Transportation Financial Advisory Services
IMG helps transportation departments and authorities, toll road sponsors, and governments seek traditional and innovative ways to finance roads, bridges, tunnels, transit systems, railroads and ports.
Financial Feasibility Analysis and Financial Modeling- For new projects, IMG utilizes project finance techniques to evaluate and structure financings that make these challenging projects feasible. IMG develops flexible, user-friendly financial models that separate assumptions and calculations so clients can review and manipulate assumptions. Our models are designed to easily run dozens of scenarios, such stress-tests of toll forecasts and capital expenditure programs to assess the limits of a project’s feasibility. IMG has devised ways to blend financing sources, including project loans, revenue bonds, private activity bonds, loans from the U.S. Department of Transportation (U.S. DOT) Transportation Infrastructure Finance and Innovation Act (TIFIA) program, and joint development sources.
Example of User-Friendly Financial Model Input
Public-Private Partnerships (P3s)-Surface transportation has a rich history of applying innovative finance techniques, often used in conjunction with P3s. IMG professionals were actively involved in some of the early tollroad P3s in California, Washington, and Virginia in the early 1990s, and understand the evolution of these effective, though challenging, approaches to realizing essential projects and capital expansions. More recently, IMG has served as the advisor to P3 projects such as the I-495 Capital Beltway HOT Lanes in Virginia, numerous projects for the U.S. DOT TIFIA Office, the proposed First Coast Outer Beltway greenfield toll road near Jacksonville, Florida; and the Texas DOT CDA program. IMG has helped both to structure specific P3s and advise governments on establishing optimal P3 programs that encourage active participation of the private sector, while safeguarding the public interest.
In analyzing P3 projects, we are guided by the following questions:
- What is the best financial strategy for each P3 opportunity?
- What are the optimal funding sources for each P3 and the P3 program as a whole?
- How can the P3 process take in the unique aspects of each transportation industry?
- What is the best way to procure, negotiate and execute each P3 transaction?
- How can the value of the P3 be professionally calculated and communicated to the public?
- How can the client and its consultant’s provide other support to ensure that these transactions are successful?
Our assignments often have included valuing the P3 from both the public and private perspectives taking into account different assumptions regarding project risks, discount rates, and economic benefit.
Innovative Finance-IMG professionals have worked with transactions involving a variety of innovative finance tools including TIFIA loans, Rail Rehabilitation and Improvement Financing (RRIF), State Infrastructure Banks (SIBs), joint development programs, tax increment financing, impact fees, sales tax revenue sources, and non-toll revenue source funding. View Miami CITT. IMG’s rich understanding of the link between transportation and real estate development offers a valuable perspective on this potential funding source.
Performance Improvement-For regulators and policymakers seeking improvements to organizational effectiveness, IMG has conducted performance audits of tollroad programs and road departments, evaluating both financial and operational performance. View IL OAG.
For more information on IMG’s Transportation Financial Advisory Services contact:
Sasha Page, Vice President or
Louis Wolinetz, Senior Manager