Fluor has a proven track record of delivering P3 projects with a total dollar value of more than $20 billion. Acting as project developer, execution partner, financial arranger and investor, Fluor offers a broad range of financing and commercial options to assist clients in realizing major infrastructure assets.
Fluor's strong balance sheet, matched with a long record of financial stability and execution certainty, provides owners, co-investors and capital markets with confidence that projects will be built and operated successfully.
The benefits of a P3 approach include faster schedules, lower life-cycle costs and considerably less risk to the public sector. P3s provide governments and local authorities an alternative method of financing and implementing major infrastructure projects. Beyond assessing the optimal sources of funding needed to meet a project's capital requirements, the commercial structure adopted by the private and public sector partners plays a pivotal role.
When a public agency needs to reach beyond its funding resources or seeks to shift life-cycle cost risk to third parties, a P3 solution may prove advantageous.
Structures that Fluor has used on infrastructure projects include:
- This structure is most advantageous when a toll or user fee is not assessed or if the public agency is willing to assume volume risk.
- Payments are pre-determined prior to construction and are often supported by a dedicated stream of sales or other tax revenue receivable by the public agency.
- The private concessionaire assumes construction and performance risk of the asset, while the public sector maintains volume risk.
Tolls or User Fees
- Project funding is directly supported by vehicle or passenger tolls
- Tolls can be directly assessed on users or payable to the concessionaire by the public sector based on usage (shadow tolls).
- The public agency sponsor benefits by the private concessionaire bearing the revenue risks.
- Variations of this structure where both the private concessionaire and public agency share the financial upside of any toll revenue surplus can be used.