AASHTO Center for Excellencein Project Finance

Update and Listening Session

2010 Conference of theAASHTO Subcommittee on Internal and External Audit

Montgomery, Alabama14 July 2010

BACKGROUNDAASHTO Center for Excellence in Project Finance

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BACKGROUND

• One of four Centers of Excellence authorized by SAFETEA-LU

o Sister entity to Center for Environmental Excellence by AASHTO

• $2.7M cooperative effort between AASHTO and USDOT for three years

• Cooperative Agreement executed in March 2008

• Third program year: March 2010 – March 2011

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MISSION

“To provide support to State transportation departments in the development of finance plans and project oversight tools and to develop and offer training in state-of-the-art financing methods to advance projects and leverage funds.”

SAFETEA-LU Section 5309(c)(4)

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VISION

• Become national catalyst for advancing transportation finance

• Direct outreach to state transportation officials and their partners

• Deliver professional training, technical education, finance research

• Draw on resources of AASHTO, educational institutions, transportation practitioners

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STRATEGIC GOALS

Help state DOTs and other project sponsors to: • Understand the benefits/risks of alternate financing

approaches and developments in project finance• Assess policy implications and benefits/risks of P3

structures • Develop institutional capacity and management skills

for new project financing approaches• Communicate with peer agencies, policy makers, and

the public to address infrastructure investment needs

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ORGANIZATION AND OVERSIGHT

• Cooperative venture with USDOT, which serves as a strategic advisor and participant in program development

• Oversight and program direction provided by SCOFA and SOTFP

• Primary educational institution resource is the Wharton School; day-to-day partners include Mercator Advisors and Emil Frankel, former USDOT Assistant Secretary for Transportation Policy

• CEPF website (www.transportation-finance.org) supported by PB Inc.

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AASHTO Center for Excellence in Project Finance

PROGRAM ACTIVITIES, 2008-2009

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PROFESSIONAL EDUCATION

• Wharton Transportation Executive Program (WTEP)o 3-day programs in September 2008 and July 2009

• Technical Workshopso Workshops on project finance, P3, intercity rail, and NIB proposals in

Chicago, Atlanta, and Denver attended by 127 transportation and finance officials (April, July, and November 2008)

o Congressional Staff Forum on Legislative Issues in Transportation Finance, co-sponsored with CRS, attended by 70 Congressional staff (January 2010)

• Project Finance Seminarso Capital Markets Listening Session, in conjunction with FHWA Office of

Innovative Program Delivery (June 2009)

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RESEARCH

• Sponsor of TRB’s 4th International Conference on Financing Surface Transportation (May 2010)

• AASHTO Uniform Audit and Accounting Guide

• White papers on Build America Bonds and Florida’s I-595 availability payment-based project finance structure

AASHTO Center for Excellence in Project Finance

PROGRAM ACTIVITIES, 2010

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PROFESSIONAL EDUCATION

• 2010 Wharton Transportation Executive Program scheduled for July 26-29th

• Technical Workshops o 2010 AASHTO National Transportation Leadership Institute (May 2010)o Northern New England Transportation/Education Workforce

Development Project (May 2010)o TRB’s 4th International Conference on Financing Surface

Transportationo Congressional Legislative Forum: Funding and Financing Solutions for

Surface Transportation in the Coming Decade (September 2010)• Project Finance Seminars (SOTFP)

o Webinar on non-traditional project delivery methods/comparative value

o Webinar on innovative finance: P3, TIFIA, tolling, availability payments

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RESEARCH

• Collaborate with the National Conference of State Legislatures for report on transportation governance/relationships between state legislatures and DOTs

• Sponsor Briefing Papers on “Use of Advance Construction in Financing Transportation Projects” and “Using Performance Management Practices to Support Funding and Finance Initiatives”

• Respond to requests for information on financial topics identified during reauthorization

AASHTO Center for Excellence in Project Finance

WHARTON TRANSPORTATION EXECUTIVE PROGRAM

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WHARTON PROGRAM

• Held at one of the most preeminent business education institutions in the world

• CEPF cornerstone to apply academic and applied expertise to transportation finance practices

• First year program designed in consultation with SCOFA and heads of three state DOTs; subsequent programs incorporate extensive participant feedback

• Faculty includes Wharton professors, CEPF partners, and guest speakers

• Targeted to DOT CEOs, CFOs, and other senior state officials• In three years, 75 senior state DOT, USDOT, and MPO officials

from 34 states will have attended the WTEP

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AASHTO Center for Excellence in Project Finance

CENTER’S WEBSITE AT WWW.TRANSPORTATION-FINANCE.ORG

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CENTER’S WEBSITE

• Robust resource for funding and finance information

• Website includes: o Information on CEPF program activity, presentations,

research and on major industry events

o Information on transportation funding and finance

o Federal highway finance information for every state

o Links to transportation finance, research, and legislative sites

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DISCUSSION&

QUESTIONS

CONTACTS

Joung LeeDeputy Director

Phone: (202) 624-5818

Wendy FranklinDirector for Finance Programs

Phone: (646) 943-1584

Email: cepf@transportation.orgWeb: http://cepf.transportation.org