1. Virginia’s P3 Program
Morteza Farajian, PhD

2. Virginia’s Public-Private Partnership (P3)
11/13/2018
Political/ Public Support
Public Sector Capacity
Virginia’s P3 Program
Risk
Analysis & Optimization
P3 Legislation
Pipeline of Projects
Standardized Processes

3. PUBLIC-PRIVATE TRANSPORTATION ACT OF 1995
Encourages investment by private entities
Authorizes private entities to develop and operate qualifying transportation facilities
Allows for solicited and unsolicited proposals
Requires guidelines that detail the proposal acceptance and review process
Requires Responsible Public Entity (RPE) to adopt guidelines
Award based on best value - does not require procuring agency to accept lowest price offer.

4. Virginia P3 Projects delivered
Total Project Value = $7 Billion Economic Activity = $5.5 Billion and increasing
PPTA Project
Contract Executed
Total $$ Value
Route 288
December 18, 2000
$236 M
Route 199
October 21, 2002
$31.4 M
Route 895
June 22, 2006
$611 M
Capital Beltway Express Lanes
December 19, 2007
$1.9 B
I-95 Express Lanes
July 31, 2012
$925 M
Regional Traffic Operation Centers
July 1, 2013
$355 M
Dulles Rail
June 2006
$1.5 B
Coalfields Expressway
January 11, 2002
$2.8 B
Route 28
September 25, 2002
$351 M
Route 58
December 15, 2003
$223 M
Elizabeth River Crossing (Midtown Tunnel)
April 13, 2012
$2.1 B

5. P3 Guidance Documents
Commonwealth’s PPTA Implementation Manual & Guidelines (2015)
Increases Transparency
Increases Competition
Increases Public Engagement
P3 Risk Management Guide
P3 Value for Money Guide
P3 Public Engagement Guide

6. P3 Project Delivery Framework

7. P3 Project Screening High-Level Criteria: Detail-Level Criteria:
Ability to Transfer Risk
Funding Requirement
Ability to Raise Capital
Complexity of Effectively Leveraging Private Sector Innovation/Expertise
Addresses Priorities in State, Regional and/or Local Transportation Plan
Project Efficiencies through P3 Delivery
Detail-Level Criteria:
Public Need and Benefits
Economic Development
Market Demand for P3 Delivery
Stakeholder Support
Technical Feasibility
Systematic Interface and Compatibility
Financial Feasibility
Legal/Legislative Feasibility
Project Risks

8. P3 Risk Management Framework

9. Morteza.Farajian@vdot.virginia.gov www.p3virginia.org
Virginia’s P3 Program