THE ARGENTA PROCESS
PUBLIC PROJECTS
Argenta recognizes that to many public entities, bonding is the desired and most familiar fundraising method for public projects. However, the Argenta Process provides an alternative to bonding that public entities may find attractive in certain situations. Through a Public-Private Partnership, Argenta leverages the private procurement process to achieve shorter project time lines and significantly lower project costs. Through this private project delivery method, the mandatory competitive public process that results in increased inflationary costs is avoided. The Argenta Process also decreases risk associated with hidden construction costs (change orders), time overruns, and suboptimal project management and performance.
Public projects financed through the Argenta Process demonstrate that the Argenta cost of capital is competitive with the cost of capital associated with the traditional bonding process. These projects also realized accelerated completion times.
Quotes
State and local governments have routinely experience cost savings from 10 to 40 percent through privatization, and often with accompanying improvements in the way an asset is managed or a service is delivered.-- The National Council for Public-Private Partnerships, "For the Good of the People: Using Public-Private Partnerships To Meet America's Essential Needs," pg. 6
ARGENTA ADVANTAGES
- The process of creating the public-private relationship is straight forward and simple.
- The terms and costs of financing are quickly determinable. Funding can be in place within 90 days.
- The public entity still designs and works directly with contractors and architects to create a project that works for them.
- At the option of the public entity, they can exit the public-private partnership arrangement during the agreement term by refinance.
- The public entity owns the project for no additional cost at the end of the term.
- The public entity is relieved of change order and other project completion risks.
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