The Pew center on the states last year examined the failure of a plan to lease the Pennsylvania Turnpike. In its report, the center offers a list of questions state policymakers should answer when considering P3s, especially long-term leases, to fund infrastructure improvements. They include:
Questions about the policymaking process
· Did the state complete appropriate due diligence prior to proposing a lease of the roadway?
· Is the process adequately and appropriately transparent, with sufficient involvement from the public and other stakeholders?
· Do both the executive and legislative branches have access to the information they need to make a sound decision?
Questions about tolling
· If tolls will be increased, what is the likely effect on traffic patterns? If increased tolls on the leased road lead to more traffic on alternative roads, will the government have to spend additional funds to improve non-toll roads?
· Will safety on the statewide transportation network be adversely affected if travelers avoid the tolls by using alternative roads?
· Is it unfair that current users get to enjoy the transportation system that future generations will be paying for through higher tolls?
· Is one group of individuals being asked to finance the majority of the state's transportation needs? Is that equitable?
· What are the economic and business implications for the state if the lease is allowed?
· how does the proposal take into account the potential impact on congestion, pollution and land use?
Questions about the bidding and contracting processes
· Was the bidding process fully competitive?
· What are the transaction costs associated with the deal? are they reasonable?
· What provisions for flexibility are written into the lease? Can the government and the private operator make choices related to level of service, maintenance, etc., to reflect changing circumstances?
· What risks do the public and private sectors bear in the deal? Does the financial structure of the lease account for risks borne by the state or the private operator?
· Does the party bearing the risk also have control that allows it to fix problems that arise related to that risk?
· If the lease is awarded, can the state still build competing and/or complementary roads or transportation routes? If not, what are the long-term implications? 28