Public Private Partnerships What We Have Learned

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Public Private Partnerships What We Have
LearnedWhat More We Need to Know
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Public Private Partnership

• Any endeavor which marries private investment and
  public investment.
• Private investment can vary anywhere from 1.00
  to 100 of project costs.
• (Simple is not the same as
  easy)
• Reagan

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Trends that Require NewBusiness Models

• Growing population, or at least, trip making
• Continually increasing demand for added
  capacity and Pay As You Go cant keep up, much
  less, catch up, with demand
• Increasing maintenance costs
• Age
• Increasing lane miles
• Heavier weights
• Decline in revenues and lack of political will to
  increase them
• Rising construction and right of way costs

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Public Private Partnership Goals

• Optimize public funding
• Maximize private investment
• Combine the BEST of Public and Private
  Enterprise
• Speed Implementation

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Benefits of PPP

• Accelerates project through concurrent, rather
  than serial, activities
• Fixes price early in design phase
• Guarantees completion date
• Designates single point of responsibility
• Fairly allocates project risks among all parties
• Provides life cycle cost efficiency
• Provides for continuous Value Engineering
  assessments
• Requires continuous constructability reviews
• Streamlines project administration
• Enhances cost control and risk management

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Successful PPP Implementation

• Entrepreneurial Vision
• Organizational support commitment to innovation
• Institutional capacity to manage program
• Risk management philosophy
• Access to innovative, at least in transportation,
  finance mechanisms
• Flexibility to respond to diverse proposals
• Innovative procurement tools
• Positive political climate

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State Law Traditionally Provides

• Competitive bidding statutes
• Low bid requirements
• Limited sole source authority
• No negotiations
• No design-build contract authority
• Lack of revenue bonding authority
• Constitutional restrictions on gift of public
  funds and investment in private companies
• 100 surety bond requirements
• Open records acts
• Legislative or local govt. approvals

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State Laws Should Provide for

• Submission of competitive proposals
• Solicited and Unsolicited
• Appropriate evaluation factors
• Opportunity for public comment
• Authority for state grant or loan to project and
  contribution of federal funds
• Clear and fair selection process
• Avoidance of conflicts of interest
• Competition stipends

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PPP Administration

• Dedicated Staff
• Small, effective, efficient, teamlike
• Innovative and flexible
• Co-located and EMPOWERED!
• Specialized Support
• Legal
• Financial
• Environmental

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WEBSITES

• http//www.fhwa.dot.gov/ppp/index.htm
• http//www.p3-americas.com/homepage.asp
• http//ncppp.org/

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CATEGORIES

• DB/DBO/DBOM
• E-470
• Tx 130, segments 1-4
• I-15
• Hudson-Bergen Light Rail
• Leases
• Chicago Skyway
• Indiana Toll Road
• Pocahontas Parkway

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CATEGORIES

• DBFO/DBFOM
• Dulles Greenway
• SR 125
• TTC 35
• Shadow/Pass Through Tolls/ Availability Payments
• Miami Port Tunnel
• Texas Counties
• Mississippi HELP Program

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CATEGORIES

• Hybrids
• NM 44
• Heartland Corridor
• CREATE
• Las Vegas Monorail
• Katy Freeway (Public/Public)
• Use your imagination

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Just remember, every project is unique! The
LONE RANGER is all out of silver bullets!!!
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Issues to discuss

• Procurement
• Contract Requirements
• Toll Rates
• Stewardship
• Public Sector Oversight
• Legal
• Finance
• Bi-national projects