Public Private Partnerships What We Have Learned & What More We Need to Know

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

Trends that Require New Business Models Growing population, or at least, trip making Continually increasing demand for added capacity and “Pay As You Go” can’t 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

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

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

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 2

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

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

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

WEBSITES americas.com/homepage.asphttp:// americas.com/homepage.asp

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

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

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

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

Issues to discuss Procurement Contract Requirements Toll Rates Stewardship Public Sector Oversight Legal Finance Bi-national projects