P3 connect introduction to wifia denver co july 29 2014
Download
1 / 10

P3 Connect Introduction to WIFIA Denver, CO July 29, 2014 - PowerPoint PPT Presentation


  • 65 Views
  • Uploaded on

P3 Connect Introduction to WIFIA Denver, CO July 29, 2014. Background . Water Resources Reform and Development Act (WRRDA) of 2014 was signed by the President on June 10, 2014 Title V of WRRDA contained the Water Infrastructure Finance and Innovation Act (WIFIA)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' P3 Connect Introduction to WIFIA Denver, CO July 29, 2014' - wanda-pearson


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
P3 connect introduction to wifia denver co july 29 2014

P3 Connect

Introduction to WIFIA

Denver, CO

July 29, 2014


Background
Background

  • Water Resources Reform and Development Act (WRRDA) of 2014 was signed by the President on June 10, 2014

  • Title V of WRRDA contained the Water Infrastructure Finance and Innovation Act (WIFIA)

  • WIFIA is modeled on the Transportation Infrastructure Finance and Innovation Act (TIFIA) of 1998

  • TIFIA provides federal credit assistance in the form of loans, guarantees, or lines of credit for eligible transportation projects

  • TIFIA has provided over $16 billion in assistance since 1999 to projects costing nearly $60 billion


Introduction to wifia
Introduction to WIFIA

  • Innovative financing mechanism for water-related infrastructure

  • National or Regional significance

  • Attempts to fill in a perceived gap left open by the SRF programs by providing subsidized financing for large projects

  • Funds are appropriated to provide a reserve subsidy for credit assistance, not for direct outlays to projects (TIFIA averages 10:1)

  • Credit assistance can be in the form of loans or guarantees


Introduction to wifia1
Introduction to WIFIA

  • Eligible projects include:

    • CWSRF eligible projects

    • DWSRF eligible projects

    • Projects for enhanced energy efficiency at drinking water and wastewater facilities

    • Brackish or seawater desalination, aquifer recharge, water recycling

    • Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project

    • Bundled SRF projects under one application

    • A combination of projects secured by a common security pledge


Introduction to wifia2
Introduction to WIFIA

  • To be considered eligible a project and borrower must be deemed creditworthy

  • Projects must be reasonably anticipated to cost no less than $20 million

    • $5 million for small community projects

    • Any amount if bundled into a single application for at least $20 million


Introduction to wifia3
Introduction to WIFIA

  • 15% percent set-aside for small communities

    • Population no greater than 25,000

    • After June 1 of the year of appropriation set-aside expires

  • Maximum amount of loan may not exceed 49% of eligible project costs

  • Up to 25% of the funds available may be used for projects to fund in excess of 49% of the project costs

  • Davis-Bacon and American Iron and Steel apply in the same manner as under the SRF programs


Introduction to wifia4
Introduction to WIFIA

  • Interest rate is no less than the yield on Treasury securities of a similar maturity to the loan in question on the date of execution

  • Loans may be for 35 years or the useful life of the project, whichever is less

  • WIFIA loans may be used to meet the non-federal share requirement of project costs

  • Total amount of federal assistance shall not exceed 80 percent of the total project costs

  • Repayments must begin no later than 5 years after substantial completion of the project


Potential for p3
Potential for P3

  • Eligible recipients of WIFIA financing:

    • Corporations

    • Partnerships

    • Joint ventures

    • Trusts

    • Federal, State, or local government entities, agencies, or instrumentalities

    • Tribal governments or consortiums of tribal governments

    • State infrastructure financing authorities.


Potential for p31
Potential for P3

  • Tax-Exempt Financing:

    • Not allowed as part of the finance package

    • Does taxable debt or private equity fill the gap?

  • Typically 49% of costs will be the maximum WIFIA involvement


Wifia panel
WIFIA Panel

  • Tom Curtis, Deputy Executive Director, American Water Works Association

    • The need for investment in water infrastructure and the genesis of WIFIA

  • Aurel Arndt, Chief Executive Officer, Lehigh County Authority

    • A potential model for WIFIA/P3 financing

  • Brent Diemer, Vice President, CH2M Hill, Water and Energy Division

    • How P3s relate to the water infrastructure sector and the potential for WIFIA

  • Elizabeth Corr, Associate Division Director, Office of Ground Water and Drinking Water, EPA

    • EPA perspective and next steps on implementation


ad