Reposting from the LA Transportation thread:
The details of the proposed P3 for the LAX people mover are available here:
http://lawa.granicus.com/MetaViewer....&meta_id=32885
The project's capital cost is estimated to be $1.95 billion, but the proposed P3 contract is $4.5 billion over 30 years. It is a design-build-finance-operate-maintain (DBFOM) contract. The private contractor, LINXS, is actually a group of several companies, split up between design, construction and operation teams. I think there are like 10 total companies listed on their website:
http://www.lalinxs.com/team.html
During the 5 years of construction, LAX will pay LINXS $1 billion, while LINXS will pay for the $950 million (or more) additional construction costs.
For the next 25 years, LINXS will operate the people mover, and LAX will pay LINXS a fee per year to cover the current operation, maintenance and past construction/financing costs. The first year will be a $97 million payment (will increase in later years based on a schedule and with inflation).
Quote:
The LINXS Team's proposed costs for Design and Construction are $1.95 billion, which is approximately 4% below staff's estimate.
...
The LINXS Team will be responsible for the operations and maintenance (O&M) of the APM System for a period of 25 years. This includes:
The APM Operating System (i.e. trains, controls systems, etc.)
The Fixed Facilities (i.e. guideway, stations; including elevators, escalators, etc.)
The O&M requirements include refurbishment and replacement schedules for portions of the system.
At the end of the 25 year O&M period the LINXS Team is required to hand the APM System back with a minimum of five-years remaining life. The condition at handback will be determined by an independent engineer.
...
The DBFOM Agreement that will be the primary contractual agreement between the LINXS Team and LAWA includes the total costs for design and construction, operations and maintenance (O&M), and the finance costs associated with the developer portion of the capital costs of construction. Over the 30-year term of the DBFOM Agreement these costs will total approximately $4.5 billion. These costs are consistent with the costs LAWA would incur for the independent elements of the DBFOM Agreement (cost of construction, 25-years of O&M, finance costs).
During the construction period, LAWA will pay the developer a total of $1 billion in milestone payments, spread out in equal installments. Following the completion of the project, LAWA will pay the developer annual availability payments (in equal monthly installments) to compensate the developer for principal, interest and financing costs of the project as well as annual operating and maintenance costs over the 25 year operating life of the contract. The initial annual availability payment is estimated at approximately $97 million, and will increase annually, based on structured increases and adjustment inflation indexes. The initial payment is subject to adjustment based on the actual financing cost incurred by the developer at financial close.
|
Prev
Linear Mode
