Watty Vos Boulevard Information... · Payment mechanism 13 Penalty Points: • to prevent lane closures caused by SPV during rush hours • to prevent loss of Watty Vos Boulevard

Watty Vos Boulevard

Information Session 3

April 3, 2014

ARUBA

Solely for Information Purposes

www.p3aruba.com 1

Welcome

Ms. Shelby Maduro (PwC)


2

Agenda

08:30 Welcome - Ms. Shelby Maduro

08:45 Financial aspects - Mr. Rod Cameron

09:15 Tender procedure highlights - Mrs. Swinda Dijkhoff

09:30 Coffee Break

09:45 Q&A session - Ms. Shelby Maduro

10:15 Closing - Ms. Shelby Maduro

3 Solely for Information Purposes

Welcome

• Introduction of panel

– Swinda Dijkhoff Project Leader of the Watty Vos Boulevard

– Paul Kemp Technical Advisor of the Department of

Public Works (DOW)

– Marcelle van Valkenburg Legal Advisor of the Dutch Ministry of

Infrastructure and Environment

– Rod Cameron Transaction advisor (PwC)

• Introduction of attendees

– Name

– Company

4

Welcome


Main advisors of the

Contracting Authority

– Legal Advisor: Legal Advisor of the Dutch Ministry of

Infrastructure and Environment

Sjiem Fat & Co.

Pels Rijcken & Droogleever Fortuijn

– Transaction Advisor: PwC

– Refer to paragraph 2.13 of the Tendering Instruction

5

Welcome


Welcome

• Objectives of today:

– Provide insight in the :

• Financial aspects of the project

• Tender procedure

– Q&A session

6

Welcome


Communication guidelines

• Information sessions:

– Solely for information purposes

– Formalization via Clarification Memorandum

• All questions, answers and information shall be distributed

integrally via Clarification Memorandum(s) to all registered

candidates.

• Communication will be in English.

7

Welcome


Agenda




09:30 Coffee Break




Financial Aspects

Mr. Rod Cameron (PwC Transaction Advisor)


9

Financial Aspects

– Contractual framework

– Payment mechanism

– Financial submission requirements


Financial Aspects

Contractual framework

11

Contracting

Authority

SPV

Builder Banks

Equity Providers

Maintenance

Services

Services Payment

Funds

Dividends

Interest

& Payment

Lend

Build

Maintain

Payment Payment

DBFM Agreement

Special Purpose Vehicle:

• Limited Liability Company


Financial Aspects

Performance mechanism principles

• Mechanism aligns payments to performance delivered.

• Mechanism enables predictable future cash flows.

• Mechanism includes incentives.

• Schedule 2 DBFM Agreement


Financial Aspects

Payment mechanism

13

Penalty Points:

• to prevent lane closures caused by SPV during rush hours

• to prevent loss of Watty Vos Boulevard scope items

• to prevent accidents and unsafe situations

• to prevent non compliance with other requirements

(process management, condition and remedy criteria)

• credit applicable to penalties during construction

• repeat deduction.

Gross Availability

Payment (GAP)

Performance

Deduction (PD)

Net Availability

Payment

(NAP)

Financial Aspects


Financial Submission requirements

• Financing plan (Schedule 5.2 Tendering Instructions)

– Authority Term Sheet based

– Shareholder support letters

– Financial advisor support letters

• Financial model and a statement from an independent

model auditor (Schedule 5.1 Tendering Instructions)

• Tender bond Afl. 1.000.000

– Commitment period sufficient to reach financial close

14


Financial Aspects

Authority Term Sheet

(Schedule 5.1.7)

• Standard bank term sheet

• To be used by all Tenderers

• Contracting Authority at risk on the terms and conditions


Financial Aspects

Financial Model (Schedule 5.1)

• Detailed Excel spreadsheet based model

• Full suite of financial statements i.e. P&L, Cash flow and

Balance Sheet

• Detailed input calculation and output worksheets

• Capable of sensitivity analysis


Financial Aspects

Price evaluation

– the Gross Availability Payment submitted will be used to

create a payment profile;

– the profile will be indexed by the bidder’s indexation

formula;

– the Present Value of the bid will be determined;

– A Neutralized Present Value will be calculated to neutralize

for earlier availability dates

• Present value of bids should remain below the Ceiling Price


Financial Aspects

Bonds & Guarantees


Financial Aspects

Availability Payment

Contract

Close

Commencement

Date Availability

Date

Completion

Date

Expiry

Date

Development

Period

Max. 2,5 years

Availability

Period

20 years

Time

Afl.

Performance

Bond released

Tender Bond

released

Transfer

Guarantee

Afl. 10 mln

Financial Close

• Appointment of MLA in line with Financial

Close Protocol (Schedule 7)

• Detailed due diligence: – Technical

– Legal

– Financial

• Selection of funders

• Finalize documentation

19


Financial Aspects

Agenda




09:30 Coffee Break




Tender procedure


21

Mrs. ing. Swinda Dijkhoff, Project Leader Watty Vos Boulevard of the Public Works (DOW)

Changes in the short-list criteria

The Candidate must in the preceding five years have carried out the project

management for an infrastructure project, which must comply with the

following requirements:

a) integral performance of the design and construction work carried out

under certified quality assurance (based on ISO-9001 or equivalent)

under an integral contract for the design, construction and 1 year or more

of maintenance work;

b) the total value of the design, construction work and 1 year or more of

maintenance work referred to under a. must amount to at least Afl.

50,000,000 (in real florin, excluding Turnover Tax);

c) the construction work must have been completed to an extend of 25% to

the satisfaction of the relevant client at the time of submitting the request

to participate.

22

Tender Procedure


Selection Phase High-lights

• April 9, 2014: Last opportunity to submit request for clarifications.

• April 16,2014: Last Clarification Memorandum will be provided by

the Contracting Authority.

• April 30,2014: Submission of request to participate:

– Time: 10:00 AM- 2:00 PM

– Location: Department of Public Works of Aruba

Sabana Blanco 68

Third floor at the Secretary

• Draft part(s) of request to participate

23


Tender Procedure

Agenda




09:30 Coffee Break




Coffee Break


25

Agenda




09:30 Coffee Break




Q&A Session


27

Ms. Shelby Maduro (PwC)

Agenda




09:30 Coffee Break




Closing

• Submit request for participating:

– April 30, 2014


Closing

Thank You


30

Documents

Watty Vos Boulevard Information... · Payment mechanism 13 Penalty Points: • to prevent lane closures caused by SPV during rush hours • to prevent loss of Watty Vos Boulevard