed the impact of several of the Trump administration's policies including tax reduction, trade policy and immigration. He has also looked at the economic impact of the slowing global economy and dissected the federal government’s approach to America’s infrastructure crisis. 

    Hear Professor Guarino discuss: 

    • The sustainability of the Trump administration’s 20/80 policy towards the federal subsidy of state infrastructure programme. 

    • Areas of the US and types of infrastructure where the Ross-Navarro blueprint for Trump’s “Contract with the American” voter will stimulate a P3 project pipeline. 

    • How economic realities will dictate the infrastructure policy of the next administration. 

  • 11:35

    CASE STUDY: GORDIE HOWE INTERNATIONAL BRIDGE – A P3 SUCCESS STORY

    In a case study presentation hear from the team behind the Gordie Howe International Bridge, as they explain how they reached financial close on one of North America’s largest and most complex P3s.  

    The USD 5.7bn project involves the development of border crossing facilities between the US and Canada, including a new bridge over the Detroit River, Canada and US Customs and inspection plazas and connecting roads to existing highways. The bridge will join to the I-75 in Michigan and Highway 401 in Canada to ultimately connect the cities of Detroit and Windsor. This project is the first of its scale to be attempted in North America and one of the first to involve two countries. 

    • Find out why the P3 model was the right model for this complex project? 

    • What were the essentials needed to get a project of this scale to financial close? 

    • How did the consortium manage two legal systems?

    • Learn how the many stakeholders from both jurisdictions with many goals and imperatives were handled. 

  • 12:05

    PANEL DISCUSSION: USING P3 TO SPAN THE BRIDGES AND TUNNELS FUNDING GAP

    According to The American Society of Civil Engineers most recent four-year report card (2017), the US has 614,487 bridges, nearly four of ten of which are 50 years or older. With over 9% of those deemed to be “structurally deficient” in 2016, requiring an estimated USD 123bn of investment. It is clear then that American river and bay transit has a big funding problem. 

    It is an issue which states, and city governments have this year increasingly turned to P3 to address with Louisiana’s USD 125m Belle Chasse Bridge and Tunnel Replacement project, and Michigan’s Bascule Bridge project in Bay City, Illinois’s USD 170m Houbolt Road Bridge and of course New York City’s Hudson Tunnel Project. But the balance which needs to be struck for such high capex and high-risk construction deals is a tricky one as evidence by the Pennsylvania Turnpike Commission’s decision earlier this year not to move forward with its own P3 to rehabilitate five tunnels. 

    Listen to US bridge and tunnel investors, lenders advisors and procures discuss how P3s can meet the scale of the challenge facing procurers. 

    • How has the classic P3 model been adapted for the construction and scale risks unique to bridge and tunnel projects in the US 

    • To what extent can investors balance yield targets with the impact of maintenance cost to make an investment in these assets worthwhile? 

    • How has Federal reluctance to support projects like Gateway affected the search for backers for these deals? 

    • What lessons can be learned from the structures of similarly large core infrastructure projects? 

  • 12:50

    NETWORKING LUNCH SPONSORED BY HOGAN LOVELLS

  • 01:50

    PANEL DISCUSSION: SHAPING THE FUTURE OF RAIL P3 PROJECTS

    The launch of All Aboard Florida’s Brightline passenger rail project has seemingly inspired a new generation of rail P3. New, prospective rail projects are popping up across the country, such as Honolulu Rail Transit and the Texas HSR project. Even Brightline’s new partial owner Virgin Trains USA is giving the US West Coast a hard look to build other passenger-rail services. Virgin Trains initially sought an IPO, but then cancelled the offering. Instead, it raised the necessary private activity bonds (PAB) need to complete the project in Florida. However, there are questions out there how these other projects will fare if Brightline continues to struggle attracting passengers. 

    • How are rail projects providing for fiscal and schedule discipline, beneficial risk transfer and potential project acceleration and cost savings?
    • Will Brightline’s financing serve as a template for other similar projects? 
    • What geographical locations represent ideal real estate for future rail P3 projects?
  • 02:35

    PANEL DISCUSSION: AIRPORT P3S - THE NEXT GENERATION OF DEAL STRUCTURES

    Projects like JFK and LaGuardia are keeping airport P3 momentum moving along. While the FAA’s privatization program is a discussion for an M&A forum, it does demonstrate that the federal government and other stakeholders are determined to stoke private investment in airport assets. Also, if a bill that was recently introduced in the US Senate becomes law it would permit TIFIA bonds to be used for airport projects; therefore, it could create more incentives for greater activity in the sector.  

    Delegates will hear panelists discuss the latest in airport P3 risks and opportunities.   

    • How are stakeholders structuring operational and real estate revenues to make projects “bankable?”  
    • What other airport assets are owners contemplating to procure as a P3?  
    • How can the variety and number of stakeholders come to agreement in order to realize projects as P3s?
    • What potential roadblocks are in the way to mass airport privatizations?    
    Barry  Gold
    Barry Gold
    Managing Partner, NEXUS Infrastructure Capital
    Emma  Griffith
    Emma Griffith
    Senior Director Global Infrastructure, Fitch Ratings
  • 03:20

    AFTERNOON REFRESHMENTS & NETWORKING BREAK

  • 03:45

    PRESENTATION: BRIDGING PUBLIC PENSION FUNDS AND INFRASTRUCTURE INVESTING

    US public pension fund capital is indirectly behind many of the US P3 greenfield investments of Meridiam, Star America and Macquarie Infrastructure Partners. These funds are long term equity investors in projects such as the I-70, I-66, LGA, North Tarrant Expressways, Purple Line, Long Beach Courthouse, Michigan Freeway Lighting, SH 288, Portsmouth Bypass and Goethals Bridge. In a pioneering study of 25 largest US Public Pensions which represent 55% of public pension assets in the country, Clive Lipshitz will outline the challenges facing plans and how infrastructure investment in shovel ready and operational assets could harvest significant gains for allocators. Lipshitz is a former Brookfield product development manager and undertook this seminal study of US Public Pension Fund exposure and opportunities in infrastructure on behalf of NYU Stern. 

  • 04:00

    PANEL DISCUSSION: ACCESS TO CAPITAL – COMPARING INFRASTRUCTURE FINANCING OPTIONS

    The bank financing market for US P3 projects can be difficult as projects are at the whim of state and local markets.  In the meantime, federal initiatives like TIFIA, WIFIA and PAB bonds often render the role of banks at the margins for projects that do succeed. However, with the USD 7.6bn managed lanes project in the Capital Beltway and whispers of airport privatization projects to follow on the heels of JFK Airport, panelists will debate the following  

    • What is the preferred structure being utilized by preferred proponents in US P3 projects? 

    • Given limited projects out there, are lenders trying to sweeten deal terms in order to incentivize new business?

    • Auditor reports have in the past shown cost overruns in bigger projects such as LRTs. How are lenders accounting for this in how they structure their credit facilities? Does this involve a delayed-draw structure, accordions et al? 

    • What developments on the horizon do you think will spur further infrastructure investment and how will it shape decisions as far as the debt capital markets are concerned? 

    • What role is the private placement market taking in these projects? 

       
    Fred  Day
    Fred Day
    Senior Vice President – Investments, Infrastructure, Brookfield Asset Management
  • 04:45

    CLOSING KEYNOTE: CANADA INFRASTRUCTURE BANK: WHAT’S NEW AND WHAT’S NEXT

    Nicholas Hann leads the investment team and is responsible for implementing the Canada Infrastructure Bank’s investment strategy, advising on capital deployment and asset management.  

    In this closing keynote address, Hann will explain what's next for the Canada Infrastructure Bank, as he details the Investment options available, how the CIB is encouraging private sector investment and the priority sectors. 

  • 05:00

    END OF DAY ONE AND COCKTAIL RECEPTION SPONSORED BY MACQUARIE