Respondent #3

Type of Organization

1. Transportation Consulting

Top benefits of PPP

1. Private Sector Expertise

2. Use Others Money

3. Promote Innovation in Project Development and Delivery/Profit
Motive

4. Accelerate High Profile Projects

PPP Concern 1

Lack of understanding and clear communication on what a PPP is and is not such as PPPs do not solve funding shortfalls and are a delivery tool. A funding option, such as tolls, is needed for a PPP to be successful.

PPP Concern Mitigation 1

Education of key policy makers at a high level of PPPs and also training programs for key staff such as CFOs, chief engineers, etc.

PPP Concern 2

A few "risky-on the edge" PPP deals cause concerns among the key policy makers and a good delivery tool is thrown out. For example, some risky toll roads built by public entities have struggled, yet toll roads continue to get promoted. It should be the same with PPPs.

PPP Concern Mitigation 2

Put in place solid PPP processes that help promote the best projects and finance plans moving forward and limit the highly risky projects/schemes from moving forward.

PPP Concern 3

Brownfield toll roads being leased over long period without the public owner sharing in the upside of the revenue stream.

PPP Concern Mitigation 3

There should be strong consideration for policy provisions that require the governmental entity to share in the upside revenue on the lease of toll roads. This should not be overly prescriptive, but give the flexibility needed for each state to work within an overall policy and then apply this based on the specific situation.

PPP Concern 4

Some PPP projects seem to be starting way too early in the project development process. This may lead to "negotiated" deals that might or might not generate the best bang for the public owner.

PPP Concern Mitigation 4

This is a tough one. How do you prescribe a one size fits all policy without killing innovation? Possibly requiring a solid Value for Money analysis at a minimum before moving forward and then based on the final proposal would help ensure a good analysis is provided before signing the deal.

PPP Concern 5

Congress might become overly prescriptive on the PPP process and toll roads.

PPP Concern Mitigation 5

States must educate their Congressional members that all tools must be provided in today's environment to provide states the flexibility needed to deliver timely transportation improvements.

Factors to consider by decision-makers

1. Pick the right projects that fit the PPP profile

2. Be patient and start at the right time in the project development
process (generally with environmental clear or almost clear)

3. Hire good PPP advisors (legal and financial are most important)

4. Develop a clear and consistent PPP process

5. Be patient and persistent-large PPPs are not for the faint of heart!

Contract structures/techniques to protect public interests

This depends on the goals to be accomplished. The best answer is to build a solid transparent PPP process that is competitive and the results will speak for themselves.

Other perspectives

It seems the survey focuses mostly on the "needs improvement" side of the PPP discussion. This may tend to convey there are "problems" when the facts are showing the states that have been working with PPPs for several years have good solid PPP processes. The key seems to be to find a way to shorten the learning curve for those new to PPPs.