The Commonwealth of Puerto Rico. Parking Facilities at Luis Muñoz Marin Airport

Transcription

1 The Commonwealth of Puerto Rico Parking Facilities at Luis Muñoz Marin Airport 0

2 Agenda Puerto Rico Public-Private Partnership (PPP) Initiative Puerto Rico Economic Overview and Business Environment Puerto Rico Ports Authority (PRPA) Overview Luis Muñoz Marin (LMM) Airport Parking Overview LMM Parking Transaction Overview 1

3 2 Puerto Rico Public- Private Partnership (PPP) Initiative

4 The Government Development Bank (GDB) is the Financial Advisor and Fiscal Agent of the Government GDB s mission Act as financial advisor and fiscal agent to the Commonwealth, its public corporations and municipalities Provide financing for infrastructure development, public works, and public services Facilitate financing for private enterprises to advance the island s economy Key Highlights 363 employees $9.4 billion in assets and $8.0 billion in liabilities 3

5 Puerto Rico Welcomes Private Investment and Has Utilized PPP Strategies In the Past Commonwealth has significant experience working with private entities on public purpose projects Teodoro Moscoso Bridge with Dragados, Abertis and Supra Power plants with AES Corporation and Ecoelectrica Tren Urbano (commuter rail) with Siemens (DBO) SuperAcueducto with Thames Dick Corporation Port of Mayaguez with Holland Group Gasoducto Del Sur with Skanska UBS and Morgan Stanley are serving as advisors to evaluate and implement opportunities at five public corporations 4

6 GDB and the Public Corporations Have Identified a Number of Attractive PPP Opportunities Ports Authority Luis Muñoz Marín International Airport Parking Garage Highway and Transportation Authority PR-22 Toll Way (RFQ launch expected in the coming weeks) Port of the Americas Authority Port of the Americas Aqueduct and Sewer Authority Water Metering Project Reservoir Project Electric Power Authority Gasoducto Del Norte Water re-use project 5

7 Puerto Rico Provides Investors With Unique Financing Alternatives for PPP Projects Commonwealth s tax system creates a capital market that is distinct and complementary to the US and international markets Single local market debt issues > $1 billion Local market issue provided financing to Teodoro Moscoso Bridge Local banks actively finance infrastructure in the Commonwealth and would participate in syndicated loans for projects (e.g. AES and Ecoelectrica) GDB has also facilitated financing in the US taxexempt market for PPP projects (e.g. Superaqueductos) 6

8 7 Puerto Rico Economic Overview and Business Environment

9 Puerto Rico: Economic Perspective Puerto Rico is the fourth largest island in the Caribbean Self governing territory of the United States with Commonwealth status Puerto Rico shares a common defense, market, and currency with the United States Commonwealth Facts and Figures Metric Population Capital / (Pop) Total Area GNP per Capita Labor Force Currency Legal System Major Industries mm San Juan (~450,000) 9,104 Sq. Km $14, Mn US Dollar Civil Law, within the US Federal Judicial System Pharmaceuticals, Electronics, Food Products, Apparel 8

10 Puerto Rico: Economic Perspective Other Key Economic Metrics Real GNP (2006) Statistics $45.2 bn 5-Year CAGR +1.5% Inflation Rate (2006) 1 5.1% N/M Total Exports (LTM) $59.9 bn +5.5% Total Imports (LTM) $45.4 bn +9.3% Average Employment (LTM) mm +2.1% Primary Highway Mileage 243 N/M Sources: Government Development Bank for Puerto Rico (GDB), Office of Economic Studies and Analysis; PRHTA Official Statements (1) Inflation rate as reported by GDB Office of Economic Studies and Analysis (2) Average LTM total employment, according to data reported in the Housing Survey. 9

11 Puerto Rico: Economic Perspective Puerto Rico is the ideal place for investment: Stable environment - benefits and protections of US legal and regulatory systems Openness to trade and investment Strong base of multinational companies Closely linked to the US economy Highly educated bi-lingual workforce Intersection of North American and European trade routes Strong physical infrastructure best in region Significant tax and foreign trade zone advantages 10

12 Puerto Rico: Economic Perspective The Commonwealth s Economic Development Plan Is Made To Improve the Business Climate Accelerate Puerto Rico s Knowledge-Based Economy Promote local entrepreneurship Diversify and improve tourism offerings Reduce the cost of energy Transform Government into a more responsive, effective, agile organization Investment in world-class infrastructure Public-Private Partnerships 11

13 Puerto Rico: Economic Perspective Improve and Diversify Tourism Offering Administration facilitating the construction of new tourism facilities utilizing innovative financing models Over 3,700 new rooms built and in construction, with $1.2 billion in new investments; 2,106 new direct jobs and 4,275 new indirect jobs Additional 4,500 hotel rooms to begin construction; representing an investment of $445 million and 3,000 new jobs anticipated in the next five years Improve access by sea and air No passport required 35 new direct flights recently added representing $85.2 million addition to the Island s economy 240 new cruise visits expected during representing 672,000 additional passengers 12

14 Puerto Rico: Economic Perspective Investment In World Class Infrastructure PPP s are a Key Component of Governor s Economic Development and Government Transformation Plan Infrastructure Forum unveils the results of Puerto Rico s study of first round PPP s opportunities over the past year Focused on achieving results over next six to twelve months 13

15 Puerto Rico: Economic Perspective Investment In World Class Infrastructure Commonwealth will invest $11 billion over the next five years Central Government Highways and Transportation Authority Electric Power Authority Aqueduct and Sewer Authority Infrastructure Finance Authority Ports Authority Port of the Americas University of Puerto Rico $2.0 bn $2.2 bn $2.2 bn $2.3 bn $0.5 bn $0.9 bn $0.7 bn $0.2 bn Private sector necessary to complete and augment this investment 14

16 Puerto Rico: Economic Perspective The Administration is focused on economic growth and reform PPP s are a high priority initiative and the Commonwealth plans to implement many of the initiatives highlighted at the Forum over the next six to twelve months Focus is on investment in infrastructure, with proceeds being reinvested within the relevant sectors Puerto Rico is an attractive and stable investment opportunity 15

17 16 Puerto Rico Ports Authority Overview

18 History of PRPA The Ports Authority of Puerto Rico is a public corporation created by Law 125 of May 7, 1942 Headed by an Executive Director and a Board of Directors appointed by the Governor 17

19 PRPA s Current Operations Administers and enforces the ports, docks and port facilities of Puerto Rico Operates and regulates: Airports: LMM as well as airports in Isla Grande, Ponce, Mayaguez, Arecibo, Aguadilla, Culebra, Humacao, Patillas, Fajardo and Vieques Ports: Puerto Nuevo in San Juan as well as port facilities in Arecibo, Fajardo, Guanica, Guayanilla, Guayama, Yabucoa, Ceiba, Culebra and Vieques 18

20 19 LMM Parking Overview

21 LMM Overview Gateway to the Caribbean 10 miles, 15 minutes 20

22 Passenger Movements Continue to Rise LMM airport has experienced continuous growth increases in passenger movements 4.23% compound annual growth rate Passenger Movements at LMM 1 (mm) Puerto Rico Ports Authority FY 2006 Aviation Statistic Report 21

23 Enplaned Passengers In 2007, there were 5.1 million enplaned passengers The FAA forecasts that enplaned passengers will increase by 38% to 7.2 million passengers by 2025, about 2% annually Passenger Enplanements at LMM 1 (mm) FAA Terminal Area Forecast,

24 LMM Overview Represented by all Major Carriers The airport currently serves over 30 domestic and international airlines Passenger Movements at LMM by Carrier - FY Spirit 3% United 2% Other 7% Jet Blue 5% Continental 6% US Air 6% Delta 8% American 63% 1 Puerto Rico Ports Authority FY 2006 Aviation Statistic Report 23

25 LMM Airport Building for the Future The Ports Authority has recently invested significant capital in upgrading the airports facilities New Terminal A ($83mm estimated investment) Designated terminal for charter flight passengers Full reconstruction of the airport s second runway Through 2011, PRPA will invest approximately $390 million on 13 LMM airport projects 24

26 A World Class Parking Facility for LMM A six story parking structure Built in 1999 Connected to Terminals C & D via 2 nd floor ramp Public parking (c. 2,400 spots) Airport employee parking (c. 1,600 spots) An adjacent surface parking lot Currently serves as parking for federal agency employees 700 parking spots Surface lot in the airport s central sector 25

27 Airport Facility Layout Central Sector Auxiliary Parking Existing Structure and Adjacent Lot 26

28 Parking Facility Layout West Terminal Terminal D Terminal C Surface Lot Parking Structure Terminal B Taxi Staging Area Site of New Terminal A 27

29 Exterior Views of Facility Transactions Revenues 28

30 Additional Facility Pictures Transactions Revenues 29

31 Restaurants and Elevator Lobby Transactions Revenues 30

32 Entry Plaza and Ramps Transactions Revenues 31

33 Exit Plaza, Card Reader, Fee Computers Transactions Revenues 32

34 Well Designed Floor Plan Spaces per Floor 8 Elevators 4 Staircases 2 Entry Ramp 1 Exit Ramp 33

35 Investment Highlights Only on-airport parking at LMM LMM is the principal airport of Puerto Rico; over 10.6 million annual passenger movements, with a 4.2% continued growth rate since 2002 Limited off-airport or public transportation alternatives Proven history of stable cash flows Ability to expand facility and revenue opportunities with the construction of a second structure The basis for expansion will be agreed upon in the concession agreement Upside revenue potential via ancillary services Currently no services offered 34

36 Facility Usage, CY 2007 Tickets by Duration 1 Revenues by Duration 1 7% 5% 0-4 hours 4-24 hours Over 24 hours 51% 42% 88% 7% 1 PRPA parking activity reports 35

37 Limited Exposure to Seasonality Monthly revenue not materially impacted by seasonal events (tourism, hurricane season, etc.) Indexed FY2006 FY2007 Series Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 0 1 FY 2006 indexed to July 2005, FY 2007 indexed to July

38 Current Garage Usage February 2008 estimated (Noon, mid-week) Parked Capacity Demand / Capacity Public vehicles 1,100 2, Employee vehicles 1,600 1, Total 2,700 4, If employees remain in garage At 1-2% growth per year, additional public parking may be needed by If employees are relocated from garage At 1-2% growth per year, additional public parking will be needed in the longer term Based on February 2008 visual inspection of garage usage. 37

39 Puerto Rico Cars Per Capita Continue to Rise Among the highest rate of cars per capita in the world Local growth despite recent US reduction of cars per capita Passenger Cars Per Capita Regional Passenger Cars Per Capita Puerto Rico United States Bahamas Dominican Rep. Jamaica Puerto Rico United States Passenger Cars Per Capita 1 Euromonitor International 38

40 Growth Potential From Ancillary Services The facility currently offers no luxury or ancillary services Possible new revenue sources could include: Car rental agencies Valet and preferred parking services EZ Pass style payment options Car detailing / maintenance services Expanded food and beverage concessions Improved revenue control mechanisms 39

41 Potential Opportunities for Increased Revenues Evaluation of rate structure for optimization of revenues Public short term $2.00 per hour up to $18.50 max per day Public long term $18.50 first day and $12.00 each additional day Employees Typically $20.00 per month Relocate employees Level 1 and Level 2 largely dedicated to employees currently Relocation may require additional gates and card readers but would free up spaces that would be attractive to public or other potential users Additional products Relocation of rental car companies to use portions of garage Other potential products and services 40

42 Additional Factors Potentially Affecting Profitability Competition Private parking operators (approximately 600 total spaces located away from the Airport) No public train or bus service to/from the Airport Other competing modes (e.g. pick up / drop off, taxi cabs, etc.) Operations Improved fraud-prevention controls within revenue control system Operating expense efficiencies Capacity Relocation of employees will provide more than adequate capacity for near term public parking needs (potentially allowing for new uses) More efficient use of prime parking locations (e.g. both departures and arrivals levels currently dedicated to employees) 41

43 42 Structural Overview

44 State of the Asset A full engineering report is being prepared No major construction defects or signs of extraordinary wear and tear are expected Visual inspection and engineering report will: Identify near term issues requiring repair and maintenance Recommend annual repair and maintenance necessary to keep garage in proper condition Assuming proper maintenance, the garage will likely have a useful life in excess of 50 years 43

45 44 LMM Parking Transaction Overview

46 Proposed Public Private Partnership Transaction PRPA intends to offer a long-term concession of the LMM Parking facility Concessionaire will: Set and collect parking fees, subject to caps set by PRPA Operate and maintain existing parking facility Potentially design, build, finance, operate and maintain second parking structure 45

47 Key Terms of Concession Facilities: Main parking structure Surface parking lot Auxiliary lot located in the Airport s central sector Expansion rights/obligations: Operator may be required to construct a second structure upon exceeding certain capacity triggers Length of concession: years 46

48 Key Terms of Concession (Cont d) Pricing: Rate setting subject to caps set by PRPA Reasonable pricing for airport employees Free parking for 100 PRPA employees Financial considerations Upfront payment Fixed or variable periodic payments on new business ventures at the facilities Car Rental Agencies: Possible inclusion in expansion of facilities 47

49 Key Terms of Concession (Cont d) Employee Parking: PRPA employees General airport employees Federal agency employees Existing Contracts: Restaurants (Wendy s and sports bar) Car rental agencies 48

50 RFQ / RFP Process Respond to Request for Qualifications ( RFQ ) Due March 3rd Select qualified parties based on RFQ responses Qualified parties will be asked to respond to Request for Proposal ( RFP ) and be given opportunity to conduct detailed due diligence ahead of responding to RFP Management presentation Data room access Concession Agreement review 49

51 Expected Schedule The Commonwealth anticipates award of concession by June 2008 Event Response to RFQs Due Release RFPs to Qualified Parties Final RFPs Due Expected Timing March 3, Q Q

52 Contact Information Please note that the PRPA and GDB should not be contacted directly Interested parties should contact: Henry Catry Executive Director 299 Park Avenue New York, NY Tel: (212) Bruce Crane Director 299 Park Avenue New York, NY Tel: (212) Alex Greenbaum Analyst 299 Park Avenue New York, NY Tel: (212) Denotes Primary Contacts 51