P3 EVIDENCE PROJECT Jonathan L. Gifford George Mason University Center for Transportation Public-Private Partnership Policy

Motivation How well are P3s meeting their sponsors’ objectives? What are their objectives? Efficiency & lack of funding are frequently cited Academic emphasis on P3 efficiency: easier to measure Industry emphasis on VfM studies: easier to communicate savings Media: easier to communicate lack of resources What other goals does the public sector consider? Are project goals changing once P3 delivery is considered? Are the other goals achieved being communicated to the public?

P3 Evidence Phase 1 Project selection using three criteria: Type of infrastructure: surface transportation Market maturity: financial close after 2003. Type of contract: long term engagement (DBFOM, DBFM, DBOM) Out of a 22-project universe, 6 projects selected Virginia’s I-495 Express Lanes Colorado’s U.S. 36 Express Lanes Virginia’s I-95 Express Lanes Florida’s Port of Miami Tunnel California’s Presidio Parkway Texas’ LBJ TEXpress Lanes Methodology: interviews with participants, analysis of project documentation

Main Objectives Identified & Evidence Congestion management and user experience Travel time and average speed I-495 & I-95 Express Lanes. U.S. 36 Accessing private-sector funding and financing Private equity and loans. Federal support I-495 & I-95 Express Lanes. U.S. 36. Presidio Parkway. Port of Miami Tunnel. LBJ TEXpress Lanes Accelerating project delivery Deliver project earlier I-495 Express Lanes Cost, schedule, and facility or service quality/certainty Relevant for large scale projects, particularly tunnels after the Big Dig Port of Miami Tunnel. LBJ TEXpress Lanes

Main Objectives Identified & Evidence Accessing private-sector expertise and innovation Bored tunnel technology in Port of Miami Tunnel Trench and cantilever design in LBJ TEXpress Lanes Modified design and electronic tolling in I-495 Express Lanes Risk management Geotechnical risk in Port of Miami Tunnel Debt repayment in I-495 & I-95 Express Lanes, U.S. 36, Presidio Parkway, LBJ TEXpress Lanes Increase transit infrastructure and funding Project funding allows combination of different objectives U.S. 36. I-95/I-395 Express Lanes (extension)

Findings Multiple objectives Goal achievement Not all goals related to efficiency gains or private sector funding Goal achievement Not all goals are measured and disclosed (e.g., redevelopment, tolling improvements) Overall goals are achieved There are exceptions (e.g., on-time delivery for U.S. 36) Transparency practices gaps Disclosure is not citizen friendly across states and projects

Discussion How can public agencies broaden P3 objectives, communicate more effectively? Consider private sector involvement earlier to adopt ATCs (I-495 Express Lanes vs Presidio Parkway) Measure the status quo (e.g., public sector tolling collection, maintenance & neglect costs, etc.) Measure direct and indirect outcomes (e.g., redevelopment, accident reduction, etc.) Measure impact and provide before-after analysis, and results-vs-projection analysis Introduce transparency practices to improve public trust Introduce value capture opportunities to diminish political opposition blocking P3 benefits

What’s Next? Final report for cases 1-6 available in July. Extending work with 3 additional cases (tentatively Ohio River Bridges, Goethals, Midtown Tunnel) Seeking additional support/partners for remaining 13 cases Outreach/dissemination to elected officials, decision makers

P3 EVIDENCE PROJECT Jonathan L. Gifford George Mason University Center for Transportation Public-Private Partnership Policy