Respondent #15

Type of Organization

Other

Non-profit environmental group

Top benefits of PPP

1. Potential to harness private sector creativity and efficiency;

2. Potential to leverage public sector transportation funding by
attracting private sector capital.

PPP Concern 1

1. Tend to circumvent normal planning processes

PPP Concern Mitigation 1

Limit or prohibit unsolicited bids; require bids go through normal planning process

PPP Concern 2

Circumvent and/or undermine environmental reviews

PPP Concern Mitigation 2

As condition of signing agreement, require NEPA process completed or substantially complete; provide clarity what can be negotiated with proponent before NEPA process complete

PPP Concern 3

Has not tended to attract private risk sector capital proponents promised.

PPP Concern Mitigation 3

Require proposer invest a certain amount of equity

PPP Concern 4

Non-compete clauses limit investments that are in public interest

PPP Concern Mitigation 4

Prohibit non-compete clauses

PPP Concern 5

Failure to adequately account for public costs and potential taxpayer liability, and environmental costs (including sprawl promote).

PPP Concern Mitigation 5

Require full, independent accounting of these items.

Factors to consider by decision makers

1. full cost and potential taxpayer liability;

2. consistency with planning process;

3. impact on funding and function of other projects;

4. full environmental costs, including secondary impacts promoting sprawl;

5. full alternatives analysis

Contract structures/techniques to protect public interests

See above for various provisions and requirements.

Other perspectives

Our experience with PPPs is that they are far more complex than initially advertised, and often the public interest is not well-protected.