Type of Organization | i. Interest Groups (Please specify in question 3a) Represent state DOT employees |
Top benefits of PPP |
|
PPP Concern 1 | Private financing is up to 35% higher than tax exempt financing- greatly increasing the cost of the project, making them financially unstable and subject to taxpayer bailout. Also greatly increases toll levels. |
PPP Concern Mitigation 1 | Public agencies should utilize tax exempt public financing. Not sure you can mitigate paying 35% more than you need to... both financing types-private and public-are secured with the tolls-why would we choose the far more expensive option |
PPP Concern 2 | Use of design-build, best value eliminates competitive bidding and increase project costs. Lack of oversight and public agency involvement encourages cost overruns and projects built on the cheap on public right-of-way |
PPP Concern Mitigation 2 | Prohibit no-bid design-build and require public oversight, design, and inspection to ensure road safety and cost controls. |
PPP Concern 3 | Toll roads take money out of our transportation system by moving revenues/profits |
PPP Concern Mitigation 3 | Toll revenues should be reinvested into our transportation system and not siphoned off to multi-national companies that don't remove the revenue from the system but often take it out of the country |
PPP Concern 4 | Non-compete clauses and cash payments prevent improvements to competing public roads and actually increase congestion |
PPP Concern Mitigation 4 | Prohibit non-compete clauses and cash payoffs-they just confirm the notion that toll roads aren't about reducing congestion-they are about increasing it to the point toll roads are viable profit centers. |
PPP Concern 5 |
|
PPP Concern Mitigation 5 |
|
Factors to consider by decision-makers | See above |
Contract structures/techniques to protect public interests | Require competitive bidding, public oversight, design, and inspection |
Other perspectives | The only differences in a traditional toll road and a 3P, is that under the 3P model you pay up to 35% more for financing and another 20% or so must be paid out (by contract) in profit to private investors instead of being reinvested into the system to benefit the public. |