Virginia's original legislation regarding public-private partnerships was passed in 1995. The law enables the state to enter into contracts authorizing private entities to acquire, construct, improve, maintain and operate certain transportation facilities. Based on its past experiences, the Virginia General Assembly passed changes to its Public Private Transportation Act in 2005. The revisions required that timelines and activities within each phase of procurement be identified; that mandatory risk sharing be required on the part of project proposers; that more flexibility in the development of interim agreements be allowed to accelerate required activities; and that transparency and public involvement be promoted.9 Virginia currently has 50 proposals under consideration.
In reviewing its 10 years of experience with public-private partnerships, the Virginia Department of Transportation identified several lessons learned.10
1. A partnership is not appropriate for every project.
2. Engineering is the easy part.
3. Private partners need to take some risk for after its built.
4. Less confusing federal programs and more consistent guidance are needed.
5. The development of expertise takes time.
6. Beware of conflicts of interest and political interference.
7. It takes a significant time commitment by the senior staff of both the public and private partners.
8. Set and manage realistic expectations.