Enhances Affordability

uThe P3 delivery method utilizes both public funding and private financing, which will be paid back using sales tax revenues over a period exceeding 30-years.

uThe Fargo-Moorhead region will enjoy the benefits of a completed project while paying for it over time.

Appropriately Allocates Risk, Increases Cost-Effectiveness

uDesign, construction, O&M and other project risks are quantified early in the process and allocated to the partner best suited to manage each risk, reducing contingency requirements for the entire project. The P3 Partner manages their risks on a life cycle basis. Utilizing performance-based outcomes and optimizing capital and operations costs over the term of the Agreement, P3 delivery can greatly improve the value received for dollars spent over traditionally-delivered projects with multiple parties and interfaces. This method also provides incentive to complete the Project as quickly as possible, providing flood protection sooner.

Provides Long-Term Certainty

uUnlike traditional bid-build projects, the public entity has certainty as to the costs of O&M. It will lock-in the annual payments to pay back the P3 Partner for the DBFOM of the Diversion Channel for 30 years. Payments will begin when the project is completed, available and becomes operational.

FM AREA DIVERSION PROJECTP3 BENEFITS AND PRIVATE SECTOR

Non-Federal Sponsors are constructing the diversion channel using a P3 to design, build, finance, operate and maintain (DBFOM). USACE is designing and constructing the Southern Embankment/dam with funding provided by Congress/USACE (map on back):

BENEFITS OF USING P3 TO IMPLEMENT PROJECTS

P3 CONTRACTING SCHEDULE: Significant progress has been made in securing a P3 partner for construction of the FM diversion channel:

SHORTLISTED TEAMS: All teams listed below are comprised of guarantors and equity members (providing financing and equity), lead contractors, engineers and subcontractors. All teams have impressive experience in design and construction of large infrastructure projects and in P3s:

January 2017

Why is Private Industry Interested in FMM P3?

uWill provide predictable, market-tested returns and a 30-year revenue stream, based on performance

uIndustry anticipates increasing emphasis on infrastructure development and use of private equity, including in large flood projects

uUSACE is an expert in flood projects; industry gains valuable experience as the developer

uProvides the opportunity to be part of a world-class, first-of-its kind project that is anticipated to set the P3 industry standard and will resolve the region’s critical flooding risk

WH

Y

Lake Agassiz Partners | Meridiam Agassiz, AECOM, Walsh, Archer Western Constr.

Red River Valley Partners | Graham, Parsons, Alberici, BBGI SICAV

River Valley Alliance | Acciona, Shikun & Binui, North American Energy Partners, InfraRed Capital Partners

Red River Partners | Plenary, Fluor, Barnard, Ames Constr.

WHAT IS A P3 AGREEMENT?A legally binding contract between a public sector partner (Diversion Authority) and a private sector partner (P3 Partner). The parties agree to share some portions of the risks and rewards involved in an infrastructure project.

Issued Notice of Intent 2 September 2015 to issue P3 Contract (NOI)

Held an Industry Day 6-8 June 2016

Issued Request for Qualifications (RFQ) 14 July 2016

Responses to RFQ 7 September 2016

Shortlisted to 4 Teams 13 October 2016

Issued Request for Proposals (RFP) 16 December 2016

Technical Proposal Due Date August 2017

Selection of Successful Proposer October 2017

In excess of 200 attendees from all over the world

(received proposals from 6 teams)

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Document Path: C:\GIS\Projects\FM Diversion\FM Area Diversion\Projects\Miscellaneous (one offs, specific requests)\Phased Implementation Map\SplitDeliveryPlan_2014_0924.mxd CLM AE2SCoordinate System: NAD 1983 StatePlane ND S FIPS 3302 Ft Projection: Lambert Conformal Conic Datum: North American 1983 - Maps are for graphical purposes only. They do not represent a legal survey. While every effort has been made to ensure that these data are accurate and reliable, The Diversion Authority does not guarantee the

accuracy of the information, and waives any warranty or guarantee of any kind, express or implied. The data involved in the project is continuously refined and revised; you should not rely on this information for technical purposes or accuracy.

ALTERNATIVE FINANCING PLANSplit Delivery Plan

SEPTEMBER 2014

FARGO-MOORHEAD METROFLOOD RISK MANAGMEMENT PROJECT

SOUTHERN EMBANKMENTUSACE

DIVERSION CHANNELNON-FEDERAL

SPONSOR

Diversion Outlet

Rush River Inlet

Lower Rush River Inlet

Maple RiverSpillway & Aqueduct

Drain 14 Inlet

Sheyenne RiverSpillway & Aqueduct

Diversion GatedInlet Structure

Staging Area

Red RiverControl Structure

Wild Rice RiverControl Structure

Tieback Embankment

ACCELERATEDproject delivery

ALTERNATIVE FINANCING is the most COST-EFFECTIVE

risk management

PROTECT the local economy, which generates$5.48 billion in

wages and over $3.51 billion in annual taxable sales

REDUCE RISK, EXPOSURE & FUTURE COSTS

agencies includingFEMA, DOE,USDA, NRCSand SBA

Provide $1.9 BILLION in

SAFEGUARD

230,000 persons & $19 billion in property value

REDUCE COSTto tax payers

QUICKER and CHEAPER:

ALTERNATIVE FINANCINGBENEFITS

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