Mass Transit

SEP-OCT 2014

Mass Transit magazine features agency profiles, industry trends, management tips and new product information.

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96 | Mass Transit | MassTransitmag.com | SEPTEMBER/OCTOBER 2014 BEST PRACTICES ublic agencies and authorities through- out the U.S. and the world are facing an increase in public demand for new infrastructure. At the same time, aging infrastructure requires repair and/or re- placement and continued fscal challenges limit available funding for infrastructure improvements or development. To meet these challenges, some transportation agencies and authorities in the United States are turning toward alternative pro- curement models to address infrastructure needs for their communities. One model, although "new" to the U.S., has been in existence for many years and has been uti- lized successfully throughout the world — public-private partnerships (P3s). P3s are contractual agreements formed between a public agency and a private entity that allow private sector participation in the fnancing, design, construction, operation and maintenance of public infrastructure. In a P3, the private entity is respon- sible for delivering a public good, facili- ty or service that has traditionally been provided and managed by a public entity, such as a state agency, local government or regional authority. Te goal of the col- laborative partnership is to deliver ben- efts to the public through value-added private sector engagement. Benefts of P3s include job creation, design innovation, efciencies in project fnance, transfer of risk, optimization of resources and capabilities, as well as the timely delivery, operations and long-term maintenance of public infrastructure. Tis unique model has demonstrated that projects are delivered on-time and with- in budget, utilizing innovative ideas and products to create long-term, life-cycle operational and maintenance efciencies. P3S: MORE THAN JUST FINANCING While fnancing is ofen an alluring factor that encourages public agencies and legis- lators to consider procuring a project as a P3, it is the innovation, technical acumen and competition that creates tremendous public value while utilizing this life-cycle procurement model. P3s bring projects to the market sooner, creating local jobs and long-term economic development. P3s incorporate a blend of public- ly available fnancing programs with private funding to achieve project goals. Federal programs such as TIFIA, PABs, grants and, in some cases, RRIF, are combined to stabilize the fnancial foundation. Tese credit enhancement programs enable agencies to stipulate revenue risk or availability payments as the principal method of engagement during the operations and maintenance phases of a project. Transit P3s in the U.S. In Colorado, the Regional Tranist Dis- trict (RTD), has embarked on an am- bitious voter-approved transit develop- ment program (FasTracks) to improve mobility and provide additional link- ages in the Denver area. Te 2004 ref- erendum that established the FasTracks program mandated aggressive service delivery dates. As the implementation progressed, it became clear that to meet the mandates and address the challeng - ing economic conditions following the passage of the referendum, alternative delivery options needed to be evaluat- ed. Te core of the new commuter rail system was evaluated and selected for procurement as a P3. Using Innovative Approaches to Fund Project s P3s and TODs P United States Benefts of P3s include job creation, design innovation and optimization of resources. VIEW FROM the tunnel at the triple track tunnel at Denver International Airport. SALLYE PERRIN Senior Vice President, Strategic Director P3s Parsons Brinckerhoff RTD

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