2013 Session: 295

• Private Finance of Transport Infrastructure: Shifts in Risk Perceptions
  Abstract: Public Private Partnerships (PPPs) are about the sharing of risks and risk transfer. The various models are based on respective risk sharing, while responsibilities in financing, business development and governance demonstrate different trends in the various modes. The economic crisis has had an impact on both the transport sector and stakeholder risk assessment. Private finance of public infrastructure has been based on the assumption of ever growing demand and user willingness or ability to pay. Revenue risk was considered comparatively low. Proper allocation of this risk was insignificant. The pertaining economic crisis has highlighted this shortcoming. Risk estimates have shifted. A pilot survey registers this shift. These trends are used to propose key characteristics to be included in PPPs. New financing models may be required. The present research reports on the initial findings of an international survey investigating inter-temporal shifts in the assessment of key risks in Transport sector PPPs and respective impact on the preferred risk allocation strategy prior to and following the financial/economic crisis. The ultimate scope of the survey is to identify the key characteristics of future financing/contractual models and verify the continued interest in the PPP model of transport infrastructure development.Initial evidence shows an increase in the probability of occurrence of demand related risks, as well as an increase in the anticipated impact of the occurrence of political, social and revenue risks. The proposed allocation of risks to financiers and lenders gives the direction of potentially new project finance models.
  Authors: Roumboutsos, Athena
  Authors: Roumboutsos, Athena
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-1694
• Roadmap to Plan and Deploy Transportation Infrastructure ProjectsUsing Public-Private Partnerships
  Abstract: Traditionally, in many developing countries, the provision of infrastructure facilities as “public goods” has been the responsibility of the public sector and the government. With rapidly changing economic conditions, communication methods, increased economic pressure, and competition for investment opportunities, the “government owned” notion is facing challenges and undergoing changes. In many countries infrastructure investment needs cannot be financed by the public sector alone. To meet these needs, governments are attempting to encourage private sector involvement in investment in infrastructure projects as an additional option they cannot afford to ignore. Private sector can play a vital and efficient role in accelerating and providing the needed infrastructure system that is essential in facilitating the communication and movement of people and goods while minimizing impacts on sustainable development. Public Private Partnerships “PPP” involvement in infrastructure development has gone through several evolutions. There are several attempts and a few good examples that describe such collaborations. However, they differ widely in their physical, political, financial, and technical conditions. There is limited discussion and documentation on the subject of PPP involvement as a collaboration model in transportation infrastructure and technology. To date, not a single set of rules to be followed exists that would make successful implementation likely. This paper argues that a systematic approach could be adopted by the public sector to engage the private sector in forming a collaborative “PPP” model. This paper’s scope is to document, analyze and provide lessons learned and guiding principles and to present a roadmap of how to establish partnerships between public (government) and private sectors. It documents partnering challenges and opportunities and how to encourage cooperation and private sector initiatives. Also, to provide an overview of current policies, processes and challenges to private sector involvement in public transportation infrastructure and ITS technology projects. The paper focuses on how to provide strategies and a systematic approach that allows the government to engage the private sector in forming PPPs and to work together on transportation infrastructure projects (roads, bridges, and technology deployment). Given limited resources, PPPs can be an effective tool to provide transportation infrastructure to development locations. The paper is evaluating several case studies of urban and rural regions in Northern California, Northwestern Nevada and Southern Oregon, applicable experiences, and suggested solutions that could be transferred and adopted successfully in other countries and settings. Finally, a roadmap will be presented for private sector engagement suggesting how to use the PPP collaboration model.
  Authors: Elhamshary, Osama
  Authors: Elhamshary, Osama
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-2779
• The P3 Potential
  Abstract: For well over two decades public/private partnerships (P3s) have been promoted as a means for leveraging scarce public resources for transportation infrastructure investments. Although the number of P3s has greatly increased since the 1980s, they still constitute a tiny portion of all US transportation infrastructure investments. What are the barriers to P3s, and how might they be overcome? What strategies might states and municipalities employ to expand the use of P3s? This paper presents a summary of findings from a comprehensive study of P3s in California. We present our summary in the form of lessons learned. We find that strong market demand, broad support, and institutional capacity are key factors in effective P3s.
  Authors: Giuliano, Genevieve; Holliday, Kevin Thomas; Elgart, Zachary
  Authors: Giuliano, Genevieve; Holliday, Kevin Thomas; Elgart, Zachary
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-2971
• Key Considerations for States Seeking to Implement Public-Private Partnerships for New Highway Capacity
  Abstract: Implementing a Public-Private Partnership (P3) for new highway capacity within a public agency involves issues from enabling legislation through identification, evaluation, negotiation and management of P3 projects. Public agencies will need:•A legal framework to establish and enforce long term P3 agreements;•Policies, processes, and tools to guide policy decisions;•Technical skills to identify, develop and evaluate P3 projects and to negotiate agreements; and•Skilled staff to manage and oversee projects over the long-term.This paper explores key considerations involved in implementing a P3 project at a State DOT or other public agency. Public agencies seeking to facilitate the delivery and stewardship of P3 projects may consider whether to establish a P3 program or develop P3 projects on a project-by-project basis. P3 programs establish policies and processes that enable the fair and efficient evaluation, procurement, and oversight of P3 projects. Those policies and processes include: planning and procurement processes that facilitate the selection of appropriate projects as potential P3s; evaluation processes that assist decisionmakers in structuring commercially viable P3 agreements that achieve policy goals, optimally allocate risks, and bring value to the investment; fair and competitive procurement processes that allow the public agency to select the best partner and negotiate a final agreement that is transparent and protects the public interest; and management of a new role as a performance-based contract manager.
  Authors: DeCorla-Souza, Patrick T.; Mayer, Jennifer R.; Jette, Aaron; Buxbaum, Jeffrey N.
  Authors: DeCorla-Souza, Patrick T.; Mayer, Jennifer R.; Jette, Aaron; Buxbaum, Jeffrey N.
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-3030
• Knowledge Management and Public-Private Partnerships:How State Transportation Agencies Manage Knowledge for Designing and Implementing PPPs
  Abstract: This paper reports findings from case studies of two state-level departments of transportation, to provide best practices for how transportation agencies can improve their approaches to managing public-private partnerships (PPP) for surface transportation projects. The findings reported in this paper draw from two separate case studies of the Virginia Department of Transportation (VDOT) and the Texas Department of Transportation (TxDOT), and were analyzed in respect to a theoretical framework. The qualitative research behind this paper involved a review of more than 120 peer-reviewed articles on knowledge management and organizational learning and reports produced by government and industry; content analysis of interviews with twenty-four public and private sector experts through the software application Atlas.ti; and a review of more than 100 government documents on PPPs in Virginia and Texas.Findings suggest that while public sector organizations are often at a skill-disadvantage compared to the private sector on PPPs, public sector capacity can be improved. Four core domains of learning were identified by interviewees as supporting knowledge development for PPPs, including assessing & assigning employees; deciphering & integrating external knowledge, discussing & documenting lessons from direct experience, and designing and evaluating performance standards. Findings also suggest that developing a clear strategy for a PPP program, centered around public interest objectives, is central to improving the government position in negotiating and overseeing PPPs. Furthermore, cultivating a climate where employees feel comfortable reporting on their own personal failures and challenging superiors was seen as particularly important for identifying and acting upon lessons from the implementation of PPPs. Overall conclusions suggest that goal-oriented learning is central to improving the government approach to managing PPPs, and that a clear strategy centered on public interest objectives can drive the process.
  Authors: Boyer, Eric
  Authors: Boyer, Eric
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-3141
• Research Needs for Virginia Transportation Public-Private Partnership Policy
  Abstract: The focus of this study is to address research needs for transportation public-private partnership (P3) policy within the context of Virginia. The discussion begins examining the definition of P3s, an overview of P3 project implementation in the U.S., legislative factors and value for money analysis. Then, the research needs for Virginia transportation P3 policy are reviewed, using the Capital Beltway High Occupancy Toll lane (HOT lane) project as an example case study. The paper concludes with a discussion of policy research needs.
  Authors: Daito, Nobuhiko; Chen, Zhenhua; Gifford, Jonathan L.
  Authors: Daito, Nobuhiko; Chen, Zhenhua; Gifford, Jonathan L.
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-4898
• The P3 Potential
  Authors: Elgart, Zachary
  Authors: Elgart, Zachary
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-2971
• Key Considerations for States Seeking to Implement Public-Private Partnerships for New Highway Capacity
  Authors: DeCorla-Souza, Patrick
  Authors: DeCorla-Souza, Patrick
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: 13-3030
• General Framework for Evaluating Long-Term Leasing of Toll Roads: Case Study of Indiana I-90
  Authors: Zhang, Zhibo
  Authors: Zhang, Zhibo
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5860
• Alaska's Experience with P3 Procurement
  Authors: Zofka, Ewa
  Authors: Zofka, Ewa
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-6042
• Minnesota's Transportation Economic Development Program: Using the Power of Partnerships to Deliver Job-Supporting Transportation Improvement Projects
  Authors: Shands, Matt
  Authors: Shands, Matt
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5848
• Surety and the P3 Contract Format
  Authors: Reid, Robena
  Authors: Reid, Robena
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5859
• Private Activity Bonds and P3s
  Authors: Reid, Robena
  Authors: Reid, Robena
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5873
• FHWA's Public-Private Partnership Programs and Roadmap
  Authors: DeCorla-Souza, Patrick
  Authors: DeCorla-Souza, Patrick
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5861
• Tools for Development of Public-Sector Comparator and P3 Shadow Bid for Value for Money Analysis
  Authors: DeCorla-Souza, Patrick
  Authors: DeCorla-Souza, Patrick
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5862
• Risk Assessment Tool for P3 Evaluation
  Authors: DeCorla-Souza, Patrick
  Authors: DeCorla-Souza, Patrick
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5864
• Financial Assessment Tool for P3 Evaluation
  Authors: DeCorla-Souza, Patrick
  Authors: DeCorla-Souza, Patrick
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 295
  Paper Number: P13-5866