Aon Infrastructure Solutions

Transcription

1 Aon Risk Solutions Aon Infrastructure Solutions Aon Infrastructure Solutions Alternative Project Delivery Risk Advisors Risk. Reinsurance. Human Resources. Empower Results

2 Aon plc is the leading global provider of risk management services, insurance and reinsurance brokerage and human resource consulting and outsourcing. Through more than 61,000 colleagues in over 120 countries, Aon delivers distinctive client value through innovative and effective risk management and workforce productivity solutions. Aon is the preeminent risk advisor for Alternative Project Delivery (APD), also known as public-private partnerships (P3), providing risk advisory services on over 475 projects in the last 25 years. To centralize and best align its APD expertise, Aon established Aon Infrastructure Solutions (AIS), a team dedicated to providing risk advisory services to APD market participants. Based in North America and positioned globally, AIS also operates as a router to link the innovation and information from Aon s APD risk specialists on five continents to one, central location P3 Projects advised 25 Years experience in the P3 industry 5 Continents with dedicated P3 experts #1 Aon Infrastructure Solutions, investing in P3 innovation and continued industry expertise AIS is a highly integrated team of advisors with wide-ranging expertise in areas such as risk management, corporate strategy, law, procurement, public policy, finance, and project management. AIS has the holistic expertise necessary to provide comprehensive advisory services to its clients on APD risk considerations, project-specific risk identification, risk management, and risk transfer. AIS brings insight, expertise, and solutions to all phases of an APD project s lifecycle to help its clients achieve: Favorable debt terms Competitive Bids Successful Project Management APD Risk, Risk Allocation, and Risk Transfer APD has introduced innovative contractual structures for flexible risk allocation and increased risk transfer to the infrastructure market. There are many variations of the APD model which transfer various levels of risk and responsibility to the private sector, including: Design-Build-Finance (DBF), Design-Build-Finance- Maintain (DBFM) and Design-Build-Finance-Maintain-Operate (DBFMO). When leveraged appropriately, the APD risk transfer model is mutually beneficial to both the public and private sector and is the main driver of a project s Value for Money. However, the increased focus on risk transfer also necessitates greater complexity in the procurement, negotiation, and delivery of APD projects, thereby enhancing the need for a risk advisor with the necessary expertise and market leading APD experience. Proper risk identification, allocation, and mitigation are the key for ensuring successful APD projects as project efficiency is maximized when risks are held by the stakeholder best able to manage them. APD Risk Advisory Services Aon is uniquely positioned with a vast network of key project stakeholders in North America, including investors, advisors, contractors, concessionaires, public authorities, and industry advocacy groups who are aligned to long-term global investment in APD. Through these relationships and experiences, Aon has developed its advisory tools with a holistic view of the APD marketplace. AIS risk advisory services provide our clients a comprehensive approach to risk education, identification, allocation, and mitigation from the transaction launch of a project through to its operations and maintenance. Risk. Reinsurance. Human Resources. Empower Results 1

3 AIS Core Risk Advisory Services Service Market Intelligence APD Project Database Attribute AIS has compiled a comprehensive database of North American APD projects dating back to 2004 AIS database includes project bidder, financing, performance security, and insurance details as well as information regarding on-going transactions and opportunities Risk Education P3, Risk, and Risk Solutions Workshop Risk Allocation Concession Agreement Review Tool (CART) Risk Mitigation Risk Mitigation Program Design AIS facilitates and conducts workshops to better educate clients on APD related topics, including: APD model, variations, and market APD& megaproject risks Risk solutions (e.g. performance security, surety, insurance) CART is a global database of concession agreements, with particular focus on critical risk transfer clauses and requirements CART provides market intelligence on current commercial terms and industry practices AIS designs cost-effective performance security and insurance programs AIS risk mitigation programs drive savings by avoiding unnecessary risk contingencies APD, Risk, and Risk Solution Workshops To successfully navigate the APD marketplace, project bidders must be well-informed on the APD model, APD risks, risk transfer standard practices, and effective risk mitigation. AIS facilitates APD, risk, and risk solutions workshops tailored to fit the needs of the client, with a focus on a range of subjects from the APD model and market to unique APD and megaproject risks and the performance security and insurance solutions that specifically address these risks. Risk. Reinsurance. Human Resources. Empower Results 2

4 Concession Agreement Review Tool The appropriate allocation of project risks to the party most capable of managing or mitigating them is critical to the successful completion of an APD project. Aon s Concession Agreement Review Tool (CART) is a global database of concession agreements, with particular focus on critical risk transfer clauses and requirements. The concession database provides market intelligence on current commercial terms, including which party is responsible for which project risks. The database includes a checklist that not only systematically defines and describes key clauses but offers market standards based on historical APD projects. CART provides a systematic approach to assessing risk transfer provisions between the public sponsor and concessionaire, and empowers clients to leverage data when negotiating concession agreement terms. Risk Mitigation Program Design Once all project risks have been identified and allocated, AIS advises clients on the most cost-effective risk solutions for an APD project. An effective risk management program will have (1) well-considered performance security requirements that ensure asset completion and performance, (2) the necessary level of liquidity during the construction phase, and (3) forward-looking, cost-effective, insurance program requirements. A strong risk advisor facilitates a cost-efficient risk management program that drives savings by avoiding unnecessary risk contingencies. Client Advocacy As a trusted advisor, AIS will act as a strong advocate on behalf of our client throughout the project procurement process to ensure the client s desired risk transfer positions are well communicated and understood by all project stakeholders. As necessary, AIS will engage public sector stakeholders to advocate, explicate and negotiate the desired positions of our client. How Can Aon Influence Debt Financing and Project Bids? Aon s risk advisory services and extensive experience and expertise in construction and APD can guide a client s efforts to reduce the project and contractor risk profile a key to achieving favorable debt terms. Additionally, Aon s unmatched understanding of the performance security market will ensure cost-efficient contractor supports. Aon can directly support client efforts in achieving lower debt terms as well as improving liquidity of performance security and, thereby, reduce the requirement to place a high proportion of its Letter of Credit (LC) line at risk. Fully collateralized performance security vehicles, such as LCs, can negatively impact a client s balance sheet and reduce working capital potential. Achieving project confidence in the lending community while minimizing the balance sheet impact to the client is a vital goal to ensuring the project is mutually beneficial and operationally feasible for all participants. Moreover, achieving innovative performance security that provides the adequate level of liquidity needed to ensure an optimal credit rating at a lower cost will reduce project costs and, accordingly, enhance bid competitiveness. Risk. Reinsurance. Human Resources. Empower Results 3

5 Aon APD Risk Advisory Experience 2009 to Present Project value figures in millions Government Advisory Concessionaire Advisory & Brokerage Concessionaire Advisory Only Fort St. John Hospital USD 311 mm Children s and Women s Hospital USD 500 mm Est. Financial Close TBD Alberta Schools Waves 1, 2 and 3 USD 623 mm Southeast StoneyTrail USD 750 mm Presidio Parkway USD 954 mm Northwest Anthony Henday USD 1,170 mm Financial Close 2008 US 36 HOT Lanes USD 140 mm Est. Financial Close 2013 Denver FasTracks Eagle USD 2,085 mm North Tarrant Expressway USD 2,013 mm I-635 LBJ Highway USD 2,700 mm Thunder Bay Courthouse USD 466 mm Halton Healthcare Svcs USD 954 mm Financial Close 2011 Ontario Provincial Police USD 400 mm Niagara Health Systems USD 689 mm Windsor-Essex Parkway USD 1,400 I-69 USD mm Est. Financial Close 2014 Ohio River Bridges USD 760 mm Financial Close 2013 I-4 Connector DBF USD 487 mm I-595 Corridor USD 1,760 mm Pan Am Athlete s Village USD 800 mm Northwest Corridor USD 800 mm Est. Financial Close 2013 Ottawa Light Rail USD 2,012 mm I-4 Ultimate Project USD 2,150 mm Est. Financial Close 2014 Mid-Currituck Bridge USD 660 Est. Financial Close TBD Port of Miami Tunnel USD 983 mm Montreal University Hospital USD 2,000 mm Financial Close 2011 Toronto S. Detention Center USD 602 mm Connecticut Service Stations USD 178 mm Goethals Bridge USD 1,500 mm Financial Close 2013 Midtown Tunnel USD 1,900 mm I-77 HOT Lanes USD mm Est. Financial Close TBD Bermuda Hospital USD 260 mm Risk. Reinsurance. Human Resources. Empower Results 4

6 Contact Information Tariq Taherbhai Aon Infrastructure Solutions Copyright 2012 Aon Inc. Risk. Reinsurance. Human Resources. Empower Results 5